iShares Silver Trust (SLV) increased its physical bullion holdings by 30.69 tons on December 26, the highest level since the latter part of October.
The iShares Silver Trust fund is the largest ETF backed by silver in the world. They now have a total of 6,792.99 tons of bullion on hand, against the 6,762.3 tons they had on December 24.
Since the early part of December, silver tonnage held by the trust is up 1.5 percent or 106.24 tons.
Monday, December 29, 2008
Thursday, December 18, 2008
International Minerals -- 2008 Review and 2009 Business Plans
SCOTTSDALE, AZ, Dec 18, 2008 (MARKET WIRE via COMTEX) -- International Minerals Corporation (CA:IMZ) (SWX: IMZ) ("the Company") reports a calendar year-end summary of its corporate and project activities during 2008 and its business plans for calendar year 2009.
Corporate
-- The Company's share price, like that of most resource companies,
has not performed well in 2008 due primarily to prevailing adverse
market conditions not only in the natural resources sector but also
in the general financial market. IMZ's current share price is
essentially at the same level as five years ago.
-- Management believes that the Company's accomplishments of the past
year (especially at the Pallancata underground silver-gold mine in
Peru) combined with our future plans will remedy this situation and
IMZ's share price should recover in 2009 together with a likely
resurgence in metal prices.
-- In terms of financial health, the Company is in the enviable
position of having a strong balance sheet with cash and short-term
investments of over US$50 million at calendar 2008 year end, with
expected cash dividends commencing in late 2009 from the 40%-owned
Pallancata Mine.
-- In mid-October 2008, IMZ instituted a share repurchase program
because the Board believed that the market price of the Company did
not fully reflect the underlying value of the Company's business
and its future business prospects. An update on the share
repurchase program will be provided in the Company's second fiscal
quarter financial information for the period ending
December 31, 2008.
A brief update on the Company's key projects is provided below:
Pallancata Silver-Gold Mine, Peru
-- Owned 40% by IMZ and 60% by the mine operator, Hochschild
Mining plc.
-- Pallancata has become one of the success stories in the mining
industry in 2008 and is now the number-one primary silver mine
in Peru in terms of silver reserves.
-- Proven and probable reserve estimates in August 2008 were
approximately 80 million ounces of silver equivalent (using a
75:1 silver:gold ratio) contained within 5.8 million tonnes at
329 g/t silver and 1.2 g/t gold in proven and probable reserves.
See IMZ news release dated August 25, 2008 for further details.
-- Production (100% project basis):
- From start-up (September 2007) to September 30, 2008 almost
3 million ounces of silver and over 10,000 ounces of gold have
been produced.
- For calendar year 2008, production is expected to reach
approximately 4.5 million ounces of silver and 18,000 ounces
of gold.
- In 2009, Pallancata should become one of the top-10 largest
primary silver mines in the world, producing an expected 6 to
7 million ounces of silver annually.
-- Total cash costs, including the government royalty, are currently
under US$6.00 per ounce of silver net of by-product gold credits.
Currently, direct mine site costs (included in the US$6.00 cash
cost) are approximately US$3.15 per ounce (assuming only mining,
processing and mine G&A costs).
-- IMZ's net earnings from the Pallancata Mine to September 30, 2008
are approximately US$3.8 million.
-- Because all cash flow has been required for funding the aggressive
capital expansion program at the Pallancata Mine, to date there
have been no cash dividends distributed to the joint venture
partners. Cash dividends are expected to commence, however, in the
final quarter of calendar year 2009, dependent on metal prices and
ongoing capital requirements.
Rio Blanco and Gaby Gold Projects, Ecuador
-- It has been a difficult year for the mining/exploration sector in
Ecuador.
-- The market awaits the expiry of the mining mandate (that suspended
exploration and mining activities in April) and approval of the new
mining law in January 2009. Normalization of exploration/mining
activities likely will take several months longer while the detailed
regulations for the mining law are prepared and approved.
-- The negotiation of project-specific mining contracts (covering
issues such as income/windfall taxes and royalty payments) for the
more advanced projects (such as IMZ's Rio Blanco, Kinross' Fruta
del Norte, IAMGOLD's Quimsacocha and Corriente's Mirador projects)
are expected to take up to an additional six months to negotiate
with the government.
-- In calendar year 2009, IMZ does not expect to spend significant
funds in Ecuador at the Rio Blanco underground gold-silver project
and the Gaby open-pit gold project and has already reduced its
workforce accordingly. The Company is, however, maintaining its
significant in-country infrastructure and its commitment to
developing its Ecuadorian projects.
-- IMZ has previously completed much of the environmental permitting
process for the proposed development of a mining operation at Rio
Blanco. Final permitting approval is expected by the end of 2009,
with construction (subject to required additional financing)
starting in 2010.
-- In February 2008, the Company completed a preliminary feasibility
report at Gaby, which was not positive at US$650 per ounce gold
price but is currently being optimized for higher tonnage
production. Results of the optimization program will be announced
in the first quarter of 2009.
New Acquisitions
-- In the current market there are significant opportunities for IMZ
to acquire gold-silver companies and/or projects that are in or
near production at low acquisition costs that have not been seen
in the industry for the past 20 years. IMZ is well-positioned with
its cash resources and strong technical team to take advantage of
this situation.
-- IMZ's preference is to seek these opportunities in the Americas,
especially in South America in order to leverage off of IMZ's
considerable technical and corporate expertise from over 15 years
of exploration and development of projects in that region.
-- The Company has evaluated at least 25 companies/projects in 2008,
using its experienced acquisition team, and management is confident
that IMZ will achieve at least one major acquisition during the
coming year.
The technical information in this news release was reviewed by IMZ's Qualified Person, Nick Appleyard, Technical Manager.
Cautionary Statement:
Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding capital expansion costs and completion, drilling and development programs on the Company's projects, timing of commencement of production, completion of feasibility studies, obtaining of required environmental and production permits, and timing and amounts of future cash flows from operations. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserve; risks relating to project capital and production costs; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; risks related to a new mining law in Ecuador, and other risks and uncertainties detailed in the Company's Renewal Annual Information Form for the year ended June 30, 2008, which is available at www.sedar.com under the Company's name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information, contact:
Wendy Yang
Tel: (303) 357-4863
Internet Site: http://www.intlminerals.com
SOURCE: International Minerals Corporation
http://www.intlminerals.com
Copyright 2008 Market Wire, All rights reserved.
Corporate
-- The Company's share price, like that of most resource companies,
has not performed well in 2008 due primarily to prevailing adverse
market conditions not only in the natural resources sector but also
in the general financial market. IMZ's current share price is
essentially at the same level as five years ago.
-- Management believes that the Company's accomplishments of the past
year (especially at the Pallancata underground silver-gold mine in
Peru) combined with our future plans will remedy this situation and
IMZ's share price should recover in 2009 together with a likely
resurgence in metal prices.
-- In terms of financial health, the Company is in the enviable
position of having a strong balance sheet with cash and short-term
investments of over US$50 million at calendar 2008 year end, with
expected cash dividends commencing in late 2009 from the 40%-owned
Pallancata Mine.
-- In mid-October 2008, IMZ instituted a share repurchase program
because the Board believed that the market price of the Company did
not fully reflect the underlying value of the Company's business
and its future business prospects. An update on the share
repurchase program will be provided in the Company's second fiscal
quarter financial information for the period ending
December 31, 2008.
A brief update on the Company's key projects is provided below:
Pallancata Silver-Gold Mine, Peru
-- Owned 40% by IMZ and 60% by the mine operator, Hochschild
Mining plc.
-- Pallancata has become one of the success stories in the mining
industry in 2008 and is now the number-one primary silver mine
in Peru in terms of silver reserves.
-- Proven and probable reserve estimates in August 2008 were
approximately 80 million ounces of silver equivalent (using a
75:1 silver:gold ratio) contained within 5.8 million tonnes at
329 g/t silver and 1.2 g/t gold in proven and probable reserves.
See IMZ news release dated August 25, 2008 for further details.
-- Production (100% project basis):
- From start-up (September 2007) to September 30, 2008 almost
3 million ounces of silver and over 10,000 ounces of gold have
been produced.
- For calendar year 2008, production is expected to reach
approximately 4.5 million ounces of silver and 18,000 ounces
of gold.
- In 2009, Pallancata should become one of the top-10 largest
primary silver mines in the world, producing an expected 6 to
7 million ounces of silver annually.
-- Total cash costs, including the government royalty, are currently
under US$6.00 per ounce of silver net of by-product gold credits.
Currently, direct mine site costs (included in the US$6.00 cash
cost) are approximately US$3.15 per ounce (assuming only mining,
processing and mine G&A costs).
-- IMZ's net earnings from the Pallancata Mine to September 30, 2008
are approximately US$3.8 million.
-- Because all cash flow has been required for funding the aggressive
capital expansion program at the Pallancata Mine, to date there
have been no cash dividends distributed to the joint venture
partners. Cash dividends are expected to commence, however, in the
final quarter of calendar year 2009, dependent on metal prices and
ongoing capital requirements.
Rio Blanco and Gaby Gold Projects, Ecuador
-- It has been a difficult year for the mining/exploration sector in
Ecuador.
-- The market awaits the expiry of the mining mandate (that suspended
exploration and mining activities in April) and approval of the new
mining law in January 2009. Normalization of exploration/mining
activities likely will take several months longer while the detailed
regulations for the mining law are prepared and approved.
-- The negotiation of project-specific mining contracts (covering
issues such as income/windfall taxes and royalty payments) for the
more advanced projects (such as IMZ's Rio Blanco, Kinross' Fruta
del Norte, IAMGOLD's Quimsacocha and Corriente's Mirador projects)
are expected to take up to an additional six months to negotiate
with the government.
-- In calendar year 2009, IMZ does not expect to spend significant
funds in Ecuador at the Rio Blanco underground gold-silver project
and the Gaby open-pit gold project and has already reduced its
workforce accordingly. The Company is, however, maintaining its
significant in-country infrastructure and its commitment to
developing its Ecuadorian projects.
-- IMZ has previously completed much of the environmental permitting
process for the proposed development of a mining operation at Rio
Blanco. Final permitting approval is expected by the end of 2009,
with construction (subject to required additional financing)
starting in 2010.
-- In February 2008, the Company completed a preliminary feasibility
report at Gaby, which was not positive at US$650 per ounce gold
price but is currently being optimized for higher tonnage
production. Results of the optimization program will be announced
in the first quarter of 2009.
New Acquisitions
-- In the current market there are significant opportunities for IMZ
to acquire gold-silver companies and/or projects that are in or
near production at low acquisition costs that have not been seen
in the industry for the past 20 years. IMZ is well-positioned with
its cash resources and strong technical team to take advantage of
this situation.
-- IMZ's preference is to seek these opportunities in the Americas,
especially in South America in order to leverage off of IMZ's
considerable technical and corporate expertise from over 15 years
of exploration and development of projects in that region.
-- The Company has evaluated at least 25 companies/projects in 2008,
using its experienced acquisition team, and management is confident
that IMZ will achieve at least one major acquisition during the
coming year.
The technical information in this news release was reviewed by IMZ's Qualified Person, Nick Appleyard, Technical Manager.
Cautionary Statement:
Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding capital expansion costs and completion, drilling and development programs on the Company's projects, timing of commencement of production, completion of feasibility studies, obtaining of required environmental and production permits, and timing and amounts of future cash flows from operations. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserve; risks relating to project capital and production costs; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; risks related to a new mining law in Ecuador, and other risks and uncertainties detailed in the Company's Renewal Annual Information Form for the year ended June 30, 2008, which is available at www.sedar.com under the Company's name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information, contact:
Wendy Yang
Tel: (303) 357-4863
Internet Site: http://www.intlminerals.com
SOURCE: International Minerals Corporation
http://www.intlminerals.com
Copyright 2008 Market Wire, All rights reserved.
Endeavour Silver Arranges CA$4 Million Special Warrant Private Placement
VANCOUVER, BRITISH COLUMBIA - Endeavour Silver Corp. (TSX: EDR)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) announces that it has arranged a CA$4 million private placement financing of special warrants brokered by certain Canadian placement agencies. The agents have an oversubscription right to place up to an additional CA$1 million and the financing is expected to close no later than December 30, 2008, subject to TSX and regulatory approvals.
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (TSX: EDR)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (TSX: EDR)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
Apex Silver Provides an Update Regarding the Company's Restructuring and Financing Arrangements
Apex Silver Mines Limited (AMEX: SIL) today provided an update regarding the company's restructuring and financing arrangements.
Letter of Intent for Sale of San Cristobal to Sumitomo
As announced on November 14, 2008, Apex Silver Mines Limited ("Apex Silver") entered into a non-binding letter of intent with Sumitomo Corporation ("Sumitomo") providing for the sale of Apex's interest in the San Cristobal mine to Sumitomo for a cash purchase price of $22.5 million, payable at the closing of the sale. Apex Silver would continue to manage the mine following the sale. Apex Silver and Sumitomo are continuing to negotiate definitive documentation related to this transaction. Upon completion of the sale, the holders of the Apex Silver $290.0 million in convertible notes would be entitled, under the existing terms of the notes, to redeem the notes for cash. The non-binding letter of intent is subject to significant conditions, including the restructuring of the Apex Silver convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
Termination of Derivative Positions
Apex Silver, Sumitomo and Minera San Cristobal, S.A. ("MSC") have entered into agreements with BNP Paribas and Barlcays PLC for the termination of the derivative positions established as a requirement of the San Cristobal project financing arrangements. Apex Silver paid approximately $59.0 million, or 65% of the final net settlement amounts with respect to the derivative positions, and repaid Sumitomo $7.5 million in respect of 65% of funding previously provided by Sumitomo to MSC to settle certain derivative positions. Apex Silver made these payments from the $91.0 million previously deposited by Apex Silver as cash collateral for the benefit of the counterparties to the derivative positions. Apex Silver received the remaining cash collateral, totaling $24.5 million.
Project Finance Loans Acquired by Sumitomo
Sumitomo has acquired 90% of the San Cristobal project finance loans from the lenders at par plus accrued interest, together with the right to exercise remedies of the lenders against MSC, Apex Silver and other Apex Silver subsidiaries. As previously disclosed, Apex Silver anticipates that Sumitomo, as the current holder of the San Cristobal project finance loans and the rights to exercise remedies against MSC, will have the right to accelerate the indebtedness outstanding upon a default by MSC or Apex Silver and its affiliates including the circumstances described in Apex Silver's quarterly report on Form 10-Q, for the quarter ending September 30, 2008. As noted in that filing, Apex Silver does not have, and does not expect to have, sufficient cash to fully settle its share of the obligations if they were to become immediately due and payable and has reclassified such obligations as short-term in its consolidated balance sheets.
Amendment to Sumitomo Loan Agreement
Under the terms of the Amendment to the Loan Agreement dated August 11, 2008 with SC Minerals Aktiebolag, a subsidiary of Sumitomo ("SC Minerals"), SC Minerals has agreed to increase by $25.0 million the amount available for borrowing by MSC. SC Minerals is the 35% shareholder of MSC. The additional $25 million is to be used solely to fund MSC's operating expenses. The $25.0 million is in addition to the $125.0 previously borrowed pursuant to the original Loan Agreement and subsequent Amendments to the Loan Agreement. The additional loan amount may be borrowed by MSC at any time on or before December 31, 2008. Apex Silver expects that MSC will borrow the full Additional Loan Amount on December 22, 2008.
If the full amount available under the amended Loan Agreement is fully drawn (including the Additional Loan Amount), no payments are made by MSC prior to maturity, and SC Minerals were to convert all amounts payable into MSC shares as of the maturity date, Apex Silver's indirect ownership interest in MSC would be reduced to approximately 40.5% (approximately 48.2% on conversion of principal only).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristobal mine and the restructuring of Apex Silver's capital structure, the expected continuation of Apex Silver as a management services and exploration company, and MSC's anticipated borrowing from SC Minerals. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo, and the risk that SC Minerals does not advance funds to MSC. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs
Letter of Intent for Sale of San Cristobal to Sumitomo
As announced on November 14, 2008, Apex Silver Mines Limited ("Apex Silver") entered into a non-binding letter of intent with Sumitomo Corporation ("Sumitomo") providing for the sale of Apex's interest in the San Cristobal mine to Sumitomo for a cash purchase price of $22.5 million, payable at the closing of the sale. Apex Silver would continue to manage the mine following the sale. Apex Silver and Sumitomo are continuing to negotiate definitive documentation related to this transaction. Upon completion of the sale, the holders of the Apex Silver $290.0 million in convertible notes would be entitled, under the existing terms of the notes, to redeem the notes for cash. The non-binding letter of intent is subject to significant conditions, including the restructuring of the Apex Silver convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
Termination of Derivative Positions
Apex Silver, Sumitomo and Minera San Cristobal, S.A. ("MSC") have entered into agreements with BNP Paribas and Barlcays PLC for the termination of the derivative positions established as a requirement of the San Cristobal project financing arrangements. Apex Silver paid approximately $59.0 million, or 65% of the final net settlement amounts with respect to the derivative positions, and repaid Sumitomo $7.5 million in respect of 65% of funding previously provided by Sumitomo to MSC to settle certain derivative positions. Apex Silver made these payments from the $91.0 million previously deposited by Apex Silver as cash collateral for the benefit of the counterparties to the derivative positions. Apex Silver received the remaining cash collateral, totaling $24.5 million.
Project Finance Loans Acquired by Sumitomo
Sumitomo has acquired 90% of the San Cristobal project finance loans from the lenders at par plus accrued interest, together with the right to exercise remedies of the lenders against MSC, Apex Silver and other Apex Silver subsidiaries. As previously disclosed, Apex Silver anticipates that Sumitomo, as the current holder of the San Cristobal project finance loans and the rights to exercise remedies against MSC, will have the right to accelerate the indebtedness outstanding upon a default by MSC or Apex Silver and its affiliates including the circumstances described in Apex Silver's quarterly report on Form 10-Q, for the quarter ending September 30, 2008. As noted in that filing, Apex Silver does not have, and does not expect to have, sufficient cash to fully settle its share of the obligations if they were to become immediately due and payable and has reclassified such obligations as short-term in its consolidated balance sheets.
Amendment to Sumitomo Loan Agreement
Under the terms of the Amendment to the Loan Agreement dated August 11, 2008 with SC Minerals Aktiebolag, a subsidiary of Sumitomo ("SC Minerals"), SC Minerals has agreed to increase by $25.0 million the amount available for borrowing by MSC. SC Minerals is the 35% shareholder of MSC. The additional $25 million is to be used solely to fund MSC's operating expenses. The $25.0 million is in addition to the $125.0 previously borrowed pursuant to the original Loan Agreement and subsequent Amendments to the Loan Agreement. The additional loan amount may be borrowed by MSC at any time on or before December 31, 2008. Apex Silver expects that MSC will borrow the full Additional Loan Amount on December 22, 2008.
If the full amount available under the amended Loan Agreement is fully drawn (including the Additional Loan Amount), no payments are made by MSC prior to maturity, and SC Minerals were to convert all amounts payable into MSC shares as of the maturity date, Apex Silver's indirect ownership interest in MSC would be reduced to approximately 40.5% (approximately 48.2% on conversion of principal only).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristobal mine and the restructuring of Apex Silver's capital structure, the expected continuation of Apex Silver as a management services and exploration company, and MSC's anticipated borrowing from SC Minerals. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo, and the risk that SC Minerals does not advance funds to MSC. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs
MAG Silver Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA - MAG Silver Corp. (TSX: MAG)(NYSE-A: MVG) ("MAG") provides the following as an update to recent company activities.
MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets.
Presently MAG has two drills operating at Cinco de Mayo and one drill at each of Lagartos SE and Lorena. At Juanicipio, four drills in total are operating. Two drills are operating on the Valdecanas Vein completing the 100 metre by 100 metre grid pattern and two drills are operating on the Juanicipio Vein, located one kilometre south of the Valdecanas Vein. These holes are testing for deeper intersections on the western extension of the earlier high grade intercepts.
To the end of November approximately CDN$55.0M remains in the treasury.
Separately, MAG has informed Fresnillo plc that, without prejudice to any of MAG's rights and interests, MAG has created an independent committee that is proceeding to identify and retain an independent valuator to prepare a valuation of MAG as required under applicable securities legislation. Under these rules, the valuation will be prepared at Fresnillo's cost. MAG continues to evaluate a number of strategic alternatives and no action is required by shareholders at this time.
Qualified Person: Dan MacInnis, P.Geo., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised and verified the preparation of the technical information in this release. Mr. MacInnis is not independent as he is the President, CEO and a director of MAG Silver Corp.
About MAG Silver Corp. (www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the silver mining industry. MAG and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources", that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
© MarketWire 2008
MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets.
Presently MAG has two drills operating at Cinco de Mayo and one drill at each of Lagartos SE and Lorena. At Juanicipio, four drills in total are operating. Two drills are operating on the Valdecanas Vein completing the 100 metre by 100 metre grid pattern and two drills are operating on the Juanicipio Vein, located one kilometre south of the Valdecanas Vein. These holes are testing for deeper intersections on the western extension of the earlier high grade intercepts.
To the end of November approximately CDN$55.0M remains in the treasury.
Separately, MAG has informed Fresnillo plc that, without prejudice to any of MAG's rights and interests, MAG has created an independent committee that is proceeding to identify and retain an independent valuator to prepare a valuation of MAG as required under applicable securities legislation. Under these rules, the valuation will be prepared at Fresnillo's cost. MAG continues to evaluate a number of strategic alternatives and no action is required by shareholders at this time.
Qualified Person: Dan MacInnis, P.Geo., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised and verified the preparation of the technical information in this release. Mr. MacInnis is not independent as he is the President, CEO and a director of MAG Silver Corp.
About MAG Silver Corp. (www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the silver mining industry. MAG and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources", that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
© MarketWire 2008
Wednesday, December 17, 2008
Endeavour Silver Arranges CA$4 Million Special Warrant Private Placement
VANCOUVER, BRITISH COLUMBIA, Dec 17, 2008 (MARKET WIRE via COMTEX) -- Endeavour Silver Corp. (CA:EDR) (NYSE ALTERNEXT US: EXK) announces that it has arranged a CA$4 million private placement financing of special warrants brokered by certain Canadian placement agencies. The agents have an oversubscription right to place up to an additional CA$1 million and the financing is expected to close no later than December 30, 2008, subject to TSX and regulatory approvals.
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (CA:EDR) (NYSE ALTERNEXT US: EXK) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies.
Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (CA:EDR) (NYSE ALTERNEXT US: EXK) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies.
Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
Wednesday, December 10, 2008
MAG Silver Intersects More High Grade Silver/Lead/Zinc Mineralization at Cinco de Mayo
487 g/t (14.2 opt) silver, 8.97% lead and 16.45% zinc over 5.57 metres 236.6 g/t (6.9 opt) silver, 1.19 g/t gold, 2.23% lead and 13.35% zinc over 2.52 metres
VANCOUVER, BRITISH COLUMBIA, Dec 10, 2008 (MARKET WIRE via COMTEX) -- MAG Silver Corp. (CA:MAG) (NYSE-A: MVG) ("MAG") is pleased to announce assay and geological results from the ongoing drill program on its 100% owned Cinco de Mayo property in northern Chihuahua State, Mexico. Drilling is focused on establishing the district-scale extent, zoning and geological controls on mineralization in what is emerging as a large Carbonate Replacement system. Results from this announcement, combined with earlier drilling (Holes 22 through 54: see press releases dated May 12, 2008, July 8, 2008 and September 18, 2008), continue to demonstrate the expected transition from the massive sulphides of the Jose Manto to higher temperature silver-lead-zinc (gold) mineralization and alteration styles leading towards the system's source. This latest drilling significantly expands the areal extent of mineralization and includes several of the thickest mineralized intercepts to date at Cinco de Mayo.
Assays are reported in the table below for 23 diamond drill holes (CDM08-55 to CDM08-77). Seventeen (17) of these holes were targeted on and encountered mineralization in the Jose Manto and its extensions (Holes 08-55 to 58, 08-61 to 64, 08-66, 08-68, 08-70 and 08-72 to 77). The remaining six (6) holes targeted various gravity and induced potential and resistivity (IP/Res) geophysical targets with some success.
"We are very impressed with how the Cinco Project continues to unfold," said Dan MacInnis, President of MAG Silver. "We have hit good silver, lead and zinc grades in over 60 holes drilled along more than 2 kilometres of strike length in what is emerging as a classic example of the deposit type. Our exploration vectoring is working, with increasing gold grades suggesting we are successfully moving towards the center of the system."
The holes reported below were drilled primarily in the area within 1,500 metres of the main portion of the Jose Manto discovery zone (to view map please click here. http://media3.marketwire.com/docs/mag1210.jpg).
Diagrams can be found on the website www.magsilver.com.
Highlights and Discussion:
Hole 08-64 drilled on the Jose Manto, reports an excellent combination of width and grade returning 5.57 metres of 487 grams per tonne (g/t) (14.2 ounces per ton (opt)) silver, 8.97% lead and 16.45% zinc. This included an intermediate intercept of 0.68 metres of 1,065 g/t (31.1 opt) silver, 22.20% lead and 8.98% zinc.
Hole 08-66 was drilled 500 metres to the east of the discovery zone and had two significant intersections. The upper intercept lies within the Benavides Formation, which overlies the Finlay Formation, the principal limestone host for manto mineralization. This upper intersect reports 218 g/t (6.4 opt) silver, 4.44% lead and 5.45% zinc over 3.70 metres. The lower intercept occurs within the Finlay Formation and corresponds laterally to the Jose Manto. Results were 112 g/t (3.3 opt) silver, 3.66% lead, 9.94% zinc, and 0.72 g/t gold over 2.4 metres. This hole expands the silver/lead/zinc mineralization substantially to the east and opens up a new horizon of potential within the Benavides Formation. This requires further follow up.
Hole 08-70 returned the best thickness to date located almost 500 metres to the southwest of the discovery zone. This intercept returned three thick intersections (15.55, 7.19 and 6.92 metres) of significant mineralization between 420.85 to 465.00 metres (see table) that combine for a cumulative total of 29.66 metres (over total of 44.15 metres), which on a weighted average basis reports as 57 g/t (1.7 opt) silver, 1.20% lead and 3.95% zinc. The upper 15.5 metre intercept grades 56 g/t (1.7 opt) silver, 1.50% lead and 4.35% zinc, including a 0.84 metre zone grading 350 g/t (10.2 opt) silver, 11.45% lead and 13.10% zinc. The increased thickness in this area may be related to proximity to the northeast trending Leones Fault, which is being tested as a feeder.
Hole 08-56 collared 800 metres to the east of the discovery zone, also cut multiple mantos of which the best returned 115 g/t (3.4 opt) silver, 2.54% lead and 1.16% zinc over 3.99 metres. A higher grade section within returned 406 g/t (11.8 opt) silver, 9.40% lead and 3.9% zinc over 0.99 metres. The lower manto lies deeper in the Finlay formation and cut a 2.52 metre section that carried 236.6 g/t (6.9 opt) silver, 2.23% lead, 13.35% zinc, and 1.19 g/t gold, including a 0.88 metre zone grading 555 g/t (16.2 opt) silver, 5.71% lead, 10.30% zinc and 3.35 g/t gold.
Holes 08-56, 66, 73, 76 and 77, as well as Holes 08-44 and 48 reported previously, were drilled along the intersection between the northeast-trending Leones Fault and the complex northwest-trending fault that controls the northeastern flank of the Jose Manto. These holes encountered several features indicative of a nearer source environment including: 1) Significant amounts of garnet-pyroxene skarn that locally carries scheelite (reflected by tungsten assays from 0.03-0.14% W); 2) Gold values in the 1 to 3 g/t range; and 3) distinctive felsite dikes with mineralized and silicified marginal breccias and sericite alteration. The skarn, mineralization and felsites appear to "flare" to the southwest along the Leones Fault and drilling is currently focused on tracing these features in that direction.
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---
Hole From: To: Interval Silver Silver Lead Zinc Gold
ID metres metres metres g/t opt % % g/t
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CM08-55 493.28 495.54 2.26 111.9 3.3 1.68 7.19 0.39
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Including 494.90 495.54 0.64 247.0 7.2 4.13 10.20 0.48
--------------------------------------------------------------------------
CM08-56 452.80 454.57 1.77 107.8 3.1 2.28 2.22 0.05
--------------------------------------------------------------------------
505.37 507.49 2.12 31.5 0.9 0.47 12.88 0.05
--------------------------------------------------------------------------
510.64 516.91 6.27 41.4 1.2 0.81 7.02 0.02
--------------------------------------------------------------------------
668.24 672.23 3.99 115.6 3.4 2.54 1.16 0.32
--------------------------------------------------------------------------
Including 668.24 669.23 0.99 406.0 11.8 9.40 3.90 1.15
--------------------------------------------------------------------------
771.86 781.00 9.14 11.8 0.3 0.03 6.82 0.02
--------------------------------------------------------------------------
807.36 809.88 2.52 236.6 6.9 2.23 13.35 1.19
--------------------------------------------------------------------------
Including 809.00 809.88 0.88 555.0 16.2 5.71 10.30 3.35
--------------------------------------------------------------------------
814.34 818.80 4.46 55.3 1.6 1.81 2.75 0.01
--------------------------------------------------------------------------
Including 814.34 816.70 2.36 97.2 2.8 3.41 3.22 0.02
--------------------------------------------------------------------------
CM08-57 344.08 345.88 1.80 165.0 4.8 3.07 6.92 0.11
--------------------------------------------------------------------------
350.25 351.05 0.80 97.0 2.8 4.44 18.00 0.01
--------------------------------------------------------------------------
CM08-58 318.04 319.30 1.26 50.4 1.5 2.94 3.32 0.01
--------------------------------------------------------------------------
348.97 350.61 1.64 63.4 1.8 2.61 2.44 0.01
--------------------------------------------------------------------------
Including 348.97 349.33 0.36 119.0 3.5 4.53 4.28 0.01
--------------------------------------------------------------------------
355.44 356.50 1.06 78.6 2.3 1.35 2.49 0.02
--------------------------------------------------------------------------
CM08-59 No Significant Intercepts
--------------------------------------------------------------------------
CM08-60 No Significant Intercepts
--------------------------------------------------------------------------
CM08-61 370.15 371.20 1.05 206.0 6.0 9.46 7.15 0.03
--------------------------------------------------------------------------
382.10 384.70 2.60 12.9 0.4 0.07 0.59 0.01
--------------------------------------------------------------------------
CM08-62 456.59 457.04 0.45 486.0 14.2 10.85 15.20 0.05
--------------------------------------------------------------------------
513.19 513.80 0.61 113.9 3.3 2.57 1.62 0.02
--------------------------------------------------------------------------
520.44 521.49 1.05 266.7 7.8 6.67 4.52 0.04
--------------------------------------------------------------------------
Including 521.03 521.49 0.46 586.0 17.1 14.50 6.78 0.05
--------------------------------------------------------------------------
CM08-63 488.98 489.28 0.30 228.0 6.6 4.57 5.94 0.16
--------------------------------------------------------------------------
CM08-64A 459.87 465.44 5.57 487.7 14.2 8.97 16.45 0.23
--------------------------------------------------------------------------
Including 459.87 460.87 1.00 820.0 23.9 16.55 22.20 0.52
--------------------------------------------------------------------------including 463.70 465.44 1.74 673.3 19.6 10.73 15.69 0.05
--------------------------------------------------------------------------
Including 463.70 464.38 0.68 1,065.0 31.1 22.20 8.98 0.08
--------------------------------------------------------------------------
470.25 472.76 2.51 81.8 2.4 2.22 6.50 0.01
--------------------------------------------------------------------------
537.91 539.58 1.67 361.0 10.5 9.22 7.87 0.04
--------------------------------------------------------------------------
Including 538.84 539.58 0.74 606.0 17.7 16.45 12.30 0.06
--------------------------------------------------------------------------
CM08-65 No Significant Intercepts
--------------------------------------------------------------------------
CM08-66 365.35 369.05 3.70 218.2 6.4 4.44 5.45 0.13
--------------------------------------------------------------------------
Including 366.36 367.76 1.40 475.0 13.9 9.59 12.05 0.27
--------------------------------------------------------------------------
577.30 579.70 2.40 112.0 3.3 3.66 9.94 0.72
--------------------------------------------------------------------------
Including 577.30 577.80 0.50 103.0 3.0 3.33 17.00 1.07
--------------------------------------------------------------------------
Including 578.13 579.12 0.99 171.0 5.0 5.26 11.20 0.92
--------------------------------------------------------------------------
645.02 646.75 1.73 36.7 1.1 0.09 14.79 0.03
--------------------------------------------------------------------------
CM08-67 No Significant Intercepts
--------------------------------------------------------------------------
CM08-68 No Significant Intercepts
--------------------------------------------------------------------------
CM08-69 No Significant Intercepts
--------------------------------------------------------------------------
CM08-70 420.85 436.40 15.55 56.6 1.7 1.50 4.35 0.08
--------------------------------------------------------------------------
Including 421.24 422.08 0.84 350.0 10.2 11.45 13.10 0.13
--------------------------------------------------------------------------
444.14 451.33 7.19 55.6 1.6 1.05 3.98 0.04
--------------------------------------------------------------------------
Including 446.91 448.20 1.29 105.0 3.1 1.59 4.24 0.08
--------------------------------------------------------------------------
458.10 465.02 6.92 62.6 1.8 0.67 3.02 0.06
--------------------------------------------------------------------------
Including 461.67 462.85 1.18 137.0 4.0 1.59 8.82 0.08
--------------------------------------------------------------------------
CM08-71 No Significant Intercepts
--------------------------------------------------------------------------
CM08-72 356.34 362.71 6.37 106.3 3.1 3.72 3.59 0.01
--------------------------------------------------------------------------
Including 356.34 358.56 2.22 275.5 8.0 9.49 9.20 0.01
--------------------------------------------------------------------------
CM08-73 393.89 395.34 1.45 26.0 0.8 4.61 3.58 0.40
--------------------------------------------------------------------------
632.13 632.45 0.32 183.0 5.3 5.29 7.27 0.04
--------------------------------------------------------------------------
683.37 684.40 1.03 41.1 1.2 1.6 1.54 1.38
--------------------------------------------------------------------------
CM08-74 386.53 388.00 1.47 108.0 3.1 1.92 10.65 0.03
--------------------------------------------------------------------------
CM08-75 337.73 338.41 0.68 459.0 13.4 15.9 11.85 0.09
--------------------------------------------------------------------------
CM08-76 371.88 372.13 0.25 361.0 10.5 12.65 18.1 0.09
--------------------------------------------------------------------------
CM08-77 493.28 509.28 16.00 20.9 0.6 0.51 3.03 0.04
--------------------------------------------------------------------------
Including 493.28 500.97 7.69 14.6 0.4 0.31 2.75 0.05
--------------------------------------------------------------------------
Inlcuding 506.40 508.50 2.10 52.0 1.5 1.19 9.81 0.07
--------------------------------------------------------------------------
526.41 528.34 1.93 106.3 3.1 1.49 5.51 0.08
--------------------------------------------------------------------------
603.13 603.29 0.16 150.0 4.4 4.34 7.37 0.07
--------------------------------------------------------------------------
About Cinco de Mayo
Cinco de Mayo is a 15,000 hectare property straddling the same regionally-mappable structure that contains the largest Carbonate Replacement Deposits (CRDs) in Chihuahua. Exploration is guided by MAG's CRD exploration model and an airborne magnetic survey that revealed a number of prominent linear anomalies and prominent magnetic lows that are being systematically drilled. The zoned mineralization encountered to date lies along a very strong northwest-trending magnetic anomaly that runs over 3,000 metres from the discovery zone to the southeast to previously reported sulphide intercepts and historic workings (see press release of February 19, 2007). This trend is intersected by northeast trending structures that traverse the range, carry high-temperature alteration and point towards a large regional magnetic anomaly that underlies extensive jasperoids. The drill program will continue to systematically offset the manto style mineralization intersected in previous drilling while simultaneously testing the regional magnetic anomaly and numerous other geophysical anomalies developed by MAG elsewhere in the district.
This early stage property is held 100% by MAG and is one of six other district scale projects operated by MAG.
Cinco de Mayo Exploration
MAG's exploration has defined major NW and NE structural and stratigraphic controls on silver-lead-zinc (gold) sulphide mineralization and our ability to test the system with large drilling step outs is testimony to the widespread nature and potential size of this carbonate replacement (CRD) system. Recent drilling results reveal coherent zoning developed for over 2 kilometres along the principal northwest Jose Manto structural corridor: from massive silver-lead-zinc sulphide mantos to silver-gold-lead-zinc mineralized tungsten (scheelite) bearing skarn. The strongest skarn is associated with felsite dikes that show distinctive brecciation, silicification and sericitization and are overall very similar to mineralization-related felsites in major CRDs throughout the region. Mineralization also appears to thicken along this trend, as does the number of individual mantos and the number of carbonate units that are mineralized. This zoning is precisely what is predicted by MAG's CRD exploration model and provides strong exploration vectoring. MAG's focus remains to determine the overall extent of the CRD system, so on-going exploration will attempt to track this zoning towards the system source with a combination of drilling and geophysics.
The skarn and felsite intercepts appear to cluster around the intersection of the northwest structural corridor with the strong northeast-trending Leones Fault that cuts across the limestones of the Sierra Santa Lucia to the southwest. The Leones Fault is locally marked by strong marble and other high-temperature alteration styles indicating gradually increasing proximity to an intrusive heat source. Drilling is currently underway on both ends of this structure. On the east side to determine the geometry of the felsite dikes and associated mineralization and alteration, and on the west side of the range to determine if the large magnetic anomaly shown on Mexican government regional geophysical maps marks a major magmatic center.
Quality Assurance and Control: The Company has in place a quality control program to ensure best practices in sampling and analysis. Samples were collected by employees of consulting firm Minera Cascabel S.A. de C.V. on behalf of MAG Silver Corp. The surface rock samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facilities in Hermosillo, Sonora or Chihuahua City (Certification ISO 9001). Sample pulps are shipped from there to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. All samples were assayed for gold by standard fire assay-ICP finish with a 50 gram charge. Gold values in excess of 3.00 g/t were re-analyzed by fire assay with gravimetric finish for greater accuracy. Silver, zinc, copper and lead values in excess of 100 ppm, 1%, 1% and 1% respectively are also repeated by fire assay.
Qualified Person: Dr. Peter Megaw, Ph.D., C.P.G., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focussed on silver and gold mineralization, and exploration and drilling in Mexico. He is a certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona registered geologist (ARG 21613). Dr. Megaw is not independent as he is a Director and Shareholder of MAG and is the vendor of this project, whereby he may receive additional shares. Dr. Megaw is satisfied that the results are verified based on an inspection of the core, a review of the sampling procedures, the credentials of the professionals completing the work and the visual nature of the silver and base metal sulphides within a district where he is familiar with the style and continuity of mineralization. About MAG Silver Corp. ( www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the Silver Mining Industry. MAG and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments that MAG expects, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and http://www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
SOURCE: MAG Silver Corp.
mailto:info@magsilver.com
http://www.magsilver.com
Copyright 2008 Market Wire, All rights reserved
VANCOUVER, BRITISH COLUMBIA, Dec 10, 2008 (MARKET WIRE via COMTEX) -- MAG Silver Corp. (CA:MAG) (NYSE-A: MVG) ("MAG") is pleased to announce assay and geological results from the ongoing drill program on its 100% owned Cinco de Mayo property in northern Chihuahua State, Mexico. Drilling is focused on establishing the district-scale extent, zoning and geological controls on mineralization in what is emerging as a large Carbonate Replacement system. Results from this announcement, combined with earlier drilling (Holes 22 through 54: see press releases dated May 12, 2008, July 8, 2008 and September 18, 2008), continue to demonstrate the expected transition from the massive sulphides of the Jose Manto to higher temperature silver-lead-zinc (gold) mineralization and alteration styles leading towards the system's source. This latest drilling significantly expands the areal extent of mineralization and includes several of the thickest mineralized intercepts to date at Cinco de Mayo.
Assays are reported in the table below for 23 diamond drill holes (CDM08-55 to CDM08-77). Seventeen (17) of these holes were targeted on and encountered mineralization in the Jose Manto and its extensions (Holes 08-55 to 58, 08-61 to 64, 08-66, 08-68, 08-70 and 08-72 to 77). The remaining six (6) holes targeted various gravity and induced potential and resistivity (IP/Res) geophysical targets with some success.
"We are very impressed with how the Cinco Project continues to unfold," said Dan MacInnis, President of MAG Silver. "We have hit good silver, lead and zinc grades in over 60 holes drilled along more than 2 kilometres of strike length in what is emerging as a classic example of the deposit type. Our exploration vectoring is working, with increasing gold grades suggesting we are successfully moving towards the center of the system."
The holes reported below were drilled primarily in the area within 1,500 metres of the main portion of the Jose Manto discovery zone (to view map please click here. http://media3.marketwire.com/docs/mag1210.jpg).
Diagrams can be found on the website www.magsilver.com.
Highlights and Discussion:
Hole 08-64 drilled on the Jose Manto, reports an excellent combination of width and grade returning 5.57 metres of 487 grams per tonne (g/t) (14.2 ounces per ton (opt)) silver, 8.97% lead and 16.45% zinc. This included an intermediate intercept of 0.68 metres of 1,065 g/t (31.1 opt) silver, 22.20% lead and 8.98% zinc.
Hole 08-66 was drilled 500 metres to the east of the discovery zone and had two significant intersections. The upper intercept lies within the Benavides Formation, which overlies the Finlay Formation, the principal limestone host for manto mineralization. This upper intersect reports 218 g/t (6.4 opt) silver, 4.44% lead and 5.45% zinc over 3.70 metres. The lower intercept occurs within the Finlay Formation and corresponds laterally to the Jose Manto. Results were 112 g/t (3.3 opt) silver, 3.66% lead, 9.94% zinc, and 0.72 g/t gold over 2.4 metres. This hole expands the silver/lead/zinc mineralization substantially to the east and opens up a new horizon of potential within the Benavides Formation. This requires further follow up.
Hole 08-70 returned the best thickness to date located almost 500 metres to the southwest of the discovery zone. This intercept returned three thick intersections (15.55, 7.19 and 6.92 metres) of significant mineralization between 420.85 to 465.00 metres (see table) that combine for a cumulative total of 29.66 metres (over total of 44.15 metres), which on a weighted average basis reports as 57 g/t (1.7 opt) silver, 1.20% lead and 3.95% zinc. The upper 15.5 metre intercept grades 56 g/t (1.7 opt) silver, 1.50% lead and 4.35% zinc, including a 0.84 metre zone grading 350 g/t (10.2 opt) silver, 11.45% lead and 13.10% zinc. The increased thickness in this area may be related to proximity to the northeast trending Leones Fault, which is being tested as a feeder.
Hole 08-56 collared 800 metres to the east of the discovery zone, also cut multiple mantos of which the best returned 115 g/t (3.4 opt) silver, 2.54% lead and 1.16% zinc over 3.99 metres. A higher grade section within returned 406 g/t (11.8 opt) silver, 9.40% lead and 3.9% zinc over 0.99 metres. The lower manto lies deeper in the Finlay formation and cut a 2.52 metre section that carried 236.6 g/t (6.9 opt) silver, 2.23% lead, 13.35% zinc, and 1.19 g/t gold, including a 0.88 metre zone grading 555 g/t (16.2 opt) silver, 5.71% lead, 10.30% zinc and 3.35 g/t gold.
Holes 08-56, 66, 73, 76 and 77, as well as Holes 08-44 and 48 reported previously, were drilled along the intersection between the northeast-trending Leones Fault and the complex northwest-trending fault that controls the northeastern flank of the Jose Manto. These holes encountered several features indicative of a nearer source environment including: 1) Significant amounts of garnet-pyroxene skarn that locally carries scheelite (reflected by tungsten assays from 0.03-0.14% W); 2) Gold values in the 1 to 3 g/t range; and 3) distinctive felsite dikes with mineralized and silicified marginal breccias and sericite alteration. The skarn, mineralization and felsites appear to "flare" to the southwest along the Leones Fault and drilling is currently focused on tracing these features in that direction.
-----------------------------------------------------------------------
---
Hole From: To: Interval Silver Silver Lead Zinc Gold
ID metres metres metres g/t opt % % g/t
--------------------------------------------------------------------------
CM08-55 493.28 495.54 2.26 111.9 3.3 1.68 7.19 0.39
--------------------------------------------------------------------------
Including 494.90 495.54 0.64 247.0 7.2 4.13 10.20 0.48
--------------------------------------------------------------------------
CM08-56 452.80 454.57 1.77 107.8 3.1 2.28 2.22 0.05
--------------------------------------------------------------------------
505.37 507.49 2.12 31.5 0.9 0.47 12.88 0.05
--------------------------------------------------------------------------
510.64 516.91 6.27 41.4 1.2 0.81 7.02 0.02
--------------------------------------------------------------------------
668.24 672.23 3.99 115.6 3.4 2.54 1.16 0.32
--------------------------------------------------------------------------
Including 668.24 669.23 0.99 406.0 11.8 9.40 3.90 1.15
--------------------------------------------------------------------------
771.86 781.00 9.14 11.8 0.3 0.03 6.82 0.02
--------------------------------------------------------------------------
807.36 809.88 2.52 236.6 6.9 2.23 13.35 1.19
--------------------------------------------------------------------------
Including 809.00 809.88 0.88 555.0 16.2 5.71 10.30 3.35
--------------------------------------------------------------------------
814.34 818.80 4.46 55.3 1.6 1.81 2.75 0.01
--------------------------------------------------------------------------
Including 814.34 816.70 2.36 97.2 2.8 3.41 3.22 0.02
--------------------------------------------------------------------------
CM08-57 344.08 345.88 1.80 165.0 4.8 3.07 6.92 0.11
--------------------------------------------------------------------------
350.25 351.05 0.80 97.0 2.8 4.44 18.00 0.01
--------------------------------------------------------------------------
CM08-58 318.04 319.30 1.26 50.4 1.5 2.94 3.32 0.01
--------------------------------------------------------------------------
348.97 350.61 1.64 63.4 1.8 2.61 2.44 0.01
--------------------------------------------------------------------------
Including 348.97 349.33 0.36 119.0 3.5 4.53 4.28 0.01
--------------------------------------------------------------------------
355.44 356.50 1.06 78.6 2.3 1.35 2.49 0.02
--------------------------------------------------------------------------
CM08-59 No Significant Intercepts
--------------------------------------------------------------------------
CM08-60 No Significant Intercepts
--------------------------------------------------------------------------
CM08-61 370.15 371.20 1.05 206.0 6.0 9.46 7.15 0.03
--------------------------------------------------------------------------
382.10 384.70 2.60 12.9 0.4 0.07 0.59 0.01
--------------------------------------------------------------------------
CM08-62 456.59 457.04 0.45 486.0 14.2 10.85 15.20 0.05
--------------------------------------------------------------------------
513.19 513.80 0.61 113.9 3.3 2.57 1.62 0.02
--------------------------------------------------------------------------
520.44 521.49 1.05 266.7 7.8 6.67 4.52 0.04
--------------------------------------------------------------------------
Including 521.03 521.49 0.46 586.0 17.1 14.50 6.78 0.05
--------------------------------------------------------------------------
CM08-63 488.98 489.28 0.30 228.0 6.6 4.57 5.94 0.16
--------------------------------------------------------------------------
CM08-64A 459.87 465.44 5.57 487.7 14.2 8.97 16.45 0.23
--------------------------------------------------------------------------
Including 459.87 460.87 1.00 820.0 23.9 16.55 22.20 0.52
--------------------------------------------------------------------------including 463.70 465.44 1.74 673.3 19.6 10.73 15.69 0.05
--------------------------------------------------------------------------
Including 463.70 464.38 0.68 1,065.0 31.1 22.20 8.98 0.08
--------------------------------------------------------------------------
470.25 472.76 2.51 81.8 2.4 2.22 6.50 0.01
--------------------------------------------------------------------------
537.91 539.58 1.67 361.0 10.5 9.22 7.87 0.04
--------------------------------------------------------------------------
Including 538.84 539.58 0.74 606.0 17.7 16.45 12.30 0.06
--------------------------------------------------------------------------
CM08-65 No Significant Intercepts
--------------------------------------------------------------------------
CM08-66 365.35 369.05 3.70 218.2 6.4 4.44 5.45 0.13
--------------------------------------------------------------------------
Including 366.36 367.76 1.40 475.0 13.9 9.59 12.05 0.27
--------------------------------------------------------------------------
577.30 579.70 2.40 112.0 3.3 3.66 9.94 0.72
--------------------------------------------------------------------------
Including 577.30 577.80 0.50 103.0 3.0 3.33 17.00 1.07
--------------------------------------------------------------------------
Including 578.13 579.12 0.99 171.0 5.0 5.26 11.20 0.92
--------------------------------------------------------------------------
645.02 646.75 1.73 36.7 1.1 0.09 14.79 0.03
--------------------------------------------------------------------------
CM08-67 No Significant Intercepts
--------------------------------------------------------------------------
CM08-68 No Significant Intercepts
--------------------------------------------------------------------------
CM08-69 No Significant Intercepts
--------------------------------------------------------------------------
CM08-70 420.85 436.40 15.55 56.6 1.7 1.50 4.35 0.08
--------------------------------------------------------------------------
Including 421.24 422.08 0.84 350.0 10.2 11.45 13.10 0.13
--------------------------------------------------------------------------
444.14 451.33 7.19 55.6 1.6 1.05 3.98 0.04
--------------------------------------------------------------------------
Including 446.91 448.20 1.29 105.0 3.1 1.59 4.24 0.08
--------------------------------------------------------------------------
458.10 465.02 6.92 62.6 1.8 0.67 3.02 0.06
--------------------------------------------------------------------------
Including 461.67 462.85 1.18 137.0 4.0 1.59 8.82 0.08
--------------------------------------------------------------------------
CM08-71 No Significant Intercepts
--------------------------------------------------------------------------
CM08-72 356.34 362.71 6.37 106.3 3.1 3.72 3.59 0.01
--------------------------------------------------------------------------
Including 356.34 358.56 2.22 275.5 8.0 9.49 9.20 0.01
--------------------------------------------------------------------------
CM08-73 393.89 395.34 1.45 26.0 0.8 4.61 3.58 0.40
--------------------------------------------------------------------------
632.13 632.45 0.32 183.0 5.3 5.29 7.27 0.04
--------------------------------------------------------------------------
683.37 684.40 1.03 41.1 1.2 1.6 1.54 1.38
--------------------------------------------------------------------------
CM08-74 386.53 388.00 1.47 108.0 3.1 1.92 10.65 0.03
--------------------------------------------------------------------------
CM08-75 337.73 338.41 0.68 459.0 13.4 15.9 11.85 0.09
--------------------------------------------------------------------------
CM08-76 371.88 372.13 0.25 361.0 10.5 12.65 18.1 0.09
--------------------------------------------------------------------------
CM08-77 493.28 509.28 16.00 20.9 0.6 0.51 3.03 0.04
--------------------------------------------------------------------------
Including 493.28 500.97 7.69 14.6 0.4 0.31 2.75 0.05
--------------------------------------------------------------------------
Inlcuding 506.40 508.50 2.10 52.0 1.5 1.19 9.81 0.07
--------------------------------------------------------------------------
526.41 528.34 1.93 106.3 3.1 1.49 5.51 0.08
--------------------------------------------------------------------------
603.13 603.29 0.16 150.0 4.4 4.34 7.37 0.07
--------------------------------------------------------------------------
About Cinco de Mayo
Cinco de Mayo is a 15,000 hectare property straddling the same regionally-mappable structure that contains the largest Carbonate Replacement Deposits (CRDs) in Chihuahua. Exploration is guided by MAG's CRD exploration model and an airborne magnetic survey that revealed a number of prominent linear anomalies and prominent magnetic lows that are being systematically drilled. The zoned mineralization encountered to date lies along a very strong northwest-trending magnetic anomaly that runs over 3,000 metres from the discovery zone to the southeast to previously reported sulphide intercepts and historic workings (see press release of February 19, 2007). This trend is intersected by northeast trending structures that traverse the range, carry high-temperature alteration and point towards a large regional magnetic anomaly that underlies extensive jasperoids. The drill program will continue to systematically offset the manto style mineralization intersected in previous drilling while simultaneously testing the regional magnetic anomaly and numerous other geophysical anomalies developed by MAG elsewhere in the district.
This early stage property is held 100% by MAG and is one of six other district scale projects operated by MAG.
Cinco de Mayo Exploration
MAG's exploration has defined major NW and NE structural and stratigraphic controls on silver-lead-zinc (gold) sulphide mineralization and our ability to test the system with large drilling step outs is testimony to the widespread nature and potential size of this carbonate replacement (CRD) system. Recent drilling results reveal coherent zoning developed for over 2 kilometres along the principal northwest Jose Manto structural corridor: from massive silver-lead-zinc sulphide mantos to silver-gold-lead-zinc mineralized tungsten (scheelite) bearing skarn. The strongest skarn is associated with felsite dikes that show distinctive brecciation, silicification and sericitization and are overall very similar to mineralization-related felsites in major CRDs throughout the region. Mineralization also appears to thicken along this trend, as does the number of individual mantos and the number of carbonate units that are mineralized. This zoning is precisely what is predicted by MAG's CRD exploration model and provides strong exploration vectoring. MAG's focus remains to determine the overall extent of the CRD system, so on-going exploration will attempt to track this zoning towards the system source with a combination of drilling and geophysics.
The skarn and felsite intercepts appear to cluster around the intersection of the northwest structural corridor with the strong northeast-trending Leones Fault that cuts across the limestones of the Sierra Santa Lucia to the southwest. The Leones Fault is locally marked by strong marble and other high-temperature alteration styles indicating gradually increasing proximity to an intrusive heat source. Drilling is currently underway on both ends of this structure. On the east side to determine the geometry of the felsite dikes and associated mineralization and alteration, and on the west side of the range to determine if the large magnetic anomaly shown on Mexican government regional geophysical maps marks a major magmatic center.
Quality Assurance and Control: The Company has in place a quality control program to ensure best practices in sampling and analysis. Samples were collected by employees of consulting firm Minera Cascabel S.A. de C.V. on behalf of MAG Silver Corp. The surface rock samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facilities in Hermosillo, Sonora or Chihuahua City (Certification ISO 9001). Sample pulps are shipped from there to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. All samples were assayed for gold by standard fire assay-ICP finish with a 50 gram charge. Gold values in excess of 3.00 g/t were re-analyzed by fire assay with gravimetric finish for greater accuracy. Silver, zinc, copper and lead values in excess of 100 ppm, 1%, 1% and 1% respectively are also repeated by fire assay.
Qualified Person: Dr. Peter Megaw, Ph.D., C.P.G., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focussed on silver and gold mineralization, and exploration and drilling in Mexico. He is a certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona registered geologist (ARG 21613). Dr. Megaw is not independent as he is a Director and Shareholder of MAG and is the vendor of this project, whereby he may receive additional shares. Dr. Megaw is satisfied that the results are verified based on an inspection of the core, a review of the sampling procedures, the credentials of the professionals completing the work and the visual nature of the silver and base metal sulphides within a district where he is familiar with the style and continuity of mineralization. About MAG Silver Corp. ( www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the Silver Mining Industry. MAG and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments that MAG expects, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and http://www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
SOURCE: MAG Silver Corp.
mailto:info@magsilver.com
http://www.magsilver.com
Copyright 2008 Market Wire, All rights reserved
Tuesday, December 9, 2008
Silver Wheaton Announces Adoption of Shareholder Rights Plan
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/08/08 -- Silver Wheaton Corp. (TSX: SLW)(NYSE: SLW) announced today that its board of directors has approved the adoption of a shareholder rights plan (the "Rights Plan"), effective December 8, 2008.
The purpose of the Rights Plan is to provide shareholders and the board of directors with adequate time to consider and evaluate any unsolicited take-over bid made for Silver Wheaton's common shares, provide the board of directors with adequate time to identify, develop and negotiate value-enhancing alternatives, and encourage the fair treatment of shareholders in connection with any take-over bid made for Silver Wheaton's common shares. The Rights Plan is intended to prevent any person from acquiring beneficial ownership of more than 20% of the outstanding common shares of Silver Wheaton while the board of directors' process is ongoing, or from entering into arrangements or relationships that have a similar effect. The Rights Plan remains subject to acceptance by the Toronto Stock Exchange and ratification by Silver Wheaton's shareholders at its next annual meeting of shareholders expected to be held in May 2009. If ratified by the shareholders, the Rights Plan will continue in force until the end of Silver Wheaton's third meeting of shareholders after such ratification. Silver Wheaton is not aware of any specific take-over bid for Silver Wheaton that has been made or is contemplated.
In order to implement the Rights Plan, the board of directors has authorized the issuance of the rights to holders of its common shares at the rate of one right for each common share outstanding. The rights will automatically attach to the common shares and no further action will be required by shareholders.
Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders will be deemed to be a "permitted bid" and will not trigger the Rights Plan. These criteria require, among other things, that the bid be made by way of a take-over bid circular to all holders of voting shares other than the offeror under the bid, and remain open for acceptance by shareholders for at least 60 days. In the event a take-over bid does not meet the permitted bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the take-over bid, to purchase additional common shares of Silver Wheaton at a significant discount to the market price.
A copy of the Rights Plan will be filed on SEDAR at www.sedar.com and made available on Silver Wheaton's website upon acceptance by the Toronto Stock Exchange.
Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production.
The purpose of the Rights Plan is to provide shareholders and the board of directors with adequate time to consider and evaluate any unsolicited take-over bid made for Silver Wheaton's common shares, provide the board of directors with adequate time to identify, develop and negotiate value-enhancing alternatives, and encourage the fair treatment of shareholders in connection with any take-over bid made for Silver Wheaton's common shares. The Rights Plan is intended to prevent any person from acquiring beneficial ownership of more than 20% of the outstanding common shares of Silver Wheaton while the board of directors' process is ongoing, or from entering into arrangements or relationships that have a similar effect. The Rights Plan remains subject to acceptance by the Toronto Stock Exchange and ratification by Silver Wheaton's shareholders at its next annual meeting of shareholders expected to be held in May 2009. If ratified by the shareholders, the Rights Plan will continue in force until the end of Silver Wheaton's third meeting of shareholders after such ratification. Silver Wheaton is not aware of any specific take-over bid for Silver Wheaton that has been made or is contemplated.
In order to implement the Rights Plan, the board of directors has authorized the issuance of the rights to holders of its common shares at the rate of one right for each common share outstanding. The rights will automatically attach to the common shares and no further action will be required by shareholders.
Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders will be deemed to be a "permitted bid" and will not trigger the Rights Plan. These criteria require, among other things, that the bid be made by way of a take-over bid circular to all holders of voting shares other than the offeror under the bid, and remain open for acceptance by shareholders for at least 60 days. In the event a take-over bid does not meet the permitted bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the take-over bid, to purchase additional common shares of Silver Wheaton at a significant discount to the market price.
A copy of the Rights Plan will be filed on SEDAR at www.sedar.com and made available on Silver Wheaton's website upon acceptance by the Toronto Stock Exchange.
Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production.
Thursday, December 4, 2008
Silver Falcon Mining, Inc. (SFMI) Meets Objectives of 2008 Business Plan
NEW YORK, NY, Dec 04, 2008 (MARKET WIRE via COMTEX) -- Silver Falcon Mining, Inc. (PINKSHEETS: SFMI) looks back at its 2008 business plan agreed to by its Board of Directors in late 2007.
The SFMI Board of Directors approved a business plan which called for the following objectives to be met within the 2008 calendar year:
-- Build and start up, 100 tons per day precious metal processing mill
within a 50 miles radius of War Eagle Mountain.
-- Bring previously mined ore (tailings) as needed, from the mountain to
the plant, for a six month production of Gold and Silver.
-- Re-open one of the mine shafts on the property and prepare it for
further activity; in accordance with the Company's operating contract with
GoldCorp Holdings, Inc.
-- Mandate the officers of the company to file documents with the United
States Securities and Exchange Commission, in order to become fully
reporting and provide financial transparency.
SFMI's Management reports that it has fulfilled all aspects of its aforementioned 2008 business plan.
Having purchased and installed state of the art milling equipment, SFMI goes into operation by the end of this year, processing approximately one hundred tons of ore per day.
The Company transported ore, from atop War Eagle Mountain to its Melba, ID mill. The Company reports enough mill-feed tonnage available to last until mid-year 2009. Ore transport operations will resume, in the spring, providing additional mill-feed for 12 months of continuous production.
SFMI's mining engineers opened the "Belle Peck" adit, thus giving access to the "Poorman" complex of gold and silver veins. This secured access gives our personnel, the year round ability to conduct the geological and mining steps necessary to start underground operations in the spring of 2009.
The Company, in October 2008, acquired the "Sinker Tunnel," which is situated at a lower elevation on the mountain and allows us easy year round access. This tunnel structure allows engineers, miners and geologist further internal access to SFMI's underground minerals contained above and around the tunnel. Two more "Deep-Shaft" mines were included in this purchase, as well as, 4 mill sites.
At the beginning of the year, the property owned by GoldCorp Holdings, Co, covered approximately 172 acres. In 2008, it filed mineral claims at the Bureau of Land Management to an additional 1,400 acres on War Eagle Mountain, giving it almost complete mineral rights to the area. Under SFMI's long-term contract with GoldCorp Holdings, Co., SFMI's geologist/ mining engineers began a mapping operation of this total acreage which will result in a current picture of the underlying value of the numerous precious metal veins and determine the best access routes for future development.
Management retained the services of an independent auditor, who is going through an exhaustive financial audit of the company's affairs. A registration statement filing, under the USSEC 1933 Act, will be submitted with the exchange commission upon the audit's completion.
Mr. Pierre Quilliam, President of Silver Falcon Mining, Inc., said "We had an ambitious plan and carried it out successfully thanks to the selfless dedication of our employees and contractors. We hired competency in the various disciplines needed to carry out our successful mining program, now and in future years. This past performance should make it easier to get Board of Directors approval for the 2009 operations plan. "
About SFMI:
Silver Falcon Mining, Inc., is an exploration and development Company specializing in high-grade Gold and Silver mining properties in North America. Its primary operations at War Eagle Mountain, Owyhee County, ID is a Gold and Silver rich property, where it has the developmental and operating rights to (14) deep-shaft mines covering the Mountains' primary epithermal ore producing veins.
Further Information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL 800-631-8127; www.silverfalconmining.com.
Silver Falcon Mining cautions that statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.
CONTACT:
YES INTERNATIONAL
800-631-8127
SOURCE: Silver Falcon Mining
Copyright 2008 Market Wire, All rights reserved.
The SFMI Board of Directors approved a business plan which called for the following objectives to be met within the 2008 calendar year:
-- Build and start up, 100 tons per day precious metal processing mill
within a 50 miles radius of War Eagle Mountain.
-- Bring previously mined ore (tailings) as needed, from the mountain to
the plant, for a six month production of Gold and Silver.
-- Re-open one of the mine shafts on the property and prepare it for
further activity; in accordance with the Company's operating contract with
GoldCorp Holdings, Inc.
-- Mandate the officers of the company to file documents with the United
States Securities and Exchange Commission, in order to become fully
reporting and provide financial transparency.
SFMI's Management reports that it has fulfilled all aspects of its aforementioned 2008 business plan.
Having purchased and installed state of the art milling equipment, SFMI goes into operation by the end of this year, processing approximately one hundred tons of ore per day.
The Company transported ore, from atop War Eagle Mountain to its Melba, ID mill. The Company reports enough mill-feed tonnage available to last until mid-year 2009. Ore transport operations will resume, in the spring, providing additional mill-feed for 12 months of continuous production.
SFMI's mining engineers opened the "Belle Peck" adit, thus giving access to the "Poorman" complex of gold and silver veins. This secured access gives our personnel, the year round ability to conduct the geological and mining steps necessary to start underground operations in the spring of 2009.
The Company, in October 2008, acquired the "Sinker Tunnel," which is situated at a lower elevation on the mountain and allows us easy year round access. This tunnel structure allows engineers, miners and geologist further internal access to SFMI's underground minerals contained above and around the tunnel. Two more "Deep-Shaft" mines were included in this purchase, as well as, 4 mill sites.
At the beginning of the year, the property owned by GoldCorp Holdings, Co, covered approximately 172 acres. In 2008, it filed mineral claims at the Bureau of Land Management to an additional 1,400 acres on War Eagle Mountain, giving it almost complete mineral rights to the area. Under SFMI's long-term contract with GoldCorp Holdings, Co., SFMI's geologist/ mining engineers began a mapping operation of this total acreage which will result in a current picture of the underlying value of the numerous precious metal veins and determine the best access routes for future development.
Management retained the services of an independent auditor, who is going through an exhaustive financial audit of the company's affairs. A registration statement filing, under the USSEC 1933 Act, will be submitted with the exchange commission upon the audit's completion.
Mr. Pierre Quilliam, President of Silver Falcon Mining, Inc., said "We had an ambitious plan and carried it out successfully thanks to the selfless dedication of our employees and contractors. We hired competency in the various disciplines needed to carry out our successful mining program, now and in future years. This past performance should make it easier to get Board of Directors approval for the 2009 operations plan. "
About SFMI:
Silver Falcon Mining, Inc., is an exploration and development Company specializing in high-grade Gold and Silver mining properties in North America. Its primary operations at War Eagle Mountain, Owyhee County, ID is a Gold and Silver rich property, where it has the developmental and operating rights to (14) deep-shaft mines covering the Mountains' primary epithermal ore producing veins.
Further Information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL 800-631-8127; www.silverfalconmining.com.
Silver Falcon Mining cautions that statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.
CONTACT:
YES INTERNATIONAL
800-631-8127
SOURCE: Silver Falcon Mining
Copyright 2008 Market Wire, All rights reserved.
Friday, November 21, 2008
Why Silver is Experiencing Such a Crisis
Adam Hamilton talks on why silver is in crisis:
Silver, an asset which many investors thought would thrive during a financial-market panic, has been scourged mercilessly. After briefly surging above $20 in March, it nonchalantly traded between $16 and $19 or so for the next 5 months. Silver was on top of the world, consolidating high, and all looked well.
Rest of story...
Silver futures for December delivery today dropped to 16 cents, or 1.7 percent, to $9.33 an ounce.
Silver, an asset which many investors thought would thrive during a financial-market panic, has been scourged mercilessly. After briefly surging above $20 in March, it nonchalantly traded between $16 and $19 or so for the next 5 months. Silver was on top of the world, consolidating high, and all looked well.
Rest of story...
Silver futures for December delivery today dropped to 16 cents, or 1.7 percent, to $9.33 an ounce.
iShares Silver Trust Scheduled to Move to NYSE Arca
SAN FRANCISCO, CA, Nov 21, 2008 (MARKET WIRE via COMTEX) -- Barclays Global Investors (BGI), one of the world's largest institutional asset managers, today announced that the iShares(R) Silver Trust (ticker: SLV) will transfer from the NYSE Alternext US LLC (formerly, the American Stock Exchange) to the NYSE Arca listing and trading platform on December 4, 2008. The move is following the merger of the American Stock Exchange and NYSE EuroNext, the holding company for NYSE Arca. No action is needed by shareholders.
Barclays Global Investors International, Inc. is the Trust's sponsor.
Barclays Global Investors International, Inc. (BGII) is the sponsor of the iShares Silver Trust ("Silver Trust"). Barclays Global Investors Services (BGIS) assists in the marketing of the Silver Trust. BGII and BGIS are affiliates of Barclays Global Investors, N.A., which is a majority-owned subsidiary of Barclays Bank PLC.
Investing involves risk, including possible loss of principal. The iShares Silver Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Silver Trust are not subject to the same regulatory requirements as mutual funds. Because shares of the iShares Silver Trust are expected to reflect the price of the silver held by the Trust, the market price of the shares will be as unpredictable as the price of silver has historically been. Additionally, shares of the Silver Trust are bought and sold at market price (not NAV). Brokerage commissions will reduce returns.
Shares of the Silver Trust are created to reflect, at any given time, the market price of silver owned by the trust at that time less the trust's expenses and liabilities. The price received upon the sale of shares of the Silver Trust, which trade at market price, may be more or less than the value of the silver represented by them. If an investor sells the shares at a time when no active market for them exists, such lack of an active market will most likely adversely affect the price received for the shares. For a more complete discussion of risk factors relative to the Silver Trust, carefully read the prospectus.
Following an investment in the iShares Silver Trust, several factors may have the effect of causing a decline in the prices of silver and a corresponding decline in the price of the shares. Among them: (i) A change in economic conditions, such as a recession, can adversely affect the price of silver. Silver is used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the iShares. (ii) A significant change in the attitude of speculators and investors towards silver. Should the speculative community take a negative view towards silver, a decline in world silver prices could occur, negatively impacting the price of the shares. (iii) A significant increase in silver price hedging activity by silver producers. Traditionally, silver producers have not hedged to the same extent as other producers of precious metals (gold, for example) do. Should there be an increase in the level of hedge activity of silver producing companies, it could cause a decline in world silver prices, adversely affecting the price of the shares.
The amount of silver represented by shares of the iShares Silver Trust will decrease over the life of the trust due to sales necessary to pay the sponsor's fee and trust expenses. Without increase in the price of silver sufficient to compensate for that decrease, the price of the shares will also decline, and investors will lose money on their investment. The Silver Trust will have limited duration. The liquidation of the trust may occur at a time when the disposition of the trust's silver will result in losses to investors.
Although BGII believes that market makers will take advantage of differences between the NAV and the trading price of Silver Trust shares through arbitrage opportunities, BGII cannot guarantee that they will do so. BGII cannot guarantee an active trading market for the shares, which may result in losses on your investment at the time of disposition of your shares. The value of the shares of the Silver Trust will be adversely affected if silver owned by the trust is lost or damaged in circumstances in which the trust is not in a position to recover the corresponding loss. The Silver Trust is a passive investment vehicle. This means that the value of your shares may be adversely affected by trust losses that, if the trust had been actively managed, it might have been possible to avoid.
Shares of the iShares Silver Trust are not deposits or other obligations of or guaranteed by Barclays Global Investors, N.A. or its affiliates ("BGI"), and are not insured by the Federal deposit Insurance Corporation or any other governmental agency.
When comparing commodities and the iShares Silver Trust, it should be remembered that management fees associated with the Trust are not borne by investors in individual commodities. Buying and selling shares of the iShares Silver Trust will result in brokerage commissions. Because the expenses involved in an investment in physical silver will be dispersed among all holders of shares of the Silver Trust, an investment in the Silver Trust may represent a cost-efficient alternative to investments in silver for investors not otherwise able to participate directly in the market for physical silver.
Although shares of the iShares Silver Trust may be bought or sold on the exchange through any brokerage account, shares are not redeemable except in large aggregated units called Baskets.
Copyright2008 Barclays Global Investors, N.A. All rights reserved. iShares(R) is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
SOURCE: Barclays Global Investors
Copyright 2008 Market Wire, All rights reserved.
Barclays Global Investors International, Inc. is the Trust's sponsor.
Barclays Global Investors International, Inc. (BGII) is the sponsor of the iShares Silver Trust ("Silver Trust"). Barclays Global Investors Services (BGIS) assists in the marketing of the Silver Trust. BGII and BGIS are affiliates of Barclays Global Investors, N.A., which is a majority-owned subsidiary of Barclays Bank PLC.
Investing involves risk, including possible loss of principal. The iShares Silver Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for purposes of the Commodity Exchange Act. Shares of the Silver Trust are not subject to the same regulatory requirements as mutual funds. Because shares of the iShares Silver Trust are expected to reflect the price of the silver held by the Trust, the market price of the shares will be as unpredictable as the price of silver has historically been. Additionally, shares of the Silver Trust are bought and sold at market price (not NAV). Brokerage commissions will reduce returns.
Shares of the Silver Trust are created to reflect, at any given time, the market price of silver owned by the trust at that time less the trust's expenses and liabilities. The price received upon the sale of shares of the Silver Trust, which trade at market price, may be more or less than the value of the silver represented by them. If an investor sells the shares at a time when no active market for them exists, such lack of an active market will most likely adversely affect the price received for the shares. For a more complete discussion of risk factors relative to the Silver Trust, carefully read the prospectus.
Following an investment in the iShares Silver Trust, several factors may have the effect of causing a decline in the prices of silver and a corresponding decline in the price of the shares. Among them: (i) A change in economic conditions, such as a recession, can adversely affect the price of silver. Silver is used in a wide range of industrial applications, and an economic downturn could have a negative impact on its demand and, consequently, its price and the price of the iShares. (ii) A significant change in the attitude of speculators and investors towards silver. Should the speculative community take a negative view towards silver, a decline in world silver prices could occur, negatively impacting the price of the shares. (iii) A significant increase in silver price hedging activity by silver producers. Traditionally, silver producers have not hedged to the same extent as other producers of precious metals (gold, for example) do. Should there be an increase in the level of hedge activity of silver producing companies, it could cause a decline in world silver prices, adversely affecting the price of the shares.
The amount of silver represented by shares of the iShares Silver Trust will decrease over the life of the trust due to sales necessary to pay the sponsor's fee and trust expenses. Without increase in the price of silver sufficient to compensate for that decrease, the price of the shares will also decline, and investors will lose money on their investment. The Silver Trust will have limited duration. The liquidation of the trust may occur at a time when the disposition of the trust's silver will result in losses to investors.
Although BGII believes that market makers will take advantage of differences between the NAV and the trading price of Silver Trust shares through arbitrage opportunities, BGII cannot guarantee that they will do so. BGII cannot guarantee an active trading market for the shares, which may result in losses on your investment at the time of disposition of your shares. The value of the shares of the Silver Trust will be adversely affected if silver owned by the trust is lost or damaged in circumstances in which the trust is not in a position to recover the corresponding loss. The Silver Trust is a passive investment vehicle. This means that the value of your shares may be adversely affected by trust losses that, if the trust had been actively managed, it might have been possible to avoid.
Shares of the iShares Silver Trust are not deposits or other obligations of or guaranteed by Barclays Global Investors, N.A. or its affiliates ("BGI"), and are not insured by the Federal deposit Insurance Corporation or any other governmental agency.
When comparing commodities and the iShares Silver Trust, it should be remembered that management fees associated with the Trust are not borne by investors in individual commodities. Buying and selling shares of the iShares Silver Trust will result in brokerage commissions. Because the expenses involved in an investment in physical silver will be dispersed among all holders of shares of the Silver Trust, an investment in the Silver Trust may represent a cost-efficient alternative to investments in silver for investors not otherwise able to participate directly in the market for physical silver.
Although shares of the iShares Silver Trust may be bought or sold on the exchange through any brokerage account, shares are not redeemable except in large aggregated units called Baskets.
Copyright2008 Barclays Global Investors, N.A. All rights reserved. iShares(R) is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.
SOURCE: Barclays Global Investors
Copyright 2008 Market Wire, All rights reserved.
Friday, November 14, 2008
Apex Silver Announces Letter of Intent for Sale of San Cristobal Mine to Sumitomo
Apex Silver Mines Limited (AMEX: SIL) today announced that it has entered into a non-binding letter of intent with Sumitomo Corporation providing for the sale of Apex Silver's interest in the San Cristóbal mine to Sumitomo for a cash purchase price of $22.5 million. Apex Silver would continue to manage the mine following the sale.
Sumitomo currently owns a 35% interest in the mine indirectly through Minera San Cristóbal, S.A., a subsidiary of Apex Silver (MSC). Sumitomo also has the right to convert outstanding borrowings under a $100 million line of credit extended to MSC by one of Sumitomo's subsidiaries into additional MSC equity interests. MSC has borrowed $82 million under this facility. If those borrowings were fully converted, Sumitomo would have an aggregate 53.6% indirect interest in the San Cristóbal mine.
Jeffrey G. Clevenger, President and Chief Executive Officer of Apex Silver, stated, "We are pleased that Apex Silver will continue to partner with Sumitomo at this world-class mine, and we look forward to a comprehensive resolution of the issues that the company has faced as a result of the current volatility in the commodity and financial markets."
Summary of Key Terms:
Sumitomo (or an affiliate) will purchase Apex's and its affiliates' remaining equity interests in MSC, shareholder loans to MSC and certain other assets for a cash purchase price of $22.5 million, payable at the closing of the sale. Sumitomo (or an affiliate) will assume the liabilities relating to the San Cristóbal mine, including borrowings under the project finance facility for the mine and certain related liabilities under metal derivatives positions, net of the $91 million restricted cash at Apex Silver that has been pledged as collateral for the derivatives positions.
Apex Silver Mines Corporation (ASMC), a wholly owned subsidiary of Apex Silver, will manage MSC for an annual fee to be determined, but that will be not less than $6 million and sufficient to cover ASMC's costs. ASMC will also be entitled to an annual incentive fee of up to $1.5 million based on achievement of benchmarks for operating efficiency mutually agreed by the parties. The management agreement will have a minimum term of 12 months, after which Sumitomo may terminate the agreement on six months' notice and ASMC may terminate on 12 months' notice. The agreement will also be subject to early termination in certain circumstances. Apex Silver will guarantee ASMC's performance.
Apex Silver will receive limited contingent value rights entitling it to participate in the appreciation of the value of the mine in certain circumstances.
The non-binding letter of intent is subject to significant conditions, including completion by Sumitomo of diligence, the preparation of definitive documentation, the approval by the board of directors of each party and the restructuring of the mine's project finance facility and metal derivatives positions and Apex Silver's convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
About Apex Silver
Apex Silver is a mining, exploration and development company. Its 65%-owned San Cristóbal mine is the world's largest development in silver and zinc. The ordinary shares of Apex Silver trade on the American Stock Exchange under the symbol "SIL."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristóbal mine and the restructuring of Apex Silver's capital structure and the expected continuation of Apex Silver as a management services and exploration company. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, and the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
Sr. Vice President Corporate Affairs
(303) 839-5060
Sumitomo currently owns a 35% interest in the mine indirectly through Minera San Cristóbal, S.A., a subsidiary of Apex Silver (MSC). Sumitomo also has the right to convert outstanding borrowings under a $100 million line of credit extended to MSC by one of Sumitomo's subsidiaries into additional MSC equity interests. MSC has borrowed $82 million under this facility. If those borrowings were fully converted, Sumitomo would have an aggregate 53.6% indirect interest in the San Cristóbal mine.
Jeffrey G. Clevenger, President and Chief Executive Officer of Apex Silver, stated, "We are pleased that Apex Silver will continue to partner with Sumitomo at this world-class mine, and we look forward to a comprehensive resolution of the issues that the company has faced as a result of the current volatility in the commodity and financial markets."
Summary of Key Terms:
Sumitomo (or an affiliate) will purchase Apex's and its affiliates' remaining equity interests in MSC, shareholder loans to MSC and certain other assets for a cash purchase price of $22.5 million, payable at the closing of the sale. Sumitomo (or an affiliate) will assume the liabilities relating to the San Cristóbal mine, including borrowings under the project finance facility for the mine and certain related liabilities under metal derivatives positions, net of the $91 million restricted cash at Apex Silver that has been pledged as collateral for the derivatives positions.
Apex Silver Mines Corporation (ASMC), a wholly owned subsidiary of Apex Silver, will manage MSC for an annual fee to be determined, but that will be not less than $6 million and sufficient to cover ASMC's costs. ASMC will also be entitled to an annual incentive fee of up to $1.5 million based on achievement of benchmarks for operating efficiency mutually agreed by the parties. The management agreement will have a minimum term of 12 months, after which Sumitomo may terminate the agreement on six months' notice and ASMC may terminate on 12 months' notice. The agreement will also be subject to early termination in certain circumstances. Apex Silver will guarantee ASMC's performance.
Apex Silver will receive limited contingent value rights entitling it to participate in the appreciation of the value of the mine in certain circumstances.
The non-binding letter of intent is subject to significant conditions, including completion by Sumitomo of diligence, the preparation of definitive documentation, the approval by the board of directors of each party and the restructuring of the mine's project finance facility and metal derivatives positions and Apex Silver's convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
About Apex Silver
Apex Silver is a mining, exploration and development company. Its 65%-owned San Cristóbal mine is the world's largest development in silver and zinc. The ordinary shares of Apex Silver trade on the American Stock Exchange under the symbol "SIL."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristóbal mine and the restructuring of Apex Silver's capital structure and the expected continuation of Apex Silver as a management services and exploration company. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, and the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
Sr. Vice President Corporate Affairs
(303) 839-5060
First Majestic Silver Corp.: Third Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA, Nov 14, 2008 (MARKET WIRE via COMTEX) -- FIRST MAJESTIC SILVER CORP. (FR-T) (CA:FR) (PINK SHEETS: FRMSF)(FRANKFURT: FMV)(WKN: A0LHKJ) (the "Company") is pleased to announce the unaudited financial results for the Company's third quarter ending September 30, 2008. The full version of the financial statements can be viewed on the Company's web site at www.firstmajestic.com or on SEDAR at www.sedar.com.
------------------------------------------------------
3rd Quarter Highlights
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Gross Revenue $13.9 million
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Net Revenue $10.8 million
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Mine Operating Earnings $1.7 million
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Net Loss after taxes $0.4 million
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Cash Cost per ounce US$7.65
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Silver Equivalent Production 840,918 oz. Ag eq.
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Silver Equivalent Oz. Sold 850,461 oz. Ag eq.
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FINANCIAL HIGHLIGHTS
- Sales revenues for the quarter (after smelting charge deductions) were $10.8 million; an increase of 5% compared to $10.3 million for the quarter ended September 30, 2007. Gross revenues for the quarter, prior to smelting charges were $13.9 million.
- Mine operating earnings for the quarter amounted to $1.7 million, compared to $1.5 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to $8.6 million, compared to $3.8 million for the nine months ended September 30, 2007.
- The Company generated an operating loss of $0.8 million for the quarter, compared to an operating loss of $1 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to a gain of $59,861, compared to a loss of $4.0 million for the nine months ended September 30, 2007.
- The Company generated a net loss after taxes of $0.4 million for the quarter ended September 30, 2008, compared to a net loss after taxes of $2.1 million for the quarter ended September 30, 2007.
- The Company generated a net income after taxes of $0.4 million for the nine months ended September 30, 2008, compared to a net loss after taxes of $5.9 million for the nine months ended September 30, 2007.
- The net loss after taxes of $0.4 million for this quarter ended September 30, 2008, was after deducting non-cash stock based compensation expense of $1 million (2007 - $0.7 million). The net income after taxes of $0.4 million for the nine months ended September 30, 2008, was after deducting non-cash stock-based compensation expense of $2.8 million (2007 - $2.4 million).
- Direct cash costs per ounce of silver were negatively impacted in the current quarter by an extremely wet and stormy rainy season in Mexico, with a cost per ounce of US$7.65 overall compared to US$4.84 in Q2 of 2008, and US$6.73 for the quarter ended September 30, 2007.
- Total quarterly production consisted of 840,918 ounces of silver equivalents, including 719,399 ounces of silver, 536 ounces of gold, and 1,518,271 pounds of lead. The Company sold 850,461 ounces of silver equivalent in the quarter, and 2,574,637 ounces of silver equivalent for the nine months ended September 30, 2008, resulting in a decrease of 7% and an increase of 6% respectively over the 911,916 ounces of silver equivalent sold in the quarter ended September 30, 2007, and 2,427,935 ounces of silver equivalent sold for the nine months ended September 30, 2007.
- In the quarter, the Company invested $10.2 million in capital expenditures on its mineral properties, and a further $7.5 million on additions to plant and equipment. For the nine months ended September 30, 2008, the Company invested $25.4 million in capital expenditures on its mineral properties, and $16 million on additions to plant and equipment.
OPERATIONAL HIGHLIGHTS
The Company continues to focus its efforts on production growth, Reserve and Resource growth and reducing costs in order to improve profitability. Mill expansions at the La Parrilla Silver Mine and San Martin Silver Mine which commenced earlier in the year are close to completion. The Company's largest expansion program which is taking place at the La Encantada Silver Mine is continuing and is expected to be completed by April 2009. Over the past three years, management remained focused on continuing to increase NI 43-101 compliant silver Resources. As at the latest NI 43-101 Reports, the Company has defined a global Resource of 241 million ounces of Silver equivalents. Twenty two drill rigs were active on the Company's four core projects during the third quarter. Due to market conditions, this program has now been reduced to four drill rigs. The Company anticipates that newly updated Resource estimates, with a cut off date of September 30th, will be published prior to year end on each of the Company's three operating silver mines.
La Parrilla Silver Mine
As part of the ongoing improvements at the La Parrilla during the quarter the two new leaching tanks and one additional thickener tank continued to be constructed. Recoveries and capacity are expected to improve once these new tanks come online in the fourth quarter of 2008. At the mine, preparation of the lower levels of the Rosarios area and the addition of a long hole drilling machine is now enabling an increase in production and improved grades from the sulphides areas.
San Martin Silver Mine
At San Martin, the primary focus during the quarter was to continue the expansion of the mill by adding additional leaching tanks and thickeners as well as reinforcing older tanks and completing a new overflow spill containment system. A rock slide that occurred during the quarter resulting from extremely heavy rains that blocked three of the four entrances to the mine was cleared successfully and the operation is now back to full production. The new portable screen which was installed in the second quarter is operating full time to take advantage of some of the oxide ore backfill and dumps left behind from previous years of operation. This is allowing the Company to produce primarily DorA-A?1/2 bars rather than concentrates which are presently more economic in the present environment of low lead and zinc prices.
La Encantada Silver Mine
Construction of the new 3500 tpd cyanidation mill is the primary focus at the La Encantada and is proceeding well. In addition, management decided to construct a temporary cyanidation circuit at the main flotation mill in order to treat the lead concentrates which have historically been produced at this operation. The completion of this circuit will allow the Company to treat the concentrates and avoid the addition costs associated with shipping concentrates to Penoles. Once this new circuit is completed, the silver precipitates produced from the concentrates will be shipped to the La Parrilla mill for the production of DorA-A?1/2 bars. Tests have proven that the lead concentrates treated with cyanide have a 95% recovery of contained silver and will substantially reduce the smelting costs associated with selling concentrates.
In Summary
Equally important to increasing silver production is further reducing costs and expenses where possible. The 2008 operating year thus far represents a year of high costs as a result of the Company's pursuit of aggressive growth based on the expansion of its operations and Resources. In addition, the Company has been negatively impacted this year by higher PeA-A?1/2oles smelter charges, especially on its lead and zinc concentrates. Management is pleased by the many cost cutting measures underway, and it is believed that further improvements in profitability can be achieved and additional improvements are expected going forward as the Company takes additional measures to reduce costs.
Finally, in this turbulent financial and commodity environment, First Majestic has been reacting by cutting costs where ever possible. Due to the mill improvements ongoing this year, mill throughput at each operation has now reached full capacity which is resulting in a more efficient use of equipment and machinery. The Company is continuing to analyze various options to reduce its operating costs and to squeeze out the most optimum margins possible. One example which is proving to add substantial value is management decided to mint 99.9% pure silver into coins, ingots and bars which are actively marketed on the Company's web site. Interest levels for these products are extremely high and are beginning to represent substantial revenues for the Company. These products tend to sell at substantial premiums to COMEX spot prices. It is anticipated that these sales of refined silver products will represent approximately 10% of the Company's silver production by February 2009. The Company is also exploring other ways of selling its silver outside of the normal avenues of commercial sales.
Management is confident that these steps that have been taken and others under examination will ultimately generating more income and greater value for shareholders.
First Majestic is a producing silver company focused in MA-A?1/2xico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
(604) 688-3033 or Toll Free: 1-866-529-2807
(604) 639-8873 (FAX)
Email: info@firstmajestic.com
Website: www.firstmajestic.com
SOURCE: First Majestic Silver Corp.
mailto:info@firstmajestic.com
http://www.firstmajestic.com
Copyright 2008 Market Wire, All rights reserved
------------------------------------------------------
3rd Quarter Highlights
------------------------------------------------------
Gross Revenue $13.9 million
------------------------------------------------------
Net Revenue $10.8 million
------------------------------------------------------
Mine Operating Earnings $1.7 million
------------------------------------------------------
Net Loss after taxes $0.4 million
------------------------------------------------------
Cash Cost per ounce US$7.65
------------------------------------------------------
Silver Equivalent Production 840,918 oz. Ag eq.
------------------------------------------------------
Silver Equivalent Oz. Sold 850,461 oz. Ag eq.
------------------------------------------------------
FINANCIAL HIGHLIGHTS
- Sales revenues for the quarter (after smelting charge deductions) were $10.8 million; an increase of 5% compared to $10.3 million for the quarter ended September 30, 2007. Gross revenues for the quarter, prior to smelting charges were $13.9 million.
- Mine operating earnings for the quarter amounted to $1.7 million, compared to $1.5 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to $8.6 million, compared to $3.8 million for the nine months ended September 30, 2007.
- The Company generated an operating loss of $0.8 million for the quarter, compared to an operating loss of $1 million for the quarter ended September 30, 2007. Mine operating earnings for the nine months ended September 30, 2008, amounted to a gain of $59,861, compared to a loss of $4.0 million for the nine months ended September 30, 2007.
- The Company generated a net loss after taxes of $0.4 million for the quarter ended September 30, 2008, compared to a net loss after taxes of $2.1 million for the quarter ended September 30, 2007.
- The Company generated a net income after taxes of $0.4 million for the nine months ended September 30, 2008, compared to a net loss after taxes of $5.9 million for the nine months ended September 30, 2007.
- The net loss after taxes of $0.4 million for this quarter ended September 30, 2008, was after deducting non-cash stock based compensation expense of $1 million (2007 - $0.7 million). The net income after taxes of $0.4 million for the nine months ended September 30, 2008, was after deducting non-cash stock-based compensation expense of $2.8 million (2007 - $2.4 million).
- Direct cash costs per ounce of silver were negatively impacted in the current quarter by an extremely wet and stormy rainy season in Mexico, with a cost per ounce of US$7.65 overall compared to US$4.84 in Q2 of 2008, and US$6.73 for the quarter ended September 30, 2007.
- Total quarterly production consisted of 840,918 ounces of silver equivalents, including 719,399 ounces of silver, 536 ounces of gold, and 1,518,271 pounds of lead. The Company sold 850,461 ounces of silver equivalent in the quarter, and 2,574,637 ounces of silver equivalent for the nine months ended September 30, 2008, resulting in a decrease of 7% and an increase of 6% respectively over the 911,916 ounces of silver equivalent sold in the quarter ended September 30, 2007, and 2,427,935 ounces of silver equivalent sold for the nine months ended September 30, 2007.
- In the quarter, the Company invested $10.2 million in capital expenditures on its mineral properties, and a further $7.5 million on additions to plant and equipment. For the nine months ended September 30, 2008, the Company invested $25.4 million in capital expenditures on its mineral properties, and $16 million on additions to plant and equipment.
OPERATIONAL HIGHLIGHTS
The Company continues to focus its efforts on production growth, Reserve and Resource growth and reducing costs in order to improve profitability. Mill expansions at the La Parrilla Silver Mine and San Martin Silver Mine which commenced earlier in the year are close to completion. The Company's largest expansion program which is taking place at the La Encantada Silver Mine is continuing and is expected to be completed by April 2009. Over the past three years, management remained focused on continuing to increase NI 43-101 compliant silver Resources. As at the latest NI 43-101 Reports, the Company has defined a global Resource of 241 million ounces of Silver equivalents. Twenty two drill rigs were active on the Company's four core projects during the third quarter. Due to market conditions, this program has now been reduced to four drill rigs. The Company anticipates that newly updated Resource estimates, with a cut off date of September 30th, will be published prior to year end on each of the Company's three operating silver mines.
La Parrilla Silver Mine
As part of the ongoing improvements at the La Parrilla during the quarter the two new leaching tanks and one additional thickener tank continued to be constructed. Recoveries and capacity are expected to improve once these new tanks come online in the fourth quarter of 2008. At the mine, preparation of the lower levels of the Rosarios area and the addition of a long hole drilling machine is now enabling an increase in production and improved grades from the sulphides areas.
San Martin Silver Mine
At San Martin, the primary focus during the quarter was to continue the expansion of the mill by adding additional leaching tanks and thickeners as well as reinforcing older tanks and completing a new overflow spill containment system. A rock slide that occurred during the quarter resulting from extremely heavy rains that blocked three of the four entrances to the mine was cleared successfully and the operation is now back to full production. The new portable screen which was installed in the second quarter is operating full time to take advantage of some of the oxide ore backfill and dumps left behind from previous years of operation. This is allowing the Company to produce primarily DorA-A?1/2 bars rather than concentrates which are presently more economic in the present environment of low lead and zinc prices.
La Encantada Silver Mine
Construction of the new 3500 tpd cyanidation mill is the primary focus at the La Encantada and is proceeding well. In addition, management decided to construct a temporary cyanidation circuit at the main flotation mill in order to treat the lead concentrates which have historically been produced at this operation. The completion of this circuit will allow the Company to treat the concentrates and avoid the addition costs associated with shipping concentrates to Penoles. Once this new circuit is completed, the silver precipitates produced from the concentrates will be shipped to the La Parrilla mill for the production of DorA-A?1/2 bars. Tests have proven that the lead concentrates treated with cyanide have a 95% recovery of contained silver and will substantially reduce the smelting costs associated with selling concentrates.
In Summary
Equally important to increasing silver production is further reducing costs and expenses where possible. The 2008 operating year thus far represents a year of high costs as a result of the Company's pursuit of aggressive growth based on the expansion of its operations and Resources. In addition, the Company has been negatively impacted this year by higher PeA-A?1/2oles smelter charges, especially on its lead and zinc concentrates. Management is pleased by the many cost cutting measures underway, and it is believed that further improvements in profitability can be achieved and additional improvements are expected going forward as the Company takes additional measures to reduce costs.
Finally, in this turbulent financial and commodity environment, First Majestic has been reacting by cutting costs where ever possible. Due to the mill improvements ongoing this year, mill throughput at each operation has now reached full capacity which is resulting in a more efficient use of equipment and machinery. The Company is continuing to analyze various options to reduce its operating costs and to squeeze out the most optimum margins possible. One example which is proving to add substantial value is management decided to mint 99.9% pure silver into coins, ingots and bars which are actively marketed on the Company's web site. Interest levels for these products are extremely high and are beginning to represent substantial revenues for the Company. These products tend to sell at substantial premiums to COMEX spot prices. It is anticipated that these sales of refined silver products will represent approximately 10% of the Company's silver production by February 2009. The Company is also exploring other ways of selling its silver outside of the normal avenues of commercial sales.
Management is confident that these steps that have been taken and others under examination will ultimately generating more income and greater value for shareholders.
First Majestic is a producing silver company focused in MA-A?1/2xico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
First Majestic Silver Corp.
Keith Neumeyer
President & CEO
(604) 688-3033 or Toll Free: 1-866-529-2807
(604) 639-8873 (FAX)
Email: info@firstmajestic.com
Website: www.firstmajestic.com
SOURCE: First Majestic Silver Corp.
mailto:info@firstmajestic.com
http://www.firstmajestic.com
Copyright 2008 Market Wire, All rights reserved
Pan American Silver Announces Third Quarter Results
Silver Production Increases, Manantial Espejo Commissioning Underway
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) -
(All amounts in US dollars unless otherwise stated and all production figures are approximate)
Pan American Silver Corp. (TSX:PAA)(NASDAQ:PAAS) today reported unaudited financial and operating results for the quarter ended September 30, 2008. The Company also provided an update on its mining operations as well as its project development activities, which includes the startup of its new Manantial Espejo mine in Argentina and the expansion of its San Vicente mine in Bolivia.
This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which are available on the Company's website at www.panamericansilver.com, and have been posted on SEDAR at www.sedar.com.
Third Quarter 2008 Highlights(1)
- Quarterly silver production of 4.9 million ounces, up 9% from Q3 2007
- Cash costs(2) increased to $6.61 per payable ounce of silver
- Sales of $79.5 million
- Cash flow from operations of $22.7 million.
- Mine operating earnings(2) of $15.5 million.
- Net income of $6.4 million or $0.08 per share
- Adjusted net income(3) of $11.3 million or $0.14 per share
- Commissioning of Manantial Espejo mine in Argentina is underway, with first silver and gold production expected approximately 5 weeks from today
- Discovery of a significant new high grade silver zone at the Morococha mine in Peru
- Production forecast for 2008 maintained at 18.8 million ounces of silver
(1) Financial information in this news release is based on Canadian GAAP
(2) Mine operating earnings and cash costs are non-GAAP measures. For a detailed description of these measures please refer to page 3 and page 8 of the MD&A.
(3) Adjusted net income is equal to net income, excluding an unrealized loss of $2.9 million on currencies held in denominations other than US dollars and a loss of $2.0 million on re-pricing of previously recognized concentrate sales.
"There is no question that our financial results were negatively impacted by the sharp decline in base metal and silver prices that started in the middle of the third quarter and gathered speed towards the end of September" said Geoff Burns, President and CEO. "However, we increased our silver production, still generated net earnings for a 10th consecutive quarter, delivered a respectable $22.7 million in operating cash flow, maintained a healthy working capital position with no debt and are now starting up our newest and lowest cost silver and gold mine. In short, we are well positioned to continue to deliver growth, weather the difficult price environment we have just entered and at the same time take advantage of the strategic opportunities that are becoming more prevalent."
Financial Results
Pan American posted sales of $79.5 million during the third quarter of 2008, a 10% decline year over year. Although the realized silver price increased 19% relative to the same period last year, this was offset by significantly lower realized base metal prices. Zinc prices were 45% lower than in the third quarter of last year while lead prices declined 39% over the same period.
Mine operating earnings for the quarter decreased to $15.5 million from $29.1 million in the comparable period in 2007, while consolidated net income decreased to $6.4 million or $0.08 per share. Included in net income for the quarter was an unrealized $2.9 million loss on currencies held in denominations other than US dollars and $2.0 million in negative pricing adjustments on concentrates previously included in sales. Excluding these two items, adjusted net income was $11.3 million or $0.11 per share. The lower net income and lower mine operating earnings during the current quarter were primarily caused by the decline in base metal prices, largely zinc and higher cash production costs and depreciation charges.
During the quarter the Company generated $22.7 million in cash flow from operating activities, while investing $33.6 million in construction of the new Manantial Espejo mine and $14.2 million in the expansion of the San Vicente mine. The Company also incurred capital expenditures of $11.8 million at its other operations.
At September 30, 2008 Pan American's cash and short term investments totalled $90.9 million and the Company had in excess of $167 million in working capital. The Company remains debt-free and fully funded to complete its short term growth projects. Additionally, in October the Company secured a $70 million revolving credit facility, which is intended to fund general corporate purposes and strategic business development activities. To date, the Company has not drawn from this facility.
Production And Operations
Pan American produced 4.9 million ounces of silver during the third quarter of 2008, which was 9% higher than in the third quarter of 2007 and 0.2 million ounces more than during the second quarter of this year. Alamo Dorado was the Company's best producing operation, contributing 1.7 million ounces of silver during the quarter. The La Colorada and Huaron operations also had good production quarters, contributing 1.0 and 0.9 million ounces of silver respectively.
Consolidated cash costs for the quarter rose to $6.61 per ounce of silver from $3.32 in the third quarter of 2007. The increase was a direct result of lower base metal by-product credits, and increased energy and labour costs, mainly at the Company's Peruvian operations.
Exploration
In October, Pan American announced the discovery of the high grade Morro Solar vein at its Morococha mine in Peru. The Morro Solar vein was identified during surface exploration and has been mapped over a continuous distance of more than 2.5 km along strike.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) -
(All amounts in US dollars unless otherwise stated and all production figures are approximate)
Pan American Silver Corp. (TSX:PAA)(NASDAQ:PAAS) today reported unaudited financial and operating results for the quarter ended September 30, 2008. The Company also provided an update on its mining operations as well as its project development activities, which includes the startup of its new Manantial Espejo mine in Argentina and the expansion of its San Vicente mine in Bolivia.
This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which are available on the Company's website at www.panamericansilver.com, and have been posted on SEDAR at www.sedar.com.
Third Quarter 2008 Highlights(1)
- Quarterly silver production of 4.9 million ounces, up 9% from Q3 2007
- Cash costs(2) increased to $6.61 per payable ounce of silver
- Sales of $79.5 million
- Cash flow from operations of $22.7 million.
- Mine operating earnings(2) of $15.5 million.
- Net income of $6.4 million or $0.08 per share
- Adjusted net income(3) of $11.3 million or $0.14 per share
- Commissioning of Manantial Espejo mine in Argentina is underway, with first silver and gold production expected approximately 5 weeks from today
- Discovery of a significant new high grade silver zone at the Morococha mine in Peru
- Production forecast for 2008 maintained at 18.8 million ounces of silver
(1) Financial information in this news release is based on Canadian GAAP
(2) Mine operating earnings and cash costs are non-GAAP measures. For a detailed description of these measures please refer to page 3 and page 8 of the MD&A.
(3) Adjusted net income is equal to net income, excluding an unrealized loss of $2.9 million on currencies held in denominations other than US dollars and a loss of $2.0 million on re-pricing of previously recognized concentrate sales.
"There is no question that our financial results were negatively impacted by the sharp decline in base metal and silver prices that started in the middle of the third quarter and gathered speed towards the end of September" said Geoff Burns, President and CEO. "However, we increased our silver production, still generated net earnings for a 10th consecutive quarter, delivered a respectable $22.7 million in operating cash flow, maintained a healthy working capital position with no debt and are now starting up our newest and lowest cost silver and gold mine. In short, we are well positioned to continue to deliver growth, weather the difficult price environment we have just entered and at the same time take advantage of the strategic opportunities that are becoming more prevalent."
Financial Results
Pan American posted sales of $79.5 million during the third quarter of 2008, a 10% decline year over year. Although the realized silver price increased 19% relative to the same period last year, this was offset by significantly lower realized base metal prices. Zinc prices were 45% lower than in the third quarter of last year while lead prices declined 39% over the same period.
Mine operating earnings for the quarter decreased to $15.5 million from $29.1 million in the comparable period in 2007, while consolidated net income decreased to $6.4 million or $0.08 per share. Included in net income for the quarter was an unrealized $2.9 million loss on currencies held in denominations other than US dollars and $2.0 million in negative pricing adjustments on concentrates previously included in sales. Excluding these two items, adjusted net income was $11.3 million or $0.11 per share. The lower net income and lower mine operating earnings during the current quarter were primarily caused by the decline in base metal prices, largely zinc and higher cash production costs and depreciation charges.
During the quarter the Company generated $22.7 million in cash flow from operating activities, while investing $33.6 million in construction of the new Manantial Espejo mine and $14.2 million in the expansion of the San Vicente mine. The Company also incurred capital expenditures of $11.8 million at its other operations.
At September 30, 2008 Pan American's cash and short term investments totalled $90.9 million and the Company had in excess of $167 million in working capital. The Company remains debt-free and fully funded to complete its short term growth projects. Additionally, in October the Company secured a $70 million revolving credit facility, which is intended to fund general corporate purposes and strategic business development activities. To date, the Company has not drawn from this facility.
Production And Operations
Pan American produced 4.9 million ounces of silver during the third quarter of 2008, which was 9% higher than in the third quarter of 2007 and 0.2 million ounces more than during the second quarter of this year. Alamo Dorado was the Company's best producing operation, contributing 1.7 million ounces of silver during the quarter. The La Colorada and Huaron operations also had good production quarters, contributing 1.0 and 0.9 million ounces of silver respectively.
Consolidated cash costs for the quarter rose to $6.61 per ounce of silver from $3.32 in the third quarter of 2007. The increase was a direct result of lower base metal by-product credits, and increased energy and labour costs, mainly at the Company's Peruvian operations.
Exploration
In October, Pan American announced the discovery of the high grade Morro Solar vein at its Morococha mine in Peru. The Morro Solar vein was identified during surface exploration and has been mapped over a continuous distance of more than 2.5 km along strike.
Silver Shield Reports on Exploration in Elk Lake, Ontario
BURLINGTON, ONTARIO, Nov 14, 2008 (MARKET WIRE via COMTEX) -- Silver Shield Resources Corp. (CA:SSR) ("Silver Shield" or "the Company") today reported on its exploration activities in Elk Lake, Ontario.
The Company is pleased to announce it has completed a stripping program at its 100% owned Welsh Silver Mine property in the area between holes WS-08-02 and WS-08-13, (190 metres apart) to trace the vein system identified in those holes, to the surface. This stripping program has uncovered an extensive area of intense mineralized vein swarms in the area of the prime targets for the Company's proposed winter 2008 drilling program. The company continues to be encouraged by results from the Welsh Mine Property.
As previously reported by Silver Shield in May of this year, hole WS-08-02 intersected 2,659.5 g/t silver over 0.15 metres, and 1,230 g/t silver over 0.15 metres was intersected in hole WS-08-13. (Check assaying of the former sample using pulp and metallic testing returned 2,104.68 g/t silver over 0.15 metres).
Additionally, hole WS-08-09 intersected 2,589 g/t silver at 111.3 metres to 111.5 metres, and 286 g/t silver at 82.15 metres to 82.35, located 100 metres to the immediate south of hole WS-08-02.
The Company also reported that phase one drilling of 1,500 metres in 13 holes on the Wilder Duggan property in Elk Lake returned low silver/cobalt values. The program successfully identified a network of quartz-carbonate veins averaging 5 to 20 centimetres in width over a span of 20 metres wide, over a length of roughly 300 metres. The data on the Wilder property will be reviewed by geological staff to determine a follow up Program for the spring of 2009.
About Silver Shield Resources Corp.
Silver Shield Resources Corp. is an exploration and development company of mineral resource properties focusing on advanced-stage silver properties in Northern Ontario and Mexico that the Company can take into production. Its portfolio holds varying option interests in five different properties, including the Welsh Mine Property in the historically-prolific silver producing Elk Lake-Gowganda area of Ontario and the La Cumbre Property in Guerrero, Mexico. Experienced Management have listed the Company on the TSX Venture Exchange upon executing its RTO Qualifying Transaction with Gemini Acquisitions Inc. on December 19th 2007 (CA:SSR: news, chart, profile) .
To receive Company press releases, please email lindsay@chfir.com and mention "Silver Shield" on the subject line.
Forward-Looking Statements
This press release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact included herein, including without limitation, statements regarding exploration results, future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with The TSX Venture Exchange and the Canadian Securities Commissions. Not to be construed as an offer to buy or sell securities of this Company. Readers are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing.
Contacts:
Silver Shield Resources Corp.
Tim D. Towers
President and CEO
(905) 319-3033
Email: silvershield@cogeco.net
Website: www.silvershieldresources.com
CHF Investor Relations
Lindsay Carpenter
Account Manager
(416) 868-1079 ext. 239
Email: lindsay@chfir.com
SOURCE: Silver Shield Resources Corp.
mailto:silvershield@cogeco.net
http://www.silvershieldresources.com
mailto:lindsay@chfir.com
Copyright 2008 Market Wire, All rights reserved.
The Company is pleased to announce it has completed a stripping program at its 100% owned Welsh Silver Mine property in the area between holes WS-08-02 and WS-08-13, (190 metres apart) to trace the vein system identified in those holes, to the surface. This stripping program has uncovered an extensive area of intense mineralized vein swarms in the area of the prime targets for the Company's proposed winter 2008 drilling program. The company continues to be encouraged by results from the Welsh Mine Property.
As previously reported by Silver Shield in May of this year, hole WS-08-02 intersected 2,659.5 g/t silver over 0.15 metres, and 1,230 g/t silver over 0.15 metres was intersected in hole WS-08-13. (Check assaying of the former sample using pulp and metallic testing returned 2,104.68 g/t silver over 0.15 metres).
Additionally, hole WS-08-09 intersected 2,589 g/t silver at 111.3 metres to 111.5 metres, and 286 g/t silver at 82.15 metres to 82.35, located 100 metres to the immediate south of hole WS-08-02.
The Company also reported that phase one drilling of 1,500 metres in 13 holes on the Wilder Duggan property in Elk Lake returned low silver/cobalt values. The program successfully identified a network of quartz-carbonate veins averaging 5 to 20 centimetres in width over a span of 20 metres wide, over a length of roughly 300 metres. The data on the Wilder property will be reviewed by geological staff to determine a follow up Program for the spring of 2009.
About Silver Shield Resources Corp.
Silver Shield Resources Corp. is an exploration and development company of mineral resource properties focusing on advanced-stage silver properties in Northern Ontario and Mexico that the Company can take into production. Its portfolio holds varying option interests in five different properties, including the Welsh Mine Property in the historically-prolific silver producing Elk Lake-Gowganda area of Ontario and the La Cumbre Property in Guerrero, Mexico. Experienced Management have listed the Company on the TSX Venture Exchange upon executing its RTO Qualifying Transaction with Gemini Acquisitions Inc. on December 19th 2007 (CA:SSR: news, chart, profile) .
To receive Company press releases, please email lindsay@chfir.com and mention "Silver Shield" on the subject line.
Forward-Looking Statements
This press release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact included herein, including without limitation, statements regarding exploration results, future plans and objectives of the Company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with The TSX Venture Exchange and the Canadian Securities Commissions. Not to be construed as an offer to buy or sell securities of this Company. Readers are advised to discuss all of their stock purchases with a registered securities broker or personal finance professional prior to investing.
Contacts:
Silver Shield Resources Corp.
Tim D. Towers
President and CEO
(905) 319-3033
Email: silvershield@cogeco.net
Website: www.silvershieldresources.com
CHF Investor Relations
Lindsay Carpenter
Account Manager
(416) 868-1079 ext. 239
Email: lindsay@chfir.com
SOURCE: Silver Shield Resources Corp.
mailto:silvershield@cogeco.net
http://www.silvershieldresources.com
mailto:lindsay@chfir.com
Copyright 2008 Market Wire, All rights reserved.
Minera Andes Reports Third Quarter 2008 Results
Minera Andes Inc. (TSX-MAI and US OTC: MNEAF) today reported a net loss of $3.5 million or $0.02 per share in its third quarter of 2008 financial statements. For the nine months ended September 30, 2008, Minera Andes recorded a net profit of $3.6 million or $0.02 per share. Our financial statements are available at www.sedar.com.
Minera Andes' revenue is derived from Minera Santa Cruz S.A.("MSC"), which is owned 49% by Minera Andes and 51% by Hochschild Mining plc. ("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange). MSC operates the San Jose silver/gold mine in southern Argentina, which had its first quarter of positive earning from silver and gold sales in Q2 2008 following the commencement of production at San Jose last year. Hochschild is the operator of the San Jose mine.
As previously reported, silver and gold sales in the third quarter totaled $18.5 million versus $63.2 million for the second quarter. Third quarter 2008 sales of gold and silver are lower than Q2 because an inventory build of metal produced in 4Q 2007 and 1Q 2008 gave the second quarter higher than normal sales. In addition, another build up of metal inventory has occurred in Q3 due to a smelting furnace being temporarily down. The metal in inventory is planned to be sold in Q4 of 2008. The averaged weighted sales prices for Q3 were $861/ounce of gold and $12.37/ounce of silver. The average realized market prices in Q3 2008 were 4.5% lower for Au and 25% lower for Ag than in Q2 2008 (source: KITCO). Since mine start up 15 months ago, San Jose's total sales have been $92.9 million. San Jose's silver and gold sales are un-hedged.
Allen Ambrose, President of Minera Andes said, "Sales and net revenues for the third quarter were less than expected, primarily due to temporary mechanical problems with a smelting furnace causing an inventory buildup of precipitate at site. With the first phase of expansion completed to double the production rate, it is estimated that the San Jose mine will join the ranks of the top ten primary silver producing mines in the world next year when the mine and mill ramp up to the expanded capacity level."
Production
Mill throughput increased 11.5% compared to the previous quarter, but silver production was 9.4% lower and gold production was 0.6% lower than the previous quarter due to lower head grades. San Jose's silver production declined slightly in the third quarter compared to the second quarter. Silver production was 990,000 ounces in the third quarter, compared to 1,093,000 ounces in the second quarter. Annualized, third quarter silver production is running closer to the average grade of the reserves in the original mine plan versus last quarter that was running 33% above the average grade of the reserves. During the life of the mine it is anticipated the gold and silver production will be in line with the mine plan and the reserve grades. Gold production in the third quarter was 12,340 ounces, compared to 12,410 ounces in the second quarter.
For the third quarter, production cash costs on a co-product basis averaged $7.43 per ounce of silver and $431 per ounce of gold. The production cash costs are shown on a co-product basis and are calculated by multiplying the total cash costs by the percentage the calculated value of the silver produced, divided by the number of silver ounces produced in the case of silver, and in the case of gold by multiplying the total cash costs by the percentage of value of gold produced, divided by the number of gold ounces produced. Cash costs include cost of sales, commercial deductions and selling expenses, less depreciation. The production cash costs were calculated using the value of the 12,340 ounces of gold and 990,000 ounces of silver produced in the form of dore, precipitates, and concentrates and the cost to produce those ounces as defined above was $12.7 million. The percentage of the values for the gold and silver production is based on the Q3 2008 average London PM fix for gold and the London fix for silver.
Phase I of the Mine Expansion
Phase I of the expansion has been completed, consisting of an increase in the mining and processing capacity from 750 metric ton per day to 1,500 metric ton per day. Mine production will ramp up to full capacity over the next few months. Currently, approximately 40% of the ore fed to the expanded plant is being processed to produce dore bars and approximately 60% is being processed to produce concentrates. Phase II of the expansion involves connecting to the regional electrical grid which is estimated to be completed in Q1 2009. Meanwhile, there is sufficient diesel generating capacity at the mine to run the mill at its full capacity. Phase III of the mine expansion, which is expected to be completed by mid-2009, involves further expansion of the refining circuit at the processing facility to convert all the concentrate to dore, which will reduce working capital requirements, selling discounts and result in lower production taxes.
Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as defined by National Instrument 43-101, is responsible for the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine that commenced production last year. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to complete a scoping study by yearend. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks. We refer readers to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements.
SOURCE Minera Andes Inc.
Copyright
(C) 2008 PR Newswire. All rights reserved
Minera Andes' revenue is derived from Minera Santa Cruz S.A.("MSC"), which is owned 49% by Minera Andes and 51% by Hochschild Mining plc. ("Hochschild") (HOCM.L: Reuters and HOC LN: Bloomberg - London Stock Exchange). MSC operates the San Jose silver/gold mine in southern Argentina, which had its first quarter of positive earning from silver and gold sales in Q2 2008 following the commencement of production at San Jose last year. Hochschild is the operator of the San Jose mine.
As previously reported, silver and gold sales in the third quarter totaled $18.5 million versus $63.2 million for the second quarter. Third quarter 2008 sales of gold and silver are lower than Q2 because an inventory build of metal produced in 4Q 2007 and 1Q 2008 gave the second quarter higher than normal sales. In addition, another build up of metal inventory has occurred in Q3 due to a smelting furnace being temporarily down. The metal in inventory is planned to be sold in Q4 of 2008. The averaged weighted sales prices for Q3 were $861/ounce of gold and $12.37/ounce of silver. The average realized market prices in Q3 2008 were 4.5% lower for Au and 25% lower for Ag than in Q2 2008 (source: KITCO). Since mine start up 15 months ago, San Jose's total sales have been $92.9 million. San Jose's silver and gold sales are un-hedged.
Allen Ambrose, President of Minera Andes said, "Sales and net revenues for the third quarter were less than expected, primarily due to temporary mechanical problems with a smelting furnace causing an inventory buildup of precipitate at site. With the first phase of expansion completed to double the production rate, it is estimated that the San Jose mine will join the ranks of the top ten primary silver producing mines in the world next year when the mine and mill ramp up to the expanded capacity level."
Production
Mill throughput increased 11.5% compared to the previous quarter, but silver production was 9.4% lower and gold production was 0.6% lower than the previous quarter due to lower head grades. San Jose's silver production declined slightly in the third quarter compared to the second quarter. Silver production was 990,000 ounces in the third quarter, compared to 1,093,000 ounces in the second quarter. Annualized, third quarter silver production is running closer to the average grade of the reserves in the original mine plan versus last quarter that was running 33% above the average grade of the reserves. During the life of the mine it is anticipated the gold and silver production will be in line with the mine plan and the reserve grades. Gold production in the third quarter was 12,340 ounces, compared to 12,410 ounces in the second quarter.
For the third quarter, production cash costs on a co-product basis averaged $7.43 per ounce of silver and $431 per ounce of gold. The production cash costs are shown on a co-product basis and are calculated by multiplying the total cash costs by the percentage the calculated value of the silver produced, divided by the number of silver ounces produced in the case of silver, and in the case of gold by multiplying the total cash costs by the percentage of value of gold produced, divided by the number of gold ounces produced. Cash costs include cost of sales, commercial deductions and selling expenses, less depreciation. The production cash costs were calculated using the value of the 12,340 ounces of gold and 990,000 ounces of silver produced in the form of dore, precipitates, and concentrates and the cost to produce those ounces as defined above was $12.7 million. The percentage of the values for the gold and silver production is based on the Q3 2008 average London PM fix for gold and the London fix for silver.
Phase I of the Mine Expansion
Phase I of the expansion has been completed, consisting of an increase in the mining and processing capacity from 750 metric ton per day to 1,500 metric ton per day. Mine production will ramp up to full capacity over the next few months. Currently, approximately 40% of the ore fed to the expanded plant is being processed to produce dore bars and approximately 60% is being processed to produce concentrates. Phase II of the expansion involves connecting to the regional electrical grid which is estimated to be completed in Q1 2009. Meanwhile, there is sufficient diesel generating capacity at the mine to run the mill at its full capacity. Phase III of the mine expansion, which is expected to be completed by mid-2009, involves further expansion of the refining circuit at the processing facility to convert all the concentrate to dore, which will reduce working capital requirements, selling discounts and result in lower production taxes.
Allen V. Ambrose, Minera Andes' President, who is a "qualified person" as defined by National Instrument 43-101, is responsible for the information used in this news release and has supervised the preparation of the information and reviewed all information used in this news release.
Minera Andes is a gold, silver and copper exploration company working in Argentina. The Company holds about 304,000 acres of mineral exploration land in Argentina including the 49% owned San Jose silver/gold mine that commenced production last year. Minera Andes is also exploring the Los Azules copper project in San Juan province, where an exploration program is underway to complete a scoping study by yearend. Other exploration properties, primarily silver and gold, are being evaluated in southern Argentina. The Corporation presently has 190,158,851 shares issued and outstanding.
This news is submitted by Allen V. Ambrose, President and Director of Minera Andes Inc.
Caution Concerning Forward-Looking Statements:
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, evolution of mineral resources and reserves, work programs, development plans and exploration budgets at the Company's San Jose Project. The forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. In particular, there can be no assurance that production capacity at the San Jose mine will be successfully increased, that resources and reserves at the San Jose mine will be increased. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, the state of the capital markets, environmental risks and hazards, uncertainty as to calculation of mineral reserves and other risks. We refer readers to the risk factors and uncertainties described in the Company's continuous disclosure record, a copy of which is available under the Company's profile at www.sedar.com. Minera Andes' joint venture partner, a subsidiary of Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.
Cautionary Note to U.S. Investors:
The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits with "mineral reserves" that a company can economically and legally extract or produce. We use certain terms in this press release, such as "mineral resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC, because these terms are common usage in Canada and form part of our Canadian filing requirements.
SOURCE Minera Andes Inc.
Copyright
(C) 2008 PR Newswire. All rights reserved
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