In my early years of playing the market, I spent a lot of time at the Spokane Stock Exchange. I have been down a lot of the mine shafts in the Wallace Idaho area. The attached news release is in fact remarkable as to the size of the silver vein. In addition the caveat as to the offficers getting greedy at the company and want their options revalued bring about an interesting read. 141 ounces of silver per ton is huge.
Press Release Source: U.S. Silver Corporation
U.S. Silver Drills 4.1 Feet of 141 Ounce Per Ton Silver at the Galena Mine; Seeks Limited Option Repricing Approval
Monday May 26, 1:19 pm ET
TORONTO, ONTARIO--(MARKET WIRE)--May 26, 2008 -- U.S. Silver Corporation (CDNX:USA.V - News) is pleased to update results from on-going exploration of the 114 Vein complex on the 2400 level of the Galena mine near Wallace, Idaho. Diamond drilling and initial crosscutting and exploration drifting has indicated a minimum of two silver-copper veins and as many as three silver-lead veins along a strike length of at least 900 feet. The mineralization remains open in three directions. One recent drill hole, DDH 24-175, contained an intercept from one of the silver-copper veins that assayed 141.4 ounces per ton (opt) silver and 1.92 percent copper over a true thickness of 4.1 feet.
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As of May 20, 2008, 13,030 feet have been drilled in thirty three exploration holes with twenty six of the holes hitting economic mineralization. Drifting continues lateral to the vein to provide access to additional drilling locations. Initial drift mining on the two silver-copper veins from the first crosscut has begun on the 2400 level. Currently, ventilation is being upgraded prior to initial mining on veins exposed in the second westerly crosscut. Drill holes indicate the higher grade mineralization lies in the western portion of the discovery area. The initial phase of diamond drilling in the 114 Vein complex was recently completed with the second phase beginning in June when the extension of the lateral drift further to the west is completed. This new discovery is outside of any established reserves identified in the December 31, 2007 ore reserve report. The initial discovery holes were drilled nearly 40 years ago with two holes intersecting ore grade mineralization. U.S. Silver began a drill program in April 2007 with all four of the holes drilled hitting high-grade mineralization. Drifting toward the target zone began in October 2007 and will continue for the next several months. The current phase of underground exploration diamond drilling began in December 2007 and will continue through the summer months in 2008.
Additionally, recent drilling targeting another silver-lead zone on the 2400 level, about 600 feet to the northwest of the 114 Vein, has returned an interval containing 5.6 opt silver and 5.5% lead over a true thickness of 29 feet. Five additional holes have been drilled into this area with all five intersecting similar widths and mineralization. Assays on the additional holes are pending. Four additional holes are planned into this mineralization that is not currently included in the ore reserve or resource for the Galena mine.
Bruce Reid, Chief Executive Officer, stated, "The 2400 level exploration activity has the potential to significantly increase both silver-copper and silver-lead production at the Galena mine. The mineralized zone indicated by drilling could support production levels of several hundred tons per day, with production rates from the 114 Vein complex already having reached more than 100 tons per day."
A summary of recent drill results from diamond drilling on the 2400 level of the Galena mine is shown in the table below:
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Downhole TRUE
Hole # From To Length Thickness Ag opt Cu % Pb %
------ ---- -- -------- --------- ------ ---- ----
24-168 116.0 138.0 22.0 19.9 5.67 0.01 6.97
24-170 72.6 83.3 10.7 7.6 9.50 0.15
253.0 259.0 6.0 4.2 10.83 0.16 10.91
281.5 288.0 6.5 4.6 10.12 0.08 19.78
24-172 47.0 52.4 5.4 4.7 10.38 0.32
24-174 54.0 59.0 5.0 4.1 134.20 2.14
24-175 55.0 59.5 4.5 4.4 141.37 1.92
24-176 69.0 71.5 2.5 2.3 13.40 0.20
24-177 212.8 218.7 5.9 3.4 3.94 3.08
24-178 162.3 168.2 5.9 4.5 3.92 7.62
174.0 182.8 8.8 5.0 5.68 9.63
24-179 79.0 90.5 11.5 8.8 12.11 0.52
191.0 196.0 5.0 4.9 54.17 0.80
24-180 152.4 161.1 8.7 8.6 8.91 0.69
24-181 38.5 43.1 4.6 4.0 38.22 0.78
24-182 93.0 97.0 4.0 4.0 22.56 0.11 0.69
24-183 139.0 144.0 5.0 4.3 13.22 10.34
139.0 171.8 32.8 23.2 6.02 2.29
24-184 140.6 150.0 9.4 9.1 12.06 0.40
160.8 167.2 6.4 6.0 20.32 0.37
24-185 83.1 90.4 7.3 7.2 55.64 0.36
118.5 126.5 8.0 8.0 13.87 0.72
24-186 279.8 286.0 6.2 4.0 19.18 35.5
24-187 388.5 392.0 3.5 3.4 4.89 12.40
"B Zone"
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24-188 379.3 412.4 33.1 29.0 5.60 5.51
--------------------------------------------------------------------All silver assay results reported in this new release were analyzed using standard fire assay techniques by American Analytical Services located in Osburn, Idaho. Check assays are conducted by ALS-Chemex, located in Sparks, Nevada. All samples are obtained and assays are reported under a formal quality assurance program. Underground diamond drill core holes were drilled with BQ size tools.
Finally, due to the decrease in market price of the common shares of the Corporation, and in order to recreate value in a certain number of the currently issued and outstanding stock options as a continuing incentive instrument, the board of directors has deemed it desirable for the Corporation to reprice certain previously issued and outstanding stock options granted to an insider of the Corporation. Specifically, management intends to reprice 1,000,000 incentive stock options previously granted to its Chief Financial Officer at $1.19 on May 1, 2007 to $0.49 per share (the "Options"). All other terms of the Options are to remain the same. In accordance with Policy 4.4 of the TSX Venture Exchange, the approval of greater than 50% of the disinterested shareholders of the Corporation is required in order to reprice the Options. The Corporation intends to seek such disinterested shareholder at the Corporation's Annual and Special Meeting of Shareholder to be held on June 25, 2008. If the resolution is not passed by a majority of the disinterested Shareholders present in person or by proxy at the Meeting the Corporation will not proceed with the foregoing repricing. Further details on the proposed repricing of the Options are contained in the Corporation's Management Information Circular dated May 27, 2008.
QUALIFIED PERSON
Information of a technical nature in this press release respecting the properties has been prepared and reviewed by Mr. Daniel H. Hussey, Chief Geologist of U. S. Silver who supervised the drilling and sampling programs. Mr. Hussey is a "qualified person" within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly-owned subsidiaries, owns and operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in U.S. history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding its production from existing operations as well as exploring its extensive Silver Valley holdings.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
U.S. Silver Corporation
Bruce Reid
Chief Executive Officer
(416) 848-0858
U.S. Silver Corporation
Vance Loeber
Investor Relations
(604) 805-3530
Website: us-silver.com
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