| | PR Nov. 20, 06 2nd drill assays, San Luis, Ayelen
tinyurl.com
Mon Nov 20, 2006
Further Bonanza-Grade Holes at San Luis
View News Release in PDF Format
Denver, CO and Vancouver, BC - Esperanza Silver Corporation (TSX.V: EPZ) and Silver Standard Resources Inc. (TSX: SSO; NASDAQ: SSRI) are pleased to announce results of six additional drill holes on the Ayelén vein at their gold and silver San Luis joint venture in central Peru. Results have now been received for 10 holes (see news release of October 31 for prior results).
Mineralization Continues Along Strike of Ayelen Vein
Significant drill intercepts include:
* Hole SL06-09, an angled hole drilled below Trench A-9, returned 9.4 feet averaging 5.75 ounces per ton gold and 104 ounces per ton silver (2.86 meters averaging 197.3 grams per tonne gold and 3,578 grams per tonne silver) for a gold equivalent grade of 7.83 ounces per ton.(ii)
* Hole SL06-10, an angled hole drilled approximately 30 meters below SL06-09, returned 21.0 feet averaging 2.67 ounces per ton gold and 59.8 ounces per ton silver (6.4 meters averaging 91.57 grams per tonne gold and 2,050 grams per tonne silver) for a gold equivalent grade of 3.87 ounces per ton.(ii)
Holes SL06-09 and SL06-10 were drilled from a platform approximately 50 meters south of previously reported drill holes SL06-01 and 02 and approximately 100 meters south of previously reported drill holes SL06-03 and 04, all of which also yielded bonanza grade intercepts. In addition, drill holes SL06-05 and 06 were drilled approximately 50 meters north of previously reported drill holes SL06-03 and 04 and drill holes SL06-07 and 08 were drilled approximately 100 meters north of previously reported drill holes SL06-03 and 04. Results from drill holes SL06-01 through 10 are inline with expectations based on surface trenching and illustrate the characteristic pinch and swell of epithermal precious metal deposits.(1)
(1) William Pincus, M.Sc., CPG. and President, Esperanza Silver Corp. is the Qualified Person (QP) under NI 43-101 responsible for the San Luis exploration program. He has verified the data disclosed in this news release, including sampling, analytical and test data. Field work has been conducted by Esperanza personnel under his supervision. All samples were submitted to SGS laboratories in Lima, Peru for analysis. Samples were analyzed by ICP analysis and fire assay. A description of quality control and quality assurance protocols can be found at esperanzasilver.com.
Detailed results are provided in the table below.
--------------------------------------------------------------------------
San Luis Project Diamond Core Drill Results - November 2006
--------------------------------------------------------------------------
Gold Silver Gold Silver
(grams (grams Equiva- Equiva-
Inter- per per lent lent
val tonne/ tonne/ (ii) (ii)
From To (i) ounces ounces (ounces (ounces
Drill (meters/ (meters/ (meters/ per per per per
Hole feet) feet) feet) ton) ton) ton) ton)
--------------------------------------------------------------------------
SL06-05 47.1m 47.7m 0.6m 12.68 gpt 304 gpt 0.53 opt 26.5 opt
154.5ft 156.5ft 2.0ft 0.37 opt 8.0 opt Au eq Ag eq
--------------------------------------------------------------------------
SL06-06 Drill hole did not hit structure
--------------------------------------------------------------------------
SL06-07 40.6m 41.5m 0.9m 7.92 gpt 157 gpt 0.32 opt 13.4 opt
133.2ft 136.3ft 3.0ft 0.23 opt 4.6 opt Au eq Ag eq
--------------------------------------------------------------------------
SL06-07 48.7m 49.7m 1m 7.47 gpt 66 gpt 0.26 opt 12.9 opt
159.8ft 163.1ft 3.3ft 0.22 opt 1.9 opt Au eq Ag eq
--------------------------------------------------------------------------
SL06-08 54.6m 56.6m 2m 13.72 gpt 138 gpt 0.48 opt 24.0 opt
179.1ft 185.7ft 6.6ft 0.40 opt 4.0 opt Au eq Ag eq
--------------------------------------------------------------------------
SL06-09 38.7m 41.6m 2.9m 197.13gpt 3578 gpt 7.83 opt 391.5 opt
127.0ft 136.5ft 9.5ft 5.75 opt 104 opt Au eq Ag eq
--------------------------------------------------------------------------
SL06-10 62.0m 68.4m 6.4m 91.57 gpt 2050 gpt 3.87 opt 193.3 opt
203.4ft 224.4ft 21.0ft 2.67 opt 59.8 opt Au eq Ag eq
--------------------------------------------------------------------------
(i) True width to be determined.
(ii) Gold-equivalent ounces calculation assumes a 50:1 silver:gold ratio,
based on approximate closing prices on November 17, 2006.
Metallurgical recoveries have not been determined and therefore have
not been considered in the silver:gold equivalent calculations.
--------------------------------------------------------------------------
A location map and cross section are attached to this news release. To date the joint venture has completed 17 drill holes totaling approximately 2,500 meters of an initial planned 4,000 meter core drill program.
Potential for Significant Deposits
Five veins have been identified from prospecting on the property for a total of over five kilometers of exposed veins. These include the Ines Vein, 100 meters to the east of Ayelen, where channel sampling along a 75-meter section also identified high-grade mineralization. The presence of significant gold and silver in both veins is considered to be evidence of high-grade ore shoots. This is typical of epithermal precious metal deposits, which frequently have multiple shoots, or ore bodies, within the system.
The joint venture has contracted a second drill rig and intends to carry out resource-definition drilling with one rig on the Ayelen vein while using the second rig for prospecting on the other four known veins. Results from the latest drill holes reinforce the potential for significant deposits on the property.
Joint Venture Interests
Silver Standard has now completed the required spending to increase its holding in the San Luis property to 55%. The next US$1.5 million of joint venture expenditures will be funded in accordance with each party's joint venture interest. Thereafter, Silver Standard has the right to increase its interest to 70% by funding a feasibility study. It can then earn an additional 10% by providing all funds to place the property into production. At June 30, 2006, Esperanza had C$4.8 million in cash and short term investments, sufficient to fund its 45% share of the next US$1.5 million exploration phase at San Luis.
 |
|
