ECU Silver Mining Inc.

ECU Silver Mining Inc.

August 25, 2006 13:27 ET

ECU Makes Major New Gold and Silver Discovery Over 40 Meters in Length and 5.88 Meters in Width

- Cross-cuts on level 15 averaged 5.88 meters of width '19.3 feet' grading 5.79 g/t Au, 194 g/t Ag, 1.89% Pb and 2.64% Zn over a 40 meters length '131 feet'; - Included was an intercept that averaged 6 meters '19.7 feet' of width grading 8.17 g/t Au, 304 g/t Ag, 2.07% Pb and 3.07% Zn; - Possibility of vertical continuity of nearly 200 meters '656 feet' connecting Level 15 discovery to original Stockwork zone on levels 17.5 and 18.

TORREON, COAHUILA--(CCNMatthews - Aug. 25, 2006) - ECU Silver Mining Inc. (TSX VENTURE:ECU)(the "Company") is pleased to announce that it has made a materially significant new discovery at its Velardena property in Mexico. As a result of its continuing 2006 exploration program at the property, which is now only approximately 1/3 completed, the Company is very pleased to report drilling results from four new cross-cuts, spaced evenly 10 meters apart, testing a structure containing parallel veins beside the Santa Juana vein on level 15.

As was recently stated (See the Company's press release 2006-08-17), following the initial discovery of the stockwork zone, the Company began sampling other areas of the Santa Juana mine to look for geological environments similar to those exhibited by the stockwork zone. That is, to look for areas that had closely spaced parallel continuous veins with good grades between and close to the Santa Juana and A4 veins. This investigation has directly led to our latest discovery on level 15 adjacent to the Santa Juana vein.

Data from level 15(Also see Table 1 below):

- Cut#1: 6.0 meters width at 7.17 g/t Au, 154 g/t Ag. 2.92% Pb and 2.17% Zn;

- Cut#2: 5.5 meters width at 5.57 g/t Au, 98 g/t Ag, 1.79% Pb and 2.37% Zn;

- Cut#3: 6.0 meters width at 2.24 g/t Au, 213 g/t Ag, 0.78% Pb and 2.91% Zn;

- Cut#4: 6.0 meters width at 8.17 g/t Au, 304 g/t Ag, 2.07% Pb and 3.07% Zn.

The company is pleased with the above results which provide further evidence of the continuity and the economic interest of the entire system.

The importance of the latest data arises from the following:

1) Given the grades just collected on level 15, the Company plans further development and exploration in the area located between levels 15 and 18 (a vertical distance of nearly 200 meters (656 feet);

2) Given that we already have hard data from levels 17.5 and 18, which also yielded good grades (see the Company's press release 2006-05-08 and 08-17),this latest discovery on level 15 along with the prior cross-cuts executed on levels 17.5 ,the company believes that this new zone may connect to the equivalent stockwork contact at depth, 200 meters (656 feet) lower, on levels 17.5 and 18. Readers are cautioned that we are assuming that we should encounter mineralization between the upper and lower levels, but are no guarantees that we will.

3) Based on existing drilling data, this zone may extend for at least an extra 150 meters (492 feet) below level 18;

4) The upward extension of the zone starting from level 15, may reach a minimum of 100 meters (328 feet) by extending it to level 12 and we shall investigate to that level and higher in the oldest sections of the Santa Juana mine;

5) 40 meters (131 feet) of horizontal continuity has already been demonstrated by drifting on Level 15 and the Company is planning additional work to determine the extent of the zone which may extend well beyond 100 meters (328 feet);

6) This new discovery on level 15 is from an entirely new section and once this data is integrated into our data base the company expects a positive impact to our resources;

7) Preparations to mine from level 15 will require minimal capital expenditures given that all the required infrastructure is already in place;

8) The new level 15 findings confirmed the presence of enriched sections in a stockwork type zone that could be mined separately, to improve mining grades and ore value while lowering costs by using bulk mining type methods.

Sample # Width (m) Au g/t Ag g/t Pb % Zn % Comment
4 veins 6.00 7.17 154 2.92 2.17 x-cut #1
3 veins 5.50 5.57 98 1.79 2.37 x-cut #2
3 veins 6.00 2.24 213 0.78 2.91 x-cut #3
3 veins 6.00 8.17 304 2.07 3.07 x-cut #4

Over 40 meters 5.88 5.79 194 1.89 2.64 Average

Readers are cautioned that although the above points are based on the best available data the Company has collected to date, a material difference between the actual results and our expectations may arise once further drilling is completed.

Summary of known facts :

The facts pertaining to this new discovery and how it relates to the other sections of the mine must be clearly emphasized now in order to understand the scope of the geological units we are dealing with and what it might mean to the Company.

Based on sampling and drilling assays harvested to date, the following can be summarized:

A) The system extends vertically for 450 meters (1,476 feet) from level 12 down to level 18 and beyond. This height could increase significantly as we have yet to test in either direction, upward and downward, beyond what we have reported on to this point;

B) The stockwork zone on level 17.5 and 18 has a width of over 26 meters (85 feet), which includes an intercept of 14.8 metres (48.6 feet) of width grading 5.13 g/t Au, 22 g/t silver (Ag), 0.45 per cent lead (Pb) and 0.5 per cent zinc (Zn);

C) The new discovery on Level 15 has a 5.88 meters average width and we just entered that zone;

D) The zone on Level 15 has a current lateral extension of 40 meters (131 feet), and further exploration work is underway to determine the full extent of the zone.

"The Company is pleased with the results from the new cross-cuts on level 15. This latest discovery in the upper levels of the mine may be connected to the lower levels by the same system of veins based on hard data collected to this point, but further work must be carried out before we are certain. Over the past few months, the Company has gone from thinking about having the potential of using bulk mining methods to the point today where the possibility to do so is being evaluated." noted Michel Roy, President and Chief Executive Officer of ECU Silver Mining.

Currently, we are working on level 15 to test the length of that zone and we should have more results shortly. We would also like to announce that financial results for the second quarter of 2006 will be out next week.

Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.

All widths are true widths. Samples were assayed at ERSA, in Torreon, Coahuila, Mexico. This laboratory is currently in the process of being certified. Property specific quality control samples were inserted at regular intervals in the sample sequence and the Company routinely does check assays at other certified laboratories.

ECU Silver Mining Inc is a junior Gold, Silver, Zinc and Lead producer in the prolific mining district of Velardena, Mexico where historically over 500,000 ounces of gold and 250,000,000 ounces of silver have been mined. Full scale production began in May 2005 at the Company's Santa Juana mine.

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.

Head Office
Quebec, Canada
J9Y 1G9
Tel : (819) 797-1210
Fax : (819) 797-1214

Corporate Office
J. I. Jimenez 663
colonia Los Angeles Torreon, Coahuila,
Mexico, 27000
Tel: (01152)-871-717-8633
Fax: (01152)-871-718-5025

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • ECU Silver Mining Inc.
    Michel Roy
    President and Chief Executive Officer
    Cell: 011-52-871-727-1061