we never hear much about diablillos because so many other projects are ahead of it in the pecking order. but it is a large silver/gold deposit that would be the flagship of most other silver mining companies. most of the inferred resources has now been moved up to indicated:

Silver Standard Resources Inc.: Updated Resource Estimate for Diablillos Silver-Gold Project

Silver Standard Resources Inc. (TSX: SSO)(NASDAQ: SSRI) reports an updated resource estimate for the wholly-owned Diablillos Project located in the Province of Salta in northern Argentina. The Project is 275 kilometers (171 miles) south of Silver Standard's Pirquitas Mine in the Province of Jujuy. The resource estimate follows recent diamond drilling completed by Silver Standard which was successful in converting a significant portion of the previously reported inferred resources into the indicated category.

The following block model resource estimate is for the Oculto Zone, one of 11 mineralized zones identified on the property. This resource estimate was completed by Dr. Gilles Arseneau, P. Geo., Chief Geologist, of Wardrop, A Tetra Tech Company in Vancouver, B.C. Dr. Arseneau is an 'independent qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and has verified the Diablillos data disclosed in this release.

The resource estimate was based on 54,954 assays from 301 holes drilled on the Oculto Zone. Mineral resources were estimated, using Gems Software version 6.2, into 10 x 10 x 5 m blocks within grade shells representing greater than 0.5 g/t gold and greater than 40 g/t silver, using ordinary kriging and 1.5 m composited drill data. Blocks outside of the grade shells were also estimated using ordinary kriging. Blocks within the greater than 0.5 g/t Au and greater than 40 g/t Ag grade shells were classified as Indicated and those outside of the grade shells as Inferred.

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Diablillos Project - Oculto Zone Resource Summary - June 2009 (1)

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                                                    Contained Ounces(1)
                                             -------------------------------
Category       Tonnes     Gold    Silver        Gold                Silver
            (millions)    (g/t)     (g/t)     (in oz.)  (in millions of oz.)
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Indicated        21.6    0.922       111     640,000                  77.1
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Inferred          7.2    0.807        27     187,000                   6.3
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(1) The cut-off grade is based on US$10.00 recovered metal values (RMV) and
    the following metal prices and recoveries: gold (US$700/oz, 65%); and
    silver (US$11.00, 40%).

Based on a locked-cycle metallurgical program using conventional milling, preliminary precious metal recoveries averaged 86.9% for gold and 87.0% for silver. The heap leaching characteristics of the mineralization were also tested on a number of composites. Recoveries from column tests using a 3/4 inch crush averaged 65.2% for gold and 43.5% for silver. A pre-feasibility study will be undertaken that will explore various combinations of milling and heap leaching alternatives for this significant silver-gold resource.

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