ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

November 16, 2009 08:00 ET

ECU Silver Reports on Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 16, 2009) - ECU Silver Mining Inc. (TSX:ECU) is pleased to report on its third quarter results. The Company's Interim Consolidated Financial Statements and MD&A for the period are available on SEDAR at www.sedar.com.

In the third quarter, ECU generated 1,738 ounces of gold and 41,457 ounces of silver. During this period of time, the oxide mill averaged 506 tonnes per day (tpd) which is slightly above our design goal of 500 tpd.

Over the past few months, ECU has established a strong platform for its future growth. This platform consists of a significant mineral resource, an oxide mining and milling operation, a sulphide mining and milling operation, extensive infrastructure, and a work force of 430 people. While the main focus of the Company will continue to be the development of our mineral resources, we have entered the first stage of this growth by focusing on our mining and milling activities and ensuring a stable base of revenue from these operations. The next step in our growth will be the completion of our scoping study which will define the parameters for mining and milling operations that are three times the size of our current operations.

With regard to our Oxide Mill, productivity has been excellent and the Oxide Mill has proved to have very robust capacity. We have been feeding the mill consistently at a rate greater than 500 tonnes per day. Material for the mill is being sourced from underground mining stopes, low-grade stockpiles, gold-rich tailings from the flotation mill and from roasted pyrite material from existing concentrate stockpiles. Grades and recoveries for the mineralized material from the Santa Juana, San Juanes and Chicago underground mines were very good considering an important portion of the material from the Santa Juana mine was from the Transition Zone which lies between the sulphide and oxide sections of the mine and thus contains sulphides that leach poorly. A portion of the tonnage that is being milled through the oxide mill comes from high-grade roasted pyrite/gold concentrate material. Results show that the recoveries for the roasted pyrite/gold concentrate material were extremely high, most likely above 90%, despite previous laboratory metallurgical tests that indicated potential recoveries between 50% and 75%. Test work on the roasted pyrite/gold concentrate material is continuing.

During the quarter, the Company milled a blend of mineralized material that included pyrite/gold tailings. These tailings are currently the source for the pyrite/gold concentrates which are generated from the sulphide mill. The recoveries for the gold contained in the tailings blend were approximately 55%, which is superior to the 50% that is achieved when milling the tailings through the Sulphide Mill. Consequently, based on this positive news, a new circuit was designed and will be added to the Oxide Mill to permit the daily processing of 400 tonnes of pyrite/gold tailings, in addition to the 500 tonnes of mineralized material the Oxide Mill is currently treating.

We plan to further increase revenues in the next quarter with the recent re-activation of our second mill, the Sulphide Mill. The Company will therefore be operating two mills, the Oxide Mill and the Sulphide Mill. With the significant increase in lead and zinc prices, our sulphide stockpiles have become an attractive opportunity to enhance revenues. We also plan on increasing our mining fleet in order to boost underground productivity in the sulphide portion of our mines.

About ECU Silver

ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena 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 Velardena.

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
    011 52 871 747 5750
    or
    ECU Silver Mining Inc.
    Stephen Altmann
    President
    (416) 366-2428
    www.ecu.ca