Huldra Silver Inc. (the "Company" or "Huldra Silver") (TSX VENTURE:
HDA) is pleased to announce it has received complete assay results
from an 17 hole HQ sized diamond drill program completed in
September 2010. The samples assayed up to 13736 gm/tonne Ag (441.61
Oz/tonne), 60.05% Pb, 2.49% Zn, and 2.33% Mn in hole number 8 from
14.19m to 14.26m. All samples were analyzed at the ACME laboratory
in Vancouver, B.C., a full service, ISO 9001:2008 accredited
analytical laboratory. All lab quality control protocols were
observed. A complete list of assays and summary results along with
a drill location map can be viewed on our website at
www.huldrasilver.com.
Drill Program Summary and Highlights
The first 15 holes of the drill program were designed to follow
up on surface sampling with assays of up to 6650 g/tonne Ag were
received (August 25, 2010 news release) with the primary objective
was to determine whether a small open cut bulk sample of up to
10,000 tonnes can be removed. Management has determined that based
on the surface showing and the drill results the company will
proceed with the bulk sample in the spring of 2011.
Assay Highlights:
Hole 5 from 6.55-6.7m: 2121 g/tonne Ag 24.3%Pb 3.99%Zn 2.05%Mn
Hole 8 from 7.65-8.0m: 2584 g/tonne Ag 47.98%Pb 2.27%Zn 1.87%Mn
Hole 8 from 14.19-14.26m: 13736 g/tonne Ag 60.05%Pb 2.49%Zn 2.33%Mn
Hole 9 from 5.98-6.06m 6393 g/tonne Ag 74.41%Pb 1.22%Zn .89%Mn
Hole 9 from 6.5-7.07m: 1259 g/tonne Ag 3.73%Pb .73%Zn 2.25%Mn
Hole 9 from 7.07-7.31m: 4921 g/tonne Ag 31.25%Pb 9.52%Zn .99%Mn
Hole 10 from 6.09-6.29m: 5072 g/tonne Ag 55.82%Pb 2.75%Zn .45%Mn
Hole 10 from 8.63-8.71m: 2989 g/tonne Ag 20.77%Pb 1.43%Zn 1.15%Mn
Hole 15 from 17.76-17.9m: 781 g/tonne Ag 7.68%Pb .23%Zn 2.83%Mn
Hole 15 from 17.9-18.1m: 462 g/tonne Ag .96%Pb .49%Zn 1.57%Mn
Hole 15 from 18.1-18.5m: 1053 g/tonne Ag 7.59%Pb 1.48%Zn 4.11%Mn
Holes 1, 2, 3 and 4 failed to intersect significant
mineralization and were stopped shortly after passing through a
dyke that may have disrupted the mineral zone. Hole 7 was drilled
down a previously unmapped fault. Upon review of the logs and
program we believe that there are at least 3 different dykes in
close proximity to one another and to mineralization. Samples were
selected on the basis of visual observation of the cores that were
split manually, with one half being submitted for analyses.
Holes 16 and 17 were drilled approximately 190m to the east of
the historic East Zone in what has been described previously as the
East Zone extension. Preliminary observations are that the area is
distinctly different than the east zone in mineralization and
structure. Massive Galena was encountered at surface on this
structure 100m further east assaying 2920 g/tonne Ag and 38.5% Pb
over .3m (October 13, 2010 news release). For future reference this
will be referred to as the JK Vein.
Assay Highlights:
Hole 16 from 6.1-6.7m 256 g/tonne Ag .79%Pb 10.01%Zn 14.56%Mn
Hole 17 from 8.53-8.83m 166 g/tonne Ag .96%Pb 1.76%Zn 9.8%Mn
The JK vein occurs in weather arkosic rocks where at shallow
depths encountered at shallow depths in Holes 16 and 17 is
partially oxidized. The vein material has a white porcelanous
appearance and minor amounts of sphalerite and no associated dyke
was encountered. Samples from the vein will be submitted to a
mineralogist for further study. The company is also reviewing
previous metallurgical studies to determine if the Manganese
encountered can be extracted and marketed.
Initial drilling in 2011 will concentrate on the JK vein based
on the size of the structure and the encouraging initial results.
Drilling in the area will also step off the JK vein to the north
and south to test for extensions of the east zone or other
mineralized dykes.
2011 Exploration and Development
Portal reconstruction and a vent raise have been completed on
Level 1 of the Main Mine area where a NI 43-101 compliant resource
estimate in 2009 reported a total vein indicated resource diluted
to a mineable width of 1.2m, using a 10oz/tonne Ag cut-off, of
33,000 tonnes grading 26.68oz/tonne Ag, 4.16%Pb, and 3.8% Zn and a
total vein inferred resource, using a 10oz/tonne Ag cut-off, of
120,000 tonnes grading 29.76oz/tonne Ag, 2.79%Pb, and 4.36% Zn. An
underground inspection has been conducted and we will use this
information to update our mine planning and design for both a bulk
sample and a full mining permit.
All of the background environmental monitoring for this year has
been completed in preparation for re-submitting in early 2011 an
application for a full mining permit. This work has been conducted
in consultation with the British Columbia Ministries of Mines and
the Environment.
In addition the company is designing a more extensive
exploration program for 2011 that will include:
-- Geochemical sampling on both a previously discovered soil anomaly in the
valley below the mine and on the Sutter Creek side of the mountain where
surface samples of up to 9221 g/tonne Ag were reported (August 25, 2010
news release). Based on these finding drill programs will be designed
for these areas.
-- Once re-construction of portal 3 has been completed underground drilling
will commence on this level to follow up on historical work.
Non-Brokered Private Placement
The Company is also pleased to announce a non-brokered private
placement (the "Offering"), which will provide the Company with
working capital to use for its Treasure Mountain Project. The
Company has agreed to issue 1,600,000 units (each, a "Unit") at a
price of $0.52 per Unit for gross proceeds of $832,000. Each Unit
will consist of one common share of Huldra and one common share
purchase warrant. Each warrant will entitle the holder to purchase
an additional common share of Huldra at a purchase price of $0.75
per share for 18 months from the date of closing of the Offering,
subject to a right of call by the Company under certain conditions.
The Offering is subject to the approval of the TSX Venture Exchange
and applicable securities laws.
Technical information in this news release has been reviewed and
approved by Erik Ostensoe, P. Geo., the Company's independent
Qualified Person as defined by NI 43-101. Huldra Silver is
currently working on plans to put the Treasure Mountain Project,
located 3 hours east of Vancouver, BC, into development subject to
permitting and financing. The Company is also actively assessing
other opportunities for acquisition and development.
On behalf of the Board of Directors
Ryan Sharp, MBA, President, CEO & Director
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the Company's overall business development objectives and plans.
Forward-looking statements consist of statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future, and include
discussion of the Company's planned work to be undertaken as a
result of the Company's receipt of the Mines Act Permit, and that
the Company intends to put the Treasure Mountain Project into
development. Such statements are subject to risks and uncertainties
that may cause actual results, performance or developments to
differ materially from those contained in the statements. No
assurance can be given that any of the events anticipated by the
forward-looking statements will occur or, if they do occur, what
benefits the Company will obtain from them. These forward-looking
statements reflect management's current views and are based on
certain expectations, estimates and assumptions which may prove to
be incorrect. A number of risks and uncertainties could cause the
Company's actual results to differ materially from those expressed
or implied by the forward-looking statements, including: (1) a
downturn in general economic conditions in North America and
internationally, (2) the inherent uncertainties and speculative
nature associated with silver exploration, (3) a decreased demand
for silver, (4) any number of events or causes which may delay
exploration and development of the Company's property interests,
such as environmental liabilities, weather, mechanical failures,
safety concerns and labour problems, (5) the risk that the Company
does not execute its business plan, (6) inability to finance
operations and growth, (7) inability to obtain all necessary
permitting and financing, and (8) other factors beyond the
Company's control. These forward-looking statements are made as of
the date of this news release and the Company assumes no obligation
to update these forward-looking statements, or to update the
reasons why actual results differed from those projected in the
forward-looking statements, except in accordance with applicable
securities laws. Additional information about the Company and these
and other assumptions, risks and uncertainties is available in the
Company's public filings with Canadian securities regulators,
available on SEDAR at www.sedar.com.
Neither the 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 news release.
Contacts: Huldra Silver Inc. Ryan Sharp 604-818-1486
ryan@huldrasilver.com / IR@huldrasilver.com
www.huldrasilver.com