VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/02/09 -- SNS Silver Corp. (TSX VENTURE: SNS) and the owner of the Sunshine silver mine late Saturday signed a letter of intent whereby SNS will continue providing care, maintenance and development of the Sunshine Mine during the final stages of the lease negotiations.
The letter calls for SNS to make an initial non refundable $250,000USD payment, the companies have agreed to have definitive agreement by March 28th. Both parties have agreed not to entertain any offers during this period.
"This is a new dawn for the Sunshine," said SNS President and CEO David Greenway. "Mr. Mori (President of SPMI) has been a pleasure to work with, and we look forward to a long and mutually beneficial relationship with a shared goal of maintaining and developing this historic silver mine," Greenway said.
Added Mori, "SNS Silver brings a high level of experience and competence on both the mining and finance side, which will be much needed in the months and years ahead to ensure the Sunshine's mines success - I have great confidence that the SNS team will endeavor to make this project a success."
Sterling Mining Co., citing financial difficulties and an inability to keep the mine in working order as required, surrendered its lease on the Sunshine to SPMI on Feb. 19th. In the interim, SNS Silver agreed to assume maintenance, security and utility costs at the mine in order to prevent any degradation of the property. Two former Sterling employees already have been retained by SNS in furtherance of that goal, Greenway said.
The Sunshine Mine has been North America's most prolific primary silver mine, over the last 100years, having produced more than 350 million ounces of high grade silver since its discovery in 1884 - an amount greater than that produced by the famed Comstock Lode in Nevada. The mine has produced between 4 million and 5 million ounces of silver annually through 2001 and has been as high as 12million ounces one year in the late 1930's the average grade was over 40 ounces per ton. A Canadian National Instrument (N.I.) 43-101-compliant report completed by Behre Dolbear & Co. in September 2007 listed reserves and resources in all categories for the Sunshine Mine at 231,528,312 ounces of silver, including 23,486,698 ounces in proven and probable reserves. "The Behre Dolbear & Co. 43-101 report is Historic in nature and SNS has not confirmed the Resource Cal in the report. Its use here is illustrative and SNS will retain Behre Dolbear & Co.
