Vancouver, Canada – Blende Silver Corp. (the “Company”) (TSX.V: BAG) announced today Moose Mountain Technical Services (“Moose Mountain”) has completed an updated NI43-101 Resource Estimate for the Company’s 100% owned Blende Deposit in north-central Yukon.
The updated resource estimate was prepared to reflect current metal prices and costs which were used to calculate the cut-off grade of 1.5% ZnEq. This resulted in an increase of 15% Zinc, 7% Silver and 6% Lead. No additional drilling was completed or used to prepare the updated resource estimate.
| Source | Class | In situ | In situ Grades | In situ Metal Content | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnage | ZnEq1 | Zn | Pb | Ag | NSR | OXRAT | Zn | Pb | Ag | ||
| (ktonnes) | (%) | (%) | (%) | (gpt) | ($CDN/t) | (Mlbs) | (Mlbs) | (koz) | |||
| 2021 | Indicated | 4,643 | 4.60 | 1.82 | 1.63 | 30.32 | 101.85 | 0.08 | 187 | 167 | 4,526 |
| Inferred | 42,243 | 4.49 | 1.83 | 1.62 | 27.48 | 99.41 | 0.21 | 1706 | 1505 | 37,320 | |
Company director Andrew H. Rees commented “The Company is encouraged with the increase to both the Indicated and Inferred resources at the Blende Project. Our technical team has reviewed the data provided with the updated resource estimate and is finalizing a drill program for our 2021 field season as we prepare for the larger objective which will be to commission a Preliminary Economic assessment.”
The following factors, among others, could affect the Mineral Resource estimate: commodity price and exchange rate assumptions; pit slope angles; assumptions used in generating the LG pit shell, including metal recoveries, and mining and process cost assumptions. The QP is not aware of any environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.
Resource Estimate from both the West and East pits - Effective March 15, 2021
| Class | Cutoff | In situ | In situ Grades | In situ Metal Content | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnage | ZnEq1 | Zn | Pb | Ag | NSR | OXRAT | Zn | Pb | Ag | ||
| (ktonnes) | (%) | (%) | (%) | (gpt) | ($CDN/t) | (Mlbs) | (Mlbs) | (koz) | |||
| Indicated | 1.0 | 5,304 | 4.18 | 1.69 | 1.47 | 27.22 | 92.60 | 0.07 | 198 | 171 | 4,642 |
| 1.5 | 4,643 | 4.60 | 1.82 | 1.63 | 30.32 | 101.85 | 0.08 | 187 | 167 | 4,526 | |
| 2.0 | 3,996 | 5.06 | 1.95 | 1.83 | 34.00 | 112.06 | 0.08 | 172 | 161 | 4,368 | |
| 2.5 | 3,351 | 5.60 | 2.08 | 2.07 | 38.72 | 124.04 | 0.08 | 153 | 153 | 4,172 | |
| 3.0 | 2,780 | 6.19 | 2.19 | 2.33 | 44.29 | 137.05 | 0.09 | 134 | 143 | 3,959 | |
| 3.5 | 2,284 | 6.83 | 2.30 | 2.63 | 50.60 | 151.26 | 0.09 | 116 | 132 | 3,715 | |
| 4.0 | 1,905 | 7.44 | 2.40 | 2.90 | 57.06 | 164.87 | 0.09 | 101 | 122 | 3,495 | |
| 5.0 | 1,375 | 8.59 | 2.56 | 3.41 | 69.92 | 190.18 | 0.10 | 78 | 103 | 3,090 | |
| Inferred | 1.0 | 47,692 | 4.12 | 1.70 | 1.47 | 25.00 | 91.22 | 0.21 | 1,785 | 1,550 | 38,331 |
| 1.5 | 42,243 | 4.49 | 1.83 | 1.62 | 27.48 | 99.41 | 0.21 | 1,706 | 1,505 | 37,320 | |
| 2.0 | 36,734 | 4.90 | 1.97 | 1.78 | 30.44 | 108.53 | 0.21 | 1,596 | 1,439 | 35,956 | |
| 2.5 | 31,833 | 5.31 | 2.10 | 1.94 | 33.58 | 117.58 | 0.21 | 1,473 | 1,362 | 34,368 | |
| 3.0 | 26,816 | 5.79 | 2.23 | 2.14 | 37.56 | 128.20 | 0.21 | 1,315 | 1,268 | 32,380 | |
| 3.5 | 22,423 | 6.29 | 2.35 | 2.36 | 41.86 | 139.23 | 0.21 | 1,160 | 1,166 | 30,177 | |
| 4.0 | 18,448 | 6.83 | 2.46 | 2.60 | 46.95 | 151.35 | 0.21 | 1,000 | 1,059 | 27,848 | |
| 5.0 | 12,559 | 7.95 | 2.66 | 3.11 | 57.80 | 176.03 | 0.21 | 736 | 862 | 23,339 | |
Notes to Table
- The Mineral Resource estimate has been prepared by Sue Bird, P.Eng., an independent Qualified Person.
- Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- The Mineral Resource has been confined by a “reasonable prospects of eventual economic extraction” pit using the following assumptions: US $1.3/lb zn, US $1.0/lb Pb and US$26/oz Ag at a currency exchange rate of 0.77 US$ per $CDN; Recoveries of 70% Zn, 85% Pb and 90% Ag, a 3% NSR royalty and Payable of 88% payable Zn, 83% payable Pb, 73% payable.
- The resulting ZnEq is:
- The specific gravity of the deposit has been determined by correlation with Zn and b grades. sg= (ZN%+PB%)*0.015+2.8
- Pit slope angles are assumed at 45º
- Numbers may not add due to rounding.
The figure below illustrates the current 2021 west and east resource pits.
View Looking NW of the West Pit (yellow) and the East Pit (light blue)
Assumptions
The price, recovery and payable metal assumptions are summarized in the table below. Values used are based on comparable zinc projects and preliminary metallurgical testing. A blended sulfide/oxide mix is assumed. These values are used to calculate the Zn Equivalent grade, and in defining the “reasonable prospects for economic extraction” pit shape.
Summary of Price Assumptions for Zn Eqv. And NSR Calculations
| Metal | Price | Recovery (%) | Payable (%) (including 3% royalty) |
|---|---|---|---|
| Zn | 1.3 $/lb | 70 | 85 |
| Pb | $1.00 $/lb | 85 | 95 |
| Ag | $26 $/troy oz | 90 | 80 |
Reasonable Prospects Pit Assumptions
The resource pit shape was defined by Lerchs-Grossman pit for the 160% base case prices, and the following cost assumptions as summarized in the table below. A cutoff grade of 1.5% ZnEq is considered appropriate assuming the costs below. The Processing and G&A costs have been assumed based on a comparable Canadian project (Osisko. 2021).
Summary of LG Input Parameters
| Cost Item | $CDN / tonne |
|---|---|
| Mining Cost – all material | 1.50 |
| Process | 15.00 |
| G&A | 5.72 |
| Surface Service | 6.25 |
| Tailing Construction | 6.25 |
| Total | 33.22 |
Foreign Exchange Rate $US:$CDN = 0.77
Comparison with 2018 Resource
The table below compares the tonnage, grade and metal content at a 2% ZnEq cutoff for 2018 and 1.5% for the 2021 resource. This shows that at these cutoffs there is 15% additional Zn metal, 6% more Pb metal and 7% more Ag metal in the Indicated category. These changes are due to the change in Ag price, Zn price and cutoff grade.
Comparison with the 2018 Resource Estimate
| Source | Class | In situ | In situ Grades | In situ Metal Content | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnage | ZnEq1 | Zn | Pb | Ag | NSR | OXRAT | Zn | Pb | Ag | ||
| (ktonnes) | (%) | (%) | (%) | (gpt) | ($CDN/t) | (Mlbs) | (Mlbs) | (koz) | |||
| 2021 | Indicated | 4,643 | 4.60 | 1.82 | 1.63 | 30.32 | 101.85 | 0.08 | 187 | 167 | 4,526 |
| Inferred | 42,243 | 4.49 | 1.83 | 1.62 | 27.48 | 99.41 | 0.21 | 1706 | 1505 | 37,320 | |
| 2018 | Indicated | 3,650 | 5.18 | 1.98 | 1.95 | 35.7 | 101.87 | 0.08 | 159 | 157 | 4,192 |
| Inferred | 32,980 | 5.03 | 2.01 | 1.88 | 32 | 98.91 | 0.22 | 1461 | 1367 | 33,980 | |
| Difference (%) | Indicated | 21.4% | -12.6% | -8.5% | -19.5% | -17.7% | 0.0% | -4.5% | 14.7% | 6.1% | 7.4% |
| Inferred | 21.9% | -12.1% | -9.7% | -16.3% | -16.5% | 0.5% | -3.1% | 14.4% | 9.2% | 8.9% | |
The technical information in this news release was reviewed by Sue Bird, P. Eng., a qualified person with respect to NI 43-101.
About Blende Silver Corp.
Blende Silver Corp. is a Vancouver-based junior resource company focused on silver-zinc-lead exploration and development at the company’s flagship Blende Deposit in north-central Yukon. The 100% owned property is the largest carbonate-hosted Ag-Zn-Pb deposit in Yukon and one of the largest undeveloped Ag-Zn-Pb deposits in Western Canada. It is winter-road accessible, 5,345 ha and situated 63 km northeast of Keno Hill, Yukon. The property has had more than $9.2M in past exploration ($5.2M by Blende Silver); including 25,195 meters of drilling in 132 drillholes.
For further information please contact:
Blende Silver Corp.
“Andrew H. Rees”
Andrew H. Rees, Director
Tel: 604-505-3739
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking statements which involve known and unknown risks, delays, and uncertainties not under the control of Blende Silver Corp. which may cause actual results, performance or achievements of Blende Silver Corp. to be materially different from the results, performance or expectation implied by these forward-looking statements. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors.