Hi ml, If you haven't bot this one yet, you're just not watching it close enough....... <vbg> I keep waiting waiting for a 15% retrace to double up on and it just isn't happening.
Western Silver Extends Gold Zone at Penasquito Outcrop Breccia Monday September 8, 9:05 am ET
Significant gold and silver values intersected on two targets outside Chile Colorado Zone
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 8, 2003-- Western Silver Corporation today announced results from two core and ten shallow reverse circulation (RC) holes drilled outside the initial Chile Colorado discovery zone at its wholly-owned Penasquito precious and base metals project in Mexico. The Penasco discovery hole S-09, within the outcrop breccia located 1,700 meters northwest from Chile Colorado, contains shallow gold-silver mineralization beginning at 14 meters and was deepened by core drilling to a depth of 379.17 meters. The entire 276.76-meter interval beginning at 102.41 meters averages 0.88 g/t gold and 50 g/t silver. A 56-meter interval from 268 to 324 meters averages 2.23 g/t gold and 72 g/t silver.
Results from one additional core hole and three RC holes drilled 50 to 75 meters north and west of S-09 also contain significant gold and silver values. Gold and silver mineralization appears to be localized along high-angle structures within a complex series of quartz porphyry and distinctive intrusive breccia dykes that trend east-west through the Outcrop breccia.
"These results from step out drilling at Penasco Hill continue to demonstrate the exceptional overall potential of the Penasquito property and have further increased our confidence that Penasco has potential for a large tonnage intrusive-hosted gold-silver deposit," said Tom Turner, Western Silver's Manager of Mexican Exploration.
A scoping study by M3 Engineering and Technology in July this year concluded financial indicators at Penasquito's Chile Colorado Zone appeared "decidedly favorable" making it one of the few bulk silver deposits in the world that can be economically exploited at current silver, gold, zinc and lead prices.
Today's results suggest that the Outcrop breccia has high-grade, structurally controlled gold and silver mineralization that may have significant vertical and lateral continuity. Drilling will resume in mid-September with the objective of completing sufficient drilling to calculate a geologic resource for the Outcrop breccia target by year-end.
Details of the drilling are discussed below. A map with hole locations may be found on Western Silver's website at www.westernsilvercorp.com.
All core samples were prepped and analyzed by Acme Analytical Labs. Samples were initially run using conventional ICP analysis with an aqua regia digestion process. A series of property specific standards and blanks were routinely submitted with each batch of samples. A 30 gram fire assay with gravimetric finish was run on all samples for gold and silver. Samples containing more than 1% lead or zinc were analyzed using AA with aqua regia digestion.
Results in Detail
This release discusses assay results from 12 of 26 RC and core holes (4,860 meter total) completed during July and August in the Penasco and El Sotol target areas. Results from the remaining 14 holes will be reported as soon as available.
Penasco. Interest was initially triggered by RC hole S-09, collared 50 meters west of the outcrop at Penasco Hill, that cut two intervals of significant gold-silver mineralization beginning at 14 meters and bottomed in high grade gold-silver at 100 meters. The hole was deepened by coring to a depth of 379.17 meters. The hole is mineralized throughout, both in the quartz porphyry intrusive extending to 227 meters and a distinctive intrusive breccia with sulfide-filled cavities extending to hole bottom. The entire combined 308 meter RC/core sulfide intercept from 64 meters averages 0.91 g/t gold and 58 g/t silver. A 98 meter interval of intrusive breccia beginning at 226 meters averages 1.39 g/t gold and 55 g/t silver with a higher grade interval from 268-324 meters averaging 2.23 g/t gold and 72 g/t silver.
Hole S-24, a combination RC/core vertical hole drilled to a depth of 486 meters, is located 50 meters north of hole S-09. The 50 meter interval beginning at 216 meters averages 0.67 g/t gold and 34 g/t silver. A 28 meter interval beginning at 422 meters averages 1.05 g/t gold and 30 g/t silver.
Four additional RC holes were drilled on a north-south fence 50 meters west of S-09 and S-24. Hole S-22, collared 50 meters west of hole S-09, intersected a 38 meter interval from 60 meters to hole bottom averaging 0.16g/t gold and 56 g/t silver. S-25 and S-26, north directed -60 angle holes, were collared 25 and 75 meters respectively north of S-22. Both holes bottomed in mineralized intrusive breccia. Hole S-23, a vertical hole collared 50 meters south and 50 meters west of S-09, does not contain significant mineralization.
The Outcrop breccia is a large breccia pipe approximately one kilometer in diameter that has been intruded by a mineralized quartz porphyry stock. The top or cupola of this stock sits approximately 200 meters beneath surface almost directly beneath Penasco hill where it breaks into a complex series of steeply dipping intrusive breccia and quartz porphyry dykes that extend to surface and trend west and east-southeast away from the stock. The true thickness of the dyke-breccia system as well as its vertical and lateral extent, will be determined by grid drilling north-directed angle holes across the entire area.
El Sotol. The El Sotol target is located 2,500 meters northwest from Chile Colorado and 900 meters northwest of Penasco hill. Three additional holes have been completed around S-15, which contained 66 meters of Chile Colorado-type mineralization. S-30, a vertical RC/core hole collared 50 meters north of S-15, contains 16 meters from 72 meters to the bottom of the RC hole at 88 meters that averages 0.30 g/t gold, 50 g/t silver, 0.44% lead and 0.69% zinc. The hole has been deepened by coring to 502.3 meters with assays awaited. S-28 and S-29 were drilled respectively 100 meters east and 50 meters south of S-15. Both holes contain 20-40 meter intervals of similar but lower grade mineralization.
Other Targets. Hole S-27, collared 500 meters northeast of Penasco hill to test a geochemical anomaly, intersected a 6 meter interval of oxide mineralization averaging 0.99 g/t gold and 48 g/t silver. Hole S-31, an offset of hole S-01 at the Colorado Sur target, did not intersect significant mineralization.
Plans.
Assay results for 14 holes are outstanding, 1 at La Palma, 2 at El Sotol and 11 at Penasco. Drilling will resume in mid-September with three drill rigs. Two drills will initially complete 5,000 meters of in-fill drilling at Chile Colorado and one drill will work in the Penasco- El Sotol- La Palma area.
Dr.Thomas Patton is the qualified person responsible for the preparation of this release.
Western Silver Corporation is a Canadian-based mineral exploration company focused on exploring for silver and developing properties in Mexico and Canada. The company's 100%-owned Penasquito project has been independently confirmed as one of the largest silver resources in the world and one of the few bulk silver deposits that can be economically exploited at current silver, gold, zinc and lead prices. Western Silver also has an interest in the San Nicolas Zinc-Copper project together with Teck Cominco and owns the Carmacks Copper Project in the Yukon. Its shares trade on the Toronto (TSX:WTC - News) and American (AMEX:WTZ - News) stock exchanges.
America’s jobless recovery continues unabated. With headcounts falling another 93,000 in August, the case for sustainable recovery in a post-bubble US economy remains a real stretch, in my view. While policy stimulus seems to be working temporarily on the demand side of the equation, there’s been little follow-through on the supply side. This may well reflect profound and lasting leakages in the external environment -- driven by globalization, outsourcing and the Internet -- that have diminished the policy multipliers that normally spark full-blown cyclical recovery. The character of the modern-day US business cycle may now be changing as never before.
The jobless nature of this recovery has become its most well-known characteristic. Fully 21 months since the official trough of the last recession, private nonfarm payrolls have contracted by nearly 1.3 million workers. Normally at this stage of a business cycle expansion, the job count has risen by 2.8 million. This shortfall of more than 4 million jobs has put an extraordinary crimp in the US economy’s wage generating capacity; by our calculations, real private sector wage and salary disbursements are currently running about $240 billion short of the profile of the typical business cycle expansion (see “The Half-Empty Glass” in the August 11 issue of US Investment Perspectives).
What lies behind this extraordinary shortfall in job creation? That, of course, is the burning question of the moment. Many have been quick to conclude that ongoing headcount reductions are an unavoidable implication of a secular uptrend in US productivity growth. Courtesy of IT-led breakthroughs, goes the argument, increasingly efficient US businesses are able to make do with less -- especially workers. In my view, this explanation seriously over-simplifies the story. There are, in fact, far more important forces at work. At the top of my list is what can be called the globalization of the US business cycle. Significantly, this is the first cyclical recovery in the United States that has unfolded since the advent of the Internet in 1995; as such, it has been driven by-IT-enabled outsourcing as never before. Now, with the click of a mouse, increasingly high-value-added labor input can be extracted from low-cost production platforms in Asia, central and Eastern Europe, and Latin America. Not only is that true with respect to foreign sourcing of manufacturing input, but it’s increasingly the case in services as well. That means for a given increment of domestic demand, important new external leakages are emerging in the means by which that demand is sourced.
There’s no mistaking this phenomenon in the goods-producing segment of the US economy. Based on Federal Reserve industrial production data, the gross value of such product fell to 28.8% of real GDP in 2Q03. That represents a 1.0 percentage point decline from the 29.8% share evident at the cycle trough (4Q01). By contrast, six quarters after the three preceding recoveries -- the upturns commencing in the mid-1970s, the early 1980s, and again the early 1990s -- the domestic production content of US GDP had risen by 0.6 percentage point. Surging import penetration into US markets tells the same story. At the trough of the 2001 recession, imports stood at 15.7% of real GDP -- more than double the 7.2% average prevailing at the end of the prior three recessions. There can be no mistaking the extraordinary external leakages now evident in the US economy. Even in the face of rebounding domestic consumption, incremental product is being sourced offshore at the cost of disenfranchising domestic supply -- both labor and capital -- from the US macro equation.
The flip side of this development is the emergence of countries like China as global outsourcing platforms that serve increasingly as shock absorbers to demand fluctuations in the US and elsewhere in the industrial world. China’s all-powerful export machine is, in fact, dominated by the outsourcing of Western multinationals. Over the past decade, China’s exports have essentially tripled -- rising from US$121 billion in 1994 to $365 billion in mid-2003. Yet fully 65% of that increase can be traced to what the Chinese call “foreign-invested enterprises” -- Chinese subsidiaries of multinationals and foreign joint-venture partners. That underscores yet another critical first in this cyclical recovery -- the outsourcing option as a very realistic alternative to domestic production. Put that together with the equally recent advent of the Internet, and the emergence of a new US business cycle comes increasingly into focus.
Of course, there’s more to the technology of external leakages than a loss of domestic market share in goods producing industries. Also at work is a potentially even more powerful dynamic -- the globalization of services and concomitant pressures on job creation and income generation in America’s vast and supposedly “non-tradable” sector. Several mega-forces are at work here -- the globalization of deregulation, surging cross-border M&A activity in many service industries, and the Internet.
The role of the Internet is particularly critical in reshaping the service sector dynamic in this cycle. It gives a critical new twist to the outsourcing story. Services have long been dubbed non-tradables because of a high profusion of knowledge-based content that can only be delivered on site. Now, however, courtesy of real-time e-based connectivity, a multitude of increasingly high-value added services can be transferred anywhere around the world instantaneously. That’s increasingly true of the output of software programmers, design and engineering teams, accountants, back-office processing functions, data centers, network infrastructure and management services, and a broad array of business consulting functions. Reflecting this trend, India’s IT-enabled services sector has become one of the fastest growing major industries in the world. One study estimates this segment of the Indian economy will increase by ten-fold between now and 2007 -- rising from US$1.5 billion in 2001-02 to $17 billion by 2008 (see NASSCOM’s The IT Industry in India: Strategic Review 2002).
Manufacturing leakages are one thing, but if they also hit services, it’s a different matter altogether for the US economy. Currently, the services sector accounts for fully 80% of total private employment in the US -- about six times the 13.5% share in manufacturing. To the extent that outsourcing options are now shifting increasingly into services, the jobless bias of the US economy can only increase. Moreover, this development could well be exacerbated by businesses’ persistent lack of pricing leverage in this post-bubble era. That puts unrelenting pressure on continued cost-cutting as the principal means to boost margins and deliver earnings. And that puts a premium on the outsourcing-driven efficiency solutions that lie at the heart of America’s jobless recovery.
All this underscores one of the great ironies of the current cyclical recovery in the US economy. Notwithstanding the temporary impacts of powerful stimuli from tax cuts and home mortgage refinancing activity, America is lacking in sustenance from the job creation and income generation that typically drive the internal dynamics of its business cycle. That’s not to say the injection of tax breaks don’t have any impact on disposable personal income and spending. Our current-quarter tracking models currently put 3Q03 growth in real consumption at close to a 5% annual rate and that of real disposable personal income somewhere in the 8-9% range. However, as long as the jobless bias persists, the macro multipliers that normally convert policy stimulus into sustainable recoveries could prove surprisingly impotent. For that reason, I continue to believe that there is good reason to question the staying power of the policy-induced cyclical resurgence currently under way.
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