Silver Bull Resources, Inc. (OTCQB:SVBL) (TSX:SVB) (“Silver Bull”)
is pleased to provide an updated NI43-101 Resource report for the
Sierra Mojada Project in Coahuila, Mexico. Highlights of the
resource update include;
- An open pittable, measured and indicated “High Grade
Zinc Zone” of 13.5 million tonnes at an average grade of 11.2% Zinc
at a 6% cutoff for 3.336 billion pounds of zinc.
- An open pittable, measured and indicated “High Grade
Silver zone” of 15.2 million tonnes at an average grade of 114.9
g/t at a 50g/t cutoff for 56.3 million ounces of
silver.
- Total Measured & Indicated Global Resource 70.4
million tonnes at 38.6 g/t Ag and 3.4% Zn that contain 5.354
billion pounds Zn and 87.4 million ounces Ag
- The updated resource was modelled using a silver price
of US$15 per ounce, and a zinc price of US$1.20 per
pound.
“This resource update models the mineralization
defined at Sierra Mojada to zinc and silver prices realistic of the
current market conditions”, stated Tim Barry, President, CEO and
director of Silver Bull. “Sierra Mojada is one of only a handful of
projects with any appreciable zinc resources and is one of the
largest undeveloped silver-zinc projects in Mexico. It has
excellent infrastructure; it is located 3 hours from an
international airport with a paved road right to site; it has a
functioning railway right to site; runs on grid power; and it has a
skilled mining work force to draw upon in the immediate local area.
This resource provides excellent leverage to both zinc and silver
prices and has the potential to be scaled in size depending on
metal prices.”
The Global Resource: The Global
Resource is shown in table 1 with the “sub” tables defining the
High Grade Silver Zone and High Grade Zinc Zone using a silver and
zinc cutoff grade are shown in tables 2 and 3:
Table
1. Pit constrained Global Resource at a
$13.50NSR cutoff
CLASS |
TONNES (MT) |
AG (G/T) |
CU (%) |
PB (%) |
ZN (%) |
NSR ($/T) |
AG(MOZS) |
CU(MLBS) |
PB(MLBS) |
ZN(MLBS) |
MEASURED |
52.0 |
39.2 |
0.04 |
% |
0.3 |
% |
4.0 |
% |
$ |
44.3 |
65.5 |
45.9 |
379.1 |
4,589.3 |
INDICATED |
18.4 |
37.0 |
0.03 |
% |
0.2 |
% |
1. 9 |
% |
$ |
27.3 |
21.9 |
10.8 |
87.0 |
764.6 |
TOTAL M&I |
70.4 |
38.6 |
0.04 |
% |
0.3 |
% |
3.4 |
% |
$ |
39.8 |
87.4 |
56.8 |
466.1 |
5,353.9 |
INFERRED |
0.1 |
8.8 |
0.02 |
% |
0.2 |
% |
6.4 |
% |
$ |
52.3 |
0.02 |
0.04 |
0.4 |
10.7 |
Notes
- CIM definitions were followed for the Mineral Resource.
- The Mineral Resource is reported within a conceptual pit-shell
using an NSR cut-off value of US$13.50/tonne.
- Mineral resources are not reserves and do not demonstrate
economic viability.
- Tonnages are reported to the nearest 100,000 tonne.
Grades are rounded to the nearest decimal place for Ag, Zn, &
Pb and the nearest 2 decimal places for Cu
- Rounding as required by reporting guidelines may result in
apparent summation differences between tonnes, grade, and contained
metal.
- Tonnage and grade are in metric units; contained Zn, Cu, &
Pb are in imperial pounds.
- Tonnages and grades are as reported directly from block model;
with mined out areas removed.
- The effective date of the estimates is October 30, 2018.
The High Grade Zinc and Silver
Zones: The Global Resource encompasses two high grade
zones of oxide mineralization; to better reflect high grade silver
and zinc zones which form separate coherent bodies within the
larger global resource we have broken out the zinc and silver
mineralization using zinc and silver cutoff grades. The tables are
shown below:
Table
2. “High Grade Zinc Zone” Pit-constrained
Mineral Resource Estimate by Zinc Cut-Off
Category |
Zn Cut-off (%) |
Tonnes (Mt) |
Ag (g/t) |
Cu (%) |
Pb (%) |
Zn (%) |
Ag
(Mozs) |
Cu
(Mlbs) |
Pb
(MLbs) |
Zn
(Mlbs) |
MEASURED |
4 |
17.1 |
26.9 |
0.02 |
% |
0.4 |
% |
9.5 |
% |
14.8 |
8.6 |
162.3 |
3,578.5 |
6 |
11.9 |
22.3 |
0.02 |
% |
0.4 |
% |
11.5 |
% |
8.5 |
4.7 |
106.4 |
3,019.7 |
8 |
8.6 |
19.3 |
0.02 |
% |
0.4 |
% |
13.3 |
% |
5.3 |
2.9 |
69.9 |
2,505.1 |
10 |
6.2 |
15.8 |
0.02 |
% |
0.3 |
% |
15.0 |
% |
3.1 |
2.1 |
43.6 |
2,030.0 |
11 |
5.1 |
14.5 |
0.02 |
% |
0.3 |
% |
15.8 |
% |
2.4 |
1.7 |
34.0 |
1,794.8 |
12 |
4.3 |
13.8 |
0.02 |
% |
0.3 |
% |
16.7 |
% |
1.9 |
1.4 |
27.6 |
1,586.5 |
13 |
3.6 |
12.9 |
0.02 |
% |
0.3 |
% |
17.5 |
% |
1.5 |
1.2 |
21.2 |
1,381.2 |
14 |
2.9 |
11.7 |
0.02 |
% |
0.2 |
% |
18.5 |
% |
1.1 |
1.0 |
15.3 |
1,170.8 |
INDICATED |
4 |
2.5 |
22.2 |
0.03 |
% |
0.3 |
% |
7.7 |
% |
1.8 |
1.5 |
17.6 |
417.0 |
6 |
1.6 |
20.4 |
0.03 |
% |
0.3 |
% |
9.2 |
% |
1.0 |
0.9 |
11.1 |
317.0 |
8 |
0.8 |
18.7 |
0.02 |
% |
0.3 |
% |
11.4 |
% |
0.5 |
0.3 |
5.8 |
200.8 |
10 |
0.4 |
19.2 |
0.02 |
% |
0.3 |
% |
13.7 |
% |
0.2 |
0.2 |
2.9 |
124.4 |
11 |
0.3 |
19.5 |
0.02 |
% |
0.3 |
% |
15.0 |
% |
0.2 |
0.1 |
2.0 |
98.1 |
12 |
0.2 |
19.6 |
0.02 |
% |
0.3 |
% |
15.9 |
% |
0.2 |
0.1 |
1.6 |
83.1 |
13 |
0.2 |
19.8 |
0.02 |
% |
0.3 |
% |
16.4 |
% |
0.1 |
0.1 |
1.3 |
74.3 |
14 |
0.2 |
21.9 |
0.02 |
% |
0.3 |
% |
16.9 |
% |
0.1 |
0.1 |
1.1 |
65.3 |
TOTAL M&I |
6 |
13.5 |
22.0 |
0.02 |
% |
0.4 |
% |
11.2 |
% |
9.6 |
5.6 |
117.5 |
3,336.6 |
INFERRED |
4 |
0.05 |
5.9 |
0.01 |
% |
0.2 |
% |
8.5 |
% |
0.01 |
0.01 |
0.2 |
9.97 |
6 |
0.04 |
6.5 |
0.01 |
% |
0.2 |
% |
9.6 |
% |
0.01 |
0.01 |
0.2 |
8.60 |
8 |
0.03 |
5.7 |
0.01 |
% |
0.2 |
% |
11.0 |
% |
0.00 |
0.01 |
0.1 |
6.34 |
Table
3. Table 1-3. “High Grade Silver Zone”
Pit-constrained Mineral Resource Estimate by Silver
Cut-Off
Category |
Ag Cut-off (%) |
Tonnes (Mt) |
Ag (g/t) |
Cu (%) |
Pb (%) |
Zn (%) |
Ag
(Mozs) |
Cu
(Mlbs) |
Pb
(MLbs) |
Zn
(Mlbs) |
MEASURED |
25 |
21.0 |
83.6 |
0.08 |
% |
0.5 |
% |
2.6 |
% |
56.5 |
37.4 |
245.8 |
1,222.25 |
35 |
15.9 |
101.2 |
0.10 |
% |
0.6 |
% |
2.5 |
% |
51.6 |
34.4 |
201.6 |
869.2 |
45 |
12.5 |
117.7 |
0.11 |
% |
0.6 |
% |
2.5 |
% |
47.3 |
31.7 |
168.3 |
679.2 |
50 |
11.2 |
126.6 |
0.12 |
% |
0.6 |
% |
2.5 |
% |
45.3 |
30.3 |
155.0 |
611.2 |
55 |
10.1 |
134.2 |
0.13 |
% |
0.6 |
% |
2.5 |
% |
43.4 |
29.1 |
141.5 |
548.4 |
60 |
9.1 |
142.3 |
0.14 |
% |
0.6 |
% |
2.5 |
% |
41.7 |
28.0 |
129.8 |
493.2 |
65 |
8.3 |
149.7 |
0.15 |
% |
0.7 |
% |
2.5 |
% |
40.1 |
26.9 |
120.0 |
452.3 |
70 |
7.5 |
158.4 |
0.15 |
% |
0.7 |
% |
2.5 |
% |
38.4 |
25.6 |
110.6 |
409.9 |
75 |
6.9 |
166.5 |
0.16 |
% |
0.7 |
% |
2.4 |
% |
36.9 |
24.6 |
101.7 |
370.9 |
INDICATED |
25 |
10.4 |
54.9 |
0.03 |
% |
0.2 |
% |
1.3 |
% |
18.4 |
7.9 |
53.2 |
288.1 |
35 |
7.3 |
65.4 |
0.04 |
% |
0.2 |
% |
1.3 |
% |
15.4 |
6.6 |
40.0 |
208.2 |
45 |
5.0 |
77.6 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
12.4 |
5.2 |
27.4 |
142.4 |
50 |
4.1 |
84.0 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
11.1 |
4.4 |
23.2 |
119.5 |
55 |
3.4 |
90.7 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
9.9 |
3.6 |
19.8 |
98.1 |
60 |
2.9 |
96.8 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
8.9 |
2.9 |
17.0 |
83.0 |
65 |
2.4 |
102.9 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
8.0 |
2.5 |
14.0 |
68.8 |
70 |
2.0 |
109.5 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
7.2 |
2.2 |
11.8 |
56.6 |
75 |
1.8 |
115.7 |
0.05 |
% |
0.3 |
% |
1.3 |
% |
6.5 |
1.8 |
10.0 |
49.8 |
TOTAL M&I |
50 |
15.2 |
114.9 |
0.10 |
% |
0.5 |
% |
2.2 |
% |
56.3 |
34.7 |
178.2 |
730.7 |
INFERRED |
25 |
0.01 |
28.8 |
0.07 |
% |
0.3 |
% |
1.6 |
% |
0.01 |
0.02 |
0.06 |
0.35 |
35 |
0.00 |
0.0 |
0.00 |
% |
0.0 |
% |
0.0 |
% |
0.00 |
0.00 |
0.00 |
0.00 |
45 |
0.00 |
0.0 |
0.00 |
% |
0.0 |
% |
0.0 |
% |
0.00 |
0.00 |
0.00 |
0.00 |
In order to establish the economics in an open pit
context, the reported resources fall within a Whittle Optimized pit
shell that uses a silver price of US$15/oz and a zinc price of
US$1.20/lb with a recovery of silver estimated at 75% and zinc at
41%. Pit walls are set at 55 degrees overall, mining costs were
assumed to be US$1.50/tonne, and silver and zinc processing costs
were assumed to be US$12.00/tonne, which results in a total NSR
cutoff for the resource of $13.50/tonne.
Mineral resources were estimated by ordinary
Kriging using GEMSTM modeling software in multiple passes using 10
meter X 10 meter X 10 meter blocks as the SMU size. Blocks have
been classified as measured, indicated or inferred mineral
resources.
The mineral resource has been estimated by
Matthew Dumala, P.Eng., of Archer, Cathro & Associates (1981)
Limited and Timothy Barry, MAusIMM(CP)., of Silver Bull. Both Mr.
Dumala and Mr. Barry are Qualified Persons as defined by National
Instrument 43-101 and are responsible for the Technical Report
filed onto the SEDAR website “Technical Report on the Resources of
the Silver-Zinc Sierra Mojada Project Coahuila,
Mexico”.
Changes in the resource: This
new NI43-101 resource update supersedes the NI43-101 Resource
completed by Silver Bull in June 2015. With significant movement in
the metal prices of both silver and zinc since 2015, management
thought it prudent to recalibrate the mineral resource at Sierra
Mojada to the current price environment. This has resulted in an
increase from US$1.00/lb to $US1.20/lb for Zinc and a decrease from
US$18/oz to US$15/oz for Silver for this resource update. This has
resulted in a significant increase in the zinc resource and a
slight decrease in the silver resource at Sierra Mojada. A summary
table between the two resources is shown below.
Table
4. Mineral Resource
Comparison
Estimate |
June 2015 Mineral
Resource Estimate |
Mt |
Ag g/t |
Zn% |
Ag Moz |
Zn MLb |
June 2015 Mineral Resource
Estimate |
Measured |
35.3 |
48.5 |
4.4 |
% |
55.0 |
3,434.9 |
Indicated |
21.5 |
51.6 |
1.8 |
% |
35.8 |
846.8 |
Total M&I |
56.8 |
49.7 |
3.4 |
% |
90.8 |
4,281.7 |
Inferred |
0.2 |
44.7 |
1.3 |
% |
0.3 |
6.2 |
October 2018 Mineral
Resource Estimate |
Measured |
52.0 |
39.2 |
4.0 |
% |
65.5 |
4,589.3 |
Indicated |
18.4 |
37.0 |
1.9 |
% |
21.9 |
764.6 |
Total M&I |
70.4 |
38.6 |
3.4 |
% |
87.4 |
5,353.9 |
Inferred |
0.1 |
8.8 |
6.4 |
% |
0.02 |
10.7 |
About Silver Bull: Silver Bull
is a well-financed mineral exploration company whose shares are
listed on the Toronto Stock Exchange and trade on the OTCQB in the
United States, and is based out of Vancouver, Canada. The Sierra
Mojada Project is located 150 kilometers north of the city of
Torreon in Coahuila, Mexico, and is highly prospective for silver
and zinc.
In June 2018 Silver Bull signed an agreement
with a wholly owned subsidiary of South32 Limited (ASX/JSE/LSE:
S32) ("South32") whereby Silver Bull has granted South32 an option
to form a 70/30 joint venture with respect to the Sierra Mojada
Project. To maintain the option in good standing, South32 must
contribute minimum exploration funding of US$10 million ("Initial
Funding") during a 4 year option period with minimum aggregate
exploration funding of US$3 million, US$6 million and US$8 million
to be made by the end of years 1, 2 and 3 of the option period
respectively. South32 may exercise its option to subscribe for 70%
of the shares of Minera Metalin S.A. De C.V. ("Metalin"), the
wholly owned subsidiary of Silver Bull which holds the claims in
respect of the Sierra Mojada Project, by contributing US$100
million to Metalin for Project funding, less the amount of the
Initial Funding contributed by South32 during the option
period.
The technical information of this news release
has been reviewed and approved by Tim Barry, a Chartered
Professional Geologist (CPAusIMM), and a qualified person for the
purposes of National Instrument 43-101.
On behalf of the Board of Directors "Tim Barry"
Tim Barry, CPAusIMM Chief Executive Officer,
President and Director
INVESTOR RELATIONS: +1 604 687 5800
info@silverbullresources.com
Cautionary Note to U.S. Investors
concerning estimates of Measured, Indicated, and Inferred
Resources: This press release uses the terms "measured
resources", "indicated resources", and "inferred resources" which
are defined in, and required to be disclosed by, NI 43-101. We
advise U.S. investors that these terms are not recognized by the
United States Securities and Exchange Commission (the "SEC"). The
estimation of measured, indicated and inferred resources involves
greater uncertainty as to their existence and economic feasibility
than the estimation of proven and probable reserves. U.S. investors
are cautioned not to assume that measured and indicated mineral
resources will be converted into reserves. The estimation of
inferred resources involves far greater uncertainty as to their
existence and economic viability than the estimation of other
categories of resources. U.S. investors are cautioned not to assume
that estimates of inferred mineral resources exist, are
economically minable, or will be upgraded into measured or
indicated mineral resources. Under Canadian securities laws,
estimates of inferred mineral resources may not form the basis of
feasibility or other economic studies. Disclosure of "contained
ounces" in a resource is permitted disclosure under Canadian
regulations, however the SEC normally only permits issuers to
report mineralization that does not constitute "reserves" by SEC
standards as in place tonnage and grade without reference to unit
measures. Accordingly, the information contained in this press
release may not be comparable to similar information made public by
U.S. companies that are not subject NI 43-101. Cautionary
note regarding forward looking statements: This news
release contains forward-looking statements regarding future events
and Silver Bull's future results that are subject to the safe
harbors created under the U.S. Private Securities Litigation Reform
Act of 1995, the Securities Act of 1933, as amended (the
"Securities Act"), and the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), and applicable Canadian securities
laws. Forward-looking statements include, among others, statements
regarding mineral resource estimates and ability of resource to
provide excellent leverage to both zinc and silver prices and
potential to be scaled in size depending on metal prices. These
statements are based on current expectations, estimates, forecasts,
and projections about Silver Bull's exploration projects, the
industry in which Silver Bull operates and the beliefs and
assumptions of Silver Bull's management. Words such as "expects,"
"anticipates," "targets," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "continues," "may," variations of
such words, and similar expressions and references to future
periods, are intended to identify such forward-looking statements.
Forward-looking statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond our control,
including such factors as the results of exploration activities and
whether the results continue to support continued exploration
activities, unexpected variations in ore grade, types and
metallurgy, volatility and level of commodity prices, the
availability of sufficient future financing, and other matters
discussed under the caption "Risk Factors" in our Annual Report on
Form 10-K for the fiscal year ended October 31, 2017 and our
Quarterly Report on Form 10-Q for the interim period ended April
30, 2018, as amended, and our other periodic and current reports
filed with the SEC and available on www.sec.gov and with the
Canadian securities commissions available on www.sedar.com. Readers
are cautioned that forward-looking statements are not guarantees of
future performance and that actual results or developments may
differ materially from those expressed or implied in the
forward-looking statements. Any forward-looking statement made by
us in this release is based only on information currently available
to us and speaks only as of the date on which it is made. We
undertake no obligation to publicly update any forward-looking
statement, whether written or oral, that may be made from time to
time, whether as a result of new information, future developments
or otherwise.
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