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Coeur d' Alene mining district - Big Creek Canyon, Idaho
Message: Completes Lease Agreement for Sunshine Mine in Idaho
| April 15, 2009 |
| SNS Silver Completes Lease Agreement for Sunshine Mine in Idaho |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 15, 2009) - SNS Silver Corp. (TSX VENTURE:SNS) has completed and signed a Mining Lease Agreement for the operation of the Sunshine Mine near Wallace, Idaho. An advisory team of eminent mining professionals recently completed an assessment of the property on SNS' behalf (infrastructure, geology, economics and exploration potential) which greatly assisted management in their decision to finalize the acquisition. SNS President David Greenway noted that, "The agreement was especially easy to complete given the agreeable terms presented by the owner (Sunshine Precious Metals Inc.), the support of the community and the synergies created by this merger with our neighboring Crescent Mine. We have spent the last two years working with the mining community in Idaho to identify targets at the Crescent which will provide a supplementary source of ore; allowing the Sunshine Mill to resume operations while we identify and develop new reserves on the combined land package." SNS Silver Corp. will pay Sunshine Precious Metals Inc. (SPMI) $250,000 upon signing with subsequent payments of $80,000 per month. The company (SPMI) has also agreed to accept 8 million shares of restricted common stock in SNS Silver Corp to show their support of the new management team. Robert Mori, President of SPMI stated, "It has been a pleasure working with the SNS team and Mr. Greenway on this lease, and now that it has been perfected we are going to get the miners of North Idaho back to work. In these trying economic times, it is great to see that corporate America can work together for the benefit of the country." Sunshine Precious Metals Inc. is the owner of the Sunshine Mine, improvements to real property, water rights, fixtures, equipment and personal property used in the operation of the Mine and the Con Sil. Sunshine also holds certain rights to the tailings pond. Sunshine Precious Metals Inc. reserved a right to use the tailings pond when it and other assets were sold to Formation Chemical (formerly known as Formation Capital) on August 16, 2001. The term "Leased Property" means all mineral rights, title and interest of Sunshine, including any leased rights, the Sunshine Mine and Mill and Con Sil, including all of the property necessary and convenient for the full and complete operation of the Sunshine Mine and Con Sil. Leased Property also includes surface rights that are necessary for specific mine-related operations, such as, but not limited to, the surface of the mine and mill facilities, tailings ponds and pipelines and easements to the tailings pond, which may cross property not the subject of this Lease but crosses and is situated on property owned or controlled by Sunshine through one or more of its subsidiaries or related parties, mine yard, storage yards, waste rock disposal areas, and the parking lots. Leased Property also includes all water rights held by Sunshine in the amount necessary to operate the mining and processing facilities and activities related to the real property subject to all Federal State and local laws or regulations concerning the appropriation and taking of water. In 2008 the Sunshine Mine and Mill was made operational after many man hours of rehabilitation and millions of dollars invested. Production ceased in November, 2007 and the Mill was shut down properly by experienced personnel. The Sterling Tunnel is currently being maintained with pumping and ventilation efforts to preserve the electrical substations as well as the new state of the art electrical components and switchgear in the Silver Summit hoist room. One of the top priorities of Crescent Inc. (A subsidiary of SNS Silver Corp.) is restarting and continuing the de-watering efforts of the previous operator to gain critical access to areas of the Mine targeted for exploration and production. A new scoping study is being prepared by a professional and experienced mining team with a focus on exploration priorities in the early stages with moderate production opportunities used to offset operating costs. There is a strong possibility of a new discovery in several of the areas of interest prioritized for exploration. This would dramatically affect the long term potential of the Sunshine Mine. SNS Silver Corporation (TSX VENTURE:SNS) is an exploration mining company, whose assets include a number of near term production projects in geopolitically secure Idaho, USA. The 100% owned Crescent Mine consists of 24 patented mining claims over approximately 350 acres. A comprehensive drill and mine rehabilitation program was completed in 2008 and production will supplement the company's operations at its recently acquired Sunshine Mine. These adjacent properties operated independently to produce nearly 400 million ozs of silver historically and their recent merger is expected to enhance exploration opportunities on their once disputed boundary. SNS also benefits from a partnership arrangement with Premium Exploration Ltd.to jointly develop two near term gold production projects in central Idaho; Buffalo Gulch and Friday/Petsite. |
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