Monday May 4, 2015, 9:32am PDT
Silver Bull Resources Inc. (TSX:SVB,NYSEMKT:SVBL) released an updated NI 43-101 report for its Mexico-based Sierra Mojada project, noting that highlights include a measured and indicated global resource of 58.7 million tonnes grading 3.6 percent zinc and 50 g/t silver for 4.67 billion pounds of zinc and 90.8 million ounces of silver.
Other key points include:
An open pittable high grade ‘Zinc Zone’ withinthe Global resource of 10.03 million tonnes at an average grade of 11% Zinc at a 6% cutoff for 2.426 billion pounds of zinc.
An open pittable high grade ‘Silver zone’ withinthe Global resource of 19 million tonnes at an average grade of 102.5 g/t at a 50g/t cutoff for 62.6 million ounces of silver.
An additional underground ‘Measured and Indicated’ resource outside of the open pit resource of 1.9 million tonnes at an average grade of 9.4% Zinc at a 6% cutoff for 388.5 million pounds of zinc.
Tim Barry, president, CEO and director of Silver Bull, commented:
We have aimed to do two things in this updated resource report: bring all of the known zinc mineralization into the story for the first time, and update the silver resource using prices applicable to the current market conditions. Although updating the silver resource estimate means we reduce the total number of silver ounces we can now report, we still retain one of the largest undeveloped silver resources in Mexico that has been modeled on a silver price realistic to the current market conditions.
He also pointed out that Silver Bull made the decision to increase its focus on zinc due to “the tightening zinc market,” which is being driven by factors such as:
Improving Western demand, combined with record metal imports into China during 2014 has resulted in a significant global draw down of zinc metal inventories.
Lower inventories, tightening spreads, and increased prices all point to a zinc metal deficit already in early 2015.
Planned closures of a number of a number of large zinc mines including; the Century, Lisheen, and Skorpion Mines representing an overall reduction of approximately 10% of global zinc production is forecast.
Lack of new major projects coming on line to meet the projected demand which is potentially creating a zinc supply gap.
In closing, Barry said:
The Sierra Mojada project is one of only a handful with any appreciable zinc resources and is one of the largest undeveloped silver-zinc projects in Mexico. It has excellent infrastructure; it is located 3 hours from an international airport with a paved road right to site; it has a functioning railway right to site; runs on grid power; and it has a skilled mining work force to draw upon in the immediate local area. The resource provides exposure to both the precious and base metals markets and has the potential to be scaled in size depending on metal prices. In short, we believe there are not many projects like this in the world.
Click here to read the full Silver Bull Resources Inc. (TSX:SVB,NYSEMKT:SVBL) press release.