ECU Silver Mining Inc.

ECU Silver Mining Inc.

April 30, 2007 16:15 ET

ECU Posts Year End Results From "Pivotal" 2006

TORONTO, ONTARIO--(CCNMatthews - April 30, 2007) - ECU Silver Mining Inc. (TSX VENTURE:ECU) is pleased to announce that financial results for the year ended December 31, 2006 and corresponding Management Discussion & Analysis have been filed and are available on Sedar ( and will be available on the ECU website at

"2006 was a pivotal year for the Company," said CEO Michel Roy. "It was a year of further exploration, development, acceleration and great discovery. Not only did we have an exponential increase in our (audited) resources, the Company also made several major subsequent discoveries that included the discovery of two separate stockwork zones which form the 'Mineralized Corridor' and the discovery of two mineralized skarns at our Santa Juana mine; as well as discoveries at our San Mateo and San Diego mines. The Mineralized Corridor, our most exciting discovery is now driving a change in Company focus from mining to development moving from narrow-vein to assessing bulk mining applications of very wide stopes."

Even with exploration and mine development as the Company's primary focus, Mr. Roy also noted that processing at the Velardena mill was up and revenues were up, year-over-year. In addition to multiple discoveries, the Company tripled acreage in the Velardena region of Mexico to 1,862 hectares; expanded mill capacity and announced the completion of a pyrite circuit for enhanced silver and gold recovery. The Company is working on a post-discovery, update of resources expected in the second half of 2007; and opened a corporate office in Toronto with expanded management.


The Company is pleased to provide Shareholder's with the following financial highlights and operating results for the year. All numbers are in Canadian dollars unless otherwise mentioned.

Annual revenues increased 40% in 2006 from the previous year, to $4,246,268 compared with revenues of $3,028,574 in 2005. The net loss increased to $11,332,000 compared to $3,267,000, reflecting $6,207,250 for the accounting of new stock options. The balance of additional expenses was mainly related to the major exploration program of 2006, including drilling, mine development and capital costs for mill enhancement and operations. Cash in hand was up 3% year-over-year, to $2,083,000.

The Company's total assets increased 79% to $22,765,262 in 2006 compared to $12,709,341 in 2005. Liabilities increased slightly at 7% with an increase of short-term liabilities utilizing the credit facility currently in place.

At the Mill

ECU increased daily capacity at its wholly owned mill in Velardena to 320 tonnes per day (tpd), up from 250 tpd at year-end 2005. In 2006, the Company mined mostly sulfide material from the Santa Juana mine, namely 35,000 tonnes from 929 meters of drifts and 733 meters of raises and 42,708 tonnes from stopes for a total of 77,708 tonnes grading 3.9 g/t Au, 180 g/t Ag, 0.82 % Pb and 1.22 % Zn. These included 3,827 tonnes from drifts and 692 tonnes from San Mateo mine stopes.

At the mill, 77,010 tonnes were processed for 1,124 tonnes of lead concentrate grading 7.75 g/t Au, 7,076 g/t Ag and 24.8 % Pb, 820 tonnes of zinc concentrate grading 1,743 g/t Ag and 41.4 % Zn and 507 tonnes of pyrite concentrate grading 24.5 g/t Au and 183 g/t Ag. These concentrates contained 678 ounces of gold, 304,486 ounces of silver, 613,397 pounds of lead and 720,044 pounds of zinc from which revenues were or will be received.


ECU made multiple discoveries in 2006 not included in the independent, National Instrument (NI) 43-101 technical compliant report, released on June 30th 2006 that gave ECU a year-over-year 42% increase in indicated resources and 608% increase in inferred resources. The audit puts indicated resources at 1.45 million tonnes, containing 17.4 million ounces of silver-equivalent; and inferred resources of 6.3 million tonnes or 81 million ounces of silver-equivalent. Additional major discoveries not reflected in that report prompted the Company to commission an updated resources audit with results expected in the second half of 2007.


The Company's major discoveries in 2006 confirmed an extensive Mineralized Corridor which was defined between levels 15 and 18 averaging 46 meters in width, 536 meters in length and over 188 meters vertically while remaining open to further size definition. This major discovery has led the Company to initiate an extensive sampling and exploration program and to an examination of potential bulk-mining methods. An initial bulk mining test on Level 15 of the Santa Juana mine gave 5,227 tonnes grading 2.23 g/t Au, 191 g/t Ag, 2.66% Pb and 3.27% Zn over an average width of 9 meters. These results suggest that the Company may be able to mine vastly more than under its current method of mining narrow, higher grade veins.

The shift from narrow-vein to wider stopes would move the Company from being narrow vein focused to potentially a major silver and gold Company through bulk-mining applications.

Although the reader is cautioned, until a pre-feasibility study is completed there are no assurances of this occurring.


In 2007, the Company looks to continue drilling and developing at Santa Juana, further defining the grades and expanding the size of the Mineralized Corridor. ECU also plans further exploration at San Mateo where recent sample assays graded over 2,700 g/t silver and over 270 g/t gold, and further exploration on our joint venture at San Diego. ECU's will ultimately upgrade and update our 43-101 resource estimate and deliver a mill capacity decision that reflects the size and scope of the resource that the Company has been so active in defining at the Mineralized Corridor at Santa Juana.

"The entire profile of our Company has changed considerably with the clear existence of the Mineralized Corridor at Santa Juana. The Mineralized Corridor has the right characteristics to suggest that all or a portion of it potentially may be amenable to bulk mining applications that may substantially increase our resource treatment capability. In addition, our success at San Mateo has made this a high priority target due to the very high grade assay results. The new exploration drills are achieving excellent daily progress and our efforts to accelerate the drilling program are being realized. We look forward to delivering results to our shareholder through out 2007." reported Mr. Roy.

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

ECU Silver Mining Inc. ( is engaged in gold, silver and base metals exploration development, and has its mining operations in the Velardena property in Mexico. The property includes five historical mines: Santa Juana, Terneras, San Mateo and San Juanes, which are interconnected, plus the San Diego mine. The Company is currently treating development muck and vein material from stopes from the Santa Juana mine, for treatment at the Velardena mill. The Company is currently extracting vein material from one of its five historical mines and it processes its mineralized material at its own milling facilities in Velardena. The Company also maintains interests in exploration properties in north western Quebec.

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.

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

Contact Information

  • ECU Silver Mining Inc.
    Steve Altmann
    (416) 644-8640
    (416) 644-8801 (FAX)
    ECU Silver Mining Inc.
    Richard Buzbuzian
    Vice President
    (416) 644-8640
    (416) 644-8801 (FAX)