Silver Standard teams with GoldOre Resources

An option agreement with Gold-Ore Resources (GOZ-V) sets the stage for Silver Standard Resources (SSO-V) to extend its search for bulk-minable silver deposits to include Mexico’s Sinaloa state.

Silver Standard already owns a sizable exploration portfolio that includes parts of Argentina, Chile, Australia and the U.S. Among its more advanced projects is the Manantial Espejo joint venture in Argentina, where measured and indicated resources stand at 4.4 million tonnes grading 263.8 grams silver and 4.51 grams gold per tonne.

The company’s latest foray takes it to the Sierra Madre, where it can earn up to a 100% interest in the San Marcial project. The 12.5-sq.-km property is believed to host geology comparable to that of the famous Tayoltita mine, and of the advanced Los Almos project of Corner Bay Silver (BAY-T), where a feasibility study is nearing completion.

Recent drilling by Gold-Ore cut an impressive 66 metres running 206 grams silver and 35 metres grading 205 grams silver in two holes of a 5-hole program. Both mineralized sections began within 3 metres of surface and include smaller but higher-grade sections.

The prospect, known as San Marcial, stretches to 450 metres of strike length and to at least 100 metres below surface. Mineralization remains open in all directions.

To acquire the property outright, Silver Standard must pay Gold-Ore US$379,000 (much of which can be paid in shares) and an underlying vendor US$462,500 in cash. The company is also required to spend US$575,000 on exploration over two years, of which US$175,000 must be spent by March.

Drilling and surface sampling are under way. At least six holes are planned.

Meanwhile, Silver Standard has issued US$1 million worth of treasury shares to Pacific Rim Mining (PFG-T) to maintain its option on the Diablillos silver-gold project in northwestern Argentina. Another US$900,000, payable in cash or shares, is required before 2004 to complete the transfer of title.

Situated near the Chilean border, Diablillos hosts an inferred resource of 42 million tonnes grading 70 grams silver, based on a cutoff grade of 42 grams silver-equivalent. Within that, 25 million tonnes carry 1.02 grams gold, based on a cutoff grade of 0.7 gram gold-equivalent.

Dubbed Oculto, the deposit has been outlined by 17 core holes and 79 reverse-circulation holes drilled by Barrick Gold (ABX-T) before its departure in June 2001. As part of its efforts, the major carried out a series of column-leach tests on drill core to yield lower-than-expected recovery rates.