Jul 3 2012
Silver Scott Mines, Inc. is pleased to announce the following recently received drill assay sample results from the Quitovac Gold Mine Project located near Sonoyta, Sonora Mexico. The company's concession blocks control approximately 14,500 hectares of land (36,250 acres) covering the Quitovac mine and placer gold sites in northwest Sonora. A total of 1723 meters of contracted RC drilling was recently completed in a 12 angle drill holes.
Selected drilling result highlights of best interval intercepts from each drill hole with greater than 0.1 gram gold per tonne averaged results are as follows:
Standard single fire assays were completed on QP-7 through QP-12. In QP-1 through QP-6, metallic screen separation of coarser (+140 mesh) and smaller fines pulp from a 1000 gram starting pulp resulted a standard fire assay of the coarse material and two standard fire assays from the passing fine material and larger fraction for each interval. The two fine pulp fire assays were averaged (and were generally very similar assay values) and a head grade calculated from the combined weighted (relative to grams represented) assay values. This larger bulk sample of 1000 grams pulped material with 3 fire assays is considered to be a higher quality assay for the interval. Differences were seen in comparisons where both the screen based analyses and standard fire assays of the intervals were determined, often with increased overall head grades by including the coarser fraction. Both types of assay preparation were completed for comparison on inervals in parts of QP-1, QP-2, QP-3, QP-7, and QP-8
Reported intercept thicknesses are considered to represent mineralized thickness that should be reduced to about 70% of the intervals reported in order to approximate true widths from angle drill holes assuming near horizontal bodies of mineralization. Drill holes 2, 4 and 7 were drilled at 60 degrees from horizontal oriented SW and thus have true thicknesses of about 85 percent of reported lengths by cutting across a near surface nearly horizontal body. Other drill holes were inclined at 45 to 50 degrees oriented SW.
Samples collected from drilling were delivered to Laboratorio Technologico Metalurgico SA de CV (LTM) in Hermosillo, Sonora Mexico for standard preparation and 1 assay ton standard fire assay procedures followed by atomic absorption finish. Gold and silver standards were inserted in the group of samples with blanks and duplicates. The LTM metallurgical laboratory, although uncertified due to the lack of an NI-43-101 defined QP, is nevertheless operated by experienced and qualified persons including Mr. Hector Diaz, a former 17 year professor at the University of Sonora with professional experience in heap leach operating mines. Standards, blanks, and duplicates were inserted by both the Company and the Laboratory.
Jim Bradbury, a Qualified Person as Metallurgical Engineer acting as consultant to the Company, worked with the laboratory to assure quality procedures and analytical processes were followed for the sample preparation, normal fire assays, and screen analyses for the large (1000 gram pulps) metallic screen and pulp preparation and analyses. Jim Bradbury was the QP for the assay laboratory work, and Melvin Herdrick was the QP for the on job site field work, sample collection, and transportation to the laboratory of RC drill cutting samples.
Mel Herdrick, Chief Geologist for Silver Scott Mines commented, "We expect to continue to see favorable results from further drilling at Quitovac that will expand the mineralized zone and determine more accurately the gold content of it. We drilled along approximately 300 meters of strike on the mineralized zone leaving much more of the zone to drill test. Our goal, in line with our overall corporate strategy, is to explore, define, and initiate production of gold by heap leach mine processing that we can continue to expand with ongoing exploration. I expect the Quitovac mineralized zone to expand significantly with additional drilling."
The Company had planned a larger drill program but had to reduce the size of the program when expected financings did not materialize primarily due to the slowdown in the junior mining capital markets. In response to the difficult market environment, the Company elected to reduce exploration and development expenditures and also decided to sell its Nevada Pershing Pass unpatented mineral claims for $550,000 cash. These claims would have required substantial payments to the U.S. Bureau of Land Management on August 31st and the Company felt that it was in its best interest to sell the claims at the time that it did. The Company continues to investigate and attempt to develop additional means of obtaining financing and will report on its progress in future news releases and financial statements as they become available.
The source of this news release is Silver Scott Mines, Inc. This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate.