The Road Forward for the Next Six Months
In light of the poor market conditions, we have made the decision to slow the spending of the treasury and focus on "high value – low cost" targets. Consequently we have put our surface drill program on hold and will focus on the high grade silver and zinc mineralization defined by the long hole and channel sample dataset which was severely restricted in the last resource report by SRK.
After discussion with SRK it has been agreed that by "twinning" a number of these long holes with the more reliable "core" drilling method and then comparing and confirming the assay results with nearby long holes we expect to increase the confidence of the entire historical long hole data set. This confirmation would allow SRK to give the long holes a much wider sphere of influence in a future resource update.
Our plan for the next 6 months will be to complete a 3,000 meter underground drill program "twinning" a selection of long holes for a direct assay comparison. To do this we will use our own "Termite" drills which can drill 40-50 meter long holes of "BQ" core – a full summary of this program is given in Silver Bull's June 12, 2012 news release. It is likely this program will be extended to parts of the high grade zinc zone defined by the historical long hole and channel samples.When we consider that the drills will be starting off underground in high grade silver mineralization, and drilling in an area with a tremendous amount of historical work which already defines this zone we see this as a very low risk program which should both add silver ounces to the deposit and increase the overall grade within the Shallow Silver Zone. The three goals of this program are 1) increase the confidence of the 2,700 long hole data set 2) define the extents of the ore body by drilling through the known mineralization and ending drilling in unmineralized rock and 3) infill any gaps we have in the historical data set. This will also be extremely cost effective as we will be using our own drills to do this work and there is very little preparation that needs to be done to access the underground workings