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 its Mangazeisky North deposit within the Mangazeisky silver property, informs «Pacific Russia».
The NI 43-101 Technical Report prepared by Tetra Tech will be filed on SEDAR within 45 days of this release.
Highlights:
Infill drilling has converted 74% of the Inferred Resource at Mangazeisky North into Indicated. This Resource Classification can now support mine planning and evaluation of the economic viability of the deposit.
43% increase in estimated average Resource grade at Mangazeisky North, from 444 g/t Ag to 637 g/t Ag.
The Indicated Resource is contained within a relatively near-surface and shallow-dipping vein system that presents open pit mining opportunities; and
The Mangazeisky North and South deposits are located just six (6) km to the north of the Vertikalny deposit.
Silver Bear’s CEO, Graham Hill commented: «I am very pleased to announce that our infill drilling campaign completed during the 2015 field season has achieved the planned objectives and allowed the majority of our near surface high grade Resource at Mangazeisky North to be converted from Inferred to Indicated mineral resource. This is a significant progression for this deposit as it can now be incorporated into planned technical and economic studies of the property. The increase in grades and close proximity to Vertikalny supports our goal of increasing the mine life and further improving project economic performance by establishing a multi-pit single plant mining operation on the Mangazeisky property. I am very pleased that we continue to produce value for our shareholders as we develop the mining project towards operations at the end of 2016.»
Following the completion of a diamond core drilling programme during 2015 on the Mangazeisky North deposit, Tetra Tech estimated a NI 43-101 Resource updated for the deposit (table 1), the neighbouring Mangazeisky South deposit mineral resource estimate remains unchanged.
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 31st of March 2016.
Resource Estimation Assumptions and Methods
Key assumptions used to estimate the Mineral Resources are:
The Mangazeisky North Mineral Resources have been estimated into a three dimensional block model constructed in GEOVIA Surpac™ Version 6.7, comprising the following parameters:
Mangazeisky North: 20 m x 20 m x 5 m (x, y, z), with minimum sub-block dimensions of 0.625 m x 0.625 m x 0.156 m (x, y, z).
The grade interpolation was constrained within the mineralised zone using wireframed solid models. The wireframes were sub-divided into a strongly mineralised core with a halo of weakly mineralised material corresponding to coliform banded mineralisation.
Grade estimates were based on composited assay records, 0.6 m composite within the strongly mineralised core zone and 0.7 m composite within the halo.
The interpolation of the metal grades was undertaken using ordinary kriging.
In order to demonstrate that the deposit has reasonable prospects for economic extraction a cut-off grade of 150 g/t has been applied, based upon the following assumptions:
Forecasted Silver price of US $17 /Troy oz Ag.
Mining Cost of US $3.16 /t.
Processing Cost of US $50 /t.
General and administration costs of US $12.5 /t(1).
Transport from pit to process plant $3.6 /t.
Overall Silver recovery of 80%.