ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

August 25, 2010 03:00 ET

ECU Silver Identifies Extension of Major Vein on the Chicago Property

TORONTO, ONTARIO--(Marketwire - Aug. 25, 2010) - ECU Silver Mining Inc. (TSX:ECU) is pleased to report another set of results from its current underground development program, this time from opening the south-west extension of the Gambusinos vein, a major vein on the Chicago Property. A drift has been opened along the vein for a length of 76.25 metres (250 feet) that yielded an average of 3.23 grams per tonne (g/t) gold (Au), 104 g/t silver (Ag), 2.00% lead and 4.82% zinc over a width of 0.73 metres (2.4 feet).

Michel Roy, Chairman and CEO commented that, "The type of mineralization, as well as the presence of close parallel veins, seems to be confirming that the Chicago mineralized system could be the mirror image of the extensive Santa Juana system. In such a case, the potential for growing the Chicago mine into a major production center with large resources is getting more and more likely."

The most interesting highlights of these results are:

  1. Drifting has confirmed grades that are 304% higher for gold and 112% higher for silver relative to the reported grades in the Company's NI 43-101 mineral resource report, for the same vein;
  2. The Gambusinos vein is now 356 metres (1,170 feet) long and remains open laterally and at depth;
  3. Underground work in this area is helping to identify and understand additional veins;
  4. The type of mineralization is very similar to the Santa Juana system in the Velardeña Property suggesting the potential for the Chicago area to host significant resources similar to the large Santa Juana system.

The assay results are much higher than the corresponding mineral resource block that was included in the last 43-101 compliant mineral resource. The same vein was classified as inferred resources grading 0.80 g/t Au and 49 g/t Ag over a width of one metre. The opening of the Gambusinos vein by underground drifting confirms grades that are 304% higher and 112% higher for gold and silver, respectively.

Michel Roy, Chairman and CEO added, "Again, we continue to find that while the results of diamond drilling are extremely useful to locate the veins and their behavior, drilling generally undervalues the precious metals contents."

The total drift length opened along the Gambusinos vein is now 356 meters (1,170 feet). The Gambusinos vein is open laterally at both ends of the current drift and so we cannot be certain of the length it will eventually reach. This vein is nearing the known length of the nearby Santa Juana mineralized system which is host to a very large system, as identified in the Company's NI 43-101 mineral resource report.

The initial drilling in the area identified, and led to the interpretation of the Gambusinos vein, however the subsequent results were only identified through underground development by accessing the vein through a ramp.

The additional benefit of this underground work is that several other intercepts identified from an earlier drilling program, at that time, could not be linked and as such, were not included in the resources calculation of the last 43-101 mineral resource report. These intercepts are now being identified. So far, two veins have been cut by the underground openings and are currently being opened by further drifting. Although the mineralization appears to be interesting, the Company is still awaiting assays from that development.

Cautionary Statements

Readers are cautioned that until a prefeasibility study is completed, there are no assurances these latest mineralized zones will be economically viable.

All widths are true widths. Samples were assayed at the ERSA laboratory in Torreón, Coahuila, Mexico which is currently in the process of being certified. Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.

About ECU Silver

ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardeña District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent ounces in the measured and indicated category and 391 million silver equivalent ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardeña.

Cautionary Statements

Readers are cautioned that there are no assurances that all or any part of ECU Silver's mineral resource will be economically viable. Until a prefeasibility study is completed, there are no assurances the release of an updated mineral resource will be economically viable.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company's inability to obtain any necessary permits, consents or authorizations required for their activities, to produce minerals from their properties successfully or profitably, to continue their projected growth, to raise the necessary capital or to be fully able to implement their business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release.

Contact Information

  • ECU Silver Mining Inc.
    Michel Roy
    Chairman and CEO
    Torreon, Mexico
    011 52 871 747 5750
    or
    ECU Silver Mining Inc.
    Stephen Altmann
    President
    Toronto, Canada
    (416) 366-2428
    or
    ECU Silver Mining Inc.
    Mark Butler
    Investor Relations
    Toronto, Canada
    (905) 602-4248
    www.ecu.ca