HOUSTON, April 14, 2011 (GLOBE NEWSWIRE) -- El Tigre Silver Corp. (TSX-V:ELS) (Pink Sheets:EGRTF) reported strong results Wednesday on its drill report at its Sonora Mexico silver mine while investors await the next release of drill reports due out shortly. The mine, which was originally explored by Anaconda Mining in 1980, is being prepared for further exploration.
When Anaconda first explored the property the mining giant was looking for high-grade ore deposits, though 18 million ton of low-grade ore was estimated to exist. But at an average of 5oz per ton and silver hovering around $4 per ounce, Anaconda abandoned the project. Little did they know silver prices would one day reach levels not seen since the Hunt Bros. cornered the market.
El Tigre acquired 43,098 hectares for a 100% interest on the silver property about a year-ago and has since begun drilling with Wednesday's results a strong indication of the value in low-grade silver ore. Silver prices reached a new high this past week of over $42 per ounce, making the mine a viable future development once the ore bodies can be further defined. El Tigre's President, Stuart Ross, said in a telephone interview Tuesday that the Company will be announcing details on its drilling plans shortly once the next batch of drill results are released. Ross said that El Tigre had sufficient funds for drilling 5000 meters. He felt confident that El Tigre would identify more mineable mineralization once those drill results were in.
"Anaconda was right," said Ross. When the mining giant was exploring the property for high-grade silver ore it had identified a massive amount of tonnage of low-grade silver ore, estimated to average 5 oz per ton, which places the tonnage today at somewhere around 18 million ton and at $40+ silver, "that would make the El Tigre a viable property," Ross explained.
Mr. Ross isn't the only one who's shown confidence in the El Tigre Silver Mine. His company's backers read from the "Who's Who" of precious metals gurus which includes Mr. Eric Sprott, CEO and founder of Sprott Asset Management LP, which holds a principal position in the company as an early-stage investor.
Sprott, who's bullish on silver, sees prices ranging as high as $50 per ounce in 2011 and even higher over the next five years. Sprott was quoted in an April 6, 2011 story in ETF News as saying, "Silver will be the investment of this decade and all the fundamentals would suggest it will go much higher."
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