Silver Bear Resources announces the results of a National Instrument 43-101 feasibility study for the Vertikalny Central deposit of its Mangazeisky Silver Project in the Republic of Sakha (Yakutia), Russia. Graham Hill, President and Chief Executive Officer said, “Last year we successfully drilled 6,656 metres of core in addition to approximately 13,000 cubic metres of trenching. The data is being compiled from this work that should allow us to update our resource statement and provide further positive information on future developments in the second half of 2016.”
Feasibility Study Highlights signifies, assumptions include a variable silver price of US$16.00/oz, US$17.25/oz, and US$18.00/oz during the first year of production, second year of production, and the remaining project life, respectively, with a life of mine (LOM) weighted average silver price of US$17.74/oz; exchange rate applied is RUB66.00/USD. Initial capital costs of US$48.6 million.
Total proven and probable mineral reserves of 801,000 tonnes at a diluted average grade of 772 g/t Ag for 19.9 million troy ounces of silver. Total Vertikalny central indicated mineral resources of 23.4 million troy ounces of silver at an average grade of 909 g/t Ag, in addition to inferred mineral resources of 13.4 million ounces of silver at an average grade of 615 g/t Ag. Processing is likely to be at the average of 110,000 tonnes of ore per annum. While production of 16,787,000 ounces of silver over a 7.3-year that is LOM (a life of mine) with an average metallurgical recovery of 84.4% silver is likely as per the report.