ECU Silver Mining, Inc.

ECU Silver Mining, Inc.

March 17, 2005 12:44 ET

ECU Silver Mining, Inc.: Press Release-Completion of Phase II Mill Expansion and Initiation of Phase III Program


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ECU SILVER MINING, INC.

TSX VENTURE SYMBOL: ECU

MARCH 17, 2005 - 12:44 ET

ECU Silver Mining, Inc.: Press Release-Completion of
Phase II Mill Expansion and Initiation of Phase III
Program

TORREON, COAHUILA--(CCNMatthews - March 17, 2005) - ECU Silver Mining
Inc. (TSX VENTURE:ECU)

ECU Silver Mining Inc. (the Company) wishes to report that the Phase II
expansion program is complete at its Velardena mill site.

The Company is awaiting the final approval from the "Comision Federal De
Electricidad"(CFE) to Power-up the added components of the mill. A
verbal approval was received today, and the written approval is expected
very shortly. The Company took advantage of the delay from the CFE to
refurbish some of its existing equipment, namely ball mills and pumps in
order to reduce the scheduled summer downtime maintenance period.
Immediately upon reception, the Company will start up the additional
components of the mill and integrate these components with the current
operations.

At start-up, the capacity of the mill will be approximately 250 tpd,
which is a 40% increase over the current feed rate of approximately 180
tpd. The Company plans to increase the feed rate on a weekly basis for
an anticipated two to three month period, allowing for the mill being
optimized to a maximum capacity of between 320 tpd and 350 tpd,
therefore doubling the current output.

Cash-flows will be positively impacted from the added sales of
concentrate. As previously stated in its February 24th news release,
production summaries will be published as they become available,
highlighting the results from the current operations to date as well as
anticipated production numbers to the end of the fiscal year.

The Company will now focus on its Phase III expansion program, which
will include the purchase of another milling facility and the addition
of the Nichromet Extraction technology or other similar processes. This
expansion program is designed to significantly enhance the recovery
process and to reduce smelter penalties, therefore maximizing operating
results.

The Company also wishes to state that it is active in pursuing large
acquisitions in the area, designed to eventually gravitate the Company
to becoming a mid-sized producer. Recent talks with Investment Bankers
have been successful, and the Company believes that the right project
could be financed through the form of project financing.



Head Office
Rouyn-Noranda
Quebec, Canada
J9X 7C8
Tel : (819) 797-1210
Fax : (819) 797-1214

Corporate Office
J. I. Jimenez 663
colonia Los Angeles
Torreon, Coahuila,
Mexico, 27000
Tel: (01152)-871-717-8633
Fax: (01152)-871-718-5025



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    ECU Silver Mining, Inc.
    Richard Hamelin
    (416) 907-0788
    ecu@ecu.ca
    www.ecu.ca