Western Silver Corporation

Western Silver Corporation

March 07, 2005 08:01 ET

Western Silver Releases Updated Resource Estimate at Penasco Deposit


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WESTERN SILVER CORPORATION

TSX SYMBOL: WTC
AMEX SYMBOL: WTZ

MARCH 7, 2005 - 08:01 ET

Western Silver Releases Updated Resource Estimate at
Penasco Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 7, 2005) - Western
Silver Corporation (TSX:WTC)(AMEX:WTZ)

Penasco Indicated Sulfide Resource rises 30% to 161 million tonnes

An updated resource estimate at the Penasquito project's Penasco deposit
has resulted in an indicated sulfide mineral resource of 161 million
tonnes grading 29.0g/tonne silver, 0.57g/tonne gold, 0.33% lead and
0.72% zinc at a US$3.75/tonne cut-off grade.

The independent estimate, by M3 Engineering & Technology Corp. of
Tucson, Arizona, and its subconsultant, Independent Mining Consultants
also of Tucson, includes assays from an additional 33 drill holes and an
extension of one hole from an earlier campaign completed late last year.
It supercedes last October's resource estimate by Marlow Mining
Engineering Services and increases the Penasco deposit's indicated
sulfide resource by 30% in tonnage and by 7% in average NSR compared
with last October's estimate.

Based on M3 Engineering's estimate, the indicated sulfide resource at
Penasco contains 150.2 million ounces of silver; 2.97 million ounces of
gold; 1065 million pounds of lead and 2324 million pounds of zinc.

In addition, an inferred sulfide resource of 91 million tonnes (grading
26.36 g/tonne silver, 0.51g/tonne gold, 0.25% lead and 0.64% zinc) has
been identified at Penasco.

M3 Engineering's estimate also included an indicated oxide resource of
21.9 million tonnes and 5.3 million tonnes of inferred oxide resource in
the shallow oxide mineralization overlying the deeper sulfide resource.
(See table below for details). The oxide resource includes approximately
8.7 million tonnes of material classified as mixed oxide/sulfide which
is assumed to have a recovery of only 50% of the fully oxidized material.

The updated Penasco resource has been reported using a US$3.75 per tonne
NSR cut-off for sulfides and a US$2.75 per tonne silver cut-off for
oxides. It incorporates all data from the previous resource estimate
released in October 2004, plus assays from an additional 34 drill-holes
totaling 22,186 meters completed by the end of 2004. The resource does
not include results from a further 10 exploration holes drilled since
work resumed at site in January of this year. In order to demonstrate
that this resource has a reasonable prospect for economic extraction, as
required by CIM guidelines, a theoretical open pit shell was generated
from the resource using metal prices approximating those experienced in
recent months. About 85% of the estimated resource fell within this open
pit shell.

The Penasco deposit forms part of the Penasquito property's Outcrop
breccia and is located about one mile northwest of the Chile Colorado
deposit which has been confirmed by an independent pre-feasibility study
as one of the world's largest undeveloped, bulk-mineable silver
deposits. The pre-feasibility study, also by M3 Engineering, concluded
Chile Colorado could be mined economically with an after-tax internal
rate of return (IRR) of 15.3% using conservative metals prices. (See
press release date April 13, 2004).

Says Western Silver's Chairman and CEO Dale Corman: "These results have
substantially increased the overall resource at Penasco and increased
the confidence in the estimate by moving a large portion of the material
previously classified as inferred into the indicated category.

"And, the additional 34 holes have shown some continuity to the deep
high-grade gold intercepts reported last year and have substantially
increased the amount of gold contained in the Penasco deposit," he says.

The total measured and indicated sulfide resource at Penasquito,
including the March 31, 2004 resource estimate at the nearby Chile
Colorado deposit, now stands at 309.8 million tonnes, containing 314.3
million ounces of silver, 4.59 million ounces of gold, 2101 million
pounds of lead and 5306 million pounds of zinc. This represents a 15%
increase in contained silver, 27% increase in gold, 18% increase in lead
and 18% increase in zinc compared with the resource estimate at
Penasquito reported in October 2004.

Dr. Conrad Huss, P.E., Executive Vice-President and Chairman of the
Board of M3 Engineering, is the independent qualified person responsible
for the resource calculation reported in this news release. All
analytical work was performed by ALS Chemex and Acme Laboratories of
Vancouver, employing conventional assay techniques set out in previous
news releases.

Western Silver is subject to certain rules and regulations issued by the
British Columbia Securities Commission and the Canadian Securities
Administrators. This news release uses the mining terms "indicated
resource" and "inferred resource" in accordance with Canadian
regulations but which are not recognized by the United States Securities
and Exchange Commission. For clarification, the Company has no
properties that contain "reserves" as defined by the SEC and is
providing the forgoing, in part, in order to meet its requirements under
National Instrument 43-101 adopted by the BC Securities Commission and
the Canadian Securities Administrators.



--------------------------------------------------------------------
Penasquito Project Resouce Summary - March 2005
--------------------------------------------------------------------
Grade
Tonnes --------------------------------
Ag Au Pb Zn
(Mt) (g/t) (g/t) (%) (%)
--------------------------------------------------------------------
Chile Colorado Sulfide
Measured & Indicated 148.70 34.32 0.34 0.28% 0.84%
Penasco Sulfide
Indicated 161.05 29.01 0.57 0.33% 0.72%
---------------------------------------------------
Total Measured and
Indicate Sulfide 309.75 31.56 0.46 0.31% 0.78%
--------------------------------------------------------------------
Total Contained Metal in
Sulfide (M&I) (Moz.) (Moz.) (Mlbs) (Mlbs)
314.33 4.59 2101.30 5306.28
--------------------------------------------------------------------
Chile Colorado Sulfide
Inferred 44.90 21.11 0.21 0.21% 0.48%
Azul Breccia Sulfide
Inferred 71.20 31.52 0.15 0.36% 0.72%
Penasco Sulfide
Inferred 91.56 26.36 0.51 0.25% 0.64%
--------------------------------------------------
Total Inferred Sulfide 207.66 26.99 0.32 0.28% 0.63%
--------------------------------------------------------------------
Chile Colorado Oxide
Measured & Indicated 7.41 24.88 0.30 0.44% 0.40%
Penasco Oxide (i)
Indicated 21.94 30.05 0.41 0.32% 0.40%
---------------------------------------------------
Total Measured and
Indicate Oxide 29.35 28.74 0.38 0.35% 0.40%
--------------------------------------------------------------------
Total Contained Metal in
Oxide (M&I) (Moz.) (Moz.)
27.13 0.36
--------------------------------------------------------------------
Chile Colorado Oxide
Inferred 0.68 22.15 0.35 0.32% 0.16%
Azul Breccia Oxide
Inferred 5.88 23.97 0.20 0.11% 0.23%
Penasco Oxide (i)
Inferred 5.28 27.98 0.60 0.26% 0.37%
--------------------------------------------------
Total Inferred Oxide 11.84 25.65 0.39 0.19% 0.29%
--------------------------------------------------------------------
Note: Sulfides are reported at a US$3.75/tonne NSR cut-off, oxides
are reported at a US$2.75/tonne NSR cut-off.
NSR figures based on $5.50/oz Ag, $350/oz Au, $0.30/lb Pb,
$0.45/lb Zn.
(i) Oxide tonnages for Penasco contain approximately 7Mt indicated
and 2Mt inferred material that has been classified as mixed
oxide/sulfide. Metal recovery in this zone is assumed to be 50%
--------------------------------------------------------------------


Core samples were prepped and analyzed by ALS Chemex of Guadalajara,
Mexico and Vancouver, B.C. respectively. Samples were initially run
using conventional ICP analysis with an aqua regia digestion process. A
series of property specific standards and blanks were routinely
submitted with each batch of samples. A 30 gram fire assay with
gravimetric finish was run on all samples for gold and silver. Samples
containing more than 1% lead or zinc were analyzed using AA with aqua
regia digestion. Samples with greater than 5g/t gold were rerun by
screen and fire assay at ALS Chemex using new 1000 gram pulps. Holes
WC-203 and WC-205 have been updated with screen and fire assays not
available at the time of the previous release but do not differ
substantively from results reported previously.

Western Silver Corporation (TSX:WTC)(AMEX:WTZ) is a publicly-traded
mineral exploration company focused on discovering and developing silver
properties in the Americas. The Company's primary project, the
100%-owned Penasquito property in central Mexico, is emerging as a
silver-gold-lead-zinc district with significant exploration upside.
Western Silver also has an interest in the world-class San Nicolas
zinc-copper project in Mexico with Teck Cominco Limited and owns the
Carmacks Copper Project in the Yukon.

On behalf of the board,

F. Dale Corman, Chairman and C.E.O.

Statements contained in this news release that are not historical facts
are forward-looking statements as that term is defined in the private
securities litigation reform act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause
actual results to differ materially from estimated results. Such risks
and uncertainties are detailed in the Company's filings with the
Securities and Exchange Commission.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Western Silver Corporation
    Gerald Prosalendis
    Vice President Corporate Development
    (604) 694-2740
    or
    Western Silver Corporation
    Tom Patton
    President
    (604) 641-2768
    www.westernsilvercorp.com
    The Toronto Stock Exchange has not reviewed nor accepted responsibility
    for the adequacy or accuracy of the contents of this news release, which
    has been prepared by management.