Silvermet Inc.

Silvermet Inc.

August 28, 2007 12:34 ET

Silvermet Updates Waelz Kiln Zinc Project in Turkey

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2007) - Silvermet Inc., ("Silvermet") (TSX VENTURE:SYI) is pleased to update shareholders on progress being made on its Waltz Kiln Project in Turkey in advance of a production decision anticipated in the first quarter 2008.

- Capital and operating cost report from SNC Lavalin to be completed early 2008.

- Turkish subsidiary Cevmetco to be incorporated September 2007.

- B.U.S., Germany, Waelz kiln tests on electric arc furnace dust (EAFD) and carbonite ore mixes completed.

- SGS Lakefield beneficiation on Tufanbeyli ores completed. Kayseri ore tests in progress.

- Favourable Waelz kiln plant site located near city of Kayseri.

- Tufanbeyli drilling program continues with phase 3 drill program.

- Ore feedstock contracts signed with mine owners in Kayseri area.

- Discussions with EAFD producers progressing.

- Planned production of 175 million pounds of zinc in concentrates per year employing twin-Waelz kilns.

Details of the plans are as follows:

Silvermet has scheduled the completion of SNC Lavalin's capital and operating report to bankable standards, by the first quarter of 2008. Key to the project's timing is the manufacturing schedule for the proposed twin Waelz kilns.

Silvermet's establishment of its Turkish subsidiary Cevresel Metal Donusum Madencilik Senayi ve Ticaret A.S (CEVMETCO) will be finalized in September, 2007.

B.U.S. Steel Services GmbH (Germany) has completed tests on representative ores from Tufanbeyli and on electric arc furnace dust (EAFD). Given that there are three feedstock sources for the kilns, Tufanbeyli ore, Kayseri ore and EAFD, the mix of feedstocks can vary from month to month without affecting overall annual zinc output. Tests have been conducted on 100% ore, 100% EAFD, and 50:50 ore and EAFD.

Silvermet completed tests by SGS Lakefield, Peterborough, on beneficiating Tufanbeyli ores. The Kayseri area hosts numerous high-grade deposits, many of which have been mined by local producers since the 1950s. Two fifty kilogram samples have now been prepared from Kayseri sites for shipment to Lakefield to confirm the beneficiation characteristics of Kayseri ores as compared to ores from Tufanbeyli.

High grade lead ores were also mined for many years by the Romans. A 50 kilogram sample of lead-silver ore from the Kayseri area is also being sent to Lakefield for flotation tests with a view to establishing the parameters for the separate mining and processing of high-grade lead bearing material. At Kayseri, it is common to find a lead-rich band of ore grade material existing separately within the zinc-rich horizon.

Silvermet has commenced discussions with Kayseri Industrial Park officials for large acreage to accommodate its proposed Waelz Kiln installation and related infrastructure. Acreage requested by Silvermet will include areas for material storage and handling, and residue disposal. The residue product from the kilns is expected to be environmentally benign.

At Tufanbeyli, the ongoing one million dollar drill program is focused on sites that will add other potential new zinc resources to Silvermet. By year-end 2007 Silvermet will have spent three million dollars of the five million dollars to earn 70% of the Tufanbeyli project.

At Kayseri, two large volume purchase contracts have been negotiated between Silvermet and local mine owners, which will represent a long-term ore source from this area.

Because of extensive mining in the Kayseri area over the year large tonnages of potential ore ranging from low-grade material to over 30 percent zinc content have been exposed. Currently, plus-25 percent material is mined for direct shipment to China. Through a process of crushing, screening and sorting Silvermet plans to truck material grading between 12 and 15 percent from these areas for processing in Silvermet's beneficiation plant.

Two beneficiation plants are intended for installation; one at the Kayseri mining area, and the other near Tufanbeyli. The beneficiation plants will be designed to produce 20 to 30 percent zinc feedstock for the Waelz kilns. The by-product limestone based residue from the beneficiation plants is expected to have a number of commercial uses.

In addition, discussions have begun with electric arc furnace dust (EAFD) suppliers with a view to securing a component of EAFD for feedstock to the kilns.

Assuming good progress over the fourth quarter of 2007 and the first quarter of 2008 Silvermet will be technically positioned to commence detailed project design, place equipment orders and prepare for construction beginning by mid- 2008.

The critical path for the project is governed by the delivery time for the two Waelz kilns. As a result of testwork done to date, the kiln sizing and basic design parameters have been established. The selection of the manufacturer will be made with advice from an expert engineering firm with experience in the design and operation of such equipment. Delivery time will determine the overall timeframe for commencing production. Twelve months is expected for manufacture with an addition three to six months required for construction and achieving initial commercial production. Once the kilns are ordered, associated equipment and infrastructure can proceed in parallel.

The Waelz kiln ore/EAFD metal processing facility will be designed to have a total output of 120,000 tonnes per year of zinc grading plus 65 percent zinc in calcine. At this capacity the project is planned to deliver 175 million pounds of zinc per year to refiners. The two Waelz kilns will be designed to process and blend carbonate zinc ores from Tufanbeyli and Kayseri and EAFD. Having three sources of feedstock, the project will be independent of any interruptions in supply.

The Waelz kiln process for the extraction of usable metals has been largely developed in Europe. B.U.S. in Germany has two zinc plants and two nickel recovery plants in operation, employing advanced Waelz kiln technology.

The proposed location for the plant in Kayseri will have ready access by rail or road to the sea port of Mersin on the Mediterranean coast. Raw materials to the plant can also be delivered by rail or truck. The industrial site has in place nearby roads, rail access, power, water and sewage which can be easily extended to the proposed Silvermet site. Located close to Kayseri, the site will benefit from the readily available skilled workforce.

Silvermet Inc. is an exploration and development company presently focused on developing a number of zinc projects in Turkey and exploring its nickel-copper-platinum group metals project located in Nunavut, Canada.

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 in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Silvermet Inc.
    Clifford H. Frame
    (416) 203-8336
    (416) 203-9483 (FAX)
    Silvermet Inc.
    Stephen G. Roman
    President and CEO
    (416) 368-3949