TORONTO, ONTARIO--(Marketwire - Aug. 15, 2011) - Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR) today announces good progress on its 2011 exploration program. A total of four drills are now operating at site. The early part of the drilling program is focused on proving up extensions of the Vertikalny deposit along its strike length. To date, only 2.5 kilometers of a potential 5 kilometers strike has been explored by drilling.
"We hit mineralization in the first drill hole which was within our sparsely drilled North West section of the Vertikalny deposit", commented Nick Fox, Silver Bear's Vice President of Exploration. "This is very encouraging, and it is clear that both the Vertikalny Orezone and adjacent prospects hold great potential to grow the already significant and high grade silver resource." Nick Fox added.
The Company is targeting a 15,000 meter drilling program for this year. Since acquiring the exploration rights, Silver Bear has drilled 28,000 meters on its Mangazeisky lease, which the Vertikalny deposit is part of. An updated National Instrument 43-101 ("NI 43-101") mineral resource estimate released earlier this year has an inferred mineral resource of 31 million ounces of Silver at a grade of 554 g/tonne and an indicated mineral resource of 18 million ounces of Silver at a grade of 514 g/tonne. (NI 43-101 compliant, see news release dated March 28, 2011).
"Over the course of the last few weeks, the Company has been executing on a drilling exploration program initiated only three months ago. The Silver Bear team headed by Randy Lewis (General Director in Russia for Silver Bear) have really made things happen, and we have strengthened that team with the recent addition of Nick Fox as our VP of Exploration" said Mark Trevisiol, President and CEO of Silver Bear.
In addition, Silver Bear plans to complete a Preliminary Economic Assessment (PEA) at the Mangazeisky Project in the third quarter of 2011. Silver Bear has also commissioned a Russian Feasibility Study and Russian reserve estimate, which will be submitted to Russian authorities in the fourth quarter of 2011 as part of the process of obtaining a mining license.
"The Mangazeisky Project hosts an attractive silver deposit with significant exploration potential. The team is eagerly working on the expanded exploration program and are excited by the potential of making this Russia's next Silver producing mine," added Mark Trevisiol.
Silver Bear also announces today its financial results for the quarter ended June 30, 2011, prepared in accordance with International Financial Reporting Standards ("IFRS"). All dollar amounts are stated in Canadian dollars unless otherwise indicated.
Financial Results
Silver Bear incurred a total comprehensive loss for the three and six months ended June 30, 2011 of $1.20 million, ($0.03 per share) and $1.88 million ($0.05 per share) respectively. This compares to a total comprehensive loss of $0.41 million ($0.01 per share) and $1.53 million ($0.04 per share) respectively for the three and six months ended June 30, 2010. Exploration costs were $0.48 million and $0.78 million compared to $0.32 million and $0.88 million for the three and six months ended June 30, 2011 and 2010 respectively. General and administrative expenses were $0.44 million and $0.75 million compared to $0.50 million and $0.88 million for the three and six months ended June 30, 2011 and 2010 respectively. Non-cash items were $0.27 million and $0.53 million compared to $0.17 million and $0.36 million for the three and six months ended June 30, 2011 and 2010 respectively. Interest income and foreign exchange were nominal at $0.00 million for all reported and comparative periods.
Liquidity and Capital Resources
At June 30, 2011, Silver Bear had cash and cash equivalents of $13.85 million. The Company has no debt outstanding. Silver Bear anticipates that it has a sufficient amount of cash and cash equivalents to meet its near term objectives. Silver Bear has budgeted for 5,000 cubic metres of trenching and 15,000 metres of drilling in 2011 at a cost of $10.0 million with an additional $1.6 million of corporate costs. Including the proceeds from the May 11, 2011 private placement, cash and cash equivalents as of July 31, 2011 were $10.78 million.
| Silver Bear Resources Inc. |
| Condensed Consolidated Interim Statement of Financial Position |
| (Canadian dollars) | ||
| (Unaudited) | ||
| June 30, | December 31, | |
| 2011 | 2010 | |
| (Note 5) | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 13,852,028 | 11,114,277 |
| Receivable | 204,802 | 24,117 |
| Inventories | 1,138,599 | 1,097,946 |
| Prepaid expenses | 661,613 | 37,697 |
| Total current assets | 15,857,042 | 12,274,037 |
| Non-current assets | ||
| Mineral property | 1,152,898 | 1,085,277 |
| Property, plant and equipment | 689,423 | 900,072 |
| Total assets | 17,699,363 | 14,259,386 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities | 359,993 | 301,535 |
| Non-current liabilities | ||
| Asset retirement obligation | 629,879 | 588,609 |
| Total liabilities | 989,872 | 890,144 |
| SHAREHOLDERS' EQUITY | ||
| Capital Stock | 78,728,748 | 73,771,289 |
| Contributed surplus | 9,427,112 | 9,166,433 |
| Accumulated other comprehensive loss | (76,138) | (211,508) |
| Deficit | (71,370,231) | (69,356,972) |
| Total shareholders' equity | 16,709,491 | 13,369,242 |
| Total liabilities and shareholders' equity | 17,699,363 | 14,259,386 |
| Silver Bear Resources Inc. | |||||||||
| Condensed Consolidated Interim Statement of Comprehensive Loss | |||||||||
| For the three and six months ended June 30, 2011 and 2010 | |||||||||
| (Canadian dollars) | |||||||||
| (Unaudited) | |||||||||
| Three months ended | Six months ended | ||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||
| 2011 | 2010 | 2011 | 2010 | ||||||
| Income | |||||||||
| Interest income | 31,760 | 17,050 | 57,123 | 27,402 | |||||
| Other income | - | 512,940 | - | 512,940 | |||||
| 31,760 | 529,990 | 57,123 | 540,342 | ||||||
| Expenses | |||||||||
| Exploration costs | 475,504 | 322,813 | 781,323 | 877,560 | |||||
| General and administrative | 441,724 | 497,936 | 747,501 | 876,626 | |||||
| Amortization | 106,455 | 162,335 | 268,015 | 327,148 | |||||
| Share-based payment | 167,809 | 10,005 | 264,713 | 31,992 | |||||
| Gain on disposal of property, plant and equipment | - | - | - | (1,922 | ) | ||||
| Interest expense | 2,297 | 2,218 | 4,536 | 4,498 | |||||
| Foreign exchange loss | 2,023 | (6,854 | ) | 4,294 | (3,317 | ) | |||
| Expenses from operations | 1,195,812 | 988,453 | 2,070,382 | 2,112,585 | |||||
| Total Loss for the period | (1,164,052 | ) | (458,463 | ) | (2,013,259 | ) | (1,572,243 | ) | |
| Other comprehensive income (loss) | |||||||||
| Exchange differences on translating foreign operations | (36,990 | ) | 46,120 | 135,370 | 47,093 | ||||
| Total Comprehensive Loss for the period | (1,201,042 | ) | (412,343 | ) | (1,877,889 | ) | (1,525,150 | ) | |
| Deficit - Beginning of the period | (70,206,179 | ) | (68,178,213 | ) | (69,356,972 | ) | (66,580,685 | ) | |
| Deficit - End of the period | (71,370,231 | ) | (68,636,676 | ) | (71,370,231 | ) | (68,152,928 | ) | |
| Weighted average number of common shares outstanding | 39,461,699 | 37,935,569 | 38,710,379 | 37,935,569 | |||||
| Silver Bear Resources Inc. | ||||||||||
| Condensed Consolidated Interim Statement of Changes in Equity | ||||||||||
| For the six months ended June 30, 2011 and 2010 | ||||||||||
| (Canadian dollars) | ||||||||||
| (Unaudited) | ||||||||||
| Share capital |
Contri-buted surplus |
Accumu-lated other compre-hensive income |
Deficit |
Total equity |
||||||
| Balance - January 1, 2011 | 73,771,289 | 9,166,433 | (211,508 | ) | (69,356,972 | ) | 13,369,242 | |||
| Net loss for the period | - | - | - | (2,013,259 | ) | (2,013,259 | ) | |||
| Other comprehensive income (net of tax): | ||||||||||
| Cumulative translation adjustment | - | - | 135,370 | - | 135,370 | |||||
| Other comprehensive income (loss) for the period | - | - | 135,370 | (2,013,259 | ) | (1,877,889 | ) | |||
| Share based payment | - | 264,713 | - | - | 264,713 | |||||
| Options exercised | 8,234 | (4,034 | ) | 4,200 | ||||||
| Net proceeds from issuance shares in private placement | 4,949,225 | 4,949,225 | ||||||||
| Balance - June 30, 2011 | 78,728,748 | 9,427,112 | (76,138 | ) | (71,370,231 | ) | 16,709,491 | |||
| Balance - January 1, 2010 | 73,771,289 | 9,089,843 | - | (67,064,433 | ) | 15,796,699 | ||||
| Net loss for the period | - | - | - | (1,572,243 | ) | (1,572,243 | ) | |||
| Other comprehensive income (net of tax): | ||||||||||
| Cumulative translation adjustment | - | - | (47,093 | ) | - | (47,093 | ) | |||
| Other comprehensive income (loss) for the period | - | - | (47,093 | ) | (1,572,243 | ) | (1,619,336 | ) | ||
| Share-based payment | - | 31,992 | - | - | 31,992 | |||||
| Balance - June 30, 2010 | 73,771,289 | 9,121,835 | (47,093 | ) | (68,636,676 | ) | 14,209,355 | |||
Mark Trevisiol P.Eng, President and CEO of the Company and a qualified person under National Instrument 43-101 has reviewed and approved the scientific and technical information in this press release.
Silver Bear Resources Inc.
The primary business of the Company is the evaluation, acquisition, exploration and development of silver properties in the Russian Federation. The Company's principal focus is the Mangazeisky exploration lease, over which Silver Bear has exclusive exploration rights. It is located approximately 400 kilometres north of Yakutsk in the Republic of Sakha, Yakutia in the Russian Federation.
Silver Bear Resources Inc. is listed on the Toronto Stock Exchange and its common shares trade under the symbol "SBR". Silver Bear has 44,203,902 issued and outstanding common shares. Other information relating to Silver Bear is available on SEDAR at www.sedar.com as well as on the Company's website at www.silverbearresources.com.
Forward-Looking Information
This release and subsequent oral statements made by and on behalf of the Company may contain forward-looking statements, which reflect management's expectations. Wherever possible, words such as "intends", "expects", "scheduled", "estimates", "anticipates", "believes" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify these forward-looking statements. Although the forward-looking statements contained in this release reflect management's current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, Silver Bear cannot be certain that actual results will be consistent with these forward-looking statements. A number of factors could cause events and achievements to differ materially from the results expressed or implied in the forward-looking statements. Such risks factors include but are not limited to risks factors identified by Silver Bear in its continuous disclosure filings filed from time to time on SEDAR. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant known and unknown risks, assumptions and uncertainties that may cause Silver Bear's actual results, events, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although Silver Bear has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date of this release, and Silver Bear assumes no obligation to update or revise them to reflect new events or circumstances, unless otherwise required by law.
Effective June 15, 2011, the head office of Silver Bear Resources has been relocated to:
| 65 Queen Street West |
| Suite 805, P.O. Box 71 |
| Toronto, ON M5H 2M5 |
For further details, please visit www.silverbearresources.com.
Contact Information:
Mark Trevisiol
President and Chief Executive Officer
416-309-2131
mtrevisiol@silverbearresources.com
www.silverbearresources.com