Silver Eagle Mines Inc. (“Silver Eagle”) is a TSX listed, Canadian-based silver exploration and development company focused on acquiring, exploring, and developing high grade silver deposits among the rich silver mines of the Mexican mineral belt. Silver Eagle’s primary asset is a 100% ownership position in the Mexican company San Pedro Resources, S.A. de C.V. (“SPR”), which controls the fully permitted Miguel Auza property in Zacatecas, Mexico. The property is a past producer, first mined by the Conquistadors in the mid 1500’s and has returned numerous bonanza grade drill results (in excess of 1,000 g/t silver). The property is close to infrastructure and a trained mining work force.
The Miguel Auza property, which includes the mineral rights to 41,495 hectares (102,534 acres) of land, has several high potential exploration areas identified and targeted for evaluation. Contained within a 2 km² portion of the Miguel Auza property are several known silver bearing veins which have been mined discontinuously since the Conquistadors initially worked the area in the mid 1500’s. The deepest historic workings are at 140 meters and all veins remain open on strike and to depth. The Calvario and Northern Vein systems are the primary vein systems and ongoing drilling on these veins has returned many silver assays in excess of 1,000 g/t. The newly discovered east vein system, as well, is returning high precious metal values and is believed to be an eastern extension of the high grade Northern Veins, while the Mill Area Vein system appears to be characterized by higher lead and zinc grades, with lower precious metal grades. Silver Eagle has driven a ramp to intersect the Calvario Vein system, at its western extremity, and is currently mining and processing a bulk sample from the vein material. The knowledge gained from processing the bulk sample, along with the test work performed at SGS Lakefield Laboratories, will assist in planning the future growth of the mining. Silver Eagle continues to develop the ramps and Calvario vein system which currently includes three previously unknown veins. The Milagro, Calvario A and Calvario B veins are newly discovered veins which are included in our recent mineral resource update (see Oct 17 press release). In 2005 Silver Eagle completed the property’s first ever modern exploration campaign by diamond drilling the Calvario Vein system, enabling the company to declare a mineral resource on the property. This resource was recently updated in Oct 2007(see Oct 17 press release). Silver Eagle is currently exploring the other vein systems and extending the Calvario Vein system on strike and to depth in an effort to augment and further delineate the veins for mine planning purposes.