US Silver Corp (C-USA) - News Release
U.S. Silver drills 13.5 ft of 11.77 oz/t Ag, 13.97% Pb
2007-05-29 14:50 ET - News Release
Shares issued 141,895,157
USA Close 2007-05-28 C$ 1.09
Mr. Bruce Reid reports
U.S. SILVER CORPORATION REPORTS CONTINUED SUCCESS OF CORE DRILLING ON THE 3400 LEVEL OF THE GALENA MINE
U.S. Silver Corp. recently completed a 24-hole underground exploration drilling program in the lead-silver zone of the 3400 level at its underground Galena mine near Wallace in Idaho. Drilling results from silver-bearing galena mineralization continue to show great promise as these new areas have provided excellent results. The last drill hole from this first phase of drilling in the 3400 lead-silver zone intersected 13.5 feet (true thickness) of 11.77 ounces per ton silver (Ag) and 13.97 per cent lead (Pb).
The 3400 level diamond drilling program began in January, 2007, and by early April 10, 2007, 638 feet had been competed. This is likely the same zone that was drilled on the 3700 level in 2006 (see Stockwatch, Jan. 17, 2007). The lead-silver mineralization identified on these two levels appears to be the downdip extension of the historic lead-silver zone mined above the 3000 level prior to 1953. A small reserve and resource are carried on the 3400 level (probable reserve of 9,000 tons of 8.81 ounces per ton Ag and 11.6 per cent Pb, and inferred resource of 19,500 tons of 6.91 ounces per ton Ag and 9.6 per cent Pb), but most of the recent drilling is outside of the current Galena mine resource and reserve boundary.
The existence of lead-silver mineralization at the Galena mine has been known since the late 1800s, with lead-silver ore being mined predominantly until 1953. Since that time, operators have focused on the tetrahedrite silver-copper ores and produced a high-grade copper-silver concentrate. U.S. Silver has identified an opportunity to mine both types of mineralization by using the currently idle Coeur mill to make a lead-silver concentrate while the Galena mill will focus exclusively on the production of copper-silver concentrate.
Bruce Reid, chief executive officer of U.S. Silver, states: "We believe we are just scratching the surface of the lead-silver potential in the Galena mine since it has largely been ignored for decades. At the same time, we are continuing to explore for the traditional copper-silver tetrahedrite ore throughout our extensive property position around the Galena mine. With these two types of ore in combination with four shafts and two mills, we have numerous opportunities and options with respect to the operations."
U.S. Silver intends to begin development of the lead-silver zone between the 3000 and 3700 levels in the near future. As stated in Stockwatch on April 5, 2007, the company intends to be producing lead-silver ore from both levels by August, 2007. The ore will be hauled underground to the Coeur shaft, where it will be hoisted to the surface and concentrated in the Coeur mill. U.S. Silver has a smelter contract in place with Teck Cominco Metals Ltd. to process the lead-silver concentrate. Shipments of concentrate are scheduled to begin in September, 2007. The production of lead-silver concentrates will be in addition to the copper-silver concentrates that the Galena mine and mill currently produces.
Exploration is continuing in other parts of the mine as well. A diamond drill was moved to the 4600 level in early May to conduct exploration for lead-silver ore, as well as copper-silver targets. A drill will be sent to the 3200 level by mid-June to conduct drilling between the lead-silver mineralization that has been identified on the 3000 and 3400 levels. U.S. Silver expects to complete 80,000 feet of underground diamond drilling in the Galena mine during 2007.
Selected drill hole intercepts from the recently completed exploration drilling on the 3400 level of the Galena mine, including lead-silver and copper-silver intercepts, are listed in the drill results table.
DRILL RESULTS
Hole No. From To Downhole length True thickness Ag Cu Pb
(ft) (ft) (ft) (ft) (oz/t) (%) (%)
34-067 270.8 278.8 8.0 4.9 13.12 0.03 3.51
286.2 303.4 17.2 11.1 5.61 0.02 10.54
365.2 372.8 7.6 4.9 7.23 0.08 14.06
390.8 400.8 10.0 6.4 10.56 0.01 3.10
34-068 69.0 79.5 10.5 5.2 14.71 0.42 0.10
34-072 65.0 77.3 12.3 5.2 6.65 0.03 16.50
104.5 117.7 13.2 4.5 9.20 0.10 12.06
121.0 129.2 8.2 5.3 11.31 0.13 23.72
34-073 236.5 246.7 10.2 7.2 6.50 0.06 11.75
435.0 439.0 4.0 3.5 17.17 0.16 3.91
34-074 177.7 185.5 7.8 6.8 7.22 0.12 3.58
571.9 576.4 4.5 3.9 46.89 0.90 0.23
599.0 604.0 5.0 4.8 25.29 0.67 0.10
34-076 19.3 27.3 8.0 5.1 8.67 0.06 12.87
34-077 305.0 311.1 6.1 3.9 29.08 0.45 1.17
477.8 486.4 8.6 4.9 8.35 0.04 11.61
34-078 36.0 45.0 9.0 4.5 12.39 0.03 18.34
82.5 92.2 9.7 4.1 35.93 0.02 30.78
34-084 68.0 75.0 7.0 5.4 16.35 0.12 13.90
95.3 103.5 8.2 5.3 13.51 0.12 8.94
34-085 52.2 59.2 7.0 4.5 19.03 0.01 26.40
96.3 101.6 5.3 4.3 11.86 0.03 15.58
34-087 81.6 98.0 16.4 4.2 9.85 0.03 13.51
34-088 93.0 110.6 17.6 13.5 11.77 0.14 13.97
Qualified person
Information of a technical nature in this press release respecting the properties has been prepared and reviewed by Daniel H. Hussey, chief geologist of U.S. Silver. Mr. Hussey is a qualified person within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
All silver assay results in this new release were analyzed using standard fire assay techniques by American Analytical Services, located in Osburn in Idaho. Check assays are conducted by ALS Chemex, located in Sparks, Nev. All samples are obtained and assays are reported under a formal quality assurance program. All diamond drill core holes were drilled with BQ-size tools.
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