NEWS - SST Silver Sales $$$$$Silverstone Provides 4 Months Silver Sales and Increases Sales Forecast
VANCOUVER, BRITISH COLUMBIA, Feb 20, 2008 (MARKET WIRE via COMTEX News Network) --
Silverstone Resources Corp. (TSX VENTURE: SST) ("Silverstone") reports sales of 737,000 ounces of silver in 2007. Silverstone previously forecast 2007 silver sales of 700,000 ounces (see October 10, 2007 news release). The additional silver was due to increased production rates at the Cozamin mine. On September 28, 2007, Silverstone completed the purchase of 100% of the life of mine silver from Lundin Mining's Neves-Corvo and Aljustrel mines (see June 6, 2007 press release). Silverstone started to receive silver from Neves-Corvo production commencing on October 1, 2007. The Aljustrel mine began commissioning in late 2007. Silverstone changed its fiscal year end from August 31 to December 31 and will be filing its audited four month stub period ending December 31, 2007 in March 2008 and therefore will not be reporting quarterly financials at November 30, 2007. Silverstone is pleased to report silver sales results for the four months ended December 31, 2007. Silverstone purchased 2007 production at an average cost of US$3.98 per ounce. The cost of silver is fixed at less than US$4.00 per ounce through 2010.
Exploration Properties
Silverstone has earned a 100% interest on its five silver-gold exploration projects (Copala, Claudia, Martha, Promontorio and Montoros) all located in Mexico, pursuant to the amended and restated option agreement between Silverstone, Grupo Minero Bacis S.A. de C.V. ("Bacis") and Silverstone Resources, S.A. de C.V. Silverstone must pay Bacis a 3% net smelter return on all metals produced from the projects. For further details describing the option agreement please see the Company's prospectus dated April 18, 2006 filed on www.sedar.com.
Silverstone has optioned up to a 60% interest in the Promontorio and Montoros projects to Mega Silver Inc. ("Mega") as follows: Mega must spend CDN$5 million in expenditures and issue 550,000 common shares of Mega on each project over a 5 year period. To date, 150,000 common shares for each project have been issued and received by Silverstone. Mega can earn an additional 10% interest in the projects by delivering a feasibility study to Silverstone by December 31, 2017. Silverstone has the right to earn back a 20% interest (for an aggregate 50% beneficial interest). For further details on the option agreement terms please see the Mega press release dated September 18, 2007.