ECU Silver Mining Inc.

ECU Silver Mining Inc.

May 03, 2007 10:30 ET

ECU Silver Announces New Development and Drilling Results in the Mineralized Corridor at Santa Juana

Highlights: ECU has confirmed large packages of veins within the Mineralized Corridor.

TORONTO, ONTARIO--(CCNMatthews - May 3, 2007) - Mr. Michel Roy, Chairman and CEO of ECU Silver Mining Inc. (TSX VENTURE:ECU) is very pleased to announce new development and drilling results from the Santa Juana area of the Velardena Project in Mexico. These results have had a positive and significant impact to the Company's progress in the evaluation of the Mineralized Corridor MC as first announced on December 18, 2006.

Today's results strongly suggest that certain vein packages within the MC have grade profiles that are comparable to the corresponding narrow veins at Santa Juana as previously reported in the Company's N.I 43-101 in October 2006. However, equally important is the vein packages have significant widths which are essentially up to 24 times that of the narrow veins. This suggests that the vein packages are potentially amenable to bulk mining applications. However, the reader should be cautioned that until a pre-feasibility study is complete there can be no assurances of this happening.

The discovery of the MC in December 2006 confirmed that all the stockwork zones discovered to date were part of a larger mineralized sheared corridor. Additionally, a bulk mining test of one stope on level 15 confirmed that the zones were continuous and all part of a much larger system. As a result, since the beginning of 2007, the Company shifted its focus from exploration and exploitation of narrow vein material to definition of these much larger new zones that were being encountered on all accessible levels, namely level 12 through level 18 (230 metres of vertical extent). ECU's mining crews are now continuing to open new access drifts and cross-cuts on multiple levels and are preparing additional drill stations on level 18 to further delineate the MC within the levels and at depth.

The reader is cautioned that this press release should not be interpreted or construed as a new NI 43-101 updated resource. The company's NI 43-101 technical report filed on Oct. 10, 2006, (the "October 43-101 Report") still remains the current resource estimate.

Since the initial discovery of the MC, the Company has continued to add and define the overall shape and size of the MC. Based on information available to date the MC extends 230 metres from level 12 to level 18 and drilling has confirmed that it continues below level 18 for at least another 250 meters. The MC is now approximately 100 metres wide and has been followed along strike for 500 to 550 metres. Work to date is confirming the continuity of numerous packages of high grade veins within the MC.

Most recently, the Company has focused on better defining two vein packages within the MC. These are the "A" veins (A1 to A7) and the "D" vein packages. These vein packages merit increased attention since they are easy to access from existing drifts and cross-cuts, on several levels, and their volumes can be compared to volumes of the corresponding narrow veins as reported in the October 43-101 Report.

The assay results from the investigation of both these vein packages has yielded sufficient new information to conduct a comparative volume study.

"A" Veins Package (A1 to A7)

The "A" veins package includes the individual A1 to A7 veins, plus extentions of those veins plus additional sheeted veins and veinlets between the A1 to A7 veins, the latter two are not included in the October 43-101 Report.

Drill-hole SJ 18-16 (2) was driven below level 18 on the western side of the Tres Aguilas fault to determine the vertical continuity of the "A" veins package at depth. The drill-hole cut the "A" veins package from 54.6 m to 62.6 m, for an 8 meter (26 feet) wide intercept grading 2.42 g/t gold, 268 g/t silver, 0.28% lead, 1.80% zinc and 0.42% copper below level 18.

Drill-hole SJ 18-16 (2) corresponded to another intercept of the same "A" veins package in a new cross-cut on level 18 directly above that yielded a significant 24 meters (79 feet) wide intercept grading 1.54 g/t gold, 155 g/t silver, 0.15% lead, 0.73% zinc and 0.30% copper.

The significance of the above is the confirmation of wide packages of veins throughout the MC at attractive grades.

Many other cuts of the same "A" veins package have also been obtained from level 18 cross-cuts and drilling on the eastern side of the Tres Aguilas fault demonstrating strong lateral continuity. While all the information is not yet complete, drill-hole SJ 18-06 returned 1.48 g/t gold, 76 g/t silver, 0.21% lead, 0.20% zinc and 0.06% copper over 12.1 meters.

"D" Veins Package

Drill hole SJ 18-16 (2) also intercepted the D veins package from 42.3 m to 50.1 m, for a 7.8 meter wide intercept grading 1.91 g/t gold, 50 g/t silver, 0.05% lead, 0.23% zinc and 0.15% copper.

A cross-cut was also driven on level 15.5 which hit the "D" veins package and this was subsequently followed by drifting. This new drift followed the "D" veins package for more than 50 meters (164 feet) and 11 cuts were sampled and assayed over the first 35 meters, yielding an average of a 3.2 meters (10.5 feet) wide intercept grading 2.66 g/t gold, 112 g/t silver, 0.56% lead, 1.23% zinc and 0.35% copper for the 11 cuts.

The most important thing about these results is that it confirmed the grade continuity and vertical extension of the "D" veins package from below level 18 up to level 15 and above.

"A" and "D" Veins Packages Together

Considering both the "A" and "D" veins packages together would give a 20.4 meter (67 feet) wide zone grading 1.68 g/t gold, 125 g/t silver, 0.13% lead, 0.79% zinc and 0.22% copper.

Additional holes have been drilled to test the same "A" and "D" veins packages and they successfully encountered mineralization 150 meters (492 feet) below level 18. Assays are pending for those additional holes.

"A" VEINS (A1 TO A7)
Previously, the October 2006 43-101 Report gave 274,393 tonnes grading
2.41 g/t gold and 120 g/t silver between level 12 and 19, in the
indicated resources category and 352,043 tonnes grading 2.37 g/t gold and
128 g/t silver in the inferred resources category between
levels 12 and 21.

New data not included in the October 43-101 Report
Width Gold Silver Lead Zinc Copper
Vein Level (m) (g/t) (g/t) (%) (%) (%)
A veins Level 18 24.0 1.54 155 0.15 0.73 0.30
SJ 18-16
A veins (2) 8.0 2.42 268 0.28 1.80 0.42

A3 and A4 SJ 18-06 12.1 1.48 76 0.21 0.20 0.06

Previously, the October 2006 43-101 Report gave 11,669 tonnes grading
0.89 g/t gold and 52 g/t silver between levels 14 and 15, in the
indicated resources category.

New data not included in the October 43-101 Report
Level 15.5
D veins 35 3.2 2.66 112 0.56 1.23 0.35
SJ 18-16
D veins (2) 7.8 1.91 50 0.05 0.23 0.15

The grades in the "A" and "D" veins package compared to the average diluted
grades obtained in the October 43-101 Report are not materially different
considering the resources in the October 43-101 Report were calculated
over widths of 1.00 to 1.46 meter after dilution whereas the "A" and "D"
veins package assays represent widths up to 24 meters.

Package Length Minimal Maximum Height Tonnage of the
(m) Width (m) Width (m) (m) defined volume
(million t)
"A" W of Tres 150 10 24 250 1.2 to 3.0
"A" E of Tres 150 5 20 300 0.7 to 3.0
"D" W of 150 3 5 250 0.4 to 0.6
Tres Aguilas

The range of tonnage was calculated using the recently opened length, the height over which the packages were encountered in recent drilling and developments and the minimal width for the lowest number and the maximum width for the higher number, both with a 3.3 density.

These quantities are conceptual in nature and there has been insufficient development to define it as a "Mineral Resource". Furthermore it is uncertain that the current exploration program will result in it being defined as a "Mineral Resource".

The dimensions given in Table 2 do not represent the maximum extensions of the mentioned packages, they represent only the dimensions of the packages as they have been defined to date. Even so, there is a significant increase in the mineralized volumes when compared to the tonnages calculated from the original narrow veins only (as was done in the past).

"We are very pleased with the new drilling results and definition data which yet again added significantly to the Company's progress in the evaluation of the Mineralized Corridor MC. Now, the entire scope of the Company has changed and may continue to evolve as more data is collected, sampled and assayed in the coming weeks and months ahead", reported Mr. Michel Roy, Chairman and CEO of ECU Silver Mining Inc.

All widths from underground workings are true widths. All drilling samples represent the core length and may not be representative of the true width. Samples were assayed at ERSA, in Torreon, Coahuila, Mexico, this laboratory is currently in the process of being certified, and at SGS in Durango, Durango, which is a certified laboratory. 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.

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

ECU Silver Mining Inc. is a Canadian silver and gold mining and exploration company with executive offices in Toronto, Ontario, that is involved in the evaluation, development and mining of precious metal deposits in Mexico. The Company owns the historically prolific, 564-hectare Velardena Property which holds five mines and a milling operation in the state of Durango, Mexico. ECU's goal is to become one of Mexico's largest producing silver mines. ECU's common shares are listed on the TSX Venture Exchange under the trading symbol ECU.

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.
    Stephen Altmann
    (416) 644-8640
    ECU Silver Mining Inc.
    Richard Buzbuzian
    Vice President
    (416) 644-8640