Silvermex Resources Ltd. ("Silvermex") (TSX VENTURE: SMR) is
pleased to announce the planned commencement of a minimum 3,000
meter core drilling program at its San Marcial Silver project in
southern Sinaloa, Mexico. The Company is also pleased to report on
its recent investor relations initiatives and grant of 2,650,000
incentive stock options.
The San Marcial project forms part of the Company's newly
consolidated Rosario mining concession. This 16,279 ha concession
includes numerous past producing mines including the Plomosas and
San Juan mines which were operated by Grupo Mexico until 2001.
The Company has recently completed an extensive trenching
program at San Marcial which has confirmed the continuity of the
high-grade vein structures at surface and was instrumental in
filling in gaps in historic data and assisting in development of
the new drill plan. As a result of the recent work, it is clear
that there are 2 distinct, near-surface, high-grade vein
structures, versus one wider lower grade zone as previously
modeled.
The objectives of the drill program are;
1. Expand and upgrade the classification of existing resources
2. Test for grade and width continuity of both the upper and lower vein
structures along strike and down dip
3. Collect geotechnical data on the immediate hanging wall, the mineralized
zone and the adjacent footwall
4. Collect sufficient material for advanced metallurgical testing
5. Prepare an updated NI 43-101 resource estimate
This new information will be combined with the rework of the
existing data to develop a new block model. This new model, along
with a comprehensive mine plan and the results of our metallurgical
test work will be incorporated into a Preliminary Economic
Assessment which is scheduled for completion by Q3/Q4 of this
year.
The company has completed its application for the exploration
permit and submitted it to the Mexican government. In anticipation
of its approval, the drilling equipment has been mobilized so that
drilling can commence immediately upon approval.
The following table highlights results from previous drill
programs. These past results clearly illustrate the proximity to
surface, width of structures and high-grade nature of the
deposit.
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Interval T width
Hole From (m) To (m) (m) (m) Ag g/t Lead ppm Zinc ppm
---------------------------------------------------------------------------
SM-2 0.39 12.00 11.61 11.61 350.20 2,055.00 5,010.00
---------------------------------------------------------------------------
SM-3 0.20 15.00 14.80 10.59 227.00 1,511.00 3,955.00
---------------------------------------------------------------------------
SM-4 6.00 63.00 57.00 53.95 235.00 3,095.00 4,715.00
---------------------------------------------------------------------------
SM-5 1.40 21.00 19.60 17.16 282.00 1,737.00 2,335.00
---------------------------------------------------------------------------
SM-5 33.00 36.00 3.00 2.63 490.00 242.00 1,530.00
---------------------------------------------------------------------------
SM-9 30.00 44.50 14.50 12.68 540.00 1,874.00 3,607.00
---------------------------------------------------------------------------
SM-11 114.00 132.00 18.00 11.75 419.00 3,722.00 6,889.00
---------------------------------------------------------------------------
SM-12 99.30 100.30 1.00 0.66 3,600.00 250.00 6,260.00
---------------------------------------------------------------------------
SM-13 50.00 73.20 23.20 17.50 621.00 4,911.00 8,493.00
---------------------------------------------------------------------------
SM-17 169.47 172.52 3.05 1.98 215.00 1,952.00 3,155.00
---------------------------------------------------------------------------
SM-18A 38.82 63.90 25.08 21.62 175.00 3,278.00 5,127.00
---------------------------------------------------------------------------
SM-20 102.47 104.47 2.00 1.37 366.50 4,421.00 5,600.00
---------------------------------------------------------------------------
SM0808 98.55 118.00 19.45 19.45 234.40 6,410.00 13,365.00
---------------------------------------------------------------------------
SM0812 21.95 26.75 4.80 4.80 346.00 5,258.00 9,319.00
---------------------------------------------------------------------------
SM0812 32.75 34.75 2.00 2.00 346.00 2,336.00 14,297.00
---------------------------------------------------------------------------
SM0812 36.83 43.80 6.97 6.97 365.50 1,864.00 2,542.00
---------------------------------------------------------------------------
Qualified Person
Pursuant to National Instrument 43-101, Robert Fraser, M.Sc.,
P.Geo is the Qualified Person (QP) responsible for the disclosure
in this news release.
Investor Relations Initiatives and Options
The Company is pleased to announce that it has engaged Jason
Leikam to manage the Company's investor relations initiatives. Mr.
Leikam will receive $6,000 per month and has been granted, subject
to vesting over twelve months, 200,000 incentive stock options at
an exercise price of $0.41 per share for a five year term expiring
on May 12, 2015.
The Company has granted 2,450,000 incentive stock options and
cash bonuses up to $717,500, subject to vesting, to certain
directors, officers and consultants of the Company with an exercise
price of $0.41 per share and a five year term expiring on May 12,
2015. The foregoing grants are subject to the terms of Silvermex's
incentive stock option plan and include certain option grants and
bonuses that are subject to vesting over a one year period granted
to Michael Callahan, the President of the Company and Arthur Brown,
the Chairman of the Board of Directors of the Company, in lieu of
the previously proposed grants of stock bonuses.
The grant of the incentive stock options is subject to receipt
of all required regulatory approvals including those of the TSX
Venture Exchange.
On Behalf of the Board of Directors of
Silvermex Resources Ltd.
Duane Nelson, CEO & Director
This News Release contains forward-looking statements. Forward
looking statements are statements which relate to future events. In
some cases, you can identify forward-looking statements by
terminology such as "may", "should", "expects", "plans",
"anticipates", believes", "estimates", "predicts", "potential", or
"continue" or the negative of these terms or other comparable
terminology. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors that may
cause our actual results, level of activity, performance or
achievements to be materially different from any future results,
levels of activity, performance, or achievements expressed or
implied by these forward-looking-statements. Management has assumed
that these will be our major projects going forward. Risks include
that we are unable to satisfy environmental or other regulators,
that we determine that our resources are not commercially viable,
or that we have difficulties due to unavailability of labour or
equipment.
While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our
current judgment regarding the direction of our business, actual
results will almost always vary, sometimes materially, from any
estimates, predictions, projections, assumptions or other future
performance suggests herein. Except as required by applicable law
the Company does not intend to update any forward-looking
statements to conform these statements to actual results.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Silvermex Resources Ltd. Duane Nelson Director, Chief
Executive Officer 604-512-8118 duane@silvermexresources.com
www.silvermexresources.com
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