Shoshone Silver Mining Company Announces Initial Analysis Completed on Bilbao Project
March 21 , 2005 -- KELLOGG, Idaho -- Shoshone Silver Mining Company (OTC:SHSH) announced today it has completed an initial three-month analysis of its Bilbao project in the State of Zacatecas, Mexico. The property lies about 350 miles northwest of Mexico City and 35 miles east-southeast of the city of Zacatecas.
The Bilbao project consists of five mining concessions covering an area of 3,305 acres and contains zinc, copper, silver and lead deposits. An estimated 500,000 to one million metric tons of direct shipping ore were mined from the project prior to Shoshone's acquisition in 2004.
Part of the analysis reviewed a prefeasibility study done by Kilborn Engineering which considered various cut off grades to mine the resources by open pit. The study was conducted on the oxide portion of the Bilbao deposit in the mid 1990's. Resources were estimated by Watts Griffis and McQuat using assays from 1200 samples taken from the underground workings and glory holes. The total inferred resource used in this study was 3.2 million metric tons grading 3.9% zinc equivalent. This resource also contains additional silver and lead credits.
Several economic scenarios from the prefeasibility study produced positive cash flows and rate of return as high as 42.1%.
The exploration work carried out so far consisted of reviewing and improving the geological data generated by previous exploration done, primarily, by Phelps Dodge. The objective was to thoroughly examine the Bilbao underground and surface workings to determine if the resource used in the prefeasibility study can be converted to proven reserves and to see if additional potential exists to increase the resource. Paul Dircksen, Shoshone's General Manager stated "After our analysis of the project, we feel positive that this goal can be achieved through limited drilling programs".
Plans are currently being prepared for drilling operations to further explore the deeper underground workings of the mine, possible feeder channels and an anomaly discovered to the northwest of the project.
Shoshone Silver Mining Company was founded in 1969 as a silver exploration, development and production company centered on its Lakeview Mine and Mill, south of Lake Pend d'Oreille in northern Idaho. Shoshone has acquired several formerly producing precious and base metal properties in northern Idaho in preparation for a return to production at Lakeview. Shoshone also maintains a diverse portfolio of mineral exploration projects across the western United States and Mexico. Shoshone stock trades on the OTC Market under the symbol "SHSH".
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
Contact: Lex Smith
lsmith@shoshonesilvermining.com
208-556-1000