Silvermet Inc.

Silvermet Inc.

March 27, 2007 10:06 ET

Silvermet Prepares Major Drill Program for Nickel-Copper-Platinum Group Metals, Muskox, Nunavut

TORONTO, ONTARIO--(CCNMatthews - March 27, 2007) - Silvermet Inc., ("Silvermet") (TSX VENTURE:SYI) announces that it has initiated mobilization of fuel and supplies for a major drilling program on its nickel-copper-platinum group metals ("Ni-Cu-PGM") Muskox project located in Nunavut. Initial drilling will focus on the Pyrrhotite Lake and Valley Lake areas where coincident Ni-Cu-PGM soil geochemical targets were identified by a large-scale soil geochemical survey completed by Silvermet in 2006. A number of other geochemical targets are currently being interpreted that will likely also be drilled during the 2007 season.

Drilling is scheduled to commence in mid-May 2007 with a planned 8,000 to 10,000-metre program to be completed prior to October 2007.

Silvermet optioned mineral claims cover an area of approximately 200 sq. km. along a 60 km strike length of the south part of the Muskox intrusion, which is one of the world's largest layered ultramafic complexes. The marginal zones and feeder dyke contain semi-massive and massive sulphide mineralization strikingly similar to that found in the Norilsk mining district in Russia, whereas the Muskox layered sequence contains stratiform PGM mineralization similar to that of the Merensky Reef and 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 claims are centered approximately 90 kilometers south of the village of Kugluktuk (Coppermine), Nunavut.

Pyrrhotite Lake Area

Previous drilling in the Pyrrhotite Lake area outlined a small lens of massive sulphides with an average grade of 1.2% Ni and 2.6% Cu along the east side of the marginal zone of the intrusion. Two recent Prize Mining drill holes intersected 4.7% Ni, 10.6% Cu, 2.2 g/t Pt and 11.1 g/t Pd over 5.4 m and 3.22% Ni, 7.52% Cu, 2.2 g/t Pt and 17.5 g/t Pd over 5.5 m. No NI 43-101 compliant resource estimates have been completed.

This sulphide lens is located on the south end of a large Ni-Cu-PGM soil geochemical anomaly that covers an area of 5.7 sq. km. along a 4.8 km. strike length, parallel to the east margin of the Muskox intrusive. Silvermet intends to complete 10 to 15 drill holes to provide an initial evaluation of this trend during the 2007 program.

Valley Lake Area

In the Valley Lake area there is a large Ni-Cu-PGM soil geochemical anomaly that covers an area of 8.5 sq. km. along a 4.5 km. strike length of the intrusion. The highest anomalous values are near the east and west margins of the intrusion, however, the anomalies extend from each margin down-dip towards the centre or keel area of the intrusion, outlining a target trend that is continuous across the full width of the intrusion along a strike length of 4.5 km. Silvermet intends to complete 10 to 15 drill holes to provide an initial evaluation of this trend during the 2007 program.

Silvermet's agreement with Prize Mining permits it to earn a 70% interest in the claims by incurring not less than $10 million expenditure by December 7, 2010, of which $4 million must be spent by June 30, 2008. To date Silvermet has spent approximately $1.1 million on Muskox and has in hand sufficient flow-through funds to initiate its proposed drill program this April.

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 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 raise 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.

Contact Information

  • Silvermet Inc.
    Clifford H. Frame
    (416) 203-8336
    Silvermet Inc.
    Stephen G. Roman
    President and CEO
    (416) 203-8336
    (416) 203-9483 (FAX)