Trading Symbol - SF.V
VANCOUVER, May 31, 2012 /CNW/ - Mr. Chris England, President and CEO of Silver Fields Resources Inc., is pleased to announce the Company has determined the snow pack on Mount Richter has melted to the point where equipment and personnel can be mobilized in preparation for the 2012 exploration season.
Silver Fields' primary mineral property is known as the Keremeos Silver Project and is located on Mount Richter, between Keremeos and Osoyoos in the Similkameen Mining District of British Columbia. The property consists of 15 mineral claim tenures, encompassing 2,048 Hectares (4,506 acres).
2011 saw extensive work being conducted on the Project, which has returned significant silver and gold values from several new mineralized areas, namely the "Cow Trail Vein" (3.67 g/t gold, 1625 g/t silver); the " Silver Fields Vein" (5.69 g/t gold, 956 g/t silver); and the "Tire Line Vein" ( 54.10 g/t gold). Assays are pending on the "B" Vein", and the "Kohler Vein". The property also encompasses the former Dankoe-Utica Silver Mine, which according to the B.C. Government Minfiles, produced 433,396 tonnes of ore from which approximately 127 million grams (4,089,409 oz) of silver, 333 thousand grams (10,706 oz) of gold, plus copper, lead and zinc were extracted.
Results from these areas have been described in detail in several Stockwatch news releases during 2011 and are displayed on Silver Fields' Website www.silverfieldsresources.com.
The exploration plans for 2012 include mechanized trenching and sampling as well as up to 2000 metres of drilling as recommended by Mr. Peter Folk, P.Eng., who was part of the management team of the former Dankoe-Utica Silver Mine, and Silver Fields' project geologist. Mr. Folk is also a Qualified Person as defined by National Instrument 43-101. As well, one of the portals of the former Dankoe mine will be opened and secured, after which, an underground program will be carried out to geologically map and sample the underground workings where accessible.
The permitting process was completed in late February, and management is working closely with the Lower Similkameen Indian Band, who are concerned primarily with land use and the potential of environmental damage and subsequent reclamation of the impacted areas. Silver Fields and the Band Council have agreed on a "Strategic Alliance" which will allow close scrutiny by a designated Band Member of any exploration work to be conducted.
The Company is offering a non-brokered private placement of 12,000,000 units, to raise proceeds of $600,000. The private placement consists of 6,000,000 non-flow through units priced at $0.05 per unit and 6,000,0000 flow-through units priced at $0.05 per unit. As well, each unit consists of a two year warrant with an exercise price of $0.10 during the first 12 months of the term of the warrants, and at an exercise price of $0.15 during the last 12 months of the term. The gross proceeds of the offering will be used in part for general working capital and the flow through portion of the private placement will be used for qualified Canadian Exploration Expenditures, including the planned drill program on the Company's Keremeos Silver Project.
The Company will pay a finder's fee in connection with the private placement of 10% cash, plus 10% Agent's Warrants where permitted by the TSX Venture Exchange.
On behalf of the Board of Directors
President and CEO
Silver Fields Resources Inc.
Neither 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 release.
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.
For further information:
Mr. Chris England