Silver One Announces Heap Leach Pads' Resource Estimate on Its Candelaria Project, Nevada
Silver One Announces Heap Leach Pads'
Resource Estimate on Its Candelaria Project,
Nevada
Vancouver, British Columbia--(Newsfile Corp. - August 18, 2020) -
Silver One Resources Inc. (TSXV:
SVE) (OTCQX: SLVRF) (FSE: BRK1)
("Silver One" or the "Company") is pleased to announce the
completion of an indicated and inferred resource estimate on heap leach pads located on the
Candelaria Project (the "Project"), Nevada, USA.
A copy of the National Instrument 43-101 ("NI 43-101")
technical report (the "Report") on the Project will be filed on the SEDAR.
The Technical Report, dated effective August 6, 2020, is titled "Technical Report: on the Heap Leach
Pads within the Candelaria, Property, Mineral and Esmeralda Counties, Nevada, USA".
The Report was
prepared by James A. McCrea, P.Geo., who is a qualified person within the meaning of NI 43-101, is
independent of the Company and has reviewed and approved the disclosure regarding the updated
resource estimate included herein.
Greg Crowe, President and CEO commented: "This updated resource on the two historic leach pads is
based upon results from a sonic drill program and metallurgical studies completed by Silver One as well
as historic drill hole information from previous operators.
The results correlate well with the previously
reported historic heap resource in terms of average silver grade and quantity of silver contained within
the heaps.
The Company will continue with metallurgical testing to optimize silver and gold recoveries.
The Company will also be commencing drill programs in Q3-Q4 to test extensions to the in-situ
mineralization, both in the higher-grade underground targets north of the two open pits and along-strike
from the pits in the areas of historic workings.
Silver One continues to develop this important project with
the aim of potentially rehabilitating this past producing silver mine."
Mineral Resources are reported for each leach pad separately, using a 0.01 g/t Silver fire assay cut-off
grade. The economic scenarios presented in the report envisage leach pads being mined in their
entirety, with no grade control or selectivity.
Heap Leach Pads Resource Estimate
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* Contained Metal based on fire assay grades
The effective date of the mineral resource estimate is August 6, 2020.
1. A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on
the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for
eventual economic extraction.
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality continuity.
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics are estimated with sufficient confidence to allow the
application of Modifying Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is derived from adequately detailed and
reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality
continuity between points of observation.
An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured
Mineral Resource and may only be converted to a Probable Mineral Reserve.
2. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability.
The estimate of mineral resources has no known issues and do not appear materially affected by any
known environmental, permitting, legal, title, socio-political, marketing, or other relevant issues. There
is no guarantee that Silver One will be successful in obtaining any or all of the requisite consents,
permits or approvals, regulatory or otherwise for the project or that the project will be placed into
production
3.
The mineral resources in this study were estimated using the Canadian Institute of Mining,
Metallurgy and Petroleum ('CIM'), CIM Standards on Mineral Resources and Reserves, Definitions
and Guidelines prepared by the Standing Committee on Reserve Definitions and adopted by the CIM
Council on May 10, 2014.
Metal prices used for this resource estimate are as follows: US $1500 per ounce for gold; US $20 per
ounce of silver. These prices are used for calculating silver equivalents and for the exploitation scenarios
related to reasonable prospects for eventual economic extraction.
The 3-year trailing average metal
prices are US $1399.38 re ounce of gold and US $16.48 per ounce of silver.
Spot prices for August 6,
2020 (the date of this Technical Report) were US $2063.20 per ounce of gold and US $28.89 per ounce
of silver.
To fulfill the requirement of reasonable prospects for economic extraction, a conceptual crushing and
leaching scenario using the Merrill-Crowe process was developed based on the results of the High-
Pressure Grinding Rolls ("HPGR") and column leach tests conducted.
These metallurgical tests were
completed by McClelland Laboratories Inc. and Kappes Cassiday & Associates in Reno, Nevada (see
Company's news release May 21, 2019).
The scenarios evaluated were developed based on operational through puts of 5,000,10,000 and
15,000 tonnes per day (tpd). The base case was the 15,000 tpd option using a silver recovery of 35%
and a silver price of US $20 per ounce.
Assumptions Considered for Conceptual Heap Leach Reprocessing.
Conceptual Heap Leach Reprocessing
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The above assumptions for the re-processing of the heap leach pads do not use a mining cut-off grade
for the heaps leach pads as the material will be processed in its entirety.
Candelaria
The Candelaria property (the 'Property') covers an area of approximately 5,443.34 ha located in the
Candelaria Mining District approximately 130 miles southeast of the city of Reno, 55 miles southeast of
the town of Hawthorne, or 20 miles south of the small town of Mina in west-central Nevada, U.S.A.
Access is excellent via State Highway 95 going south from Reno, or north-northwest from Las Vegas, to
the Candelaria junction, located approximately 15 miles south of the town of Mina, and then driving west
through a paved 6-mile property access to the Candelaria mine site.
Historic resource estimates of the remaining downdip mineral resources in the project have been
determined for both the Mount Diablo and Northern Belle deposits by Snowden and reported in a NI 43-
101 Technical Report prepared for Silver Standard Resources Inc. in 2001. The resources reported
include a historic measured and indicated resource for Mount Diablo of 13.6 million short tons averaging
3.23 opt Agtotal and 0.003 opt Ausoluble, for 44.1 million ounces of silver. Additionally, there is a historic
inferred resource for Mount Diablo and Northern Belle of 14.4 million short tons averaging 2.21 opt
Agtotal and 0.002 opt Ausoluble, for 31.7 million ounces of silver.
Historical Resource Estimate - Candelaria Project, Nevada
SSR Mining Inc. acquired the Candelaria Project in 2001 and reported in a technical report titled
"Candelaria Project Technical Report"
dated May 24, 2001 (filed on SEDAR on June 20, 2002),
prepared by Pincock Allen & Holt, the historical mineral resource estimate shown in the table below.
Candelaria Project
Historical Resource Estimate
Area/Type
Classification
Tons
Factored
Ag Grade
(opt
Ag
total
)
Sol. Au
Grade (opt
Au
soluble
)
AqEq
Grade (opt
AgEq
total
)
Ag Ounces
(Ag
total
)
Aq Equiv.
Ounces
(AqEq
total
)
Mount
Diablo
Measured
3,391,000
4.44
0.004
4.67
15,054,000
15,838,000
Indicated
10,231,185
2.84
0.003
3.01
29,005,000
30,796,000
Diablo
Subtotal,
Measured +
Indicated
13,623,000
3.23
0.003
3.42
44,060,000
46,633,000
Mount
Diablo
Inferred
5,191,000
2.12
0.003
2.30
11,015,000
11,939,000
Northern
Belle
9,162,000
2.26
0.002
2.37
20,661,000
21,714,000
L.G.
Stockpiles
4,000,000
0.75
---
0.75
3,000,000
3,000,000
Subtotal.
Inferred
18,353,000
1.89
0.002
2.00
34,676,000
36,653,000
Notes:
1) Lode resources tabulated at a 0.5 opt Ag
soluble
cut-off grades, with only Ag
total
shown in this table
2) Low-grade stockpile resources tabulated for entire accumulation of material.
3) Total silver grades factored from soluble silver grades using regression formulas developed by
Snowden.
4) Silver equivalent grade includes the contribution from the gold grade (soluble) using an Ag:Au
equivalency ratio of 57.8:1.
The historical mineral resource estimate used "measured mineral resource", "indicated mineral
resource" and "inferred mineral resource", which are categories set out in NI 43-101. Accordingly,
Silver One considers these historical estimates reliable as well as relevant as it represents key targets
for exploration work by Silver One. The data base for the historical resource estimate:
(1)
Mount Diablo Deposit - Consisted of 538 drill holes by previous owners and 10 drill holes by SSR
Mining.
For drill holes that were twinned, the author used the lower of the two values assigned to the
original holes.
The mineral resource estimate used a kriging estimation method to establish ore
zones with a cut-off grade of 0.5 opt Ag. Ordinary kriging was used to interpolate grades in the block
model.
The block models were set up with block dimensions of 25 feet by 25 feet in plan and 10 feet in
height.
The maximum search range used in the higher-grade zone was 235 feet, in the lower grade
zone it was 1,000 feet and in the background zone it was 350 feet. Block models more than 300 feet
from the nearest composite only constituted 3 percent of the total number of estimated blocks and
were assigned to an inferred category.
(2)
Northern Belle Deposit - Consisted of 226 drill holes by previous owners, of which a portion of
these holes were duplicated for the Mount Diablo Deposit database.
The mineral resource estimate
used a kriging estimation method to establish ore zones with a cut-off grade of 0.5 opt Ag.
The mineral
resource estimate used multiple indicator kriging to interpolate grades in the block model.
Block
models were set up with block dimensions of 50 feet by 50 feet in plan and 20 feet in height.
The
maximum search range used in the higher-grade zone was 85 feet, in the intermediate-grade zone
was 120 feet and the lower-grade zone was 140 feet and in the lower undifferentiated material below
the current pit topography was 260 feet.
Block models more than 300 feet from the nearest composite
only constituted 3 percent of the total number of estimated blocks and were assigned to an inferred
category.
(3)
Low-Grade Stockpile - Based on limited and incomplete data and documentation.
Material placed
on the stockpiles ranged from 0.5 to 0.65 opt Ag.
The qualified person has not done sufficient work to classify the historical estimate as a current mineral
resource.
Silver One is not treating this historical estimate as current mineral resources.
Qualified Person
The technical content of this news release has been reviewed and approved by James A. McCrea,
P.Geo., and a Qualified Person as defined by National Instrument 43-101.
About Silver One
Silver One is focused on the exploration and development of quality silver projects.
The Company holds an option to acquire a 100%-interest in its flagship project, the past-producing
Candelaria Silver Mine, Nevada.
Potential reprocessing of silver from the historic leach pads at
Candelaria is being investigated.
Additional opportunities lie in previously identified high-grade silver
intercepts down-dip and the possibility of increasing the substantive silver mineralization along-strike
from the two past-producing open pits.
The Company has staked 636 lode claims and entered into a Lease/Purchase Agreement to acquire
five patented claims on its Cherokee project located in Lincoln County, Nevada, host to multiple silver-
copper-gold vein systems traced to date for over 12 km along-strike.
The property also has potential for
limestone related polymetallic plus silver and gold and/or other intrusive related systems at depth.
Silver One holds an option to acquire a 100% interest in the Silver Phoenix Project. The Silver Phoenix
Project is a very high-grade native silver prospect that lies within the "Arizona Silver Belt", immediately
adjacent to the prolific copper producing area of Globe, Arizona.
In addition, the Company also holds a 100% interest in three significant silver assets located in Mexico -
Peñasco Quemado, Sonora; La Frazada, Nayarit; and Pluton, Durango, acquired from First Mining
Gold, one of the Company's largest shareholders.
For more information, please contact:
Silver One Resources Inc.
Gary Lindsey
Phone: (720) 273-6224
Email:
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements reflect management's current
estimates, beliefs, intentions, and expectations. They are no guarantees of future performance. Silver
One cautions that all forward-looking statements are inherently uncertain, and that actual performance
may be affected by a few material factors, many of which are beyond Silver One's control. Such factors
include, among other things: risks and uncertainties relating to Silver One's limited operating history,
ability to obtain sufficient financing to carry out its exploration and development objectives on its mineral
properties, obtaining the necessary permits to carry out its activities and the need to comply with
environmental and governmental regulations. Accordingly, actual, and future events, conditions and
results may differ materially from the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required under applicable securities legislation,
Silver One undertakes no obligation to publicly update or revise forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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