Wildcat further increases Hermosa mineral resource
August 9, 2012
TORONTO, Aug. 9, 2012 /CNW/ - Wildcat Silver Corporation (TSX: WS) (“Wildcat” or “the Company”) is pleased to announce a further increase to the total mineral resource for its Hermosa project located in Santa Cruz, Arizona. The Company has also upgraded a significant portion of its indicated resource into the measured category. The updated mineral resource estimate includes:
- Measured and Indicated resource of 194 million tonnes of 37.7 g/t silver for 236 million oz of silver
- Inferred resource of 80 million tonnes of 30.9 g/t silver for 79 million ounces of silver
“The drill program completed earlier this year has resulted in the global Hermosa mineral resource increasing once again and is now approximately 2.5 times larger than the previous 2010 resource used in the prior preliminary economic assessment,” commented Don Taylor , Wildcat’s President and Chief Operating Officer. “We are also pleased that we were able to upgrade a significant portion of the resource into the measured category, which comprises more than 40% of the total resource. We are currently focused on incorporating this resource into a revised preliminary economic assessment which we plan to complete by the end of this quarter.”
This mineral resource estimate is effective as of August 9, 2012 and includes drill and assay data up to March 2012 which contains all 212 holes (55,700 metres) completed in the most recent 2011/2012 drill program. A summary of the total resource is provided below and is reported on a 100% basis.
It should be noted that mineral resources are not mineral reserves and do not have demonstrated economic viability.
|Hermosa Mineral Resource Estimate|
|Zone||Type|| Tonnes |
| Ag |
| Au |
| Mn |
| Zn |
| Cu |
| Contained Silver |
|Measured Mineral Resource*|
|Indicated Mineral Resource*|
|Measured and Indicated Mineral Resource*|
|Total Measured & Indicated||194,180||37.73||0.07||3.06||0.77||0.04||235,574|
|Inferred Mineral Resource*|
|Zone||Type|| Tonnes |
| Ag |
| Au |
| Mn |
| Zn |
| Cu |
| Contained Silver |
* The mineral resource is constrained within a Whittle optimized pit shell based on the following metal prices and recoveries:
The mineral resource is based on processing costs of US$27.55/tonne for the Manto Zone. The Upper Silver Zone mineral resource is tabulated using a silver cut-off grade of 8.57 g/t.
Previous mineral resources did not include a resource for gold as no metallurgical test work had been completed to prove its recovery or economic viability. As a result of recent test work the expected recovery included in the above table has been used and gold has been included in the total mineral resource.
In addition to the above mineral resource, Hermosa also has a deep Skarn Sulfide Zone which hosts 3.8 million tonnes of 30.84 g/t silver, 4.68% manganese, 0.07% copper and 2.31% zinc for total contained silver ounces of approximately 4.0 million. This Skarn resource was previously announced in the Company’s February 6, 2012 mineral resource press release and included in the NI 43-101 Hermosa Technical Report dated March 21, 2012. The Skarn resource was not affected by the current drilling and therefore was not listed in the updated resource totals as it was not reviewed byScott E. Wilson Consulting, Inc.
The Company has also completed metallurgical test work including pilot plant studies on both the Manto Oxide and Upper Silver Zone ore at Hazen Research Inc. in Golden, Colorado. Results are expected to be announced later in the quarter once results of the test work have been received and analysed. Wildcat is on track to deliver an updated Preliminary Economic Assessment which will include the new mineral resource announced today and the results from the metallurgical test work by the end of the third quarter of 2012.
Scott Wilson , President of Scott E. Wilson Consulting, Inc., is an independent qualified person as defined by National Instrument 43-101 and has approved and verified the information in this news release in relation to the Hermosa Manto Oxide and Upper Silver Zone mineral resource. Mr. Wilson is a Certified Professional Geologist and member of the American Institute of Professional Geologists (CPG #10965) and a Registered Member (#4025107) of the Society of Mining, Metallurgy and Exploration, Inc., a professional association and designation recognized by the Canadian regulatory authorities.
Wildcat Silver is a Canadian silver exploration company focused on becoming one of the largest and lowest cost silver producers in the USA by developing its 80% owned Hermosa silver project located in Santa Cruz County, Arizona. The project currently has a measured and indicated mineral resource of 194 million tonnes averaging 37.7 grams per tonne silver for a total of 236 million ounces of silver in addition to an inferred mineral resource of 80 million tonnes averaging 30.9 grams per tonne silver for a total of 79 million ounces of silver as announced in this press release. Wildcat’s common shares trade on the TSX under the symbol “WS”.
Cautionary Note Regarding Forward-Looking Information
Certain information contained in this press release constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements, including information concerning the Company’s plans for its mineral property in Arizona including the preparation and timing of the preliminary economic assessment and metallurgical testwork, and the metal recovery rates, and processing and mining costs assumed in the calculation of the resource. Forward-looking statements are often, but not always, identified by the use of words such as may,will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by the Company, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in the Company’s management’s discussion and analysis for the period ended December 31, 2011 (“MD&A”). The Company cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled “Risks and Uncertainties” in the MD&A.
Although the Company has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
About Mineral Reserves and Mineral Resources
This press release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that: (a) mineral resources are not economic mineral reserves; (b) the economic viability of resources that are not mineral reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for certain preliminary economic assessments. Readers should also refer to the Company’s Annual Information Form for the period ended December 31, 2011 and other continuous disclosure documents available at www.sedar.com, which is subject to the qualifications and notes set forth therein.