ECU Silver Mining Inc.

ECU Silver Mining Inc.

July 02, 2008 12:14 ET

ECU Silver Deep Drilling Encounters Mineralization at Depth at Santa Juana

Highlights - Deep drilling at Santa Juana encounters two types of mineralization at depth. - Both types of mineralization were intersected within the marble/skarn contact zone. - Second type of mineralization intersected massive sulphides.

TORONTO, ONTARIO--(Marketwire - July 2, 2008) - ECU Silver Mining (TSX:ECU) ("ECU Silver" or "the Company") is pleased to announce preliminary results from deep hole drilling within the Santa Juana vein system on the main Velardena Property. Drilling encountered two types of mineralization within the marble/skarn alteration zone. The first set of mineralization consisted of pyrite-rich calcite veins (the "Calcite Veins") and started 700 metres (2,300 feet) below level 18. The second set of mineralization consisted of massive sulphide veins (the "M-S Veins") as much as a further 150 metres (500 feet) below the Calcite Veins. Confirmation of assay results for the M-S Veins is pending.

Last week, the Company reported assay results with high gold grades and widths from the A4 vein which was cut at level 19 (50 metres (165 feet) below level 18) within the Santa Juana vein system (see press release dated June 26, 2008). Further to these results, the Company has received new assay results from a deep drill hole, SJ-18-21, extending 900 metres (2,950 feet) below level 18. The drill hole, which is stationed on level 18, was designed to test the depth extension of the Santa Juana vein system.

Drill hole SJ-18-21 encountered the Calcite Veins over a core length of 72 metres (240 feet) at a depth of approximately 700 metres (2,300 feet) below level 18. The drill hole continued for another 200 metres (660 feet) and encountered the M-S Veins. Prior to crossing the entire mineralized zone, the drill reached its maximum drilling depth capacity of 900 metres (2,960 feet) and drilling stopped within the marble/skarn alteration zone.

These series of veins were intersected within the marble/skarn unit which is typically associated with a zone of alteration occurring at the contact between the intrusive body and the limestone host rock. The Calcite Veins were defined by a 72 metre (240 foot) section of pyrite-rich calcite veins occurring between 708 and 780 metres (2,320 to 2,560 feet) depth. The M-S Veins consist of two massive sulphide veins. The first M-S Vein was intercepted at a depth of 828 to 840 metres (2,720 to 2,760 feet), about 48 metres (160 feet) deeper than the Calcite Veins. The second M-S Vein was intercepted at a depth of 855 to 857 metres (2,800 to 2,810 feet). Assays from these intercepts are being confirmed and will be released as soon as confirmed.

The assay results from the Calcite Veins contain significant concentrations (over 72 metres of length) of precious and base metals, including 8.4 g/t Au and 126 g/t Ag over a width of 1.5 metres (5 feet) (see Table 1 below). The high number of mineralized veins encountered are consistent with the geological model as they are within the marble/skarn alteration zone that envelopes the intrusive event, which in turn sourced the vein mineralization of the Santa Juana veins system. We believe the Calcite Veins are within an alteration zone that surrounds a potential deep seated massive sulphide replacement (Mantos-type) body. This is further supported by the presence of the M-S Veins 48 metres (160 feet) below the Calcite Veins. Confirmation of assay results for M-S Veins is pending.

Table 1: Calcite-Pyrite Veins SJ-18-21
Sample From To Length Au Ag Pb Zn Cu
# (m) (m) (m) g/t g/t % % %
50976 708.15 709.45 1.30 1.60 18 0.03 0.02 0.03
50977 709.75 711.25 1.50 1.50 17 0.04 0.02 0.02
50982 730.90 732.36 1.46 0.95 113 0.24 0.01 0.12
50983 732.36 732.91 0.55 2.40 48 0.06 0.01 0.68
50984 734.95 735.85 0.90 2.20 191 0.45 0.02 0.99
50994 774.07 774.30 0.23 0.55 47 0.15 0.10 0.11
50995 774.30 774.97 0.67 0.20 10 0.04 0.07 0.03
50996 774.97 775.95 0.98 2.85 68 0.69 2.30 0.21
50997 775.95 776.56 0.61 0.60 23 0.10 0.11 0.05
50998 776.56 776.96 0.40 3.90 42 0.17 0.06 0.12
50999 778.67 780.17 1.50 8.40 126 0.23 0.07 0.48

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 Calcite 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.

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
    CHF Investor Relations
    Michael Borovec
    Account Manager
    (416) 868-1079 ext. 229
    ECU Silver Mining Inc.
    Stephen Altmann
    (416) 366-2427