Silvermex Resources Ltd.: Resource Summary and Corporate Update
Wed Nov 5, 2:45 PM
ca.news.finance.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2008) - Silvermex Resources Ltd. (TSX VENTURE: SMR.V) is pleased to provide a corporate update and progress report on its 2008 exploration and resource upgrade programs. Silvermex continues to successfully focus its efforts on establishing high-quality, near-surface silver resources.
During 2008, Silvermex completed extensive exploration and drill programs on its San Marcial and Penasco Quemado properties and extensive underground sampling at La Frazada. Approximately 2,000 meters of drilling at San Marcial resulted in the increase of the indicated mineral resource to 18.0 million ozs silver and the inferred resource to 4.4 million ozs silver. This updated resource includes an upgrade of the old resource of 14.26 million ounces of silver into the indicated category from the inferred category.
These programs have allowed Silvermex in October 2008 to announce updates to the NI 43-101 resource estimates on its 3 primary, advanced-stage properties. Measured and Indicated resources now total 32.8 million ounces silver, 40.8 million lbs lead and 86.9 million lbs zinc. Inferred resources now total 9.8 million ounces silver, 30.0 million lbs lead and 65.5 million lbs zinc. This represents a 343% growth in silver resources over the last 24 month period.
As disclosed in news releases dated October 9, October 14 and October 15, 2008, the updated NI 43-101 silver resources (ozs) per project are as follows:
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Penasco
Category San Marcial La Frazada Quemado Totals
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Measured: 0 2,615,493 2,591,752 5,207,245
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Indicated: 18,021,221 2,156,335 7,468,166 27,645,722
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Total M&I: 18,021,221 4,771,828 10,059,918 32,852,967
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Inferred: 4,371,018 4,132,520 1,366,749 9,870,287
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The updated resources per metal are as follows:
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Category Silver (ozs) Gold (ozs) Lead (lbs) Zinc (lbs)
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Measured: 5,207,245 1,797 5,657,445 15,834,150
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Indicated: 27,645,722 1,264 35,230,132 71,123,399
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Total M&I: 32,852,967 3,061 40,887,577 86,957,549
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Inferred: 9,870,287 2,231 30,054,276 65,499,878
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As indicated by the table above, measured and indicated resources represent 77% of total resources.
To-date, Silvermex has raised a total of $9.1 million, which translates to some 4.7 ozs of silver resource delineated for every $1.00 raised or a fully-diluted cost base of $0.55 per silver oz for total resources owned assuming satisfaction of terms of all option agreements.
The Company has 29.85 million shares outstanding which provides shareholders with leveraged exposure to 1.43 silver resource ozs per share. The current share price of $0.20 represents a market capitalization of $5.97 million which equates to a current in-ground resource MCAP valuation of $0.14 per silver resource ounce plus base metals. Management and insiders maintain a vested interest with approximately 36% ownership.
The Company's primary objective continues to be the expansion of its current, high-grade, near-surface deposits rather than early stage exploration. Resource expansion programs along with economic assessment and phase 2 metallurgical testing on all 3 projects will continue in the near future.
Qualified Person
Pursuant to National Instrument 43-101, Darcy Krohman, P.Geo., C.A,. Executive Vice-President and CFO of Silvermex Resources Ltd. is the Qualified Person (QP) responsible for the disclosure in this news release.
This News Release contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the Company does not intend to update any forward-looking statements to conform these statements to actual results.
Contacts
Duane Nelson
Silvermex Resources Ltd.
Director
(604) 638-8978
Email: duane@silvermexresources.com
Darcy Krohman, P.Geo., C.A.
Silvermex Resources Ltd.
Executive Vice-President & CFO
(604) 682-4004
(604) 682-4009 (FAX)
Email: darcy@silvermexresources.com
Jason Leikam
Silvermex Resources Ltd. - Investor Relations
Corporate Development
(604) 638-8979
Email: jason@silvermexresources.com
Website: www.silvermexresources.com |
