Silver One Provides Drilling and Sampling Update; Announces Acquisition of Additional Ground at Its Candelaria Silver Mine Project, Nevada
TSX VENTURE: SVE
Vancouver, British Columbia--(Newsfile Corp. - March 5, 2018) - Silver One Resources Inc. (TSXV: SVE; OTC Pink: SLVRF; FSE: BRK1 - "Silver One" or the "Company") is pleased to provide an update on the drilling and sampling of the historic heap leach pads at its past producing Candelaria silver project in Nevada. The sonic drill program completed December 2017 (see Company news release of January 3, 2018) consisted of 1,110 metres in 45 holes on the historic heap leach pads, stockpiled material and old dumps left over from previous operations. Assay results for approximately 30 drill holes are currently pending and will be reported once all have been received from the lab.
Composite samples will be prepared based on the final results for metallurgical testing. The metallurgical results will assist in determining the best methods to potentially recover silver from the old heaps, stockpiles and dumps. A decision will then be made regarding further studies to examine the economics associated with the recoveries of silver.
Candelaria was historically the highest-grade silver producer in the state of Nevada averaging over 1,250 g/t silver from high-grade vein mining between the mid-1800s and the mid-1900s. Open pit mining operations were undertaken in the 1970s through 1998 by several companies including Nerco and Kinross. Kinross closed the open pit and leach operation in 1998 due to low silver prices. Leaching of the historic pads was not completed leaving a substantial amount of silver unprocessed. It is estimated that the property has produced over 68 million ounces of silver. Historical information was obtained from "Geology of the Candelaria Mining District, Mineral County, Nevada, 1959, Nevada Bureau of Mines, Bulletin 56", and the SSR Mining Inc. technical report titled "Candelaria Project Technical Report" dated May 24, 2001 (filed on SEDAR June 20, 2002), prepared by Pincock Allen & Holt.
Greg Crowe, President and CEO of Silver One Resources commented: "As we continue advancing our Candelaria silver project in Nevada, the importance of this historic producer becomes more apparent. We believe there are several upside opportunities.
Presently the company is investigating potential for the recovery of silver from the historic heap leach pads. Drilling in 2001 outlined very high-grade intercepts (up to 14 m averaging 670 gm/t silver) down dip from the Mount Diablo open pit, suggesting the possibility for a high-grade zone at depth. Additionally, numerous historic workings along-strike from the two open pits, Mount Diablo and Northern Belle, suggest a strong possibility of identifying additional mineralization to the east and west of the historic resource area outlined by SSR Mining in 2001.
We are looking forward to the metallurgical test results which are the next important stage in the development of Candelaria. These results will help us determine the economic viability of recovering the substantial amount of silver left behind from previous operations."
New Claims Acquired
Silver One is continuing to expand its ground holdings at Candelaria. Extensive historic mining activities were carried out outside the area of the two main open pits — Northern Belle and Mount Diablo. As such, the Company has entered into an agreement to acquire 10 non-patented mineral claims located along the eastern structural projection of the Candelaria mineralized system. These claims are located immediately east of the former producing Mount Diablo open pit. Silver One has acquired these claims for the consideration of US$10,000 plus the issuance of US$10,000 in Silver One shares at the market price based on TSX Venture Exchange approval.
Historical Resource Estimate — Candelaria Project
SSR Mining Inc. acquired the Candelaria Project in 2001 and reported in a technical report titled "Candelaria Project Technical Report" dated May 24, 2001 (filed on SEDAR on June 20, 2002), prepared by Pincock Allen & Holt, the historical mineral resource estimate shown in the table below. The qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. Silver One is not treating this historical estimate as current mineral resources.
Candelaria Mine Project
Historical Resource Estimate
|Area/Type||Classification||Tons||Factored Ag Grade
|Sol. Au Grade
|Aq Equiv. Ounces
|Subtotal, Measured + Indicated||13,623,000||3.23||0.003||3.42||44,060,000||46,633,000|
|Notes||1) Lode resources tabulated at a 0.5 opt Agsoluble cut-off grades, with only Agtotal shown in this table|
|2) Leach pads and low-grade stockpile resources tabulated for entire accumulation of material.|
|3) Total silver grades factored from soluble silver grades using regression formulas developed by Snowden.|
|4) Silver equivalent grade includes the contribution from the gold grade (soluble) using an Ag:Au equivalency ratio of 57.8:1.|
|5) Tonnages are short tons of 2,000 pounds. Precious metals are in troy ounces (oz) or troy ounces per short ton (opt)|
The historical mineral resource estimate used "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", which are categories set out in NI 43-101. Accordingly, Silver One considers these historical estimates reliable as well as relevant as it represents key targets for exploration work by Silver One. The data base for the historical resource estimate
(1) on the Mount Diablo Deposit consisted of 538 drill holes by previous owners and 10 drill holes by Silver Standard Resources Inc. For drill holes that were twinned, the author used the lower of the two values assigned to the original holes. The mineral resource estimate used a kriging estimation method to establish mineralized zones with a cut-off grade of 0.5 opt Ag. Ordinary kriging was used to interpolate grades in the block model. The block models were set up with block dimensions of 25 feet by 25 feet in plan and 10 feet in height. The maximum search range used in the higher-grade zone was 235 feet, in the lower grade zone it was 1,000 feet and in the background zone it was 350 feet. Block models more than 300 feet from the nearest composite only constituted 3 percent of the total number of estimated blocks and were assigned to an inferred category,
(2) on the Northern Belle Deposit consisted of 226 drill holes by previous owners, of which a portion of these holes were duplicated for the Mount Diablo Deposit database. The mineral resource estimate used a kriging estimation method to establish mineralized zones with a cut-off grade of 0.5 opt Ag. The mineral resource estimate used multiple indicator kriging to interpolate grades in the block model. Block models were set up with block dimensions of 50 feet by 50 feet in plan and 20 feet in height. The maximum search range used in the higher-grade zone was 85 feet, in the intermediate-grade zone was 120 feet and the lower-grade zone was 140 feet and in the lower undifferentiated material below the current pit topography was 260 feet. Block models more than 300 feet from the nearest composite only constituted 3 percent of the total number of estimated blocks and were assigned to an inferred category;
(3) on the Leach Pads consisted of 24,633,000 tons located on Leach Pad 1 and 12,695,000 on Leach Pad 2. The estimate for Leach Pad 1 is based on the fact that silver production indicates 51.5% of total silver was recovered by heap leaching operation, while 81.2% of the soluble silver contact was recovered. Further, the estimate for Leach Pad 2 is based on the fact that silver production indicates 42.4% of total silver was recovered by heap leaching operation, while 71.3% of the soluble silver content was recovered;
(4) on the Low-Grade Stockpile is based on limited and incomplete data and documentation. Material placed on the on the stock piles ranged from 0.5 to 0.65 opt Ag.
The technical content of this news release has been reviewed and approved by Greg Crowe, P. Geo, President and CEO of Silver One, and a Qualified Person as defined by National Instrument 43-101.
About Silver One
Silver One is a silver focused exploration company that holds an option to acquire a 100% interest in the past producing Candelaria Silver Project, located in Nevada, from SSR Mining Inc. (formerly, Silver Standard Resources Inc.) and a 100% interest in three significant silver assets located in Mexico: Peñasco Quemado in the State of Sonora, La Frazada in the State of Nayarit, and Pluton in the State of Durango. The Mexican mining assets were acquired from First Mining Financing, which became a key shareholder resulting from the transaction.
For more information, please contact:
Silver One Resources Inc.
VP, Investor Relations
Phone: (604) 974-5274
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Silver One cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Silver One's control. Such factors include, among other things: risks and uncertainties relating to Silver One's limited operating history, ability to obtain sufficient financing to carry out its exploration and development objectives on the Candelaria Project, obtaining the necessary permits to carry out its activities and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Silver One undertakes no obligation to publicly update or revise forward-looking information.
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