Grades firm at Penasco

Vancouver – Recent drill results have confirmed the continuity of silver with gold, zinc, and lead grades from Western Silver’s (WCT-T) Peasco deposit in the Outcrop breccia. The company’s wholly-owned Peasquito property is situated in the Concepion del Oro district in Zacatecas state in central Mexico. Zacatecas was historically founded on silver mining and still ranks as the largest source of silver in Mexico.

The 26 recent holes included infill definition drilling as well as offset drilling of high-grade gold mineralization along the northern contact of the Outcrop breccia.

In-fill drilling on 50 metre centers confirmed the mineralization found in previous holes in terms of thickness and average grade. Notable holes include:

• Hole 183 – 492 metres of 1.53 grams gold, 52 grams silver per tonne, 0.45% lead and 1.03% zinc from 244 metres down the hole;
• Hole 191 – 401.7 metres of 1.42 grams gold, 40 grams silver, 0.41% lead and 0.96% zinc from 278 metres down the hole

;

• Hole 194 – 466.2 metres of 1.05 grams gold, 35 grams silver, 0.42% lead and 1.05% zinc from 226 metres depth

;

• Hole 204 – 520 metres of 1.10 grams gold, 48 grams silver, 0.48% lead and 0.98% zinc from 322 metres down the hole

High-grade mineralization was also intersected along the northern contact of the Outcrop breccia west and east of the Hole 166’s high grade gold mineralization.

Hole 166 intersected gold mineralization at a depth of 424-526 metres at the breccia contact earlier this fall. Within this interval were: 62 metres averaging 0.82 gram gold and 41 grams silver per tonne, plus 0.49% lead and 0.79% zinc; 2 metres containing native gold and argentite assaying 536 gram gold and 8,280 grams silver, 4.27% lead and 8.51% zinc; and 24 metres of 5.78 grams gold, 161 grams silver, 1.82% lead and 4.98% zinc.

Hole 184, collared 50 metres west of 166, intersected a 24-metre interval from 480 to 504 metres that averaged 2.75 grams gold, 149 grams silver, 1.89% lead and 3.37% zinc, including 2 metres that average 27.4 grams gold, 842 grams silver, 6.81% lead and 20.20% zinc.

Hole 191, collared 100 metres south and 100 metres east of hole 166, intersected an 18 metre zone averaging 13.71 grams gold, 184 grams silver, 1.15% lead and 4.48% zinc starting from 566 metres that included a 4 metre interval grading 30.85 grams gold, 351 grams silver, 0.83% lead and 7.60% zinc.

The southern Peasco zone also contains high-grade gold, but with lower lead-zinc values. Hole 193, 50 metres east and 485 metres south of hole 166, contains a 54-metre interval beginning at 422 metres averaging 10.82 grams gold, 73 grams silver, 0.15% lead and 0.43% zinc, including a four metre zone that averages 60.5 grams gold and 385 grams silver.

Penasco, one of three deposits delineated on the Penasquito property, has an indicated sulphide resource of 124 million tonnes grading 27.5 grams silver and 0.5 gram gold per tonne, with 0.31% lead and 0.64% zinc. A further 84 million tonnes are inferred, with average grades of 26 grams silver and 0.5 gram gold per tonne, plus 0.29% lead and 0.66% zinc.

Penasco also has an overlying oxide resource, which contains an indicated 26 million tonnes grading 19.7 grams silver and 0.2 gram gold per tonne, plus 0.24% lead and 0.26% zinc. Another 8 million tonnes running 15.8 grams silver, 0.2 gram gold, 0.2% lead and 0.26% zinc are classified as inferred.

The company drilled 56,570 metres in 112 holes so far this year. Two large diameter drill rigs are providing metallurgical testing for oxide and sulphide zones for the Chile Colorado and Peasco deposits for which a feasibility study is under way and due for completion by mid-2005.