5/9/08 PR
San Luis Project Update and New Resource Estimate to be Prepared
May 9, 2008
NEWS RELEASE
San Luis Project Update and New Resource Estimate to be Prepared
Vancouver, BC, May 9, 2008: The San Luis Joint Venture of Esperanza Silver Corporation (TSX.V: EPZ) and Silver Standard Resources Inc. (TSX: SSO; NASDAQ: SSRI) reports that the Joint Venture has received the necessary permits to begin surface drilling at the San Luis Project. A drill is set to mobilize to site within the next 10 days. The first priority will be to drill test the BP Zone to follow up on the discovery of possible porphyry-style silver and base metal mineralization announced in November 2007. This will be followed by step-out drilling on the Ayelén Vein and drilling on the newly discovered Erika and Fernanda Veins. In addition, the final permit necessary to begin exploration tunnelling on the Ayelén Vein is expected to be received within the next month, with tunnelling scheduled to begin in the third quarter of this year. Reconnaissance mapping and prospecting of the 250 square kilometre property is continuing.
The Joint Venture also reports that Esperanza has completed a review of the independently prepared resource estimate provided to, and announced by, the Joint Venture in its News Release dated November 15, 2007. The review has led Esperanza to the conclusion that the estimate announced in that release may understate the mineral resource contained in the San Luis Project. Silver Standard subsequently commissioned an independent review, which also raised issues with the resource estimate. The independent qualified person that prepared the resource estimate confirms his resource estimate. To address these matters, the Joint Venture intends to retain a different independent qualified person to prepare a new resource estimate for the project. The new resource estimate will incorporate all existing data, including additional drill results not included in the previous resource estimate, and will be reported when received.
The San Luis Property is a high-grade gold and silver discovery owned by Esperanza (45%) and Silver Standard (55%). Silver Standard became the operator in February 2007 and has the option to earn an 80% interest by funding all activities to place the property into production. |
