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Silver Reserve Corp. News

Silver Reserve Corp. - Drill indicated resource acquired

RENO, NV, May 20 PRNewswire-FirstCall - Silver Reserve is pleased to announce it has negotiated an option to acquire the Medicine claim group in Elko County, Nevada.

The option covers 25 unpatented claims and the Company has staked an additional 124 contiguous claims covering the extension of the patented mineralized zone not contracted by previous operation.

A Technical Report written by Edward P. Jucevic, P.E. dated March 9, 2001 and prepared for a former owner of the Medicine claim group, stated the following:

\"The Medicine property contains a drill-indicated resource defined by approximately 70 drill holes. The resource(x) estimate was calculated by previous workers at US Mineral Exploration and includes 350,000 tons grading 2.3 opt silver. The resource(x) covers an area roughly 200 feet wide and 600 feet long. Average depth of drilling has only followed the zone down to +/- 100 feet. Wide spaced drilling outside of the area of the resource(x) has encountered significant values of lead, zinc and silver metals. Mineralization consists of barite-silver-lead-zinc along high angle structures and within bleached and sanded limestone. Although lead and zinc values were only assayed for part of the holes, barite, lead and silver appear to correlate well. Zinc values are often associated with the other metals, but are also zones stratagraphically beneath the silver-lead zone. The zinc zone can be as thick as 50 feet and average +5%. Zinc values to 11.5% have been obtained from ten-foot intervals in drilling. Lead values average 3% over 10 to 40 foot thick zones. Lead values to 8% have been obtained from 10 foot intervals in drilling. Barite averages 12% throughout the mineralized zones but can attain 35% in individual intervals. Silver averages 2.5 opt with individual five foot assays carrying more than 26 opt.\"

Roger Hall, COO and chief geologist stated that, "The mineralized zone appears to continue to the north and south as well as to depth offering potential for substantial expansion of the drill indicated mineralization. As mineralization comes to surface, there is potential for open pit mining. We expect to commence drilling to determine the extent of the mineralization zone in mid June, 2008."

The Company paid $10,000 on closing of the Option Agreement as an advance royalty payment and will pay $15,000 on the 1st anniversary of the closing date, $30,000 on the 2nd anniversary of the closing date, $60,000 on the 3rd anniversary of the closing date and $80,000 each anniversary thereafter as advance royalty payments. The option will be fully exercised on payment of the 10th anniversary payment. The property is also subject to a 3% net smelter return royalty which will be credited with the advance royalty payments. The property owners have the option to take part or all payments in cash or stock. The Company may terminate the option at any time on 60 days notice.

Todd Montgomery, CEO and President stated, "The Medicine Property has great potential for development of a substantial resource(x)."

Silver Reserve is an active and progressive public exploration stage mining company. The Company's main focus is its 15 silver exploration projects in the State of Nevada, in the United States of America. The properties are located in the counties of Esmeralda, Mineral, Nye, Lyon, Humboldt and Elko. Silver Reserve also owns a 280 ton per day mill facility at Mina, Nevada.

FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns of unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates of opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

(x) Cautionary Note to US Investors - The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. The reader is cautioned that the term, "resource," is not a term that is recognized by SEC guidelines for disclosure of mineral properties. Generally, "resources" estimates do not rise to the level of certainty required by SEC guidelines. The mineralized material described above is not considered a "reserve" as that term is used in the mining industry and in SEC disclosure guidelines. The Company must undertake a feasibility study before it can estimate the value of its mineral assets. U.S. investors are urged to consider closely the disclosure in our Form 10-KSB, File # 000-52641. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.

SOURCE Silver Reserve Corp.

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