ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

July 09, 2008 11:21 ET

ECU Silver Confirms Massive Sulphide at Depth

Highlights - Massive Sulphide Grades Confirmed. -- 3.66 g/t Au, 295 g/t Ag, 7.87% Pb and 12.07% Zn over core length of 12.04 metres (40 feet). -- 7.90 g/t Au, 550 g/t Ag, 11.25% Pb and 27.68% Zn over core length of 1.75 metres (6 feet).

TORONTO, ONTARIO--(Marketwire - July 9, 2008) - ECU Silver Mining (TSX:ECU) ("ECU Silver" or "the Company") is very pleased to announce that it has confirmed grades from the two massive sulphide veins intercepted at depth. The first drill intercept yielded 3.66 g/t Au, 295 g/t Ag, 7.87% Pb and 12.07% Zn over a core length of 12.04 metres (40 feet) (17 g/t Au equivalent or 1,100 g/t Ag equivalent). The second intercept yielded 7.90 g/t Au, 550 g/t Ag, 11.25% Pb and 27.68% Zn over a core length of 1.75 metre (6 feet) (33 g/t Au equivalent or 2,180 g/t Ag equivalent).

The four key points regarding the two massive sulphide veins (the "M-S Veins") include:



- The M-S Veins were intercepted at double the depth of the current N.I.
43-101 mineral resource estimate in this region.

- The grades in the M-S Veins are substantially higher than the Santa
Juana N.I. 43-101 Inferred Resource grades.

- Drilling has entered a zone where a multiple number of massive
sulphide lenses may be found.

- The extent of the alteration zone is unknown as drilling has not yet
reached the intrusive.


These drill results (see Table 1) are considered to be extremely significant as they provide a high level of confidence to the geological model which suggests the potential for the discovery of additional deep seated massive sulphide replacement (Mantos-type) deposits. These Mantos-type sulphide deposits represent major sources of precious and base metals in a high-grade, high tonnage ratio.

The above mentioned key points concerning the M-S Veins are summarized as follows:

1. The M-S Veins were intercepted at double the depth of the current N.I. 43-101 mineral resource estimate in this region.

As reported previously (see press release dated July 2, 2008), drill hole SJ-18-21 intercepted the "M-S Veins" at a depth of 900 metres (2,950 feet) below level 18. This is double the depth limit, from level 18, of the current N.I. 43-101 resource estimate for this region, which encompasses the Santa Juana veins system. In the last N.I. 43-101 resource estimate, the Inferred Resources for that section of the Santa Juana veins complex were calculated from a depth of 150 metres (490 feet) to a maximum depth of 450 metres (1,480 feet) below level 18 representing a total height of approximately 300 metres (980 feet). Drill hole SJ-18-21 cut the M-S Veins 900 metres (2,950 feet) below level 18 or another 450 metres (1,480 feet) below the current mineral resource limit. As such, the M-S veins demonstrate the continuity of the mineralized system from the current mine levels all the way down to nearly one kilometre below level 18. We intend to integrate an inferred resource block that will now extend for a vertical distance of 800 metres (2,620 feet), versus the previous 300 metres (980 feet), into the next N.I. 43-101 resource update. The current N.I. 43-101 for Santa Juana alone, defines a Measured and Indicated resource of 31.5 million ounces of silver equivalent (versus a total for all Velardena Properties of 37.6 million ounces) and an Inferred Resource of 70.5 million ounces of silver equivalent (versus a total for all Velardena Properties of 179 million ounces).

2. The grades in the M-S Veins are substantially higher than the Santa Juana N.I. 43-101 Inferred Resource grades.

The grades of the intercepts for the M-S Veins are very high, especially in base metals, compared to the average grade for the Inferred Resource at Santa Juana as defined basically between level 18 and 450 metres (1,480 feet) below. A new Inferred Resource calculated between level 18 and 900 metres (2,950 feet) may positively impact the average grade of the updated Inferred Resource category.

3. Drilling has entered a zone where a multiple number of massive sulphide lenses may be found.

The M-S Veins are within the marble/skarn alteration zone. The marble/skarn unit is typically associated with a zone of alteration occurring at the contact between the intrusive body and the limestone host rock. The most favourable portion of the alteration zone is the contact between the intrusive and the marble/skarn where thick lenses of massive sulphides typically form.

4. The extent of the alteration zone is unknown as drilling has not yet reached the intrusive.

The Santa Juana veins system is bound by two prominent veins in the upper levels, the Santa Juana Vein to the north-east and the more prominent A4 Vein to the south-west. At the upper levels of the Santa Juana mine, the A4 vein is located at the contact between the skarn and the intrusive. Consequently, the first M-S Vein may represent the downward extension of the Santa Juana vein and thus represent the first major vein, at depth, of the package of veins that comprise the Santa Juana veins system. At depth, the drill reached its maximum drilling depth and stopped within the marble/skarn alteration zone before hitting the intrusive. As such, there is a reasonable expectation that another massive sulphide vein, corresponding to the depth extension of the A4 vein, will be located to the south-west at the intrusive contact.

Michel Roy, CEO and Chairman, stated that "These massive sulphides have all the characteristics of Mantos-type bodies but with higher metal content than what has been encountered in the camp previously. In this, these intercepts are clearly related to the Santa Juana vein system which is also higher in gold than any other system in the area."

Stephen Altmann, President, added that "For the past 10 years, Michel and his team have persevered in proving the geological model that outlines a near-by source of mineralization. Today, the discovery of massive sulphide mineralization has demonstrated the ability and conviction of ECU's exploration team."



Table 1: Massive Sulphide Veins from Hole SJ-18-21
--------------------------------------------------------------------------
Sample From To Length Au Ag Pb Zn Cu
# (m) (m) (m) g/t g/t % % %
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51117 827.51 829.01 1.50 0.85 367 11.80 15.80 0.61
51118 829.01 830.51 1.50 0.80 380 10.75 18.22 0.38
51119 830.51 832.01 1.50 1.05 303 8.14 12.04 0.24
51120 832.01 833.51 1.50 4.35 261 6.75 14.84 0.32
51121 833.51 835.01 1.50 5.90 83 1.41 9.95 0.11
51122 835.01 836.51 1.50 10.55 59 0.95 2.96 0.08
51123 836.51 838.01 1.50 2.10 395 12.43 13.80 0.52
51127 838.01 839.55 1.54 3.70 506 10.66 9.02 0.61
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TOTAL 827.51 839.55 12.04 3.66 295 7.87 12.07 0.36

51113 855.40 857.15 1.75 7.90 550 11.25 27.68 1.21
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Cautionary Statements and Additional Information:

Readers are cautioned that until a prefeasibility study is completed, there are no assurances these latest mineralized zones will be economically viable.

True widths are approximately 35% of core length for the massive sulphide veins. Samples were assayed at the ERSA laboratory in Torreon, Coahuila, Mexico which is currently in the process of being certified. Mr. Michel Roy, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.

Silver and gold equivalents were calculated using the same commodity prices and metal recovery factors used in the Velardena District National Instrument 43-101 Resource Estimate Report. Commodity prices and recoveries, respectively, were $640/oz and 71% for gold, $12/oz and 58% for silver, $0.60/lb and 45% for lead, $1.20/lb and 25% for zinc.

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 area is comprised of three properties, the Main Velardena Property, the Chicago Property and the San Diego Property. The properties are located near to each other and include five historical mines - Santa Juana, Terneras, San Mateo, San Juanes, and the San Diego mine. ECU's goal is to establish a significant polymetallic mineral resource in the heart of Mexico. ECU's mission is to become a pre-eminent silver and gold producer through the development of existing, and additional potential resources at Velardena.

Contact Information

  • CHF Investor Relations
    Chris Haldane
    Account Manager
    (416) 868-1079 ext. 237
    Email: chris@chfir.com
    or
    ECU Silver Mining Inc.
    Stephen Altmann
    President
    (416) 366-2427
    Email: ecu@ecu.ca
    Website: www.ecu.ca