ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

November 12, 2010 11:22 ET

ECU Silver Releases Third Quarter Results for 2010

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - ECU Silver Mining Inc. (TSX:ECU) reports that it has recently released its consolidated financial statements for the third quarter ended September 30, 2010 (Q3 2010) and the related management's discussion and analysis of financial position and results of operations (MD&A). The Company increased revenues by 20%, cash flows by 55% and cash balance by 131% over the previous quarter ending June 30, 2010 (Q2 2010).

The Company generated record net revenues from the sale of doré bars and concentrates for a total of $5,293,139, representing a 20% increase over Q2 2010. The increase in revenue is a result primarily of steady results from the oxide operation plus additional revenues from the sale of the Company's gold/pyrite concentrate stockpile.

The revenues were applied against cash development costs of $4,409,458 bringing the net positive cash flow to $883,681 for Q3 2010. The cash costs were 14% higher than Q2 2010 due to continued exploration and development activities that included opening new areas of the Santa Juana mine and newly discovered veins at the Chicago mine.

Cash balance as at September 30, 2010 was $935,331, an increase of 131% over the cash balance as at June 30, 2010.

As previously reported (see press release dated October 22, 2010), in Q3 2010 the operations generated silver (Ag) totaling 95,324 ounces and gold (Au) totaling 2,137 ounces. In addition, the mines generated 222,184 pounds of lead (Pb) and 221,831 pounds of zinc (Zn). Expressed in terms of silver equivalent (AgEq) ounces, and based on recent commodity prices, total metal output was 235,842 AgEq ounces.

Shipments for Q3 2010 consisted of 72,264 Ag ounces; 5,988 Au ounces; 141,215 Pb pounds; and 65,616 Zn pounds. Expressed in terms of silver equivalent ounces, and based on current commodity prices, the Company shipped 418,553 AgEq ounces during this period.

During Q3 2010, the Company reported a loss of $971,690, or $0.003 per share, versus $3,400,930, or $0.011 per share, over the previous quarter Q2 2010. The largest impact to this change was due to a $1,049,111 reversal of the write-down of the Company's gold/pyrite concentrate inventory. The Company entered into a sales contract for a portion of its unprocessed gold/pyrite concentrate inventory and has recorded a reversal of the costs previously written off in respect of the gold/pyrite sold in the corresponding period. Also impacting the change in loss was a $1,641,881 fluctuation in foreign exchange.

Copies of the financial statements and related MD&A can be found on SEDAR at www.SEDAR.com.

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 ounces in the measured and indicated category and 391 million silver 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

Readers are cautioned that there are no assurances that all or any part of ECU Silver's mineral resource will be economically viable. Until a prefeasibility study is completed, there are no assurances the release of an updated mineral resource will be economically viable.

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
    (905) 602-4248