Silver Sands Resources Phase II Drilling Discovers New High-Grade Zone at Ely Central at the Virginia Silver Project
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Silver Sands Resources Phase II Drilling Discovers New High-Grade Zone at Ely Central at the
Virginia Silver Project
VANCOUVER, BC, May 17, 2021 — Silver Sands Resources Corp. (“Silver Sands” or the “Company”)
(CSE: SAND) (OTCQB: SSRSF) is pleased to report the discovery of a new high-grade zone at Ely
Central from the Phase II exploration program completed in Q1 at its Virginia Silver Project in Santa
Cruz Province, Argentina. Phase II included 20 diamond drill holes totaling 3,104m, bringing the total
metres completed during the field season to 5,935. The Phase II program of IP and diamond drilling
commenced in late January.
Drilling at Ely Central identified an emerging 200m open-ended strike length with intersections
including:
• EC-DDH-003: 9.98m at 560 g/t Ag, Including 2.87m at 1,578 g/t Ag
• EC-DDH-004: 9.60m at 639 g/t Ag
• EC-DDH-005: 10.80m at 625 g/t Ag, Including 5.70m at 1,110 g/t Ag
“Phase II drilling has confirmed our hypothesis that drilling known veins along strike will result in an
expansion of the current resources and define the Virginia Project as a significant silver project. As a
result of the spectacular assays at Ely Central (including EC-DDH-001 intersecting 10.8m at 625 g/t Ag,
including 5.7m at 1,110 g/t Ag) we can now see the potential for the Ely zones to extend to over 1.3 km
along strike length,” commented Silver Sands CEO Keith Anderson.
“At Ely Central we have now delineated 200 m of continuous silver mineralization. Additionally, a large,
highly prospective, 280m-long untested “gap” in the Ely structure exists to the south of EC-DDH-004
and a highly prospective, 120m-long untested “gap” in the structure exists to the north of EC-DDH-005
(see Figures 1 and 2). Ely Central is located between the Ely North conceptual open pit and Ely South
conceptual open pit from the 2016 resource,” he continued.
“On top of our drilling success, we see significant resource expansion potential to the northeast, where
the Phase II IP survey previously released shows a completely new area of potential mineralization to
the North-East with very similar signatures to the Ely and Naty structures. We are also very excited about
the area NE of the resource, where IP geophysics has highlighted several potential structures that may
host mineralization at depth.. So far almost all of our 2016 resources are located close to surface (0 to
150m), while other operating mines within the Deseado Massif, including those closer to Virginia are
producing from veins at depths up to 400m. We continue to work toward an updated resource estimate
late H2 2021 and are sufficiently funded to complete a Phase III drilling program and complete the
resource estimate,” he concluded.
Figure 1. Drilling Plan
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Tel: +1 604 786-7774 E-mail: [email protected]
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https://www.silversandscorp.com/images/news/SAND_20210517_Fig1.jpg
Table 1: Virginia Phase II Significant Intercepts
Hole ID From To Interval (m)1 Ag g/t2 Cut-off3
EC-DDH-003 62.32 72.30 9.98 560 63
Including 62.32 63.00 0.68 273 150
and 64.23 64.64 0.41 170 150
and 65.13 68.00 2.87 1,578 150
and 70.60 72.30 1.70 301 150
80.40 84.20 3.80 81 63
EC-DDH-004 60.00 61.00 1.00 66 63
62.10 69.00 6.90 71 63
70.90 80.50 9.60 639 63
Including 71.20 80.50 9.30 657 150
EC-DDH-005 44.70 55.50 10.80 625 63
Including 45.00 50.70 5.70 1,110 150
and 53.50 54.00 0.50 171 150
EN-DDH-001 19.23 26.70 7.47 91 63
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Hole ID From To Interval (m)1 Ag g/t2 Cut-off3
Including 19.85 20.18 0.33 156 150
28.30 29.20 0.90 67 63
31.15 31.70 0.55 66 63
33.10 37.50 4.40 74 63
40.00 44.30 4.30 76 63
46.50 51.00 4.50 78 63
EN-DDH-002 52.90 53.45 0.55 82 63
85.30 89.30 4.00 476 63
Including 87.15 89.00 1.85 929 150
112.00 113.50 1.50 74 63
124.60 125.00 0.40 164 150
EN-DDH-003 92.50 93.10 0.60 67 63
JS-DDH-003 72.70 76.60 3.90 99 63
Including 74.80 75.50 0.70 210 150
78.00 83.50 5.50 192 63
Including 79.90 80.20 0.30 229 150
and 80.74 81.30 0.56 230 150
and 81.60 83.20 1.60 372 150
JS-DDH-004 158.90 160.75 1.85 108 63
Including 158.90 159.50 0.60 186 150
JSE-DDH-002 87.73 88.43 0.70 259 63
JSE-DDH-003 73.20 73.80 0.60 76 63
94.20 94.60 0.40 360 150
MNW-DDH-001 67.60 73.50 5.90 190 63
Including 67.90 68.63 0.73 189 150
and 69.00 70.52 1.52 300 150
and 71.13 71.63 0.50 160 150
and 72.50 73.50 1.00 212 150
MNW-DDH-002 83.00 87.00 4.00 86 63
Including 85.13 85.43 0.30 291 150
MNW-DDH-004 92.80 93.40 0.60 77 63
122.90 123.50 0.60 82 63
125.00 126.00 1.00 99 63
129.60 132.70 3.10 73 63
133.90 134.80 0.90 70 63
MSW-DDH-003 59.70 61.30 1.60 85 63
MG-DDH-003 No interval above cut-off
MNW-DDH-003 No interval above cut-off
MR-DDH-002 No interval above cut-off
MSE-DDH-004 No interval above cut-off
MSW-DDH-002 No interval above cut-off
NE-DDH-003 No interval above cut-off
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Notes: 1 Reported interval length are down hole widths and not true widths. 2 Reported intervals are at the stated a cut-off grade of 63 g/t Ag (minimum width of 0.5m) and 150 g/t Ag.
Reported intervals may include up to a maximum of 1m individual section below cut-off grade and Ag grades
are uncapped. 3 The intervals were selected using the 63 g/t cut-off grade used in the NI 43-101 resource estimate.
Figure 2. Key Zones
https://www.silversandscorp.com/images/news/SAND_20210517_Fig2.jpg
Drill Results Review
Ely Central Target:
A newly emerging 200m open ended strike length of strong silver mineralization has been discovered at
Ely Central and lies within a 580m “gap” left untested from the original drilling at Virginia by Mirasol
in 2012. This new zone is currently defined by Phase II holes EC-DDH-003, EC-DDH-004, EC-DDH-
005 and hole EC-DDH-001 completed in Phase I.
Ely Central hole EC-DDH-003, collared 80m south of hole EC-DDH-001 (9.25m at 233.54 g/t silver
from 92.75m) intersected a 10m section grading 560 g/t silver, including 2.87m at 1,578 g/t silver at
a depth of 50m vertically below surface. In addition, hole EC-DDH-004 intercepted a 9.6m interval
grading 639 g/t silver at similar depth and is located 50m to the south of the mineralization encountered
in EC-DDH-003. A large, highly prospective, 280m-long untested “gap” in the structure exists to the
south of EC-DDH-004. Hole EC-DDH-005 was collared 70m north of EC-DDH-001, and intersected a
10.80m interval grading 625 g/t silver, including 5.70m at 1,110 g/t silver. North from EC-DDH-005,
a 120m, highly prospective, untested “gap” also remains open along the structure. This “gap” terminates
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at hole VG-183, drilled by Mirasol in 2012 which intersected 12.8m at 95 g/t silver. A further 40m north
of VG-183, hole VG-164 intersected 3.26m at 199 g/t silver. These prospective gaps at Ely Central will
be priority areas for infill, step-out and deeper drilling during the next campaign at the Virginia project.
It is also encouraging to note these strongly silver mineralized drill intersections at Ely Central are hosted
in a more subdued gradient array induced polarization (“IP”) chargeability response, as opposed to the
typical strong chargeability responses associated with the current resource areas. This weaker IP response
may represent the upper levels of the mineralized structure, and potentially help vector to a stronger IP
response and mineralization at a greater depth, and below the current 125-150m depth range of the current
gradient array IP survey. Furthermore, with significant silver mineralization now directly associated
with these lower-level IP anomalies, additional areas with similar responses throughout the
Virginia vein field will be reviewed as they may become higher ranked and valid drill targets to
test in subsequent drill campaigns.
Figure 3. Highlighted New Zones
https://www.silversandscorp.com/images/news/SAND_20210517_Fig3.jpg
Ely North Target:
Ely North, which currently represents the northern most known extension along the same structure from
Ely Central, also returned encouraging intersections of silver mineralization. Hole EN-DDH-001 was
collared 70m north of the Ely North conceptual resource open pit and intersected highly anomalous silver
mineralization within a fault zone between 30-50m downhole. This fault zone hosts repetitive zones of
silica hematite matrix breccia with matrix supported quartz clasts with a range of silver values between
66 and 91 g/t silver with an overall average of 75 g/t silver. A narrow select sample, not included in
the above average, was sourced from the lower contact of one of these hematite -rich hydrothermal
breccias which contained well coliform/crustiform bande d epithermal vein clasts and returned an
elevated value of 156 g/t silver over a narrow width of 0.33m. These anomalous silver grades associated
with the mineralized banded quartz clasts in the silica -hematite matrix breccias are regarded as
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particularly encouraging and are valuable as geochemical vectors to the higher grade zones along and
within these structures.
Continuing north from EN-DDH-001 through an untested “gap” of 400m hole EN-DDH-003
encountered a low although anomalous value of 0.6m at 67 g/t silver from a narrow structure, interpreted
not to be part of main structure. Of higher significance, hole EN-DDH-002, located just 70m north of
EN-DDH-003, returned 4.0m at 476 g/t silver including 1.85m at 929 g/t silver, from silica-hematite
hydrothermal breccias, that appear to be from the same mineralized fault zone encountered in hole EN-
DDH-001. It may be concluded that EC-DDH-003 did not hit the main structure, whereas EC-DDH-002
did and it is encouraging to see that the silver values are increasing in the northern most extensions of
the Ely North structure. It is also important to note that the structure remains open and untested from this
point north.
The structure at Ely North, is characterized by fault zone hosted hydrothermal breccias with mineralized
quartz vein fragments, very similar to those present at Ely Central. Both step-out and deeper drilling will
be required in this area to test for the higher-grade epithermal vein structures.
Martina NW Target:
At Martina NW, hole MNW-DDH-001 encountered an encouraging intersect of 5.90m with 190 g/t
silver including 1.52m at 300 g/t silver and 1m at 212 g/t silver. This hole indicates that a strong
potential for significant silver mineralization along the Martina trend exists further to the northwest along
the same structure that hosts the Martina resource pit 300m to the southeast. Hole MNW-DDH-001 was
collared in a 200m untested “gap” along the Martina structure. Previous holes VG-125 lies 55m southeast
where drilling encountered 0.5m at 272 g/t silver. It is encouraging to see the increase in width of the
mineralized structure in MNW-DDH-001 as the structure extends to the northwest.
The hosting mineralized structure is the silica matri x hydrothermal breccia, hosting mineralized
quartz/silica fragments, suggesting a potential source of the mineralized fragments at a deeper elevation
in this structure.
Julia South Target:
At Julia South, the recent holes from both Phase I and Phase II indicate a strong potential for significant
silver mineralization along the Julia South structural trend exists further to the south of the current Julia
South conceptual resource pit. Recent hole JS-DDH-003, which is located approximately 70m to the SE
of the Julia South conceptual resource pit, intersected an encouraging zone of 5.5m at 192 g/t silver.
This could potentially represent a parallel structure to the east of the main Julia South structure, where
previously reported Phase I hole JS-DDH-001 intersected 3.9m at 168 g/t silver. Further drilling will be
required to fully understand this structure. Hole JSE-DDH-002, located 310m directly south of the
current Julia South conceptual resource pit resource returned an encouraging, although narrow,
intersection of 0.7m at 259 g/t silver hosted in a strongly silicified fault zone with hematitic micro-
fractures and silica stockworks. Hole JSE-DDH-003, located 110m west and 60m south of JSE-DDH-
002 also returned a narrow but higher grade intersection of 0.4m at 360 g/t silver. These two intersections
may represent separate parallel structures but indicate that the mineralization continues further south.
Follow-up drilling will be important to determine the significance of these recent intersections.
About Virginia
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Virginia is a low to intermediate sulphidation epithermal silver deposit located in the mineral -rich
Deseado massif, lying within the mining -friendly state of Santa Cruz in the Patagonia region of
Argentina. Through initial discovery in 2009 to four drill programs between 2010 and 2012, Mirasol
Resources was able to define an initial indicated mineral resource of 11.9 million ounces of silver at 310
g/t Ag and a further inferred 3.1 million ounces of silver at 207 g/t Ag within seven outcropping bodies.
This resource is documented in a Mirasol Resources technical report entitled: "Amended Technical
Report, Virginia Project, Santa Cruz Province, Argentina -- Initial Silver Mineral Resource Estimate"
with an effective date of Oct. 24, 2014, and a report date of Feb. 29, 2016.
Several additional vein structures within the property package remain highly prospective, as Mirasol
concentrated the bulk of its exploration effort on the resource area at the expense of continuing
exploration on the underexplored additional veins. Several of these structures have highlight silver values
in excess of 1,000 g/t Ag and have a high probability of hosting additional silver resources. These veins
structures will be the primary focus of the Silver Sands 2020/2021 exploration efforts.
Silver Sands is earning a 100-per-cent interest in Virginia by issuing sufficient shares for Mirasol to end
up with 19.9 per cent of the issued and outstanding of Silver Sands and completing $6-million (U.S.) in
exploration over three years. Mirasol will retain a 3-per-cent net smelter return royalty with Silver Sands
having the option of purchasing one-third of the royalty for $2-million (U.S.).
About Silver Sands Resources Corp.
Silver Sands is a well-financed, Canada-based company engaged in the business of mineral exploration
and the acquisition of mineral property assets in mining-friendly jurisdictions. Its objective is to locate
and develop economic precious and base metal properties of merit. Its key asset is the Virginia silver
project, located in the mining-friendly Santa Cruz state of Argentina.
On Behalf of the Board of Directors
Keith Anderson
Chief Executive Officer, Director
For further information, please contact:
Keith Anderson
Chief Executive Officer, Director (604) 786-7774
Qualified Person Statement: Silver Sand’s disclosure of technical and scientific information in this press
release has been reviewed and approved by R. Tim Henneberry, P.Eng., a director of the Company, who
serves as a Qualified Person under the definition of National Instrument 43-101.
QAQC: Silver Sands applies industry standard exploration sampling methodologies and techniques. All
geochemical rock and drill samples are collected under the supervision of the company’s geologists in
accordance with industry practice. Geochemical assays are obtained and reported under a quality
assurance and quality control (QA/QC) program. Samples are dispatched to an ISO 9001:2008 accredited
laboratory in Argentina for analysis. Assay results from channel, trench, and drill core samples may be
higher, lower or similar to results obtained from surface samples due to surficial oxidation and
enrichment processes or due to natural geological grade variations in the primary mineralization.
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Forward Looking Statements: The information in this news release contains forward looking statements
that are subject to a number of known and unknown risks, uncertainties and other factors that may cause
actual results to differ materially from those anticipated in our forward-looking statements. Factors that
could cause such differences include: changes in world commodity markets, equity markets, costs and
supply of materials relevant to the mining industry, change in government and changes to regulations
affecting the mining industry and to policies linked to pand emics, social and environmental related
matters. Forward-looking statements in this release include statements regarding future exploration
programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery
processes. Although we believe the expectations reflected in our forward -looking statements are
reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or
achievements. Silver Sands disclaims any obligations to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as may be required by
applicable law.
Neither the Canadian Securities Exchange (“CSE”) nor its Regulation Services Provider (as that term is
defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.