Silver Standard cuts wide mineralized zone at Pitarrilla (September 27, 2006)

Vancouver – Drilling by Silver Standard Resources (SSO-T, SSRI-Q) on its Pitarrilla project in Durango State, Mexico intersected a wide mineralized section in a step-out hole on the Breccia Ridge zone.

Hole PD-157 returned 601 metres (from 225 metres downhole depth) grading 86.7 grams silver per tonne, 1.6% zinc and 0.72% lead including three separate higher-grade portions. The first high-grade interval of 26.1 metres (from 391.7 metres depth) averaged 329.8 grams silver, 4.9% zinc and 1.8% lead, the second section contained 291.5 grams silver, 5.9% zinc and 2.2% lead across 30.2 metres (from 499 metres depth), and the deepest silver-rich intercept was 30.4 metres (from 771 metres depth) of 214.2 grams silver, 5.9% zinc and 3.5% lead.

The step-out hole was collared about 70 metres northeast of high-grade hole PD-152 that returned 163 metres of 230 grams silver in mid-August, including a 15.7-metre interval averaging 1,706 grams silver, 6.9% zinc, 6% lead and 5.6% copper.

Recent drilling, including PD-157, has defined a 350-metre by 250-metre rectangular section of high-grade silver mineralization, extending to significant depths, within the Breccia Ridge zone. Silver Standard is adding a fourth rig to its drill program to test the extension potential of the zone.

Silver mineralization at Pitarrilla is associated with a rhyolite flow-dome complex capping a 600-metre thick sequence of Tertiary volcanics that unconformably overlies a Cretaceous-aged assemblage of folded marine sediments. The principal host for the silver is a series of rhyolite intrusive bodies, some more than 100 metres in thickness, containing mostly disseminated metals.

Five main mineralized zones have been identified at Pitarrilla that hosts a measured and indicated resource of 62.8 million tonnes grading 115 grams silver, using a 40 gram silver cut-off grade, to contain about 234.3 million ozs. of silver. Further inferred resources of 64.4 million tonnes at 92.7 grams silver (192.1 million contained ozs. of silver) have also been tabled in the deposit.

Pitarrilla is one of the larger deposits within Silver Standard’s portfolio of several projects, which in total contains over 107 million ozs. of silver in the proven and probable reserve category plus more than 603 million ozs. of silver in measured and indicated resources with a further 584 million ozs. under inferred resources. Projects are located in Argentina, Australia, Mexico, the United States, Chile, Peru and Canada.

The company posts a $1.5 billion market capitalization based on its 61.4 million shares outstanding and recent $24.66 per share price level. The stock has a 52-week trading range of $14.23-to-$29.80.