SILS news Surface Land and Mineral Processing Mine

SILS news Surface Land and Mineral Processing Mine Permit Granted and Received for Carmen Silver-Gold Mine Project, Sonora Mexico; Resignation of Director James Bradshaw

2012-07-05 09:26 ET - News Release

HILTON HEAD, S.C. and HERMOSILLO, Mexico, July 5, 2012 /PRNewswire/ -- Silver Scott Mines, Inc. (OTC: SILS.pk) is pleased to announce the receipt of mining and processing permit approval from Semarnat ("Secretaria de Medio Ambiente y Recursos Naturales"), the Mexican Federal environmental agency, and the associated granted Change of Use of Soil zoning for mining within 20 hectares.  Payment for change of Soil Use zoning for the site changing from agriculture to mining was made in connection with the mining permit.

A 6 year extendable surface land agreement currently is in force with the surface land owner for exploration within the 1500 hectare mineral concessions and associated mining or high impact disturbance within the 20 hectares with change of surface land use zoning.  That agreement was previously announced as completed for the proposed mining with the Divisaderos Ejido. This mining permit along with the surface land agreement completes the process that allows the company to move forward with a planned production scale bulk tonnage leach test.   Discussions have been ongoing with available mining contractors for contract mining and crushing of the mineralized material.

An 80,000 tonne test scale heap leach is being planned which will be expanded if successful.  The Company has completed column and bottle roll leach testing in the past on the project's mineralized zone and expects that the scale test production will provide the Company with saleable concentrate product.  The mine site is the location previously reported in the October 2011 news release regarding air track percussion drill results.  That drilling tested an outcropping mineralized area from which material for this test heap leach will be derived.