Silver Range Announces Initial Resource Estimate and Excellent Metallurgical Results from Keg Deposit, Silver Range Project, ...
November 20 2012 - 7:00AM
Marketwired Canada
Silver Range Resources Ltd. (TSX VENTURE:SNG)(TSX VENTURE:SNG.WT) ("Silver
Range" or "the Company") is pleased to announce that it has received the first
independent resource estimate for its wholly owned Keg Deposit and results from
an initial program of metallurgical test work for that mineralization.
Highlights include:
-- At a cut-off grade of 16 g/t silver, the Keg Deposit hosts an inferred
resource of 39.8 million tonnes grading 30.3 g/t silver together with
significant zinc-copper-lead-tin-indium values, with contained metal
estimates of 38.7 million ounces silver, 675 million pounds zinc, 228
million pounds lead, and 131 million pounds copper.
-- Metallurgical results from seven drill core composites show that the Keg
Deposit mineralization responds very well to conventional
copper/lead/zinc flotation processing with excellent recoveries of
payable metals and acceptable concentrate grades in copper, lead and
zinc concentrates.
"We are very pleased to have established nearly 40 million ounces of silver in
our first resource estimate for the Keg Deposit. Based on the relatively high
gross metal value per tonne and very positive metallurgical test work results,
Silver Range will immediately initiate engineering studies that will enable
completion of a preliminary economic assessment," stated Doug Eaton, Silver
Range's President and CEO. "The Keg Deposit is only one of several promising
bulk-tonnage/high-grade zones identified by the Company on its camp-scale Silver
Range Project. The potential for additional resources, access to existing
infrastructure and favourable geometries within the Keg Deposit, should all
enhance the project's economics."
The Keg Deposit or the Keg Main Zone has been traced by drilling for a length of
1,100 m, across approximate true widths of 50 to 250 m through a vertical depth
of 350 m starting from surface. The mineralization remains open along strike to
the west and downdip. It is one of 24 mineralized zones that have been
discovered to date at the Silver Range Project.
The Keg Main Zone hosts a mixture of common sulphide minerals, which occur as
fracture filling and in skarn replacement horizons within a broad structural
corridor that cuts east-west across a section of clastic, cherty and
carbonate-rich sedimentary rocks. It is located in an area with very few bedrock
exposures, but is marked by strong soil geochemical and geophysical anomalies.
Resource Estimate
The Keg Main Zone mineral resource estimation was completed by Gary Giroux,
P.Eng., MASc. (Giroux Consultants Ltd.) who is a qualified person and
independent of the issuer, based on the criteria defined by National Instrument
43-101. A summary of inferred mineral resources is tabulated below:
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Inferred Resource Grades
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Cut-off Silver Lead Zinc Copper Tin Indium Silver
(Silver g/t) Tonnes (g/t) (%) (%) (%) (ppm) (ppm) Ounces
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10 63,970,000 23.63 0.21 0.64 0.12 224.5 5.07 48,599,419
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12 54,640,000 25.80 0.22 0.68 0.13 238.5 5.29 45,323,287
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14 46,730,000 27.97 0.24 0.72 0.14 252.0 5.50 42,022,245
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16 39,760,000 30.25 0.26 0.77 0.15 265.7 5.77 38,668,984
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18 33,900,000 32.55 0.27 0.81 0.16 278.8 6.02 35,476,576
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20 29,210,000 34.74 0.29 0.85 0.16 292.5 6.24 32,625,139
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22 25,390,000 36.79 0.31 0.89 0.17 303.4 6.44 30,031,947
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24 21,990,000 38.94 0.32 0.92 0.18 315.7 6.63 27,530,378
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26 18,970,000 41.16 0.34 0.96 0.19 328.8 6.85 25,103,467
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28 16,470,000 43.31 0.36 0.99 0.19 341.8 7.10 22,933,629
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30 14,340,000 45.44 0.37 1.02 0.20 355.3 7.24 20,949,732
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32 12,520,000 47.54 0.39 1.05 0.20 366.9 7.33 19,136,147
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34 10,940,000 49.65 0.41 1.07 0.21 379.9 7.41 17,463,351
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36 9,570,000 51.75 0.44 1.09 0.21 390.1 7.41 15,922,575
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38 8,430,000 53.75 0.46 1.11 0.21 399.8 7.48 14,567,903
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40 7,480,000 55.63 0.48 1.12 0.21 409.4 7.47 13,378,323
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Data generated during the various drill programs conducted at the Keg Main Zone
were independently reviewed by Giroux Consultants Ltd. as part of the resource
study. The resource estimate for the Keg Main Zone was initiated by constructing
a wire-frame 3D solid model in "GEMS". Three-dimensional solids were manually
digitized from the available drill data and were used to constrain the
interpolation of mineralization. The model was constructed based upon
lithological boundaries and structural controls. A total of three different
lithological units were used in the modeling process.
Further details of the estimation procedure will be available in a NI 43-101
report, which will be posted on SEDAR (http://www.sedar.com/), no later than 45
days from the date of this news release.
Metallurgical Test Results
The metallurgical test work was overseen by Melis Engineering Ltd. and was
conducted by SGS Canada Inc. at its facility in Lakefield, Ontario. The work
encompassed preparation and analysis of seven composites of drill core,
comminution testing, open cycle and lock cycle flotation tests, gravity recovery
tests, concentrate analysis and physical and chemical characterization of
tailings.
The following table compares head grades versus recoveries obtained from lock
cycle tests.
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Silver Range Resources Ltd. -Keg Main Zone Metallurgical Test Work
Lock Cycle Tests - Comparison of Head Grades and Recoveries
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Assay Head Grade % Recovery
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Zinc Lead Copper Silver Indium Silver Indium
Composite % % % g/t g/t Zinc Lead Copper (1) (2)
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A 0.69 0.62 0.18 89.1 1.7 81.5 82.9 62.3 84.7 83.2
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B 2.30 0.30 0.60 56.2 15.6 92.4 82.9 80.2 80.7 96.1
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C 1.67 0.34 0.31 44.1 13.1 92.0 84.9 75.3 81.5 69.4
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D 0.89 0.27 0.10 32.3 8.8 85.7 82.4 59.0 80.3 77.4
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E 1.28 0.15 0.14 21.1 19.5 92.3 77.5 72.2 72.0 93.3
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F 1.14 0.28 0.19 32.7 9.1 87.5 83.9 67.6 80.6 77.9
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Average 1.33 0.33 0.25 45.9 11.3 88.6 82.4 69.4 80.0 82.9
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Overall 1.36 0.31 0.27 41.6 11.4 85.2 84.8 71.4 82.5 80.1
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Notes: 1. Combined silver recovery to lead and copper concentrate.
2. Combined indium recovery to zinc and copper concentrate.
3. The Overall Composite was a blend of Composites A to F.
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The following paragraph contains comments and observations regarding recoveries
and concentrate grades:
-- Excellent silver recoveries averaging 80.0% were achieved, with an
average of 57.2% recovery to lead concentrate assaying on average 5,816
g Ag/t, and 22.7% recovery to copper concentrate assaying on average
1,458 g Ag/t. An additional amount, an average of 8.2%, reported to the
zinc concentrate which assayed an average of 136 g Ag/t. Silver head
grade did not have much impact on overall silver recovery.
-- Zinc recoveries to zinc concentrate averaged 88.6% and were generally
over 90% for composites with zinc head grades greater than 1.0% Zn.
-- Lead recoveries to lead concentrate averaged 82.4% and were all greater
than 77.5%.
-- Copper recoveries averaged 69.4% and generally followed copper head
grade.
-- Zinc concentrate grades of greater than 45% Zn were achieved on
composites with head grades greater than 1.0 % Zn.
-- The lead grade in the lead concentrate, which averaged 65% Pb, was
independent of the head grade of the composites. Excellent lead
concentrate grades were achieved even down to a head grade of 0.15% Pb.
-- Excellent copper grades were obtained in the copper concentrate,
averaging 27.2% Cu, even for the composites with relatively low copper
head grade.
-- The majority of the recoverable indium reported to the zinc concentrate,
averaging 74.3% recovery and assaying an average of 320 g In/t. A lesser
amount, 8.6%, was recovered to the copper concentrate assaying an
average of 150 g In/t. No indium reported to the lead concentrate.
Indium head grade did not seem to have an impact on overall indium
recovery.
-- The average tin grades were 1.99% Sn in the copper concentrate, 0.44% Sn
in the lead concentrate and 0.04% in the zinc concentrate. The majority
of the tin, an average of 60%, was not recovered and reported to the
final float tails which had an average tails tin assay of 0.025% Sn.
Geological modelling and data verification were conducted by Archer, Cathro &
Associates (1981) Limited. Matthew R. Dumala, P. Eng., is the Company's
designated qualified person for geological information in this news release.
Block modelling for resource calculations was performed by Gary Giroux, P. Eng.
of Giroux Consultants Ltd. while all metallurgical test work was overseen by
Lawrence A. Melis, P. Eng. of Melis Engineering Ltd., both of whom are qualified
persons and independent of the issuer, based on the criteria defined by National
Instrument 43-101.
About Silver Range Resources Ltd.
Silver Range was created through a spin-out of assets from Strategic Metals Ltd
and currently has more than $7 million in cash. The Company is focused on its
wholly-owned Silver Range project, where multiple bulk-tonnage and high-grade
mineralized zones have been located in an area of exceptional infrastructure
near the town of Faro, Yukon Territory.
ON BEHALF OF THE BOARD
W. Douglas Eaton, President and Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
Silver Range Resources Ltd. - Corporate Information
W. Douglas Eaton
President and C.E.O.
(604) 688-2568
Silver Range Resources Ltd. - Corporate Information
Bruce A. Youngman
Chairman
(604) 687-2522
Silver Range Resources Ltd. - Investor Inquiries
Richard Drechsler
Corporate Communications
(604) 687-2522 or NA Toll-Free: (888) 688-2522
rdrechsler@silverrangeresources.com
www.silverrangeresources.com
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