Snowfield project produces new gold zone for Silver Standard

Vancouver – At the Snowfield project Silver Standard Resources (SSO-T, SSRI-Q) is mobilizing drill rigs around a discovery hole that produced a lengthy intercept of gold mineralization at a target well south of the project’s main resource area.

Starting near-surface Silver Standard hit 482.8 metres grading 0.7 grams gold per tonne and 8 grams silver per tonne in hole 10.

The intercept, which ended in mineralization, included higher grades at greater depths. Starting 346 metres downhole, for instance, Silver Standard hit 49.5 metres grading 1.26 grams gold and 16.1 grams silver.

Silver Standard is calling the new area the Bridge zone and drilling six more holes near to the discovery hole in order to ascertain the extent of mineralization. The Bridge zone is about 6 km south of the Snowfield zone and is part of what the company calls the Brucejack area.

The latest round of drilling was not limited to the Bridge zone, however. It also included the Galena Hill zone, 1,200 metres to its north, where Silver Standard continues to intercept mineralization.

For example starting 100 metres below surface hole 8 returned 34 metres grading 0.85 grams gold and 6.6 grams silver and a further 83.5 metres grading 0.76 grams gold and 11.6 grams silver starting 203 metres downhole.

Silver Standard also collared holes as part of a definition drilling campaign in the Snowfield zone. Intercepts included 523 metres grading 0.73 grams gold and 0.16% copper in hole 32.

In the Snowfield zone Silver Standard has so far outlined a measured resource of 31.9 million tonnes grading 1.49 grams gold , 1.43 grams silver, 0.033% copper and 0.014% moly and an indicated resource of 102.8 million tonnes grading 0.86 grams gold, 1.58 grams silver, 0.072% copper and 0.008% molybdenum.

Combined the measured and indicated categories contain about 4.4 million oz. gold.

The inferred resource is quite a bit larger. It stands at 662 million tonnes grading 0.67 grams gold, 1.83 grams silver, 0.137% copper and 0.008% moly for a total of 14.3 million contained oz. gold.

The Snowfield project lies 40 km north of Stewart, B.C.

Elsewhere, Silver Standard continues to ramp up to full-scale production at its Pirquitas mine – but not without hitting a few snags.

The silver-tin-zinc mine, 355-km northwest of San Salvador de Jujuy, Argentina, was hit by both a cold snap and other technical issues that slowed production.

The slowdown has impacted capital costs which Silver Standard expects will increase by US$12 million to US$233 million.

Silver Standard has since resolved the problems and shipped its first 100 tonnes of concentrate. In 2009 Silver Standard anticipates producing 3 million oz. silver and in 2010 it expects to churn out 10 million oz. silver at Pirquitas.

On news of the drill results at presstime Silver Standard’s share price saw a modest increase of 29¢ to $19.16. Silver Standard has about 71.7 million shares outstanding.