Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

September 20, 2007 10:43 ET

Silvermet Drilling Program Intersects Significant Ni-Cu-PGM Mineralization at Muskox, Nunavut

TORONTO, ONTARIO--(Marketwire - Sept. 20, 2007) - Silvermet Inc. ("Silvermet")(TSX VENTURE:SYI) is pleased to provide a status report on its Muskox nickel-copper-platinum group metal ("Ni-Cu-PGM") drilling program that was initiated on June 17, 2007. The property is located approximately 90 kilometres south of the village of Kugluktuk (formerly known as Coppermine), Nunavut.

The Muskox Intrusion, which is one of the world's largest layered mafic-ultramafic intrusive complexes, contains disseminated to massive Ni-Cu sulphide mineralization that is strikingly similar to that found in the Noril'sk mining camp in Russia. The Muskox layered sequence also contains stratiform PGM mineralization similar to that of the Merensky Reef and of the UG2 chromitite horizons in the Bushveld complex in South Africa. The Silvermet optioned land claims were assembled by Prize Mining Corporation ("Prize Mining") between 1994 and 2001.

The objective of the drill program is to follow-up the successful soil geochemical survey completed during 2006 by Silvermet. During the winter of 2006-2007 Silvermet's consultants integrated the 2006 geochemical data with all historical geological and geophysical data on the project resulting in recommendations for a drill program totalling approximately 10,000 metres as an initial test of the newly discovered exploration targets.

To date, Silvermet has completed 23 drill holes totaling 3,746 metres. The company plans to complete at least 5,000 metres during the 2007 season. The drill rig will be stored on-site over the winter and the balance of the planned 10,000 metre program will commence prior to spring break-up in 2008. Drilling to date has focused on the Pyrrhotite Lake (10 holes) and Valley Lake (13 holes) areas (see attached map).

Map of Muskox Intrusion: http://www.ccnmatthews.com/docs/mus0920.pdf

Assays are pending from Acme Analytical. A NITON XRF portable analyzer is being used in the field to provide preliminary analyses. The NITON XFR analyses are carried out on the flat face of freshly cut drill core. Analysis of CanMet standard samples indicates that the XRF unit returns somewhat lower Cu-Ni values than wet analyses over the range from the detection limit to 1%.

HIGHLIGHTS OF 2007 PROGRAM TO DATE:

- The initial drill hole in the program (SM-07-MX-01 in the Pyrrhotite Lake area) twinned a historic hole with the objective to establish a benchmark for current on-site geologists regarding the nature and character of typical high-grade mineralization that occurs on the property. Hole SM-07-MX-01 intersected 5.5 metres with comparable grade (based on NITON XRF analyses) to two historic holes drilled by Prize Mining Corporation which graded 7.5 to 10.6% copper and 3.2 to 4.7% nickel.

- Shallower holes along the eastern margin of the Muskox Complex (SM-07-MX-02, 03, 04, 05) intersected 5 to 9 metres of disseminated sulphides with localized high-sulphide concentrations within the disseminated zones. A deeper hole (SM-07-MX-07) intersected a thicker disseminated zone (approximately15 metres) with two 0.25 metre intervals containing greater than 1% Ni and greater than 1% Cu (based on NITON XRF analyses).

- Similar looking semi-massive and massive sulphide intersections were encountered at Valley Lake (SM-07-VL-08). The similar macroscopic and metalliferous character of the Valley Lake hole confirms the presence of high-grade Pyrrhotite Lake-type mineralization elsewhere on the property.

- Numerous drill hole intersections of disseminated sulphide mineralization, with localized high-grade concentrations, and extensive proximal surface outcroppings of similar mineralization, highlights the potential for a laterally extensive, large tonnage resource of lower grade Ni-Cu-PGM mineralization.

- Past exploration programs on the Muskox intrusion had identified the Pyrrhotite Lake area as the most prospective area for discovery of sizeable concentrations of high-grade Ni-Cu-PGM mineralization. The current program establishes the Valley Lake area as potentially more prospective than Pyrrhotite Lake and also suggests that some of the other areas on the property that have significant geochemical targets may also be equally prospective.

- Based on a higher number of mineralized intersections, frequency of semi-massive and massive sulphide intervals, and preliminary analytical data based on the NITON XRF analyses, Silvermet's consultants conclude from the current program that the Valley Lake area appears to be more prospective than the Pyrrhotite Lake area. Silvermet's targeted portion in the Valley Lake area (see map) has seen very little exploration activity over the years relative to the Pyrrhotite Lake area and other areas along the east margin of the Muskox Complex.

- The deeper holes SM-07-VL-04, 05, 06 flanking the axis of the underlying "feeder dyke" or "keel" to the Muskox Intrusion intersected up to four semi-massive sulphide intervals with widths ranging from 0.35 to 0.57 metres. The NITON XRF unit detected PGM associated with this mineralization at levels greater than the detection limits (platinum 60 grams per tonne and palladium 30 grams per tonne). Hole SM-07-VL-08 along the western margin of the intrusion is strikingly similar to the high-grade Pyrrhotite Lake hole SM-07-MX-01. VL-08 intersected seventeen semi-massive and massive sulphide intervals ranging in width from 0.18 to 1.45 metres from 42.61 to 63.09 metres in the hole. NITON XRF analyses on the core from within these intervals recorded Cu concentrations ranging from 0.6% to 18%, and Ni values ranging from 0.7% to 3%. Holes SM07-VL-10, 11, 12 were drilled along the eastern margin of the intrusion. Hole SM-07-VL-10 encountered four thin (approximately 0.30 m) semi-massive and massive sulphide intervals within a wider disseminated zone. Hole SM-07-VL-11 encountered one semi-massive to massive sulphide interval comparable to the above.

The completed holes drilled in the 2007 program have provided a better insight into the controls and localization of Ni-Cu-PGM sulphides at Valley Lake. This knowledge is now being integrated with new (2007) detailed ground magnetic surveys conducted on grids with 25 m line spacing. Areas containing enhanced sulphide concentrations discovered in 2007 will be further investigated utilizing detailed gravity and electromagnetic geophysical techniques.

Selected areas along the eastern margin of the intrusion are currently being blocked out for in situ NITON XRF analyses to establish representative grades and extents of mineralized zones. This work is in conjunction with sampling for mineralogical and metallurgical testing that will help ascertain the viability of a lower grade, high tonnage resource with localized high-grade enrichments.

QUALITY CONTROL/QUALITY ASSURANCE PROGRAM

Aurora Geoscience Ltd. of Yellowknife, NWT, whose personnel are experienced in Arctic operations and logistics, are operating Silvermet's 2007 exploration under the supervision of Silvermet's project consultant, Dr. Larry Hulbert. Aurora's technical personnel are all qualified persons as defined in NI-43 101. Muskox project drill core is halved by diamond saw on-site, followed by preliminary assaying along the flat face of the cut core, in 1-metre intervals, using a portable NITON XRF analyzer on-site. The core is subsequently logged by an experienced geologist and sections of core for submittal to Acme Analytical Laboratories Ltd, (an ISO 9001:2000 accredited laboratory) are bagged and boxed at the site, transported by air charter from the site to Yellowknife, where they are received by Aurora Geoscience's expediter and taken directly to Acme Analytical's sample preparation facility in Yellowknife. Thereafter the samples are in custody of Acme Analytical until the sample preparation and analysis are completed. Acme Analytical initially completes ICP-MS analyses on all samples and subsequently completes copper and nickel assays for all samples that return greater than 1 percent copper or nickel from the ICP-MS method.

Mr. Peter George, P.Geo., Silvermet's 43-101 "qualified person" has reviewed the technical content of this press release. Mr. George visited the Muskox site during the week of September 4-7, 2007.

Silvermet Inc. (TSX VENTURE:SYI) is an exploration and development company focused on exploring its nickel-copper-platinum group metals project located in Nunavut, Canada and its zinc-lead-silver project in Turkey. Silvermet Inc. has the right to earn a 70% interest in each of these projects. In addition, Silvermet Inc. is focusing on establishing Waelz kiln facilities in Turkey to produce zinc metal from a number of sources.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Silvermet Inc.
    Clifford H. Frame
    Chairman
    (416) 203-8336
    (416) 203-9483 (FAX)
    or
    Silvermet Inc.
    Stephen G. Roman
    President and CEO
    (416) 368-3949
    Website: www.silvermet.ca