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Silver Bear Resources Inc
Symbol SBR
Shares Issued 162,410,351
Close 2016-10-13 C$ 0.26
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Silver Bear releases Sterzhnevoy, Porphirovy resources

2016-10-14 09:14 ET - News Release

Mr. Graham Hill reports


Silver Bear Resources Inc. has released the maiden mineral resource for two additional deposits, Sterzhnevoy and Porphirovy, located within haulage distance of the Vertikalny mine development at the Mangazeisky silver project in the Republic of Sakha (Yakutia), Russia. The National Instrument 43-101 technical report prepared by Tetra Tech will be filed on SEDAR within 45 days of this release.


  • Resource grade at Sterzhnevoy is 1,500 grams per tonne silver;
  • Sterzhnevoy and Porphirovy structures are open along strike and down dip;
  • Maiden gold and copper resources for the property;
  • Inferred mineral resources increased by 10 per cent;
  • Drilling has demonstrated that mineralization extends to depth.

Silver Bear's chief executive officer, Graham Hill commented: "On the heels of our Vertikalny resource upgrade, we have once again increased our mineral resource inventory, demonstrating the exploration potential of the Mangazeisky licence. In addition, the Sterzhnevoy discovery has an inferred resource grade of 1,500 grams per tonne silver, similar to that of the Vertikalny deposit. Like [the] Mangazeisky North and South deposits, both the Sterzhnevoy and Porphirovy discoveries are within a short distance of the Vertikalny mine development, supporting our goal to increase resources and mine life by establishing a multipit, single-plant mining operation. In keeping with this objective, the company has engaged Tetra Tech to complete a preliminary economic assessment (PEA) on the Mangazeisky North deposit, with the intention of incorporating it into the Vertikalny mine plan, further enhancing the attractive economic October feasibility study pretax NPV [net present value], at a 5-per-cent discount, of $132.6-million (U.S.) and a pretax IRR [internal rate of return] of 86.1 per cent."

                           AND STERZHNEVOY DEPOSITS                                                          
Zone                                  Inferred resource                       
                       Grade  Grade                                         
               Tonnes     Au     Ag  Grade  Contained   Contained  Contained
                  (t)  (g/t)  (g/t)  Cu (%)  metal Au    metal Ag   metal Cu
                                            (troy oz)   (troy oz)       (lb)

Porphirovy     80,000    1.7     46    0.6      4,000     115,000  1,000,000
Sterzhnevoy    48,000      -  1,530      -          -   2,360,000          -

Tetra Tech has adopted the definition of mineral resources as outlined within the CIM definition standards on mineral resources and mineral reserves (CIM, 2010) in order to classify the resources. The effective date of the mineral resource estimate is Aug. 27, 2016.

Resource estimation assumptions and methods

Key assumptions used to estimate the mineral resources are:

  • The mineral resources have been estimated into two separate three-dimensional block models each comprising the following parameters:
    • 20 metres by 20 metres by 10 metres (x, y, z), with minimum subblock dimensions of one metre by one metre by 0.5 metre (x, y, z).
  • The estimation was constrained to the mineralized zone using wireframe solid models. The wireframes were subdomained to isolate each mineralized structure.
  • Grade estimates were based on 0.5-metre composited assay data.
  • The interpolation of the metal grades was undertaken using inverse-distance weighting.
  • In order to demonstrate that the deposit has reasonable prospects for economic extraction a cut-off grade of 150 grams per tonne has been applied for Sterzhnevoy, based upon the following assumptions:
    • Silver price of $17 per troy ounce;
    • Mining cost of $75 (U.S.) per tonne;
    • Processing cost of $50 (U.S.) per tonne;
    • General and administration costs of $40 (U.S.) per tonne;
    • Overall Silver recovery of 90 per cent.
  • The company used a cut-off grade of $77 equivalent based on the same assumptions for Porphirovy. Dollar equivalent calculated with the formula equals gold ounces multiplied by $1,250 plus silver ounces multiplied by $17 plus copper pounds multiplied by $2.20.

The revised maiden Sterzhnevoy and Porphirovy resources are presented in the attached table, along with all other current mineral resources within the property.


Zone                  Indicated resource                Inferred resource                     
                Tonnes     Grade Ag   Contained     Tonnes   Grade Ag   Contained
                    (t)        (g/t)   metal Ag         (t)      (g/t)   metal Ag
                                       (troy oz)                         (troy oz)
Central        670,000        1,266  27,400,000    300,000        779   7,500,000
Northwest                                          150,000        605   3,000,000
Nizhny Endybal                                     710,000        316   7,200,000
North          304,000          626   6,100,000     98,000        671   2,100,000
South                                               60,000        246     500,000
Sterzhnevoy                                         48,000      1,530   2,360,000
Silver total   974,000        1,066  33,500,000  1,366,000        514  22,660,000

Zone                         Inferred resource                                    
                         Grade   Grade                                          
                Tonnes      Au      Ag   Grade Cu    Contained   Contained    Contained
                    (t)   (g/t)   (g/t)        (%)    metal Au    metal Ag     metal Cu
                                                      (troy oz)   (troy oz)         (lb)

Porphirovy      80,000     1.7      46        0.6        4,000     115,000    1,000,000

The effective date of the original Nizhny Endybal resource estimate was Sept. 11, 2012. This resource was restated with a higher cut-off grade on June 10, 2015. The effective date of the Mangazeisky South resource is June 10, 2015. The effective date of the Mangazeisky North resource is March 31, 2016. The effective date of the Vertikalny Central and Northwest resource estimates was July 8, 2016.

The Sterzhnevoy, Mangazeisky North, Mangazeisky South and Nizhny Endybal resources are reported above a cut-off grade of 150 grams per tonne silver, assuming open-pit mining methods. Porphirovy resource is reported at $77 dollar equivalent, assuming open-pit methods. The Vertikalny Central and Northwest deposits are reported above a cut-off grade of 200 grams per tonne silver for open-pit resource and above 350 grams per tonne silver for underground resource.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

Mineral reserve

The mineral reserve statement is as of Sept. 23, 2016, and is shown in the attached table. Please refer to the press release of Oct. 4, 2016, for full details on the mineral reserve. The mineral reserves are contained within the indicated resources.

              TOTAL RESERVES FOR VERTIKALNY CENTRAL DEPOSIT                     
Category                 Cut-off grade     Quantity     Ag grade     Ag metal 
                               (g/t Ag)         (kt)        (g/t)     content  

Proven -- open pit                   -            -            -            -
Proven -- underground                -            -            -            -
Probable -- open pit               250          364        1,209       14,144
Probable -- underground            450          458          569        8,375
Total mineral reserves               -          822          852       22,519

Geological and sampling procedures

A quality assurance/quality control is part of the drilling program on all of the deposits on the Mangazeisky property. This program includes chain-of-custody protocols, as well as systematic submittals of standards, duplicates and blank samples into the flow of samples produced by the drilling. Prior to 2011, analysis was carried out at Russian certified laboratories in Yakutsk and Aldan, Russia. Analysis for 2012, 2013, 2014 and 2015 campaigns were completed by ALS Chemex in Chita, Russia.

Qualified person

The new inferred mineral resource estimate was prepared by Joe Hirst, BSc, MSc, EurGeol, CGeol. Mr. Hirst is a resource geologist at Tetra Tech and is a qualified person as such term is defined in NI 43-101. Mr. Hirst has reviewed the technical and scientific information in this press release relating to the mineral resource estimates and has approved the use of the information contained herein. The updated mineral resource estimates were generated using the parameters set out in this press release.

About Silver Bear

Silver Bear is focused on the development of its wholly owned Mangazeisky silver project, covering a licence area of approximately 570 square kilometres that includes the high-grade Vertikalny deposit (amongst the highest-grade silver deposits in the world), located 400 kilometres north of Yakutsk in the Republic of Sakha within the Russian Federation. The company was granted a 20-year mining licence for the Vertikalny deposit in September, 2013, and recently updated its feasibility study in the fourth quarter of 2016.

We seek Safe Harbor.

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