Silver Standard targets Silvertip (November 28, 2002)

Vancouver Silver Standard Resources (SSO-V) has added the Silvertip project in northern British Columbia to its stable of global base metal properties.

Lying 85-km southwest of Watson Lake in the Yukon, Silvertip has been explored since the 1950’s. However, it was not until 1981 that high-grade drill intercept were encountered at the Silver Creek Discovery zone. Subsequent work lead to an indicated resource of 2.6 million tonnes grading 8.8% zinc, 6.4% lead, 325 grams silver and 0.6 grams gold per tonne. Development of the project includes some 2,200 metres of underground workings.

Mineralization occurs as irregular shaped bodies of replaced limestone within the Middle Devonian McDame group, which is unconformably overlain by the Earn group argillite. The zone extends from the unconformity to as much as 100 metres below the unconformity.

In 1999, the project was optioned out to Peruvian Gold (PVO-V). During 2000, 22 holes were drilled from an existing decline to follow up a 1999 surface hole intersection of 8.7% zinc, 5.5% lead and 318 grams silver. Most of the holes intersected mineralization but a lack of market interest at the time prompted Peruvian to drop the property.

Silver Standard agreed to pay $1.2 million, plus the issuance of 100,000 shares to owner Imperial Metals (III-T). Imperial retains a right of first offer should Silver Standard elect to sell the property in the future.

In November 2001, Imperial filed for and was granted protection from creditors. Earlier this year the reorganization was completed and the company began to sell some of its asset. In May, Imperial unloaded the Goldstream mine near Revelstoke BC for $500,000 and the Similco mine for $450,000. Both projects have been on care and maintenance since 1996.

Imperial then set its sights on northwestern BC, by staking ground adjacent to the Joss’alun copper showing in the Atlin mining district. Dubbed Nak, the property covers the strike extension of the same stratigraphy that hosts high-grade copper mineralization, discovered by BC Ministry of Energy and Mines.