Silvermet Inc.

Silvermet Inc.

October 26, 2006 12:39 ET

Silvermet Extends 2006 Drill Program and Delivers Heavy Media Samples to Lakefield, Ontario, and Waelz Kiln Samples to B.U.S., Germany

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2006) - Silvermet Inc., (TSX VENTURE:SYI) today announces the continuation of its 2006 drill program on the Tufanbeyli Zinc Project in Turkey. Because of a shortage of drilling equipment and crews, only twenty-one holes were completed by September 15 when the drill contractor had to shut down because of other commitments. Drilling will be restarted in late October and will continue through the fall and winter 2006-07.

The drilling completed to September 15 was concentrated in an area approximately 300 metres wide by 600 metres long surrounding an area of historic production (Akcal Mine). Because of very slow turn-around time on assays, the drilling was completed prior to receipt of the majority of the assays. Assays received to date have not indicated the presence of any remaining high-grade zinc resources in the dolomites adjacent to the old mine workings. Silvermet has identified several European laboratories that can provide faster turn-around times.

The ongoing drill program will initially be comprised of at least 15 diamond drill holes to test 5 coincident geological-geochemical-geophysical targets along a 5 kilometre trend of zinc showings to the north of the Akcal Mine, including the area surrounding the historic Belbasi Mine. Silvermet plans to switch over to reverse circulation drilling with the onset of winter.

At Akcal, where the initial drilling tested bedded oxide without positive results additional holes will be drilled to extend the rim of the pit and its extension at depth and along strike to the north and south. Approximately 110,000 tonnes of plus 20 percent zinc material was mined from the historic small pits and shallow underground workings.

At Belbasi approximately 100,000 tonnes of bedded high grade zinc material was mined from stratabound zinc oxide-carbonate mineralization that transitions to sulphide mineralization at a depth of 60 to 70 metres below surface.

The historic production (1985 to 1998) was shipped to the Cinkur process plant near Kayseri, Turkey.

In total Cinkur received and processed approximately 210,000 tonnes of ore from Tufanbeyli. It is believed that the average grade delivered to Cinkur from both properties ran in the range of 20-24 percent zinc.

Early in 2006 Silvermet commenced parallel programs of metallurgical testwork and drilling with the objective to be in a position in 2007 to design an on-site processing plant to treat zinc oxide-carbonate known to occur along the mineralized trend.

Also in 2006 considerations of joining with Cinkur to utilize and expand the Cinkur plant did not materialize as Cinkur decided to reopen its 40,000 tonnes per year rated plant located near the city of Kayseri using zinc residues from Turkish steel plants. The Cinkur plant was designed and built by SNC Lavalin in the mid 1970s and until this time operated strictly on ore bought from small scale mining operations owned by local miners.

Silvermet has retained SNC Lavalin to generate a feasibility study and plan to develop the Tufanbeyli Property through the implementation of a mine and facilities to process zinc ore to produce zinc oxide intended to result in annual production of 65,000 tonnes of contained zinc.

A re-examination of the Cinkur works by SNC Lavalin has indicated that with some technical improvements the Waelz kiln installation located at the Cinkur works will operate on zinc residues if supplemented with a certain amount of zinc ore.

Based on the activities observed at Cinkur and the work done by SNC Lavalin a two-fold program for testing Tufanbeyli samples has evolved. Heavy media tests were initiated to determine the lowest grade of ore that could be mined and upgraded to yield a plus 15 percent product. In the second phase, samples of 15-24 percent ore will be tested at the facilities of B.U.S. in Duisburg to confirm suitability to their technology. The B.U.S. Group was formerly part of the Metallgesellschaft organization.

During August of 2006, Silvermet completed a bulk-sampling program around the perimeter of the Akcal open pits to obtain representative material for ongoing metallurgical testwork. Fifteen panel samples (approximately 10 tonnes each) were taken in vertical panels (5 metres high by 10 metres long) using a large, back-hoe-mounted pneumatic hammer.

Ten 50-kilogram samples were prepared at grade intervals of approximately 2 percent over the range from 4 to 24 percent from these large bulk samples. In September of 2006 the samples were shipped to SGS Lakefield Research, Canada where pilot scale tests are in progress to determine approximate rejection rates of heavy media separation to upgrade the zinc content of the mineralization by removal of unmineralized limestone and dolomite. Preliminary results indicate that up to 75% of the waste rock can be removed using heavy media separation.

Two 100-kilogram samples, one grading approximately 15 percent and the other approximately 24 percent zinc, were prepared and shipped to the B.U.S. test centre in Duisburg, Germany. The B.U.S. Group are specialists in the production of zinc oxide using Waelz kilns and have considerable specialized technology to treat zinc residues and make saleable zinc oxide products.

Silvermet's objective in working with B.U.S is to determine the suitability of their practices and processes for production from Silvermet ores in the first instance and by separate test the possibility of production from a combination of Silvermet ore and residues. If successful B.U.S. would, at Silvermet's direction, undertake to assist in the introduction of their technology into the design of the proposed 75,000 tonnes Waelz kiln for Silvermet and the design of related equipment and instrumentation and, if appropriate, the further cleaning of the calcine.

Running the B.U.S. test program in parallel with the Lakefield program and the current drilling will help Silvermet determine the cut-off grade for mining and the cut-off grade for feedstock to the Waelz kiln. Preliminary observations from early tests and Cinkur plant operations indicate the probability that an 8-10 percent ore cut-off and an approximate 15 percent feedstock cut-off will result. Heavy media separation should permit a kiln operation based on 15-20 percent feedstock.

Silvermet is in joint venture with Anatolia Minerals Development Limited (TSX:ANO). Anatolia acquired the mineral rights to the area and entered into a joint venture with Silvermet whereby Silvermet will earn a 70% interest in the project after spending US$5.0 million including completion of a feasibility study. Anatolia has large technical offices in Ankara, Turkey and conducts exploration programs for several major companies using their fully qualified staff of Turkish geologists and engineers. Silvermet is manager of the project and Anatolia conducts the filed program using their personnel and contractors as required.

The property is located 450km southeast of Ankara and covers an area of approximately 29,245 hectares (29.2 sq. km.). The zinc mineralization is hosted in Paleozoic (Devonian) carbonate sedimentary rocks and is considered to be a typical Mississippi Valley-type deposit. The original zinc sulphide mineralization has been oxidized to form zinc oxides and zinc carbonates.

Peter T. George, P.Geo, is the Qualified Person for this project.

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 material include, but are not limited to, fluctuations in commodity prices, 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 raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. Silvermet does not assume the obligation to revise or update this forward-looking information after the date of this document or to revise them 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.

Contact Information

  • Silvermet Inc.
    Clifford H. Frame P.Eng
    (416) 203-8336
    (416) 203-9483 (FAX)