Silver Standard reports strong cash position

Relative to its size, Cons. Silver Standard Mines has one of the largest inventories of mineral properties in the U.S. and Canada — some 30 in all. And 14 of these were explored last year under various option agreements, said Robert Quartermain, president, at tha annual meeting.

A total of $477,000 was spent in exploration in B.C., the Yukon, Ontario and the western United States and he noted that working capital at year-end was almost $1.4 million. The strong cash position relates to the sale of shares in Blackdome Mining which has been a star performer on the market in the past year.

Freeport-McMoRan carried out limited surface exploration on the Tuscarora property in Nevada last year and further drilling is planned this year. Reserves in the Mill Creek zone now stand at 1.2 million tons grading 0.158 oz gold.

There are also 311,500 tons of heap leach material available grading 0.039 oz gold. Mr Quartermain said Freeport is conducting preliminary engineering studies on the property to assess its economic viability. Silver Staandard has a 2.19% net smelter royalty in the property.

Seventeen holes were drilled on the company’s Dome Mountain claims near Smithers, B.C. The claims are included in a much larger package being explored by Total Erickson Resources.

Two of the holes encountered ore grade mineralization including 13 ft of 0.49 oz and 8 ft of 0.35 oz. Anomalous gold mineralization was located in the remaining holes. The drill program was mounted to test the western extension of the Boulder Creek zone where reserves are 240,000 tons grading 0.46 oz. A 5% net smelter return is held in the claims.

Poor metallurgy has hindered development of the Mamie property 15 miles west of Smithers where inferred reserves total 60,000 tons grading 0.32 oz gold and 3 oz silver. An old adit will be opened up for sampling purposes which may give a better handle on the metallurgy.

The ground is about one mile from the Duthie mine property in which Silver Standard has a 7.5% net smelter interest. Last year the company received $21,000 in royalties from the small silver producer.

Silver Standard has four silica properties and Mr Quartermain said they were looking at the marketing aspects of this particular commodity.