ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

July 13, 2010 11:38 ET

ECU Silver Enters into Agreement to Sell Its Gold Concentrate to an International Commodities Trading Company

TORONTO, ONTARIO--(Marketwire - July 13, 2010) - ECU Silver Mining Inc. (TSX:ECU) is pleased to announce that it has entered into an agreement with one of the world's largest independent commodities trading companies to sell ECU's pyrite/gold concentrates. The gold/pyrite concentrate will be shipped and processed at a metallurgical plant in United States, owned by an internationally recognized mining company.

The terms of the agreement are for ECU to deliver an initial 10,000 tonnes from its gold/pyrite concentrate, currently stockpiled near its Velardeña Property in Durango, Mexico at a rate of 1,500 to 2,000 tonnes per month, equivalent to approximately 965 to 1,285 ounces of gold per month. ECU plans to immediately commence delivery of its gold/pyrite concentrate.

Michel Roy, Chairman and CEO of ECU said, "This is a very important step for the Company as our mineral resource has a very substantial gold content. The metallurgical viability of our gold/pyrite concentrate has been further demonstrated through our agreement with a well established commodity trading company with formidable insights and knowledge of the mining sector."

ECU currently has a stockpile of gold/pyrite concentrates of approximately 12,900 tonnes containing approximately 8,500 ounces of gold. In addition, at full capacity, the Company's 320 tonne per day ("tpd") sulphide plant is capable of generating gold/pyrite concentrates at an annual rate of approximately 23,000 tonnes, equivalent to approximately 14,800 ounces of gold per year. The Company is completing an economic study which contemplates increasing sulphide milling capacity by almost five times by way of the construction of a new 1,500 tpd plant.

Stephen Altmann, President added, "The terms of this agreement are significantly better than several past offers that we have received for our gold concentrate. The sale of the gold concentrates will immediately add to ECU's cash position, since ECU will be selling its stockpile of gold/pyrite concentrate where the costs to mine these concentrates were incurred in previous years."

About ECU Silver

ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardeña District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent (0.6 million gold equivalent) ounces in the measured and indicated category and 391 million silver equivalent (6.0 million gold equivalent) ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardeña.

Cautionary Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company's inability to obtain any necessary permits, consents or authorizations required for their activities, to produce minerals from their properties successfully or profitably, to continue their projected growth, to raise the necessary capital or to be fully able to implement their business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release.

Contact Information

  • ECU Silver Mining Inc.
    Michel Roy
    Chairman and CEO
    Torreon, Mexico
    011 52 871 747 5750
    or
    ECU Silver Mining Inc.
    Stephen Altmann
    President
    Toronto, Canada
    (416) 366-2428
    or
    ECU Silver Mining Inc.
    Mark Butler
    Investor Relations
    Toronto, Canada
    1 888 513 3444
    www.ecu.ca