August 8, 2016 – Toronto, Ontario – Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX: SBR) is pleased to announce a National Instrument 43-101 (“NI 43-101”) mineral resource update for Vertikalny deposit within the Mangazeisky silver project, Republic of Sakha (“Yakutia) Russia. The NI 43-101 Technical Report prepared by Tetra Tech will be filed on SEDAR within 45 days of this release.
Highlights:
Silver Bear's CEO, Graham Hill commented: "Silver Bear’s infill drilling campaign completed during 2014 and 2015 has produced exceptional results - not only has it increased Indicated silver ounces at the Mangazeisky North deposit (see press release April 13, 2016), but it has also successfully converted additional high grade resources from the Inferred to Indicated category at the Vertikalny Central deposit. Most importantly the weighted average grade of the Indicated resource at Vertikalny increased by 35%, substantially improving the prospective shareholder returns for the Vertikalny silver project. The Company is in the process of including the updated mineral resource at Vertikalny Central into the revised mine plan and will announce the results when completed.”
Table 1 Vertikalny Deposits Resource Summary
Zone | Assumed Mining Method | Cut-off Grade Ag (g/t) | Indicated Resources | Inferred Resource | ||||
---|---|---|---|---|---|---|---|---|
Tonnes | Grade Ag (g/t) | Contained Metal | Tonnes | Grade Ag (g/t) | Contained Metal | |||
Ag (Troy oz) | Ag (Troy oz) | |||||||
Vertikalny Central | Open Pit | 200 | 360,000 | 1,482 | 17,100,000 | 4,000 | 496 | 100,000 |
Underground | 350 | 340,000 | 959 | 10,600,000 | 350,000 | 789 | 8,800,000 | |
All | - | 700,000 | 1,227 | 27,700,000 | 350,000 | 786 | 8,900,000 | |
Vertikalny Northwest | Open Pit | 200 | - | - | - | 110,000 | 430 | 1,600,000 |
Underground | 350 | - | - | - | 90,000 | 535 | 1,500,000 | |
All | - | - | - | - | 200,000 | 476 | 3,100,000 | |
Vertikalny Deposits Total | All | - | 700,000 | 1,227 | 27,700,000 | 550,000 | 672 | 12,000,000 |
Tetra Tech has adopted the definition of Mineral Resources as outlined within the CIM Definition Standards on Mineral Resources and Mineral Reserves (CIM, 2010) in order to classify the Resources.
The effective date of the Mineral Resource Estimate is 8th July 2016.
The resource update for Vertikalny Central benefited from an additional 15 diamond holes drilled in 2014, but assayed in 2015, 6 diamond holes drilled and assayed in 2015 and 21 trenches that were excavated in 2014 but assayed in 2015. The Vertikalny Northwest resource update includes an additional 8 holes that were drilled and assayed in 2015
A new set of wireframe models have been generated to represent both the strongly mineralised vein and the mineralisation associated wall rock alteration, along with oxidation state and lithology models.
Resource Estimation Assumptions and Methods
Key Assumptions used to estimate the Mineral Resources are:
The revised Vertikalny Mineral Resource is presented in Table 2, along with all other Current Mineral Resources within the property.
Table 2 Total Resources for the Mangazeisky Property
Zone | Assumed Mining Method | Cut-off Grade Ag (g/t) | Indicated Resources | Inferred Resource | ||||
---|---|---|---|---|---|---|---|---|
Tonnes | Grade Ag (g/t) | Contained Metal | Tonnes | Grade Ag (g/t) | Contained Metal | |||
Ag (Troy oz) | Ag (Troy oz) | |||||||
Vertikalny Central | Open Pit | 200 | 360,000 | 1,482 | 17,100,000 | 4,000 | 496 | 100,000 |
Underground | 350 | 340,000 | 959 | 10,600,000 | 350,000 | 789 | 8,800,000 | |
Vertikalny Northwest | Open Pit | 200 | 110,000 | 430 | 1,600,000 | |||
Underground | 350 | 90,000 | 535 | 1,500,000 | ||||
Nizhny Endybal | Open Pit | 150 | 710,000 | 316 | 7,200,000 |
Table 2 cont’d Total Resources for the Mangazeisky Property
Zone | Assumed Mining Method | Cut-off Grade Ag (g/t) | Indicated Resources | Inferred Resource | ||||
---|---|---|---|---|---|---|---|---|
Tonnes | Grade Ag (g/t) | Contained Metal | Tonnes | Grade Ag (g/t) | Contained Metal | |||
Ag (Troy oz) | Ag (Troy oz) | |||||||
Mangazeisky North | Open Pit | 150 | 304,000 | 626 | 6,100,000 | 98,000 | 671 | 2,100,000 |
Mangazeisky South | Open Pit | 150 | 60,000 | 246 | 500,000 | |||
Total | All | - | 1,004,000 | 1,046 | 33,800,000 | 1,422,000 | 477 | 21,800,000 |
Notes:
The effective date of the original Nizhny Endybal Resource estimate was 11th of September 2012, this resource was re-stated with a higher cut-off grade on the 10th of June 2015. The effective date of the Mangazeisky South resource is 10th of June 2015. The effective date of the Mangazeisky North Resource is 31st of March 2016.
The Mangazeisky north, Mangazeisky South and Nizhny Endybal Resources are reported above a cut-off grade of 150 g/t Ag, assuming open pit mining methods.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
Geological and Sampling Procedures
A quality assurance/ quality control program is part of the drilling program on all of the deposits on the Mangazeisky Property. This program includes chain of custody protocols as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the drilling. Prior to 2011, analysis was carried out at Russian certified laboratories in Yakutsk and Aldan, Russia. Analysis for 2012, 2013, 2014 and 2015 campaigns were completed by ALS Chemex in Chita, Russia.
Qualified Person
The updated Indicated and Inferred Mineral Resource estimate was prepared by Mr. Robert Davies, B.Sc., European Geologist (EurGeol) and Chartered Geologist (CGeol). Mr. Davies is Senior Resource Geologist at Tetra Tech and is a "qualified person" as such term is defined in NI 43-101. Mr. Davies has reviewed the technical and scientific information in this press release relating to the Mineral Resource estimates and has approved the use of the information contained herein. The updated Mineral Resource estimates were generated using the parameters set out above under Table1.
About Silver Bear
Silver Bear (TSX: SBR) is focused on the development of its wholly-owned Mangazeisky Silver Project, covering a licence area of approximately 570 km2 that includes the high-grade Vertikalny deposit, located 400 km north of Yakutsk in the Republic of Sakha (Yakutia) within the Russian Federation. The Company was granted a 20-year mining licence for the Vertikalny deposit in September 2013 and completed a Feasibility Study in Q2 2016. The Company is implementing a fast-track execution plan to complete major construction of the Mangazeisky Silver Project by the end of 2016, with steady state production planned to start in Q1 2017. Other information relating to Silver Bear is available on SEDAR atwww.sedar.comas well as on the Company's website atwww.silverbearresources.com.
Cautionary Notes
This news release contains forward-looking statements and information within the meaning of applicable securities laws. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes", “plans” and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be certain that actual results will be consistent with these forward-looking statements or information. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risk factors include but are not limited to risk factors identified by Silver Bear in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements or information. These forward-looking statements and information are made as of the date of this release, and Silver Bear assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.
Contact Information:
Graham Hill
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Judith Webster
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