Silver Standard revs up drills in Mexico (February 24, 2004)

Drilling has expanded the Cordon Colorado zone and uncovered a new deposit at La Pitarrilla, a silver project near Durango in west-central Mexico.

Vancouver-based Silver Standard Resources (SSO-V) recently launched the fourth-phase program, which is designed to expand the Cordon Colorado discovery zone and which now will test the new discovery, known as the Pena Dyke zone.

Silver Standard President Robert Quartermain says drill results have been so encouraging that La Pitarrilla has advanced from a new grassroots prospect to “a top exploration priority” in less than six months.

The Pena Dyke zone is 400 metres north of Cordon Colorado. It has been tested by seven reverse-circulation holes, two of which, 31 and 36, returned high-grade silver mineralization. Hole 31 intersected 714.7 grams silver per tonne over 88.4 metres, including 1,562.6 grams over 37.6 metres. Hole 36, collared about 60 metres to the southwest, intersected 1,028 grams silver over 35 metres, including 1,316 grams over 26.4 metres. The zone is open along strike and at depth, and more drilling is planned.

Meanwhile, at Cordon Colorado, 14 recently drilled infill and extension holes all intersected silver mineralization, and several have vertical thicknesses exceeding 60 metres. This round of drilling was aimed at outlining resources within Cordon Colorado and extending the zone to the southeast and the west. Infill drilling in holes 44-51 returned values ranging from 47.9 grams silver over 30.5 metres to 169.9 grams over 63 metres. Four holes, 40-43, tested the southeastern extension of Cordon Colorado and extended an area of high-grade silver mineralization. Hole 43 returned 172 grams silver over 57.9 metres, including 273.4 grams over 31.5 metres. Two holes tested the West zone, southwest of an inferred fault and Cordon Colorado. Both hit mineralization, with hole 38 returning 70.9 grams silver over 35.6 metres.

More drilling is planned at La Pitarilla, along with road construction and trenching in a third area of silver mineralization. The Javelina zone is about 2 km east of the Pena Dyke. Drilling is also under way at Silver Standard’s wholly owned San Agustin project, in the same area of Mexico. The target is a bulk-tonnage gold-silver deposit.

Silver Standard also holds interests in silver properties in Argentina and Australia.