Wildcat announces substantial resource increase at Hermosa - Includes new silver-only zone
Feb 6, 2012 07:00:00 (ET)
VANCOUVER, Feb. 6, 2012 /PRNewswire via COMTEX/ -- Wildcat Silver Corporation ("Wildcat" or "the Company") is pleased to announce an updated mineral resource estimate for its Hermosa project, located in Santa Cruz, Arizona. The updated mineral resource is comprised of:
Indicated resource of 101.4 million tonnes of 53.18 g/t silver for 171.3 million ounces of silver.
Inferred resource of 83.6 million tonnes of 36.42 g/t silver for 98.6 million ounces of silver.
This represents a significant increase compared to the previous 2010 mineral resource estimate. The Company has also identified and included in the revised resource a new silver-only zone which is amenable to standard cyanidation and Merrill Crowe recovery.
"We have been successful in increasing the total silver resource today by more than two times when compared to the previous 2010 resource at Hermosa, and by five times when compared to the initial resource in 2007," said Chris Jones, Wildcat's President and CEO. "Further, through definition drilling we have significantly upgraded the quality of the resource. The new resource reflects a full 64% of the contained silver ounces in the indicated category, which is more than double the portion contained in the 2010 resource. While achieving this increase, our discovery cost per ounce of silver added in the 2012 resource was minimal at C$0.056 per ounce."
New Upper Silver Zone
The new silver-only zone ("Upper Silver Zone") lies above and adjacent to the Manto Zone in the overlying volcanic rocks. The new zone has been included in the resource as a result of recent metallurgical testing that indicates that it is amenable to standard cyanidation and Merrill Crowe recovery. The previously disclosed drill results for this zone reported silver grades ranging from 3.5 grams per tonne up to 175 grams per tonne. Preliminary metallurgical testing indicates that recoveries for this material are expected to be in the 40 - 45% range with low cost, direct cyanidation. This new leachable Upper Silver Zone has the potential to positively impact the project because this material was previously considered waste. This zone remains open to the north, east and south for further expansion.
Updated Mineral Resource Estimate
Wildcat's updated mineral resource for its Hermosa project is comprised of 171.3 million ounces of silver in the indicated category and 98.6 million ounces in the inferred category. A summary of the mineral resource is provided in the table below. It should be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.
This news is preliminary to the PEA (preliminary economic assessment) which will be issued any day now (1st quarter/2012), at which time the share price should move up nicely. Hermosa project might be the largest silver deposit on earth, in which case you might want to own a few shares :)