Zinc

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Silvermet creates Turkey subsidiary for Waelz

2007-03-22 13:11 ET - News Release

Mr. Stephen Roman reports

SILVERMET ESTABLISHES TURKISH SUBSIDIARY FOR ITS WAELZ KILN ZINC PROJECT

Silvermet Inc. further to its corporate update, as reported in Stockwatch on Feb. 8, 2007, and specifically referring to the stated objectives contained therein, provides the following update.

Silvermet's management and consulting team has just completed an extensive two-week visitation to Germany and Turkey.

Silvermet has selected a law firm in Istanbul and has initiated incorporation of a Turkish subsidiary. The articles of incorporation will provide for the operational scope of the subsidiary to include mineral exploration, mining, processing, refining and recycling.

In Turkey, the subsidiary is to be called Cevresel Metal Donusum AS. In short form, the name is Cevmetko, which loosely translates into environmental metal recycling company. The short-form acronym's pronunciation would be "chevmetco."

Discussion as to the ultimate ownership of the Turkish subsidiary is still under consideration by Silvermet. The shortlist of potential minority shareholders and their selection should be decided in April. The choice of shareholders will be dependant on their continuing level of involvement in the project.

The B.U.S. Steel Services GmbH (Germany) Waelz kiln process modelling based on Silvermet's samples is proceeding on pace with the modelling expected to be completed by early April.

An SNC Lavalin senior metallurgical project engineer accompanied Mr. Frame to Germany and Turkey to maintain the tie between the data from Turkey and the ultimate SNC Lavalin definitive capital and operating costs report, needed for financing.

Peter George, PGeo (Silvermet's qualified person), has reviewed and approved the summer drill program for Tufanbeyli which again has pinpointed high-grade zinc targets for initial and detailed drilling. A 10,000-metre, 90-hole program is planned at a total cost of $1.2-million (U.S.). SGS Lakefield has completed upgrading tests and its report is forthcoming. Additional samples are being assayed by SGS to add to the background data on the project.

Silvermet's marketing team will visit Turkey in early April to progress the securing of feedstock.

Silvermet will not be dependent on any single source of feedstock. Silvermet's environmental approach involves zinc residue and zinc ore feedstocks, high in dolomite and limestone, a readily disposed byproduct from the process.