ECU Silver Mining Inc.

ECU Silver Mining Inc.

August 29, 2007 16:32 ET

ECU Silver Announces New Discovery at Terneras Mine

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2007) - ECU Silver Mining Inc. (TSX:ECU) -

- New discovery at Terneras Mine.
- Hole BV 07-04 cuts Terneras vein yielding grades of 3,130 g/t silver.
- Significant lateral and vertical continuity of Terneras vein.
- Western lateral extension of over 900 meters.
- Vertical extension of over 600 meters.

ECU Silver Mining Inc. (TSX:ECU) is pleased to announce a new discovery at the historical Terneras mine within the Velardea Project. The Terneras vein is located approximately 460 meters south of our Santa Juana mine that hosts the Mineralized Corridor MC, 180 meters north of the San Mateo mine where high grade results have been found and 1,950 meters north of our Chicago vein, where a material new discovery of the vein's western extension was announced in July 2007.

The following points are considered key to this latest discovery:

1) If the geology of this structure continues to show characteristics that are consistent to other known areas in Velardea, higher gold grades are expected at depth;

2) Both, the lateral (900 meters) and vertical (600 meters) extensions are known and clearly defined;

3) The Terneras vein remains open laterally and at depth;

4) Modern day equipment and mining methods allow for extraction of deeper rich mineralized material;

5) The Company is confident that it has found the extension of the Terneras vein that has eluded historical exploration efforts over the past century.

Michel Roy, CEO and Chairman stated that "The Terneras vein is the most prominent vein in the Velardea district and we are very excited about this discovery. We have suspected for quite some time that the extension of the Terneras vein existed and we are delighted to have found it."

Stephen Altmann, President added that "The discovery of the Terneras extension has opened up another opportunity for ECU to have several operating mines in its future. Starting with Santa Juana, ECU's growth profile will be supported with a strong pipeline of potential mines coming from San Mateo, Chicago, San Diego and now Terneras."

Terneras History and Geology

The Terneras mine was the largest mining operation in the Velardea district in the early 1900's with more than 1,000 miners working on site. It was the largest historical producer in the Velardea area until 1968. The main characteristics of the Terneras mine was the impressive continuity of the main vein which was mined laterally for 1,200 meters and vertically for 600 meters.

The western and eastern limits of the mine were related to faults that displaced the vein in an unknown direction and many efforts since the early 1900's to find the extensions were unsuccessful until now.

As for the vertical continuity, the vein continues at depth below level 22, the lowest level mined historically. The mineralized material changed from oxide to sulfide near the 600 meters depth and the miners of the last century could not mine the harder sulfide material with the hand tools of the time. Given the technological advances made in the mining industry over the last 100 years, the mining of harder sulfide material at depth is now common practice and is currently being done at our Santa Juana and San Mateo mines.

Sampling and drill results

Company's geologists used aerial photographs and ground work to localize the western extension of the Terneras vein.

With the use of aerial photographs, the first step in identifying the potential extension of the Terneras vein was the surface sampling of all the structures interpreted. Several structures were sampled by the Company in 2003, including 15 samples collected of the highly altered surface expression of a vein which gave the following results:

Surface Samples - Terneras Extension
Sample Width m Au g/t Ag g/t Pb% Zn%
6613 1.40 3.70 134 NA 2.60
6614 0.30 2.10 261 NA 2.20
6615 0.40 1.00 261 NA 2.00
6616 0.60 1.40 24 NA 0.30
6617 1.10 2.70 60 NA 0.70
6618 0.55 1.70 52 NA 0.40
6634 0.50 0.00 44 NA 0.10
6635 0.45 0.80 91 NA 0.20
6636 0.60 0.80 166 NA 0.80
6638 0.26 1.50 104 NA 0.80
6639 0.74 1.20 179 NA 0.20
6640 0.48 7.40 345 NA 0.20
490 0.22 2.70 184 NA NA
491 0.20 2.90 411 NA NA
492 0.25 1.10 121 NA NA

Considering the extreme weathering of the surface and the associated leaching of metals, caused by infiltration and circulation of ground waters, the Company's goal was to identify the presence of precious and base metals in the structure. The above results clearly confirmed the presence of precious and base metals.

The above results, despite yielding positive grades, were not thought to be significant in 2003 on their own as the Company did not have enough information about the area. Since then, new underground work and confirmation of fault displacements at the Santa Juana mine have allowed our geologists to reinterpret the local geology and confirm this structure as the most likely for being the western extension of the Terneras vein.

All assays from surface sampling that are above 0.50 g/t gold and 50 g/t silver are considered as very positive. In other nearby locations, such as the western extension of the Sanjuanes vein (between Terneras and San Mateo), we have done underground ramping and drifting that confirmed precious metals contents 3 to 10 times higher than values obtained from surface sampling of the same vein.

The second step in verifying the extension of the Terneras vein was to drill the structure and intersect it at a shallow depth of 40 to 50 meters below the surface sampling area.

Drilling was carried out and the Company is pleased to announce that Hole BV 07-04 yielded the following results:

Drilling Results - Terneras Extension
Hole Sample From To Width Au Ag Pb Zn Cu
# m g/t g/t % %
BV 07-04 44935 46.77 47.17 0.40 2.30 3,130 15.4 1.16 0.25

These assay results are consistent with the historical assays from the Terneras vein which was extremely rich in silver and lead close to the surface with gold mineralization increasing at depth. The width is also consistent with the historical widths observed and mined at the Terneras mine.

Going forward

The next step in the exploration/definition process of the Terneras extension is to continue delineating the structure to the 600 meter known depth in the original mine and along the identified 900 meters of strike length. A surface drill location has been identified and drill set-ups are being prepared to initiate drilling within the next month. This work will be completed before testing further extensions laterally and vertically.

Readers are cautioned that until a complete pre-feasibility study is completed, there are no assurances this latest mineralized zone will be economically viable, and 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 the Company's expectations may arise once further drilling is completed at the Terneras mine.

The Company is also currently drilling underground both at our Santa Juana and San Mateo mines and on surface at the Chicago vein as we continue to define the MC and other veins, results are expected on all of these fronts shortly.

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

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 Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • ECU Silver Mining Inc.
    Stephen Altmann
    (416) 644-8640
    (416) 644-8801 (FAX)