Shoshone Silver Mining’s Bilbao, Mexico Project: Pre-feasibility Study Supports Economic Production
March 26, 2007--Shoshone Silver Mining Company (OTC:SHSH) is pleased to announce the release of a pre-feasibility study supporting an economically viable zinc-lead-silver mining and milling operation at its Bilbao, Zacatecas, Mexico property. The study was commissioned and released by Shoshone’s joint venture partner, Minco Plc.
Findings at a Glance as provided by Minco
Net Present Value $47.7M at 10% discount rate
- 37% projected Internal Rate of Return
- Payback within 2.1 years
- 8 year mine life processing 360,000 tons per year
- Assumptions: 10% discount rate, zinc $1.25/pound, lead $0.60/pound, silver $11.00/oz
About the Study
The Minco pre-feasibility study was conducted by Mr. Al Summers, an independent consultant and former Vice President of Operations for Hecla Mining. The March 1, 2007 study was based on metallurgical testing conducted by SGS Laboratory, Durango, Mexico, and resource estimates obtained from a Minco commissioned study conducted by Mining Exploration and Geosystems Associates (MEGA) released January 15, 2007.
The report recommends an additional 10 – 12 month drilling project to upgrade the resource under consideration along with additional metallurgical testing. Construction of the mine and mill operation is expected to take 18 months following receipt of Notice-to-Proceed. The estimated total preproduction investment would be approximately $43.3M. The pre-feasibility study is available from Minco’s website: http://www.minco.ie.
Correction to Prior News Release
The company’s press release dated 3/5/2007 concerning metal intercepts from a single post-feasibility study drillhole, X-26, at the Bilbao Project contained an error arising from an incorrect conversion of silver concentrations in grams per metric ton to ounces per short ton. The actual silver values are below those reported in the press release. Nevertheless, this single hole shows silver results much higher than those found in prior drilling. Corrected values may be found on the Shoshone website. Shoshone regrets the error.
About Shoshone Silver Mining
Founded in 1969 as a silver exploration, development and production company, Shoshone maintains a diverse portfolio of mineral exploration projects across the western United States and Mexico, including core holdings in the north Idaho Lakeview District. Shoshone stock trades on the Pink Sheets 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.
For further information, please visit the company’s website at www.shoshonesilvermining.com.
Contact:
Investor Relations
Liz Wilhite
Moechine Solutions
liz@moechine.com
(208) 512-3009
Shoshone Silver Mining
info@shoshonesilvermining.com
(208) 752-1070