VANCOUVER, BRITISH COLUMBIA - SNS Silver Corporation ("SNS" or the "Company") (TSX VENTURE: SNS) provides a summary of the developments at the Crescent Mine during the 2008 year and is proposing a new slate of directors at the annual general meeting.
2008 Summary
Significant progress was made on the Crescent Mine in 2008 with exploration drilling, infrastructure development and modification.
Exploration drilling
Surface exploration was completed in 2008 with an additional 27,026 feet of drilling on the South Vein and Upper Alhambra structures for a total of 68,100 feet. Underground drilling within the Crescent Mine began in late Dec. 2007 and continued thru Dec. 10th of 2008. A total of 43,240 feet of underground exploration drilling was completed on the Hooper level (main haulage level) with drill stations positioned 1,000 feet apart ranging from East to West. The grand total of drilling on the Crescent property by SNS is 111,347 feet. Drill data is currently being logged and interpreted by SNS geologists and a resource estimate by SRK will be available in early 2009.
Development
Development drifting at the Crescent Mine began in January 2008, directly after the completion of the 2007 Hooper level rehabilitation project. Drifting was done along the Alhambra Vein structure to the West for approximately 1,000 feet. This drift was to provide an additional drill platform for South Vein exploration as well as to evaluate the Alhambra structure. At approximately 900 feet west of the Hooper Raise, a drift was driven 250 feet to the South to provide a drill platform for the Alhambra structure that shows several areas of potential mine grade mineralization. A second drift was driven to the South at the 3,500 foot area of the Hooper level. This drift was completed in August 2008 to provide a drill platform for the upper extension of the East Footwall Vein and was the final piece of excavation needed to complete the 2008 drill program.
The Rehabilitation project on the Big Creek #4 / Alhambra level continued through August 2008 with considerable progress made toward the West side of the property. Over 2,000 feet of 1920's era drift was modified and rehabilitated. This rehabilitation work continued westward beyond the Hooper Raise and towards the historical Taylor Stope. New haulage rail and utilities were installed to provide equipment access to the Alhambra level for exploration and new mine development. Rehabilitation work was put on hold in late August while an evaluation of the property is being conducted. The objective of the Big Creek #4 / Alhambra rehabilitation is to provide an excellent drill platform for further South Vein exploration to the west of the property. This will also provide a secondary escape way and ventilation improvements throughout the upper Crescent. Should rehabilitation continue through to the Alhambra portal, access and ventilation options would be significantly increased for South Vein development.
The Crescent Mine haulage capabilities and efficiency were greatly increased with the purchase of 13 Granby style cars and the installation of two new automated dump stations for the ore cars. The ore car capacities were increased by 30% and the dump time decreased by 80% from the old style side dump cars used in the past. A new Atlas Copco GA200 mine compressor was purchased in the second quarter of 2008 and has worked flawlessly since installation which is saving us thousands of dollars in fuel and maintenance.
In late spring of 2008 a decision was made to install a new Hooper level intake fan and ventilation doors to increase and control the ventilation within the Crescent Mine. Ventilation is now being forced into the Hooper Tunnel and up through the Hooper Raise and out the Big Creek #4 Adit. This provides a positive pressure and flow in one direction to prevent any interior circulation of exhausts, smoke and other gases. The excavation was done by SNS employees and the ventilation doors and fan were installed by KCM Contract Mining. The 50hp main ventilation fan is powered by an ultra-efficient Variable Frequency Drive controller which allows us to adjust fan speed from 0 rpm - 4,300 rpm in seconds. This adjustability is state of the art and allows us to control our ventilation for optimum efficiency.
New rail equipment was purchased including a 12B track mucker and 2 Mancha 1.5 ton electric motors. One Mancha is to be used for hauling supplies on the Hooper level while the other Mancha and 12B are to be used on the Alhambra level. The purchase of a 1993 Flatbed Ford gives us the ability to haul supplies to and from the Big Creek #4 as well.
Water lines were installed this summer to the Core Building and the Geology building as well as both shops on the South side of the property. Gas heating was installed in all the shops on the property as well.
2009 Outlook
Management recognizes that current market conditions are extremely challenging for junior exploration and resource companies. As a result, management is committed to significantly reducing overhead costs and mine development and drilling expenditures in fiscal 2009, anticipating improved metal prices and more favourable equity markets by the end of calendar 2009. Once the Company has completed the anticipated National Instrument 43-101 report for the Crescent, expected in early calendar 2009 from SRK Consulting, management will assess the results and evaluate the Crescent's potential for development. In addition, the Company continues to evaluate and pursue other strategic mineral opportunities through mergers, acquisitions or joint ventures.
Management is putting forward a new slate of directors to the Board. The new Board proposed will consist of: David Greenway, John Ryan, Del Steiner, and Ralph Kettell. Management believes each of the new Board members brings diverse financial and operating experience, and industry contacts to the Company, which will allow the Company to aggressively pursue opportunities in this challenging market.
Details of the new Board members
John P. Ryan has extensive experience with development-stage companies, most recently as the Chairman of U.S. Silver Corporation since April 2006, also serving as Chief Financial Officer of U.S. Silver Corporation until May 1, 2007. Mr. Ryan served as Secretary and Chief Financial Officer of High Plains Uranium, Inc. (a uranium exploration and production company)("High Plains") from incorporation until September 2006. During the period of 1996 until 2006, he held various positions with Cadence Resources Corporation, a U.S. public natural resources company, including Vice President of Corporate Development (1996-2005), Secretary (1998-2006) and a director (1997-2005). Other companies with which Mr. Ryan holds an officer and/or director position include Bio-Quant, Inc., Nevada-Comstock Mining Company, Great Wall Gold Corporation, Sundance Diamonds Corporation, TN Oil Co. and Dotson Exploration Company. Mr. Ryan attended the University of Idaho where he received a B.S. degree in Mining Engineering, and he also received a Juris Doctor from Boston College. Mr. Ryan is a former U.S. Naval Officer.
Del Steiner began his career in the junior exploration and mining sector in 1980 as an attorney and consultant. He specializes in operations, property contract and negotiation, and environmental mining law and permitting. Currently Mr. Steiner is the President, CEO and Director of Premium Exploration, a TSX-V listed company. He has a B.A. from Lewis Clark State College, Idaho 1968, and a J.D., at the University of Idaho 1974.
Ralph W. Kettell is the founder of Concentric Energy Corp., a privately held uranium company, the principal asset being the Anderson uranium property in Arizona. He is also a Founding Partner of Nevada Sunrise, LLC, a private gold exploration company that controls 20 gold, silver and copper properties, primarily in Nevada, most of which host known mineral resources. Finally, he is a Founder of AuEx, Inc., a Nevada gold and silver exploration company, and a Founder of North Range Resources Ltd., a mineral exploration company with a number of gold and base metals properties in Newfoundland. Mr. Kettell was formerly the Marketing Director of 321gold.com, a leading precious metals website. Mr. Kettell holds a BS degree and also an MS degree in Electrical Engineering from Lehigh University, and is a registered Professional Engineer.
David Greenway, President and CEO, commented, "I have proposed the new board of John Ryan, Del Steiner, and Ralph Kettell as these three individuals bring a wealth of mining and venture development experience though diverse backgrounds. I believe our new Board will be instrumental in guiding the Company through these challenging market conditions, and allow us to capitalize on the significant opportunities that are currently being presented. I'd like to thank our incumbent directors, Mike Kuta and Ishiung Wu for their service, and look forward to their guidance on our advisory board."
SNS Silver Corporation (TSX VENTURE: SNS) is an exploration mining company, whose primary asset is the 100% owned Crescent Mine located in Kellogg, Idaho - one of the largest silver districts in North America with over one billion ounces of silver produced. The property consists of 24 patented mining claims over approximately 350 acres, alongside 40 acres of surface rights. The Company currently has a comprehensive and well-funded drill program underway. Their main focus is on upper country surface drilling and underground drilling on the Alhambra and South Veins, as well as restoration of the Hooper Tunnel, drifting and cross-cutting. Silver Wheaton currently owns approximately 12%. The Company has approximately $3.5 million in cash in addition to the outstanding $2.0 million receivable from Andover Ventures.
Historical resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates and is not treating the mineral resource estimates as National Instrument 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. The Crescent Mine will require considerable further evaluation, which the Company's management and consultants are in the process of completing. The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of this news release.
Contacts:
SNS Silver Corp.
David Greenway
President/CEO
(604) 689-0896 or Toll Free: 1-800-663-4567
Email: dg@snssilver.com
Website: www.snssilver.com
© MarketWire 2009
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