Wildcat Silver updates resource estimate at Hardshell

For the second time this year Wildcat Silver (WS-V) has updated the resource estimate for its 80%-owned Hardshell property in southern Arizona, which company president and chief executive Chris Jones describes as “one of the most important silver and manganese development projects in the U.S.”

The Hardshell deposit is in Santa Cruz County, 100 km southeast of Tucson, Arizona and about 13 km north of the U.S. border with Mexico. Wildcat acquired the property in 2006.

The new resource estimate, which includes step-out drill results announced in November 2009, demonstrates a 125% jump in inferred silver resources and a 200% increase in inferred manganese resources.

Hardshell has indicated resources of 6 million tonnes grading 187.8 grams silver per tonne; 0.10% manganese; 1.03% copper; 1.06% zinc; and 36.2% lead.

In the inferred category Hardshell contains an oxide resource of 39.26 million tonnes grading 61 grams silver; 7.66% manganese; 0.06% copper; 1.55% zinc; and 1.13% lead. Inferred sulphide resources tally 6.99 million tonnes grading 35 grams silver; 5.77% manganese; 0.10% copper; 2.25% zinc and 2.04% lead.

Using a $55 per ton cutoff grade representing Hardshell’s approximate cost of production, and metal price assumptions of US$14 per oz. silver; $0.61 per lb. manganese; $0.75 per lb. zinc; and $0.50 per lb. lead, Hardshell contains an indicated resource of 36.2 million oz. silver; 410,000 tonnes of manganese; 62,000 tonnes of zinc and 64,000 tonnes of lead. In the inferred category the numbers are 84.9 million oz. silver; 3.4 million tonnes manganese; 766,000 tonnes zinc and 588,000 tonnes lead.

The revised estimate was based on a database of 97 historic drill holes and 13 Wildcat drill holes.

The company is now preparing to update the 2007 preliminary economic assessment of the project, an exercise it expects to complete by the middle of the year.

Wildcat believes the polymetallic deposit, which is made up predominantly of oxidized mineralization, can potentially be mined by either an open pit or underground and processed by an SO2 leach plant.

Following the leaching step, copper, zinc and manganese are precipitated or electrowon, and silver is produced using conventional Merrill-Crowe techniques. Lead is recovered from the Merrill-Crowe waste stream.

At presstime Wildcat was trading at 53¢ per share, up 3.5¢or 7.1% with 1.5 million shares traded.

Over the last year the junior explorer has traded in a range of 22¢-83¢ per share and has 93.5 million shares outstanding.