U.S. Silver Corporation Reports a 15% Increase in Proven & Probable Silver Reserves at the Galena Mine
Monday May 12, 1:49 pm ET
TORONTO, ONTARIO--(MARKET WIRE)--May 12, 2008 -- U.S. Silver Corporation (CDNX:USA.V - News) ("U.S. Silver" or the "Company") announces that proven and probable reserves at its 100%-owned Galena Mine complex near Wallace, Idaho have increased to 17,449,400 ounces of silver contained in 981,100 tons of ore at an average grade of 17.79 ounces of silver per ton (oz/t), plus 4,790 tons of copper and 27,460 tons of lead.
The NI 43-101 measured and indicated resources now total 931,500 tons of material containing 12,550,800 ounces of silver at an average grade of 13.47 ounces per ton, plus 3,500 tons of copper and 20,330 tons of lead. In addition, there are greater than 18 million ounces of silver contained in 1,514,100 tons, at a combined grade of 11.92 ounces per ton, plus 3,650 tons of copper and 67,460 tons of lead included in the updated inferred resource estimate.
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Ag Grade Contained Contained
Copper-Silver Ore Tons (oz/t) Ounces % Cu Cu Tons
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Proven & Probable Reserves 702,200 21.19 14,878,100 0.68% 4,790
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Measured & Indicated
Resources 715,900 14.73 10,545,100 0.49% 3,500
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Inferred Resource 640,300 18.38 11,765,900 0.57% 3,650
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Ag Grade Contained Contained
Lead-Silver Ore Tons (oz/t) Ounces % Pb Pb Tons
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Proven & Probable Reserves 278,900 9.22 2,571,300 9.85% 27,460
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Measured & Indicated
Resources 215,600 9.30 2,005,700 9.43% 20,330
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Inferred Resource 873,800 7.18 6,275,100 7.72% 67,460
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The NI 43-101 reserve estimate, effective December 31, 2007, is a 22 percent increase in tons and a 15 percent increase in silver ounces over the April 1, 2007 estimate of 757,822 tons of proven and probable ore at an average grade of 19.99 ounces per ton, containing 15,150,180 ounces of silver, after replacing reserves depleted by mining during 2007. The foregoing represents a 60 percent increase in ounces over the December 31, 2006 estimate of 444,003 tons of proven and probable ore at a grade of 24.5 ounces per ton, containing 10,878,797 ounces of silver.
The silver-lead portion of the reserve estimate now represents 28 percent of the total reserve tons. Silver ounces contained in silver-lead ore increased by 87 percent, with a 79 percent increase in contained tons of lead. The total reserve tons of silver-lead material increased by 126 percent. Ounces of silver contained in the silver-copper reserve increased by 8 percent over the April 2007 reserve.
The increase in reserves is a result of an aggressive exploration and development program conducted by U.S. Silver since taking over ownership and operation of the Galena mine in June 2006. During 2007, Management placed an increased emphasis on development and diamond drilling of the silver-lead zones that exist at the Galena mine. Recent exploration demonstrated that the silver-lead zone may be potentially larger than originally indicated. While exploration and development of silver-copper ore continues on a par with silver-lead development, the company expects the silver-lead resource to grow faster in the near term as it had been almost entirely ignored by previous operators. The silver-lead ore is being processed at the Coeur mill while silver-copper ore continues to be processed at the Galena mill.
Mark Hartmann, President and Chief Operating Officer of U.S. Silver, stated, "We are pleased with the effort our workforce made during 2007 in exploring and developing new areas for production. This has allowed the Company to report a substantial increase in ore reserves, particularly for silver-lead ore. We have made significant improvements since taking over the Galena Mine complex and are excited about the many opportunities ahead of us."
The increase in silver-lead ore reserves resulted from diamond drilling and development programs concentrated in the silver-lead zones between the 3700 and the 3000 levels at the Galena mine. These efforts added 1.2 million ounces of silver to the total silver-lead reserves. In addition, 1.7 million ounces of silver were also added to the silver-copper reserves due to new data received in connection with the development and drilling programs which added tons at a higher than average grade. A revised reserve estimation methodology resulted in a decrease of 0.6 million ounces of silver in the 117 vein due to lower grade and slightly fewer tons. The change in methodology consisted of discontinuing the use of block modeling for grade estimation of some of the larger and more continuous veins as well as utilizing a more traditional weighted-average grade calculation. In the weighted average method, the average grade of channel samples from drifts and raises are calculated, and then weighted by their area of influence. Diamond drill holes are also factored into the average grade by giving them an appropriate weight relative to the channel sample data. Management is of the belief that the foregoing changes provide a better estimate for narrow veins, based on recent mining results.
U.S. Silver anticipates filing the technical report in connection with the updated reserves and resources described herein, following NI 43-101 guidelines, on SEDAR within the next 45 days. Reserve and resource grades are based on mine chip samples and diamond drilling samples. All samples are obtained and assays are reported under a formal quality assurance program.
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, and resource estimation. 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 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 mine in US 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 the production and exploration from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur D'Alene Mining District.
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.
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