Mr. Chris England, President and CEO of Silver Fields Resources Inc., is pleased to provide shareholders with the following update.
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 the year and are displayed on Silver Fields’ Website www.silverfieldsresources.com.
The exploration plans for 2012 include continued mechanized trenching and sampling as well as up to 2000 metres of drilling as recommended by Mr. Peter Folk, P.Eng., the mine manager 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 the 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.
An integral facet of the permitting approval process includes communicating 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. The Company is sympathetic to these concerns and has been working closely with the Band Council in offering solutions should these problems arise. Discussions have progressed well and Silver Fields has put forward the idea of a “Strategic Alliance” with the band, 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. A portion of the financing was completed prior to the 2011 year end, and management is concentrating on closing the balance of the financing by the end of January. 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. We seek Safe Harbor.