First Silver Reserve Inc -
First Silver releases San Martin production numbers
First Silver Reserve Inc FSR
Shares issued 36,671,921 Feb 9 2001 close $.570
Feb 13 2001 3:11:13
Mr. Len Brownlie reports
First Silver Reserve has released the 2000 production statistics from its San Martin mine, located in Jalisco State, Mexico. Silver production was 2,315,143 ounces while gold production was 3,357 ounces, an increase of 26,535 ounces of silver (1.16 per cent) and 877 ounces of gold (35.4 per cent) over 1999 production. Total mill throughput for the year was 262,768 tonnes, a decrease of 11,023 tonnes (4.0 per cent) from 1999. The mill head grade was 308 grams per tonne (9.9 ounces per tonne) silver and the mill recovery rate was 88.94 per cent as compared with a grade of 299 grams per tonne and a recovery rate of 87 per cent in 1999.
The El Banco exploration drift is being driven from existing workings at the San Martin silver mine toward the El Banco target area. This horizontal drift has advanced approximately 920 metres along the Zuloaga vein toward the main exploration target, the vertical projection of the El Banco surface mineralization, and is now near the target. In late November, the drift encountered a parallel fault with very loose and unstable rock. Exploration, hampered by the necessity to reinforce the drift after each blasting cycle, is continuing. To improve ventilation in the drift and reduce waste rock haulage distances, effort is now being applied from within the exploration drift to connect the drift with the new haulage portal. By working on the new production tunnel from both ends, the company hopes to open the tunnel by midyear. Once open, the tunnel will improve mine efficiency by reducing haulage distances by up to 1,200 metres.
In November, the exploration drift encountered a new mineralized zone of 134 metres along the Zuloaga vein (from 766 metres to 900 metres) which has an average width of 2.04 metres and contains an average of 561 grams per tonne (18.0 ounces per tonne) silver, 0.47 per cent lead and 1.59 per cent zinc. The last 44 metres of this zone have an average width of 2.40 metres and contain an average of 691 grams per tonne (22.2 ounces per tonne) silver, 0.49 per cent lead and 1.63 per cent zinc.
A diamond drill has been set up in the exploration drift midway along the new mineralized zone at the 778-metre mark to test for mineralization up to 70 metres below the level of the exploration drift. Results of this drilling will be reported when available.
Pincock, Allen & Holt (PAH), independent engineering consultant, has been retained by First Silver to provide an audit of the minable reserves and resources of the San Martin mine. PAH has completed its fieldwork and its results will be reported when received.
All of these exploration and development activities are being financed by internally generated cash flow as the company strives to increase shareholder value through enhanced reserves and resources.
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