NEWS:
First Silver Reserve Inc. announces 1998 silver production sets 16 year record
VANCOUVER, Feb. 18 /CNW/ - 1998 Silver production from First Silver
Reserve's (TSE:FSR) wholly owned San Martin Silver Mine, set a sixteen year
record of 2,436,766 ounces of paid silver equivalent. The San Martin Mine is
located approximately 150 km northwest of Guadalajara, Jalisco State, Mexico,
and has been in continuous production since 1983.
In 1998, total mill throughput was 257,924 tonnes of ore, at a mill head
grade of 319 g/tonne (10.256 ounces/tonne) silver and an average recovery rate
of 88%. After milling and smelting losses, freight and smelter charges, the
paid silver was 2,318,500 ounces and paid gold was 2,193 ounces, for a total
silver equivalent of 2,436,766 ounces, an increase of approximately 2% over
total 1997 production.
As 99.9% of overall metal production at the mine is silver, the Company
reports in silver equivalents by converting gold production to silver
equivalent ounces using the ratio of gold to silver prices prevailing at the
time of reporting.
Pincock, Allen & Holt (PAH), independent engineering consultants,
completed an audit of the San Martin mine in 1998 and reported that mineable
reserves and inferred resources totaled 62.2 million ounces of silver.
Mineable reserves were 15.2 million ounces and were sufficient for over 5
years of production at the current production rate. The PAH report stated that
''there is good potential for finding and developing new reserves in the
district.'' The Zuloaga vein, currently in production, is only one of several
parallel and intersecting mineralized veins within the mine area. The mine
property contains fifteen known mineralized fault systems offering extensive
potential for expansion and development. These mineralized systems run up to
45 meters in width, 350 meters in depth and several kilometers in length.
Pincock, Allen & Holt have recently completed their field work at the
mine site to provide a current audit of reserves through December 31, 1998.
The results of the new reserve and resource audit are expected in the first
half of 1999.
The Company's 1999 objectives are to expand yearly silver production to
an annualized rate of 3.0 million ounces and increase the mineable reserve. A
focused drilling and development program have been implemented adjacent to the
current underground workings and in the immediate mine vicinity. The priority
target is the ''El Banco'' zone which is an area where mineralization has been
encountered within three converging structures. A 600 meter drift is being
driven from the existing mine workings to intersect the El Banco target by mid
year. The drift is now approximately 350 m from the target.
Acting on the recommendation of Mr. Steve Miller, consulting geologist,
the Company has recently purchased 2,042 hectares of mining claims which
adjoin the Company's San Martin minesite for a total purchase price of
US$200,000. This latest acquisition secures the known extension of the
currently mined Zuloaga vein and the northern extension of the prospective
Rosario-Condesa vein.
First Silver Reserve Inc. is a company focused on production and
exploration of silver in Mexico. First Silver's shares trade on the Toronto
Stock Exchange under the symbol FSR.
On behalf of the Board of Directors
''Len Brownlie''
Director and Corporate Secretary
-0- 02/18/1999
For further information: Mr. Len Brownlie, Director and Corporate Secretary, (604) 602-9973, Email: firstsilver@hotmail.com
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