Silver Eagle Mines Announces Increased Resources

Wed May 7, 2008 3:15pm EDT

* Reuters is not responsible for the content in this press release.

 Silver Eagle Mines Inc. (TSX: SEG) is pleased to report an increase in
Indicated and Inferred Resources at its wholly-owned Miguel Auza Property
in Zacatecas, Mexico. Since the filing on SEDAR of its most recent
technical report in respect of the Miguel Auza Project, dated January 18,
2008 (the "Technical Report"), an intensive diamond drill campaign has
resulted in an increase in the Indicated Resource from 21.3M oz Ag Eq(1)
to 24.3M oz Ag Eq(1) while the Inferred Resource has increased, from 8.9M
oz Ag Eq(1) to 11.7M oz Ag Eq(1).

    The following tables summarize the new Indicated and Inferred Resource
estimates, respectively.

Indicated Mineral Resources

Zone             Tonnes                Grade             Contained Metal
                            Au    Ag    Pb    Zn  Ag Eq(1)         Ag Eq(1)
             (t x 1,000)  (g/t) (g/t)   (%)   (%)  (g/t)     (Oz x 1,000)
Calvario A        1,563   0.18   159  2.40  2.45    365           18,332
Calvario B          126   0.23   174  3.48  4.29    506            2,044
Calvario C           77   0.17   185  2.79  2.90    382              944
Milagro             293   0.22   146  1.88  1.94    312            2,934
  Indicated       2,059   0.19   159  2.41  2.51    353           24,254

Inferred Mineral Resources

 Zone            Tonnes               Grade              Contained Metal
                            Au    Ag    Pb    Zn  Ag Eq(1)         Ag Eq(1)
             (t x 1,000)  (g/t) (g/t)   (%)   (%)  (g/t)     (Oz x 1,000)
Calvario A          757   0.21   125  1.58  2.60    310            7,543
Calvario B           27   0.10    61  1.10  0.89    145              127
Calvario C           28   0.04    48  1.00  1.16    139              123
Milagro              11   0.11    27  1.06  1.15    122               44
North Zone          152   0.33   731  0.68  0.51    791            3,855
  Inferred          975   0.22   215  1.41  2.18    373           11,692

    (1). The May 2008 Resource estimate was prepared under the supervision
of Silver Eagle's qualified person Dr. Christopher Hodgson, P. Eng.

    - CIM definitions were followed for mineral resources.

    - Indicated Mineral Resources were estimated using a cutoff net smelter
return of US$ 40, based on metal prices, plant recoveries and smelter
terms as per notes below.

    - Inferred Mineral Resources were estimated using a cutoff net smelter
return of US$ 30, based on metal prices, plant recoveries and smelter
terms as per notes below.

    - A minimum mining width of 1.0 m was used.

    - Equivalent Ag grades and contained ounces were estimated based on
US$600/oz gold, US$11/oz silver, US$0.65/lb lead, and US$1.00/lb zinc.

    - Equivalent Ag grades and contained ounces were estimated based on gold,
silver, lead and zinc plant recoveries as per the most recent
metallurgical test work and smelter terms.

    - Mineral resources that are not mineral reserves do not have
demonstrated economic viability.

    - Rows and columns may not add exactly due to rounding.

    Information with respect to data verification, key assumptions,
parameters and methods used to estimate the mineral resources, as well as
other relevant information in respect of the Company's Miguel Auza
Project, is contained in the Technical Report.

    Silver Eagle's President and CEO, Mr. Terrence Byberg, said "I am very
pleased by the increase in resources, and especially by an increase of 8%
in silver equivalent grade of indicated resources. The additional
inferred resources of 2.8M oz Ag Eq(1) are all located in the Calvario
Vein at depth below the previously indicated resource and between
Martinez #1 and Calvario shafts. All drill intercepts used in the
calculation of the inferred resources are above the minimum cutoff NSR
value of indicated resources, but have been excluded from the indicated
resource category since the spacing of these drill intercepts averages
about 100 metres, too widely separated for inclusion as indicated
resources. Silver Eagle plans to conduct in-fill drilling in this area as
and when ramp development has advanced to the point where underground
drilling is feasible. We will now focus our diamond drills on the high
grade North and East Zones."

    With this update to the mineral resources, the Company pushed back the
completion of the pre-feasibility study of its Miguel Auza Mine, which
had been scheduled for April 2008, in order to include these new results.
The fully updated pre-feasibility study will be forthcoming.


    The deepest hole drilled by the Company to date, located centrally in at
the mineral resource area, intersected the vein at 460 metres vertical
depth, indicating that the Calvario Vein continues to be open at depth.
"We are excited by the continuity of the Calvario Vein and also about the
new veins we are finding that lie parallel to the main Calvario Vein,"
commented Terry Byberg, President and CEO.

    Development of the mine continues and the Company has now accessed the
Calvario Vein system on four separate horizons, the lowest being the 146
metre level. The Company's bulk sampling program has seen the completion
of the milling of the oxide material and the Company is currently
stockpiling exclusively sulphide material. While the mill was processing
the balance of the oxide material initially recovered from the mine,
20,000 tonnes of sulphide material was also extracted and stockpiled on
surface in advance of the mill plant being converted to process the
sulphide material. With these modifications, the plant now produces both
a lead and a zinc concentrate for shipping to the refinery, with most of
the silver content reporting to the lead concentrate. The mill conversion
was completed in March 2008 and is now processing sulphides at a rate of
150 tonnes per day. Construction has commenced on a mill expansion.
Silver Eagle is now focusing on diamond drilling the high grade silver
veins in the North and East Zones at the Miguel Auza Mine site, with
three company owned drill rigs, and has also commenced a preliminary
exploration program on its other Mexican properties, outside the
immediate Miguel Auza Mine area.


    Silver Eagle Mines Inc. is a TSX-listed (TSX: SEG), Canadian-based mining
company exploring and redeveloping an historic silver property in the
heart of the Mexican precious metals belt. The Company's primary asset is
its wholly-owned Mexican subsidiary, San Pedro Resources, S.A. de C.V.,
which controls the fully-permitted Miguel Auza Mine and adjacent
properties in Zacatecas, Mexico. The property includes the mineral rights
to 41,498 hectares, hosts past-producing mines and has the necessary
infrastructure and a trained mining work force nearby. The Miguel Auza
Mine generated its first revenue in the 2nd quarter of 2007 as a result
of the Company's bulk sampling program.


    Terrence H. Byberg, President and CEO

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    This news release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the future
financial or operating performance of the Company and its projects.
Often, but not always, forward-looking statements can be identified by
the use of words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such words
and phrases, or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Pre-feasibility study results (which are not
known to the Company at this time) may not support any expansion of the
mill at the Miguel Auza Mine. Forward-looking statements contained herein
are made as of the date of this press release and the Company disclaims,
other than as required by law, any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise. 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. The Company undertakes no obligation to update
forward-looking statements if circumstances, management's estimates or
opinions should change, except as required by securities legislation.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. 
 Toronto Stock Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.

Silver Eagle Mines Inc.
Terrence H. Byberg
President & CEO
(416) 361-1101
(416) 361-9280 (FAX)

CHF Investor Relations
Robin Cook
Account Manager
(416) 868-1079 ext. 228
(416) 868-6198 (FAX)

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