ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

March 25, 2010 10:05 ET

ECU Silver Reports on Gold and Silver Operations for February 2010

TORONTO, ONTARIO--(Marketwire - March 25, 2010) - ECU Silver Mining Inc. (TSX:ECU)

ECU Silver Mining Inc. is pleased to report on its silver and gold fabrication for the month ending February 2010.

Highlights include:

  • 29,961 ounces of silver.
  • 502 ounces of gold, plus 162 ounces of gold in pyrite concentrate which was added to the pyrite inventory.
  • 65,101 ounces of silver equivalent, using a silver-to-gold ratio of 70 to one (base metals not included as equivalents).
  • Average daily throughput at the oxide mill of approximately 640 tonnes per day ("tpd").

Gold and silver generated in February was very good, particularly when considering that February is a shorter month. During February, we continued our testing to better understand the metallurgy which resulted in subsequent adjustments to enhance our recoveries of gold and silver. To help us accomplish our objective of maximizing recoveries in a timely manner, we hired outside consultants with particular expertise in this area. The result of our work identified that the metallurgy of the gold-rich tailings, which was supplementing the feed into the Oxide Mill, had changed sufficiently over time, and was negatively impacting the performance of the processing circuit. Consequently, on March 4th, we stopped adding tailings material to the Oxide Mill. Within one week, the quantity of gold and silver recovered increased by 30%, despite the fact that we fed less gold and silver into the Oxide Mill. We expect that up to another 10% of the gold can be recovered through minor modifications of the Merrill-Crowe system in the Oxide Mill.

For February, the amount of silver equivalent generated (see Table 1) was 65,101 ounces, approximately 6% less than January. (Please note that January results are restated, see explanation and Table 2 below). A total of 502 ounces of gold was generated in February, 32 ounces (7%) greater than the previous month and 29,961 ounces of silver was generated in February, which was 6,590 ounces (18%) lower than in January. An additional 12,246 silver equivalent ounces was generated in pyrite concentrate and added to our pyrite concentrate inventory for later treatment.

Table 1: February 2010      
(ounces) Oxide Mill Sulphide Mill Total
Gold 491 11 502
Silver 19,365 10,596 29,961
Silver Equivalent (70:1) 53,735 13,985 65,101
 
In Pyrite Concentrate (sent to inventory)    
  Gold - 162 162
  Silver - 906 906
Silver Equivalent (70:1) - 12,246 12,246

January results reported on February 18, 2010 inadvertently included a partial lot from early February. Table 2 below shows the actual January 2010 results. A total of 69,451 silver equivalent ounces was generated in January plus an additional 10,655 silver equivalent ounces, from the February lot, was reported on February 18, 2010.

Table 2: January 2010 (restated)      
(ounces) Oxide Mill Sulphide Mill Total
Gold 446 24 470
Silver 24,246 12,305 36,551
Silver Equivalent (70:1) 55,466 13,985 69,451
 
In Pyrite Concentrate (sent to inventory)    
  Gold - 220 220
  Silver - 1,820 1,820
Silver Equivalent (70:1) - 17,220 17,220

The Company plans, after the first quarter 2010, to report results of its milling operations on a quarterly basis, rather than a monthly basis.

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

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