Silver Standard Acquires 100% Interest in Challacollo Project.Business Editors VANCOUVER Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. , British Columbia--(BUSINESS WIRE)--Aug. 7, 2003 Silver Standard Resources Inc. is pleased to report the exercise of its option to acquire a 100% interest in the Challacollo silver project located in Region One of northern Chile. In addition to announcing the exercise of the option, the company also reports on 16 reverse circulation drill holes (totalling 4,055 metres) from the recently completed drill program, which included both in-fill drilling and extension drilling on the Lolon vein. Under the terms of an option agreement reached in 2001, Silver Standard made the US$600,000 final payment of the US $1.5 million option price to acquire the project. Silver Standard now owns 100% of the project, subject to a 4% net smelter returns royalty, declining to 3% following payment of US$850,000. The 3% net smelter returns royalty can be acquired at any time for a total of US $1.5 million. Based on the previously reported measured and indicated resources of 2.2 million tonnes grading 202 grams per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. and inferred resources of 4.1 million tonnes grading 182 grams per tonne, the acquisition cost for the project is less than US$0.04 per resource ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. and is in line with Silver Standard's acquisition strategy. Silver Standard previously reported holes 25-40 (with partial results for holes 28, 39 and 40) with complete assays for all holes now received. Results for holes 28, 39 and 40 are being reported in addition to the new holes 41 through 55. The new drill holes demonstrate the potential for bulk underground mining of this silver-dominant project. CHAG-42A intersected 65 feet grading 4 ounces per ton silver (20 meters grading 141 grams per tonne), including of 9.8 feet grading 9.4 ounces per ton silver (3 meters grading 322 grams per tonne), and CHAG-43 intersected 36 feet grading 9 ounces per ton silver (11 meters grading 310 grams per tonne). CHAG-39 contains a previously reported interval of 49 feet grading 8.6 ounces per ton silver (15 meters grading 292 grams per tonne) within a much wider interval of 141 feet grading 4.5 ounces per ton silver (43 meters grading 154 grams per tonne). CHAG-28 contained 75 feet grading 3.8 ounces of silver per ton (23 meters grading 132 grams per tonne), including 29.5 feet grading 6.9 ounces per ton silver (9 meters grading 236 grams per tonne), while CHAG-40 contained 125 feet grading 5.6 ounces of silver per ton (38 meters grading 191 grams per tonne), including 39 feet grading 13 ounces per ton silver (12 meters grading 450 grams per tonne). Holes 48, 52 and 54 were drilled at depth and encountered lower grades of mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. . Holes 44 and 45, which intersected anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. silver values, tested the Gladys Gladys is a feminine name from the Welsh name Gwladus, which bears the meaning of royalty (princess) or the gladiolus flower. It has been sometimes used as a Welsh form of Claudia. vein which is west of and parallel to the Lolon vein. There is good potential on the property to add to the resource which has been outlined to date. Silver Standard is pleased that the results of the 2003 drill program have confirmed the wide and high grade zones of mineralization encountered in the 2002 program. The company will now complete a polygonal pol·y·gon n. A closed plane figure bounded by three or more line segments. po·lyg  o·nal adj. resource calculation, and a scoping study will be undertaken
to determine the economic parameters of the project. Challacollo
complements Silver Standard's strategy of being one of the purest
silver companies since most of the mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. value of the Lolon vein is in silver with minor amounts of lead, zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. and gold. Silver Standard is a significant silver resource company with projects in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. , Chile, Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . The company's assets now include measured and indicated resources of 300.4 million ounces of silver and 1.1 million ounces of gold, plus inferred resources of 366.7 million ounces of silver and 1.1 million ounces of gold. Silver Standard is well financed with over $10.6 million in cash and $2 million in marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , and is actively advancing its portfolio with drill programs and new acquisitions. Cautionary note to U.S. investors concerning disclosure of estimates of measured, indicated and inferred mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature and contained ounces of silver: The terms "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" used in this news release are Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. and mining terms as defined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with National Instrument 43-101, Standards of Disclosure for Mineral Projects under the guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. set out in the Canadian Institute of Mining, Metallurgy and Petroleum The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) is a technical society of professionals in the Canadian minerals, metals, materials and energy industries. It was founded in 1898. In 2006, the organization had 12,000 national members. (the "CIM (1) (Computer-Integrated Manufacturing) Integrating office/accounting functions with automated factory systems. Point of sale, billing, machine tool scheduling and supply ordering are part of CIM. ") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. from time to time by the CIM. We advise U.S. investors that while such terms are recognized and required under Canadian regulations, the U.S. Securities and Exchange Commission (the "SEC") does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in the measured mineral resource and indicated mineral resource categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility fea·si·ble adj. 1. Capable of being accomplished or brought about; possible: a feasible plan. See Synonyms at possible. 2. . It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of silver resources expressed in ounces in the measured and indicated mineral resource categories and the inferred mineral resource category in this news release is in compliance with National Instrument 43-101, but does not meet the requirements of Industry Guide 7, Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations, of the SEC, which will accept only the disclosure of tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. and grade estimates for non-reserve mineralization.
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SELECTED CHALLACOLLO DRILLING RESULTS(ii)
August 2003
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Sil-
Inter- Sil- ver
Dip/ From To val ver Gold Inter- (in
Hole (UTM) Azi- (met- (met- (met- (in (in val oz/
No. Location muth res) res) res) g/t) g/t) (feet) ton)
--------------------------------------------------------------------
CHAG
-28 7682866N -60 92 115 23 132 0.24 75.4 3.8
degrees/
464315E 96
degrees
-------------------------------------------
including 106 115 9 236 29.5 6.9
--------------------------------------------------------------------
CHAG
-39 7683429N -45 25 68 43 154 0.12 141.0 4.5
degrees/
464341E 90
degrees
-------------------------------------------
including 49 64 15 292 0.27 49.2 8.6
--------------------------------------------------------------------
CHAG
-40 7683358N -44 19 57 38 191 0.33 124.6 5.6
degrees/
464364E 92
degrees
-------------------------------------------
including 44 56 12 450 0.86 39.4 13.1
--------------------------------------------------------------------
CHAG
-41 7683790N 92 97 5 72 0.36 16.4 2.1
464504E
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CHAG
-42A 7683274N -48 228 248 20 141 0.18 65.6 4.1
degrees/
464248E 86
degrees
-------------------------------------------
including 245 248 3 322 0.18 9.8 9.4
--------------------------------------------------------------------
CHAG
-43 7683069N -62 134 143 9 159 0.12 29.5 4.6
degrees/
464217E 90
degrees
164 175 11 310 0.54 36.1 9.0
--------------------------------------------------------------------
CHAG
-46 7683149N -52 193 198 5 146 0.52 16.4 4.3
degrees/
464217E 95
degrees
--------------------------------------------------------------------
CHAG
-47 7683117N -60 279 284 5 201 0.34 16.4 5.9
degrees/
464153E 91
degrees
--------------------------------------------------------------------
CHAG
-48 7683186N -64 anomalous values
degrees/
464180E 81 degrees
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CHAG
-49 7682835N -48 54 58 4 130 0.23 13.1 3.8
degrees/
464128E 91
degrees
--------------------------------------------------------------------
CHAG
-50 7683010N -58 anomalous values
degrees/
646127E 70
degrees
--------------------------------------------------------------------
CHAG
-51 7682918N -51 262 276 12 163 0.18 39.4 4.7
degrees/
464133E 89
degrees
-------------------------------------------
including 271 275 4 278 0.25 13.1 8.1
--------------------------------------------------------------------
CHAG
-52 7683280N -64 anomalous values
degrees/
464205E 85
degrees
--------------------------------------------------------------------
CHAG
-53 7683333N -48 197 204 7 87 0.11 23.0 2.6
degrees/
464209E 77
degrees
--------------------------------------------------------------------
CHAG
-54 7683420N -70 193 198 5 131 0.33 16.4 3.8
degrees/
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(i) Kenneth C. McNaughton, M.A.Sc., P.Eng., and vice president,
exploration, Silver Standard Resources Inc., is the Qualified
Person (QP) responsible for the Challacollo exploration program
and has verified the data in the table above. All assays were
submitted for preparation and analysis by ALS Chemex at its
Antofagasta, Chile, facilities. Samples with up to 100 grams of
silver per tonne were fire assayed with an AA finish and a fire
assay with gravimetric finish was run on all samples containing
more than 100 grams of silver per tonne silver as determined by
ICP analysis. One in 10 samples were duplicate assayed at ALS
Chemex's office in Vancouver and selected high-grade samples were
analyzed a second time for accuracy.
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