VANCOUVER, BRITISH COLUMBIA--(Marketwire - February 20, 2008) - Silverstone Resources Corp. (TSX VENTURE: SST) ("Silverstone") reports sales of 737,000 ounces of silver in 2007. Silverstone previously forecast 2007 silver sales of 700,000 ounces (see October 10, 2007 news release). The additional silver was due to increased production rates at the Cozamin mine. On September 28, 2007, Silverstone completed the purchase of 100% of the life of mine silver from Lundin Mining's Neves-Corvo and Aljustrel mines (see June 6, 2007 press release). Silverstone started to receive silver from Neves-Corvo production commencing on October 1, 2007. The Aljustrel mine began commissioning in late 2007. Silverstone changed its fiscal year end from August 31 to December 31 and will be filing its audited four month stub period ending December 31, 2007 in March 2008 and therefore will not be reporting quarterly financials at November 30, 2007. Silverstone is pleased to report silver sales results for the four months ended December 31, 2007. Silverstone purchased 2007 production at an average cost of US$3.98 per ounce. The cost of silver is fixed at less than US$4.00 per ounce through 2010.
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2007 (F) 2007 (A) Sept - Dec 2007
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Ag (oz) Ag (oz) Ag (oz)
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Cozamin 565,000 591,000 377,000
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Neves-Corvo Copper 135,000 146,000 146,000
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Neves-Corvo Zinc 0 0 0
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Aljustrel Zinc 0 0 0
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Total 700,000 737,000 523,000
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Note: Audited results for the 4 months ended December 31, 2007
will be reported in March 2008.
As a result of the completed expansion to 2,200 tpd and the current expansion to 3,000 tpd at the Cozamin mine (see Capstone Mining Corp.'s January 17, 2008 press release), Silverstone has increased its 2008, 2009 and 2010 silver sales forecast to the following:
Silver Sales Forecast(1)
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2008 (F) 2009 (F) 2010 (F)
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Ag (oz) Ag (oz) Ag (oz)
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Cozamin 1,300,000 1,500,000 1,500,000
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Neves-Corvo Copper 540,000 540,000 540,000
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Neves-Corvo Zinc 90,000 260,000 260,000
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Aljustrel Zinc 225,000 875,000 1,200,000
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Total 2,155,000 3,175,000 3,500,000
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(1) Silver sales forecasts are based on 2007 actual metallurgical
recoveries of silver to concentrates at the various operations combined
with forecast grades and production and existing smelter contracts for
the different concentrates.
Exploration Properties
Silverstone has earned a 100% interest on its five silver-gold exploration projects (Copala, Claudia, Martha, Promontorio and Montoros) all located in Mexico, pursuant to the amended and restated option agreement between Silverstone, Grupo Minero Bacis S.A. de C.V. ("Bacis") and Silverstone Resources, S.A. de C.V. Silverstone must pay Bacis a 3% net smelter return on all metals produced from the projects. For further details describing the option agreement please see the Company's prospectus dated April 18, 2006 filed on www.sedar.com.
Silverstone has optioned up to a 60% interest in the Promontorio and Montoros projects to Mega Silver Inc. ("Mega") as follows: Mega must spend CDN$5 million in expenditures and issue 550,000 common shares of Mega on each project over a 5 year period. To date, 150,000 common shares for each project have been issued and received by Silverstone. Mega can earn an additional 10% interest in the projects by delivering a feasibility study to Silverstone by December 31, 2017. Silverstone has the right to earn back a 20% interest (for an aggregate 50% beneficial interest). For further details on the option agreement terms please see the Mega press release dated September 18, 2007.
Mr. Hugh Willson, P.Geo., Vice-President, Exploration of Silverstone, who is a "qualified person" under National Instrument 43-101, has reviewed and approved the technical aspects of this news release.
ABOUT SILVERSTONE
Silverstone is a Canadian based public silver mining company with 100% of its revenue from silver production. More information is available online at: www.silverstonecorp.com.
This press release contains "forward-looking information" that is based on Silverstone's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Silverstone's mineral discoveries, plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Silverstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Silverstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange has neither approved or disapproved of the contents herein.
Contacts:
Silverstone Resources Corp.
Chris Tomanik
(604) 637-8151
Email: ctomanik@silverstonecorp.com
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