Silver Bull Clarifies PEA Disclosure
Vancouver, British Columbia -- Silver Bull Resources, Inc. (TSX: SVB, NYSE MKT: SVBL) ("Silver Bull" or the "Company") announced today that as a result of a review by the British Columbia Securities Commission (BCSC), Silver Bull is issuing the following news release to clarify its disclosure.
Amended Technical Report
As a result of comments raised by the BCSC in its review of the Company's November 12, 2013 Preliminary Economic Assessment ("PEA"), the Company will file within the next 5 days an amended technical report titled "Preliminary Economic Assessment on the Sierra Mojada Project Coahuila, Mexico" dated December 16, 2013 ("Amended PEA"). The Amended PEA was prepared by JDS Energy and Mining Inc. ("JDS") of Vancouver, British Columbia. The changes reflected in the Amended PEA include the following:
- The resource estimate for the Sierra Mojada Project has been restated in the Amended PEA to an indicated silver-zinc resource only, with no copper and lead grades. The PEA previously reported the indicated silver-zinc resource together with an inferred copper-lead resource.
- The section entitled "Sources of Information" has been revised in the Amended to remove the reference to the authors relying upon previously filed reports.
As the economic analysis in the PEA was prepared using only the indicated silver-zinc resource, none of the economics stated in the PEA will change in the Amended PEA.
Additional Technical Disclosure Matters
The Company has disclosed the results of its PEA in news releases and investor materials available on its website. In certain news releases and investor materials, the Company did not include proximate cautionary language required by NI 43-101. Accordingly, investors are cautioned that the PEA is considered preliminary in nature. Mineral resources that are not mineral reserves do not have demonstrated economic viability. It cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves, and there is no certainty that the PEA will be realized. The company also used "ore" and similar terms with its disclosure of PEA results, and clarifies such terms are potentially misleading in the context of mineral resource estimates because "ore" implies economic viability that should only be attributed to mineral reserves.
In a corporate presentation available on its website, the Company also disclosed a "Global Resource" of 188 million ounces of silver and 5 billion pounds of zinc using a zero grade cut-off. Because these quantities use a zero grade cut-off, they cannot all have "reasonable prospects for economic extraction" and do not meet the definition of a mineral resource. In addition, disclosure omitted information required by NI 43-101 about grade and an acceptable classification. The Company retracts the above silver and zinc quantity estimates, and restates the current indicated resource estimate supported by its PEA report, of approximately 72 million tonnes grading 72.5 g/t silver and 1.38% zinc (163 million ounces of silver and 2.1 billion pounds of zinc).
In addition, certain news releases of the Company and certain investor materials available on its website refer to the potential to mine 37 million tonnes of ore outside of the pit model. The Company has not completed sufficient analysis to include this potential in its resource cited in the PEA. At this time, the company has not estimated ranges of both grade and tonnage necessary for disclosure of an exploration target under NI 43-101. In addition, the designation "ore" is not applicable, as explained above. The Company retracts the additional potential tonnage quantity estimate outside the pit model.
About Silver Bull: Silver Bull is a US registered mineral exploration company listed on both the NYSE MKT and TSX stock exchanges and based out of Vancouver, Canada. The company's flagship "Sierra Mojada" project is located 150 kilometers north of the city of Torreon in Coahuila, Mexico, and is highly prospective for silver and zinc. Silver Bull also has 2 mineral licenses in Gabon, Central Africa, named the Ndjole and Mitzic properties, which are prospective for gold, manganese, and iron ore.
The technical information of this news release has been reviewed and approved by Tim Barry, MAusIMM Chartered Professional, a qualified person for the purposes of National Instrument 43-101
On behalf of the Board of Directors
Tim Barry, MAusIMM
Chief Executive Officer, President and Director
+1 604 336 8096
Cautionary Note to U.S. Investors concerning estimates of Indicated and Inferred Resources: This press release uses the terms "indicated resources" and "inferred resources" which are defined in, and required to be disclosed by, NI 43-101. We advise U.S. investors that these terms are not recognized by the United States Securities and Exchange Commission (the "SEC"). The estimation of indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that indicated mineral resources will be converted into reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.
Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations, however the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures. Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject NI 43-101.
Cautionary note regarding forward looking statements: This news release contains forward-looking statements regarding future events and Silver Bull's future results that are subject to the safe harbors created under the U.S. Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended (the "Securities Act"), and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and applicable Canadian securities laws. Forward-looking statements include, among others, estimates of resources. These statements are based on current expectations, estimates, forecasts, and projections about Silver Bull's exploration projects, the industry in which Silver Bull operates and the beliefs and assumptions of Silver Bull's management. Words such as "expects," "anticipates," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "continues," "may," variations of such words, and similar expressions and references to future periods, are intended to identify such forward-looking statements. Forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including such factors as the results of exploration activities and whether the results continue to support continued exploration activities, unexpected variations in ore grade, types and metallurgy, volatility and level of commodity prices, the availability of sufficient future financing, potential changes to royalties and taxes imposed by the Mexico government and other matters discussed under the caption "Risk Factors" in our Annual Report on Form 10-K/A for the fiscal year ended October 31, 2012, as amended, and our other periodic and current reports filed with the SEC and available on www.sec.gov and with the Canadian securities commissions available on www.sedar.com. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those expressed or implied in the forward-looking statements. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.