Drilling intersects Major Sulfide Mineralization at Bilbao Project, Zacatecas
June 14, 2006 -- Shoshone Silver Mining Co. (OTC:SHSH) is pleased to announce that its joint venture partner, Minco, Plc, has discovered a new zone of sulfide mineralization on Shoshone's Bilbao property. The property lies within the Panfilo Natera Mining district located approximately 35 miles southeast of the city of Zacatecas.
Minco began a 10,000 foot drill program in late May with the second hole, B-6A, intersecting three zones of oxide and sulfide mineralization. The lowermost zone comprises 128 ft (estimated 115 ft. true width) of massive to semi-massive sulfide mineralization, including pyrite, galena and sphalerite mineralization. Preliminary assay results for the lower mineralized intersection prepared by SGS Laboratories have yielded a 50 ft intersection averaging 2.43% zinc, 0.56 ppm gold, 69.0 ppm silver, 0.29% lead and 0.37% copper. Within this mineralized zone a 30 ft intersection averages 3.45% zinc; and a 10 ft intersection averages 2.14 ppm gold and 81.0 ppm silver.
Table of Preliminary Assay Results Hole B6A - SGS de Mexico, Durango, Mex.
From (ft) |
To (ft) |
length (ft) |
Au ppm |
Ag ppm |
Pb % |
Zn % |
Cu % |
734.9 |
739.8 |
4.9 |
0.12 |
120.00 |
1.04 |
6.41 |
0.16 |
739.8 |
744.9 |
5.1 |
0.06 |
26.00 |
0.33 |
3.10 |
0.08 |
744.9 |
749.9 |
5.1 |
0.04 |
24.00 |
0.19 |
2.61 |
0.27 |
750. |
754.9 |
4.9 |
0.03 |
2.00 |
0.06 |
3.04 |
0.30 |
754.9 |
759.8 |
4.9 |
0.01 |
2.00 |
0.04 |
2.79 |
0.28 |
759.8 |
764.9 |
5.1 |
0.05 |
20.00 |
0.06 |
2.83 |
0.23 |
764.9 |
770.0 |
5.1 |
2.65 |
24.00 |
0.08 |
1.89 |
0.28 |
770.0 |
774.9 |
4.9 |
1.61 |
141.00 |
0.27 |
0.17 |
0.72 |
774.9 |
779.85 |
4.9 |
0.54 |
156.00 |
0.55 |
0.95 |
0.41 |
779.8 |
784.9 |
5.1 |
0.48 |
182.00 |
0.38 |
0.50 |
0.99 |
A third hole, B-6B drilled vertically from the same collar position as hole B-6A has intersected two zones of mineralization, including a 13.22 metre intersection comprising veins and skarnified tremolitic limestone containing sulfides -- pyrite, chalcopyrite and galena. The core from these holes is currently being logged and sampled. Complete assay results for these holes will be reported when available. The drill program is ongoing.
As announced on March 16, 2006, Shoshone Mining entered into an Option and Joint Venture Agreement on the Bilbao Project with Minco PLC. Minco is currently carrying out the $500,000 first-stage due diligence program, which in addition to the present drilling to investigate the potential for sulfide mineralization beneath the existing oxide resources, includes an evaluation of the oxide resources as well as the completion of a preliminary update of an earlier pre-feasibility study.
Shoshone's Bilbao property is approximately 5 square miles in size. The existing Bilbao oxide deposit comprises a limestone-hosted replacement deposit as well as exo-skarn mineralization hosted within and along the contact of the nearby La Blanca granitic pluton. The deposit is polymetallic with iron, lead, zinc, copper, silver and tin as the major metallic components. Above a depth of approximately 260 feet the deposit is oxidised. Approximately one million tons of oxide ore was mined from the property prior to 1945.
The new sulfide intersection does not appear to be the down dip extension of any of the known zones of oxide mineralization. The new zone also appears to be stratabound and replaces the limestone along bedding. It is likely the down dip continuation of an as yet undiscovered zone of oxide mineralization. Minco believes that there may be at least four zones of potential oxide and sulfide mineralization present at Bilbao within the immediate area of the old workings.
The Bilbao property was the subject of a pre-feasibility study prepared by Kilborn Inc. in 1995 and subsequently updated in 1997. The Kilborn study was based on an inferred resource estimate prepared by Watts, Griffis and McOuat to JORC standards and metallurgical test work completed by Lakefield Research. The historical calculations of 2.44 million tonnes of oxide ore at an average grade of 92.3 ppm silver, 0.39% copper, 3.73% zinc, 3.3% lead together with cadmium by-product are in the inferred category of resources. As such they are considered speculative and cannot have economic considerations applied to them.
"Shoshone is very pleased with the excellent early results obtained by Minco during this first phase of our joint venture," said Shoshone President Lex Smith. "We believe the sulfide intersection found in hole B6A indicates the potential for economic resources below the already know oxide resources. We will continue to monitor and evaluate results from Minco's ongoing drilling program. These findings are another significant step in advancing Shoshone's goal of becoming a producing mining company."
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, in addition to the Bilbao properties in 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:
Shoshone Silver Mining Company
Lex Smith
lsmith@shoshonesilvermining.com
208-556-1000