Silver Standard boosts Bowdens resource (October 24, 2001)

After sinking 30 reverse circulation and two diamond drill holes for 4,319 metres during 2000 and 2001, junior Silver Standard Resources (SSO-V) has increased by 25% measured and indicated resources at its wholly owned Bowdens deposit in New South Wales, 200 km northwest of Sydney, Australia.

Measured and indicated resources now stand at 36.1 million tonnes grading 51.8 grams silver per tonne, plus 0.24% lead and 0.32% zinc. Another 22.9 million tonnes of inferred resources average 42.5 grams silver, 0.2% lead and 0.3% zinc. Measured and indicated resources make up 66% of total resources.

That compares with measured and indicated resources of 27.2 million tonnes grading 55.1 grams silver, 0.24% lead and 0.32% zinc, in April. Inferred resources at the time tallied to 30.1 million tonnes running 38.7 grams silver, 0.25% lead and 0.34% zinc.

When Silver Standard purchased Bowdens in 1996 the project had an inferred resource of 19.9 million tonnes grading 99 grams silver, 0.32% lead and 0.37% zinc, for about 60 million ounces of contained silver.

The latest estimate employs a cutoff grade of 40 grams silver-equivalent per tonne. Included in the overall resource is a higher-grade core of 22 million tonnes, in all categories, grading 80.2 grams silver, 0.21% lead and 0.26% zinc. The core is based on a cutoff grade of 50 grams of uncut silver per tonne.

The company recently added a second farm at Bowdens. The new farm provides surface rights for the proposed site for mill facilities and adjoins another farm purchased in 2000 that gives Silver Standard surface rights over the planned open pit and required processing facilities.

In other news, the company has completed reverse-circulation drilling at the Bluey’s silver project in Australia’s Northern Territory. The holes tested a 125-by-115-metre area where 12 rock samples assayed between 490 and 11,900 grams silver per tonne. Also reported were copper values of up to 13.2%. Assays results are expected in late November.

Silver Standard can earn a 51% interest in the prospect and the surrounding tenement by covering Australian Imperial Granite and Minerals’ staking and tenement costs to a maximum of A$10,000 and spending A$750,000 on exploration. The company can increase its interest to 90% by completing a bankable feasibility study.

The 53.5-sq.-km property is 93 km east of Alice Springs in the Northern Territory. It encompasses the Bluey’s silver prospect, which Silver Standard believes has the potential to host a large, high-grade, silver resource with open-pit potential.