Silver Sands Reports 88 g/t Silver over 33 meters at the Virginia Silver Project

Vancouver, British Columbia--(Newsfile Corp. - January 25, 2022) - Silver Sands Resources Corp. (CSE: SAND) (OTCQB: SSRSF) ("Silver Sands" or the "Company") is pleased to release the first series of results from its 2021 Phase III drill program at the Virginia Project in Santa Cruz Province, Argentina.

Drilling at Ely Central focused on the extending the silver mineralization on the 850m gap between the Ely North and Ely South conceptual pits. Highlights include:

  • EC-DDH-008 - 88 g/t silver over 33.8 metres
  • EC-DDH-007 - 30 g/t silver and 0.33 g/t gold (55 g/t AgEq*) over 4.55 metres
  • EC-DDH-009 - 135 g/t silver over 2.3 metres
    • including 290 g/t silver over 0.4 metres

*Silver equivalent ("AgEq") is calculated using metal prices of US$ 1800/oz for Au and US$ 24/oz for Ag. Recoveries are assumed to be 100% as no metallurgical test data is available. The equation used is: AgEq g/t = Ag g/t + (Au g/t x 75).

"The Ely Central zone appears to be developing into another potential resource area, extending the silver mineralization in the Ely vein some 2 kilometres," commented Silver Sands CEO Keith Anderson. "The length of the key intersection is impressive at over 33 metres. The presence of gold in the system is a very pleasant surprise and suggests potential gold enrichment at depth, as EC-DDH-007 represents the deepest mineralization intercepted to date at the Ely structure," he continued.

"Combined with our two previous programs, we are envisaging several potential future conceptual pits developing as we continue to work towards significantly expanding the current resource base at Virginia," he concluded.

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Figure 1. Virginia Vein Field Phase III Drilling

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The Phase III drilling program comprised 20 core holes (2,932m) with 14 holes for 2,437m at Virginia and 6 holes for 495m at Santa Rita, located in the north of the property package. Results reported today are for 6 holes from the Ely vein at Virginia.

Table 1. Ely Vein Drill Intersections

Hole IDFromToInterval (m)1Ag g/t2Cut-off3
EC-DDH-006144.50145.000.508163
EC-DDH-00712.9513.550.607863
EC-DDH-00780.6081.050.45308150
EC-DDH-00859.9560.300.3512363
EC-DDH-00866.0099.8033.808863
including86.6087.400.80177150
including95.0095.350.35165150
EC-DDH-00962.5564.852.3013563
including63.2063.600.40290150
EN-DDH-00544.7045.000.306963
EN-DDH-00567.6568.000.357363

 


(1) Reported interval lengths are downhole widths and not true widths.
(2) Reported intervals are at the stated cut-off grades of 63 g/t Ag and 150 g/t Ag. Reported intervals may include up to a maximum of two m individual section below cut-off grade and Silver grades are uncapped.
(3) The intervals were selected using the 63 g/t cut-off grade used in the National Instrument 43-101 resource estimate.

Drilling at Ely Central focused on extending the known mineralization to fill the 850m gap between Ely North and Ely South conceptual pits that were used to constrain the current mineral resource[1]. Over the last field season, a new 200m zone of mineralization at Ely Central was defined by holes EC-DDH-001, EC-DDH-003, EC-DDH-004, and EC-DDH-005 filling part of this gap (see news release May 17, 2021). Current hole EC-DDH-008, collared in the 120m, highly prospective gap that remained open along the structure and north of the Ely Central zone returned a broad interval of 33.8m at 88 g/t silver, closing the gap between the Ely Central zone and a well-defined area of silver mineralization previously delineated by Mirasol 2012 close spaced drilling, but outside of the current mineral. The further extension of the silver mineralization to the south, may be upgraded and help increase the resource along the Ely structure.
[1] The mineral resource estimate was reported by the vendor, Mirasol Resources Ltd., in a report titled "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, by D. Earnest and M. Lechner.

Hole EN-DDH-005 was drilled behind and underneath hole EN-DDH-001 (reported May 17, 2021) and returned 9.95m at 37g/t silver including a narrower section of 0.35m with 73g/t silver. This intersection in hole EN-DDH-005 may represent a parallel structure on the east side and not the downdip extension of the main structure intercepted in hole EN-DDH-001, which returned 7.47m with 91 g/t silver, 70m north of the Ely North conceptual pit.

Hole EC-DDH-007 was targeted to depth below EC-DDH-003 (9.98m with 560 g/t silver - reported May 17, 2021) and intersected an Au enriched zone with 4.55m at 0.33 g/t gold and 30 g/t silver (55 g/t AgEq*) from 173.65m, including 1.2m at 0.63 g/t gold and 26 g/t Ag (73 g/t AgEq). This hole, the deepest mineralization encountered along the Ely structure, suggests a transition into a gold enriched zone at depth, and further may represent the downward continuity of a previously identified gold anomaly drilled in EC-DDH-003 (1.25 g/t Au from 111m), indicating a potentially continuous and separate gold mineralizing event unrelated to the principal silver mineralization. Previously, gold mineralization in the Virginia system was restricted to isolated occurrences now interpreted to represent leakage from a deeper sourced mineralizing event. Follow-up with deeper drill holes along the Ely structure is planned to test this newly identified gold potential.

*Silver equivalent ("AgEq") is calculated using metal prices of US$ 1800/oz for Au and US$ 24/oz for Ag. Recoveries are assumed to be 100% as no metallurgical test data is available. The equation used is: AgEq g/t = Ag g/t + (Au g/t x 75)

Hole EC-DDH-009 is located approximately 110m south of the southernmost hole EC-DDH-004 (9.6m at 639 g/t silver - reported May 17, 2021) in Ely Central, and 180m north of the border of the Ely South conceptual resource pit. This hole returned 2.3m at 135 g/t silver indicating mineralization is extending further to the south of the newly emerging Ely Central mineralization, potentially closing the gap between the Ely Central and the Ely South conceptual pit.

Together, these latest results are confirming the presence of a nearly continuous zone of silver mineralization over 800m of strike length, with only 200m currently within the defined resource of the Ely North.

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Figure 2. Ely Central Drill Plan

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The Company has initiated follow-up IP surveying in the northeast area in preparation for a Phase IV drill program.

About Virginia

Virginia is a low to intermediate sulphidation epithermal silver deposit located in the mineral-rich Deseado massif, lying within the mining-friendly province 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 Silver and a further inferred 3.1 million ounces of silver at 207 g/t Silver 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 values in excess of 1,000 g/t silver and have a high probability of hosting additional silver resources. These veins structures continue to be the primary focus of the Silver Sands 2021/2022 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.

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 pandemics, 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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/111437

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