Silver Elephant Mining drills 157 g/t silver over 39.9 metres at Paca, Bolivia

Silver Elephant Mining Corp. [TSX-ELEF; OTC Pink-SILEF; FSE-1P2] reported diamond drill results from the Paca deposit within its 100%-controlled Pulacayo-Paca silver project in the Potosi department in Bolivia.

Further to the company’s news release dated June 12, 2024, a total of 28 holes were drilled in the Paca north area totaling 1,458 metres. The assays for 13 holes (7 exploration, 6 infill) have been received and are reported below. The remainder of the assays are expected in early August.

Notable results from the 7 exploration holes include PC24-18 which intercepted 39.9 metres of 159 g/t silver from surface, including 3.0 metres of 583.5 g/t silver and PC24-23 which intercepted 23.1 metres of 138 g/t silver from surface, including 2.7 metres of 360 g/t silver. Both PC24-18 and PC24-23 were drilled in the southwest of the Paca north area.

This drill program was paid for by Andean Precious Metals Corp. [TSXV-APM; OTCQX-ANPMF]. Pursuant to the sales and purchase agreement and master services agreement detailed in the news release dated September 12, 2023, Silver Elephant plans to sell and deliver up to 800,000 tonnes of Paca oxide materials to Andean for a total of between US$5 million and US$7 million depending on the silver price. At the current silver price and production run rate, the company expects to receive US$2.5 million before January 31, 2025. Andean has also agreed to reimburse Silver Elephant for operating expenses under the Sales and Purchase Agreement.

John Lee, CEO of Silver Elephant comments: “All seven exploration drill holes intercepted silver mineralization outside of Paca resource area. We are very excited about the potential addition to Paca oxide resource as any oxide sales exceeding 800,000 tonnes will be subject to a new off take agreement between Silver Elephant and Andean. In June, Silver Elephant delivered 29,270 tonnes of Paca oxide materials to Andean.”

Refer to original press release for complete drill results. The drill program confirmed a highly deformed, disseminated mineralization located within a north-south structural trend.

The Paca project hosts a high-grade silver resource according to a technical report by Mercator Geological Services, dated effective October 13, 2020 titled “Mineral Resource Estimate Technical Report for the Pulacayo Project, Potosi Department Antonnio Quijarro Province Bolivia”.

The mineral resource estimate from the Technical Report is as follows: Paca Phase 1 Oxide In Pit has Indicated resources of 800,000 tonnes of 231 g/t silver for 5.9 million ounces with Inferred resources of 235,000 tonnes grading 159 g/t silver for 1.2 million ounces.

Paca Phase 2 Sulphide In Pit has 1,810,000 tonnes of 256 g/t silver for 14.9 million ounces plus 1.22% zinc and 1.22% lead with Inferred resources of 190,000 tonnes of 338 g/t silver for 2.1 million ounces plus 0.61% zinc and 0.98% lead.

The Paca project is part of the company’s Pulacayo-Paca project with a total indicated resource of 106.7 million oz silver, 1.4 billion pounds of zinc and 690 million pounds of lead published in the Technical Report and tabulated below. Silver Elephant and its subsidiaries have spent over $35 million on Pulacayo and Paca, which is considered to be an advanced project with over 96,000 metres of drilling, and a historic feasibility study.

Combined Pulacayo and Paca Indicated resources stand at 2,185,000 tonnes oxide grading 155 g/t silver with 45,855,000 tonnes of 65 g/t silver, 0.69% lead and 1.37% zinc sulphide.

A subsidiary of Silver Elephant entered into a Mining Production Contract (MPC) with Corporación Minera de Bolivia (COMIBOL), a branch of the Bolivian Ministry of Mining and Metallurgy on October 3, 2019. The MPC grants the company’s subsidiary an exclusive right to develop and mine at the Pulacayo and Paca concessions for up to 30 years.

The Pulacayo-Paca Project is at the center of a major silver mining district in Bolivia and is within 250 km driving distance to the San Cristobal mine, the Cerro Rico mine, Pan American’s San Vicente mine, Eloro’s Iska Iska project, and New Pacific’s Silver Sands project.

Silver Elephant is a silver mining company, with its flagship Pulacayo-Paca silver project in production since October 2023 in Bolivia.