Silver Mines
LSE : SVLP

May 04, 2011 03:15 ET

Webbs Diamond Drilling Results

To: Company Announcements Officer
Australian Securities Exchange
4th May, 2011
                                             Webbs Diamond drilling results
                                                       HIGHLIGHTS
                                                            
Diamond drilling continues to intersect substantial zones of mineralisation highlighting the potential upside of the
resource at the Webbs Silver Project.
                                                            
    -       DDH013 intersects 7.8m @ 485g/t Ag, 0.52% Cu, 1.83% Pb and 2.36% Zn from 21.2m;
                    Including 1.7m @ 1463g/t Ag, 1.66% Cu, 0.88% Pb and 3.16% Zn from 21.2m
                    
    -       DDH012 intersects 12.2m @ 194g/t Ag, 0.17% Cu, 0.89% Pb and 1.13% Zn from 74.0m;
                    Including 0.4m @ 3730g/t Ag, 3.45% Cu, 3.19% Pb and 10.35% Zn from 74.0m
                    
    -       DDH010 intersects 16.0m @ 35g/t Ag, 0.02% Cu, 0.33% Pb and 0.43% Zn from 93.8m;
                    Including 1.0m @ 203g/t Ag, 0.04% Cu, 0.72% Pb and 1.01% Zn from 108.8m
                    
    -       DDH014 intersects 6.2m @ 266g/t Ag, 0.38% Cu, 1.85% Pb and 1.53% Zn from 56.1m;
                    Including 2.0m @ 599g/t Ag, 0.86% Cu, 3.52% Pb and 2.64% Zn from 59.4m
                    
    -       DDH015 intersects 0.45m @ 131g/t Ag, 0.20% Cu, 3.07% Pb and 4.60% Zn from 34.95m
        
    -       Drill core will now be used to formulate samples for metallurgical testwork
        
    -       Results from the diamond drilling will be incorporated into an updated resource model along with additional RC
            drilling which is due to commence shortly
Silver Mines Limited (ASX:SVL, PLUS:SVLP) is pleased to announce that is has received final results for the remaining 5
diamond drill holes at the Webbs Silver project. Results are summarised in Table 1.
Silver Mines CEO Charles Straw stated "these and previous diamond drill results continue to demonstrate the presence of
near surface high grade mineralisation at Webbs. None of the 11 diamond holes are included in the current Webb's
resource estimate and on balance they will likely have a positive impact".
Results
DDH013 intersected 3.5m estimated true width (ETW) @ 485g/t Ag from 21.2m. The grade, width and shallow location of the
intersection will likely enhance the current resource model in this area, although additional drilling is required to
confirm this. Mineralisation intersected in this hole is open to the south (see Figure 1).
Mineralisation intersected in DDH012 returned 5.5m ETW @ 194g/t Ag including a narrow zone of 0.2m ETW @ 3730g/t Ag with
appreciable Cu, Pb and Zn as shown in Table 1. This intersection occurs in an area of limited previous drilling that,
when combined with the previously reported intersection in DDH011 of 4.6m ETW @ 417g/t Ag, indicate the potential for
additional high grade resources in this area of Webbs South (see Figure 1).
Hole DDH010 intersected a relatively wide but low grade zone of mineralisation averaging 35g/t Ag over an ETW of 7.1m,
including 0.4m ETW @ 203g/t Ag. Whilst low grade this intercept demonstrates the presence of strong alteration over
considerable widths and the lode in this area remains open up dip and to the south.
Holes DDH014 and 15 were drilled at Webbs Main (see Figure 1). These holes were designed to intersect mineralisation
nearby to previous RC drillholes.
DDH014 was essentially a twin of RC112. DDH014 intersected 6.2m @ 266g/t Ag including 2m @ 599g/t Ag. This compares with
6m @ 461g/t Ag including 1m @ 1420g/t Ag intersected in RC112.
DDH015 intersected 0.45m @ 131g/t Ag as compared to a nearby intersection in RC097 of 4m @ 763g/t Ag. The poor
correlation between RC and diamond results in this area requires investigation.
Future Plans
Diamond core is now being formulated into samples for metallurgical testwork seeking to investigate floatation
performance of the mineralisation with regard to maximizing silver recovery.
Diamond results are being used to refine geological and grade interpretations of the deposit. The results of the diamond
program will be utilized in a new resource estimate following the completion of a large RC drilling program. The Company
anticipates that a 12,000m RC drilling program will commence at Webbs in the next 2-3 weeks May. The drilling rig is
currently undergoing final testing and is anticipated to be on site in the next week. The upcoming program is designed
to upgrade and expand the existing resource. Drilling will also take place at exploration targets around Webbs and at
other prospects in the region. The Company looks forward to continue reporting positive results to shareholders.
Please direct any queries regarding the content of this report to Charles Straw (CEO) on +61 2 9253 0900 or
cstraw@silverminesltd.com.au.
Table 1. Diamond drilling: Hole details and intersections
-----------------------------------------------------------------------------------------------------------------
 Hole ID     MGA       MGA       Dip     Azi     Hole     From       To       Int#    Ag      Cu      Pb      Zn
            East      North             (mag)    Depth     (m)       (m)      (m)    (g/t)    (%)     (%)     (%)
-----------------------------------------------------------------------------------------------------------------
 DDH010    358888    6751724     -55     280     122.8    93.8      109.8     16.0    35     0.02    0.33    0.43
 DDH010          incl.                                    106.8     109.8     3.0     100    0.02    0.55    0.71
 DDH010          incl.                                    108.8     109.8     1.0     203    0.03    0.72    1.01
----------------------------------------------------------------------------------------------------------------- 
 DDH012    358938    6751890     -55     273     132.0    74.0      86.3      12.2    194    0.17    0.89    1.13
 DDH012          incl.                                    74.0      77.8      3.8     468    0.43    1.11    2.20
 DDH012          incl.                                    74.0      74.4      0.4    3730    3.45    3.19    10.35
 DDH012                                                   111.8     112.8     1.0     122    0.10    0.30    0.51
----------------------------------------------------------------------------------------------------------------- 
 DDH013    358877    6751780     -55     288     103.1    21.2      29.0      7.8     485    0.52    1.83    2.36
 DDH013          incl.                                    21.2      23.0      1.7    1463    1.66    0.88    3.16
 DDH013                                                   34.2      35.1      0.9     132    0.08    0.77    0.36
----------------------------------------------------------------------------------------------------------------- 
 DDH014    358934    6752558     -70     124     90.0     56.1      62.3      6.2     266    0.38    1.85    1.53
                 incl.                                    59.4      61.4      2.0     599    0.86    3.52    2.64
-----------------------------------------------------------------------------------------------------------------
 DDH015    358964    6752541     -61     280     41.9     34.95     35.4      0.45    131    0.20    3.07    4.60
----------------------------------------------------------------------------------------------------------------- 
# Downhole intersections are NOT true widths due to the geometry of the lodes and angle of intersection of the drill
hole. True widths are estimated to be approximately 45% of downhole interval in holes with dips of -55 degrees and
approximately 33% of downhole intervals in holes with dips of -70 degrees.
Sampling and Assaying
Diamond core samples are cut lengthways to produce half or 1/4 core. Samples are usually taken at 1m intervals or as
geology dictates.  Silver Mines have opted to utilise the services of ALS-Chemex (Brisbane), a globally respected
company servicing the mining industry. Samples from the rig are dispatched by TNT Couriers from Glenn Innes to ALS.
Routine assaying is conducted by ALS Method ICP41 This is acid digest with an ICP-AES finish analysing for Ag, AS, Bi,
Cu, Fe, Pb, S, Sb, Sn, W and Zn. When elements exceed upper detections limits of 100ppm for Ag and 1% for Cu, Pb and Zn
they are reanalysed by and appropriate ore grade acid technique (ALS method OG46). For silver above 1500g/t a
gravimetric technique is used. Certified Standards and blanks are routinely submitted in each assay batch to monitor QA-
QC.
Competent Person Declaration
The information in this Document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr David Hobby, consulting geologist to SVL, who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr Hobby has sufficient experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the 'Australasian Code for Reporting of Exploration' for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Mr Hobby consents to the inclusion in the report of the matters based on his information in
the form and context in which it appears.
To view Figure 1 - Webbs Long section, please open the link in a new window:
http://media3.marketwire.com/docs/silvermines_0504_uk_fig_1.pdf
Silver Mines Limited
ACN 107 452 942
L5, 17-19 Bridge St
Sydney, NSW Australia 2000
P: +61 2 9253 0900 W: www.silverminesltd.com.au
                                                                                              SVL ASX 110503 DDH Results

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