VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/02/09 -- SNS Silver Corp. (TSX VENTURE: SNS) is pleased to announce that it has entered two Letters of Intent with Premium Exploration (TSX VENTURE: PEM) ("PEM"), to jointly develop and explore two Central Idaho Gold Projects, Buffalo Gulch and Friday/Petsite.
The Letters of Intent (LOI) allow SNS to earn in to a maximum of 50% by advancing financing and paying certain exploration and development costs to develop two Central Idaho Gold Projects, Friday/Petsite and Buffalo Gulch properties. SNS has initially paid PEM CDN $125,000 in advance on each LOI. The parties agree to enter into a Definitive Agreement within 90 days. Consideration will include SNS stock along with ongoing financing as agreed, on a schedule for each project.
Del Steiner, President and CEO of Premium stated, "It is Premium's and SNS's intent to strategically develop both exploration and precious metal production projects in Idaho. The Companies will provide economic benefit to the people in the State of Idaho with good paying jobs and an increased tax base. The parties will employ state of the art mining methods with environmental consciousness."
David Greenway, President and CEO of SNS Silver Corp. commented, "Bringing in gold assets that are near term production at low cost, will provide additional shareholder value as the gold and silver metals markets are poised for a dramatic upside in the current economy. In addition, these gold assets will allow SNS to remain focused in Idaho."
About the Idaho Gold Properties on the Orogrande Shear Zone
The Orogrande Shear Zone is a 28 km high-grade mineralizing conduit and potential feeder system hosting over 681,000 oz of known gold to date. Utilizing a new model based on the high-grade gold mineralization hosted in the geology of the Shear Zone, Premium's geologists are the first to interpret the numerous gold resources and targets along the Shear Zone as being the result of a potential high-grade feeder model.
The most northern property on the Orogrande Shear Zone, Buffalo Gulch, is currently being permitted for production. The property is an open-pit heap leach project with 100,000 oz Au (Non 43-101). Projected production on this project is 25,000 oz Au/year - 35,000 oz Au/year.
Premium's Friday-Petsite property is a 531,890 Au oz Inferred Resource (NI 43-101) on the southern-end of the Shear Zone and is open along strike and at depth. The property also hosts historic high-grade drill results, which support the potential high-grade conduit theory.
Historic high-grade HQ drilling by Cypres-Amax and Kinross Gold Corp.
