Jun 05, 2007 10:48 ET
U.S. Silver Corporation Announces New 43-101 Technical Report
TORONTO, ONTARIO--(Marketwire - June 5, 2007) - U.S. Silver Corporation (TSX VENTURE:USA) ("U.S. Silver" or the "Company") is pleased to release its newly completed 43-101 Technical Report on the Galena Mine Complex in Northern Idaho. The Company previously released (April 18, 2007) a significant increase in the total reserves and resources over the initial numbers estimated and published just after the Company purchased the mine in June 2006. Silver reserves increased by over 40% and the total silver reserves and resources increased by 17 % to over 48 million ounces. The previous and the new 43-101 technical reports can both be viewed at www.sedar.com.
"This new technical report is the compilation of a considerable amount of exploration and development work that has been undertaken at the mining complex over the past year" said Bruce Reid, Chief Executive Officer of U.S. Silver. "The increases in silver reserves and resources are the result of these efforts." The Company has drilled nearly 70,000 feet of core and developed over 12,000 feet of underground drifts and tunnels since the mine was acquired in June, 2006.
The Company is currently operating the Galena Mine at over 400 tons/day of copper-silver tetrahedrite ore a day with a forecast of over a 1000 tons/day by the 1st Quarter 2008. In addition US Silver will start mining lead-silver galena ore in the 3rd Quarter of 2007 with production achieving nearly 400 tons/day of this material by the end of 2007. The lead-silver material will be milled at the Coeur Mill which is currently on standby after being repaired and rehabilitated earlier this year.
The Company produced 328,984 ounces of silver during the 1st Qrt of 2007 at an average cash cost of U.S. $ 10.16 per ounce. This compared with 200,044 ounces in the 4th Qrt, of 2006 at cash costs of U.S. $13 per ounce. By way of further comparison, the company produced 149,646 ounces of silver during the 3rd Qrt, 2006 at a cash cost of over U.S. $19 per oz. The headgrades averaged 17.0 oz./sdt up from 12.7 oz./sdt during the 3rd Qrt 2006. The company expects the headgrade to continue to improve through 2007.
The Company continues to implement a turnaround at the mine which includes an extensive redevelopment of new reserves (see press release dated April 18, 2007), a redesign of the mining method in some areas and numerous challenging repairs of facilities and equipment. "The company is well on its way to make 2007 the production turnaround year at the Galena Mine, and with continued strong metal prices we should be profitable through the remainder of 2007." Stated Mark Hartmann, President of U.S. Silver.
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