03:11 26Jul2002 BSW-Silver Standard Resources Inc.: Drilling at Challacollo Expands Silver <SSO.V>

Silver Standard Resources Inc.:
Drilling at Challacollo Expands Silver Mineralization Below Historic
Workings
VANCOUVER, British Columbia--(BUSINESS WIRE)--July 25,
2002--Silver Standard Resources Inc. (NASDAQ:SSRI) (TSX
VENTURE:SSO.CX) (BERLIN:858840) is pleased to report the intersection
of thick sequences of silver mineralization over a 600-meter strike
length below Cerro Challacollo at its Challacollo silver property in
northern Chile. This mineralization was encountered in a 17-hole,
2,500-meter program of reverse circulation drilling that was completed
in June. The program was designed to test the northern section of the
Lolon vein over a strike length of 1,100 meters as well as Challacollo
Sur and the San Francisco vein. Silver Standard optioned Challacollo
from Sociedad Contractual Minera Septentrion (SCMS) of Santiago,
Chile, sole owner of the property located in the Region of Tarapaca
130 kilometers southeast of Iquique.
The Lolon vein underlying Cerro Challacollo was tested by nine
holes consisting of CHAG-15 to 19 and CHAG 21 to 24. These holes
defined a 600-meter long zone of higher grade silver mineralization
over significant intervals ranging from 13.1 to 78.7 feet. Three holes
intersected two sections of vein: previously reported CHAG-15
intersected mineralization with assays of 10.2 ounces of silver per
ton over 49.2 feet and 9.1 ounces of silver per ton over 52.5 feet.
This hole is flanked by two others (CHAG 14 and 18) that also cut two
sections of the vein.
The best new results were obtained in CHAG-16, 22 and 23. CHAG-16
encountered 6.8 ounces of silver per ton over an interval of 36.0 feet
and CHAG-22 intersected 6.4 ounces of silver per ton over 62.3 feet,
including 9.4 ounces of silver per ton over 32.8 feet. CHAG-23, which
cut the Lolon vein about 75 meters from CHAG-22, intersected 8.5
ounces of silver per ton over 49.2 feet. See the attached table and
accompanying map for additional detail on values, true widths and hole
locations.
CHAG-20 tested the San Francisco vein located approximately 800
meters southwest of the Lolon vein. This hole indicated potential for
high-grade mineralization over narrow widths with an assay of 16.4
ounces of silver per ton over 6.6 feet.
Based on the results of this program, Silver Standard will
continue with its option to purchase the property. Under the terms of
an agreement with SCMS, Silver Standard will pay a total consideration
of US$1.5 million staged over two years, subject to an existing 2%
royalty and a 2% royalty to the property vendors that can be purchased
for US$1.5 million at any time. The purchase price includes a 5.0%
vendor finder's fee. The company also plans to update a previously
reported polygonal resource consisting of indicated resources
totalling 10.2 million ounces of silver plus inferred resources of an
additional 36.9 million ounces.
All assays were submitted for preparation and analysis by ALS
Chemex at its Antofagasta, Chile, facilities. Samples with up 100
grams of silver per tonne were fire assayed with an AA finish and a
fire assay with gravimetric finish was run on all samples containing
more than 100 grams of silver per tonne silver as determined by ICP
analysis. One in 10 samples were duplicate assayed at ALS Chemex's
office in Vancouver and selected high-grade samples were analyzed a
second time for accuracy. Ken McNaughton, P.Eng., vice president,
exploration, supervised the Challacollo drilling program and is a
Qualified Person as defined by Canada's National Instrument 43-101.
Silver Standard is a significant, well-financed silver resource
company with projects in Australia, Argentina, Chile, Mexico, and the
United States. With $18.3 million in cash, Silver Standard is actively
advancing its portfolio with fall drilling programs planned at Bowdens
in Australia and Manantial Espejo in Argentina.
To receive Silver Standard's news releases by e-mail, contact Paul
LaFontaine, director, investor relations at invest@silverstandard.com
or call (888) 338-0046. The TSX Venture Exchange has neither approved
nor disapproved of the information contained herein. The statements
that are not historical facts are forward-looking statements involving
known and unknown risks and uncertainties which could cause actual
results to vary considerably from these statements. The risks and
uncertainties include those described in Silver Standard's SEC Form
20F as amended.
-0-
SUMMARY OF SELECTED CHALLACOLLO DRILLING RESULTS - July 2002
Dip/ True Silver
Hole Location Azi- From To Interval Width Silver Lead (in oz./
No. (UTM) muth (m) (m) (m) (m) (in g/t) (in %) ton)
----------------------------------------------------------------------
Previously Reported Assays
----------------------------------------------------------------------
CHAG- 7682252N -50(deg)/
08 46071E 110(deg) 43 46 3 2.1 98.0 3.81 2.9
----------------------------------------------------------------------
CHAG- 7682508N -50(deg)/
09 464247E 160(deg) 74 80 6 4.3 191.0 0.78 5.6
----------------------------------------------------------------------
CHAG- 7682572N -50(deg)/
10 464256E 90(deg) 122 127 5 5.0 67.2 2.88 2.0
----------------------------------------------------------------------
CHAG-
11 7682604N -50(deg)/
464242E 70(deg) 47 49 2 2.1 593.5 1.64 17.3
and 176 179 3 122.7 7.8 3.6
----------------------------------------------------------------------
CHAG- 7682690N -44(deg)/
12 464270E 75(deg) 33 35 2 6.9 307.5 0.25 9.0
and 136 143 7 151.0 1.39 4.4
----------------------------------------------------------------------
CHAG- 7682795N -55(deg)/
13 464248E 90(deg) 142 166 24 15.4 249.6 1.59 7.3
----------------------------------------------------------------------
CHAG- 7682920N -50(deg)/
14 464246E 90(deg) 137 145 8 5.7 137.5 0.19 4.0
incl. 141 144 3 2.1 248.3 0.26 7.2
and 161 164 3 2.1 246.7 0.42 7.2
----------------------------------------------------------------------
CHAG- 7683013N -65(deg)/
15 464252E 100(deg) 128 143 15 8.6 350.9 0.26 10.2
and 156 172 16 9.2 312.2 2.17 9.1
----------------------------------------------------------------------
New Assay Results
----------------------------------------------------------------------
CHAG- 7683098N -55(deg)/
16 464247E 95(deg) 123 134 11 9.0 232.4 1.20 6.8
----------------------------------------------------------------------
CHAG- 7683170N -65(deg)/
17 464292E 100(deg) 137 141 4 2.0 441.1 n/a 12.9
----------------------------------------------------------------------
CHAG- 7683254N -60(deg)/
18 464285E 65(deg) 156 161 5 3.8 102.9 0.37 3.0
and 171 182 11 8.4 163.9 0.26 4.8
----------------------------------------------------------------------
CHAG- 7683024N -39(deg)/
19 464340E 104(deg) 4 8 4 3.5 534.4 n/a 15.6
----------------------------------------------------------------------
CHAG- 7681754N -50(deg)/
20 464614E 140(deg) 143 145 2 1.4 561.0 0.48 16.4
----------------------------------------------------------------------
CHAG- 7683436N -65(deg)/
21 464311E 90(deg) 121 139 18 12.7 159.5 0.30 4.7
----------------------------------------------------------------------
CHAG- 7683510N -53.5(deg)/
22 464325E 80(deg) 116 135 19 15.8 218.3 0.24 6.4
incl. 125 135 10 8.3 324.0 0.19 9.4
----------------------------------------------------------------------
CHAG- 7683482N -60/
23 464371E 100(deg) 37 52 15 11.5 290.4 0.14 8.5
----------------------------------------------------------------------
CHAG- 7683583N
24 464383E -90 131 136 5 1.7 62.9 1.59 1.8
----------------------------------------------------------------------
Longitudinal section of the Lolon vein available from the company
at the numbers listed below.
--30--LS/na*
CONTACT: Silver Standard Resources Inc.
Robert A. Quartermain, 604/689-3846
Website: www.silver-standard.com
or
Paul LaFontaine, Direct 604/484-8212
or Toll Free 1-888-338-0046
Email: invest@silverstandard.com
TodINDUSTRY KEYWORD: MINING/METALS
SOURCE: Silver Standard Resources Inc.
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Friday, 26 July 2002 03:11:59
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