ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

May 18, 2010 05:00 ET

ECU Silver Releases Year End Results for 2009

TORONTO, ONTARIO--(Marketwire - May 18, 2010) - ECU Silver Mining Inc. (TSX:ECU) reports that it has released its consolidated financial statements for the quarter ended March 31, 2010 and the related management's discussion and analysis of financial position and results of operations ("MD&A").

ECU reported a net loss of $1.9 million, or 1 cent per share in the first quarter of 2010, compared with a net loss of $3.6 million, or 1 cent per share in the same period 2009. Revenues from metal sales used to offset mining property costs were $3.2 million in the first quarter of 2010, compared with $0.06 million in the same period 2009.

During this quarter, ECU Silver achieved its best month of operations since commencing operations of its oxide mill. Overall, the Company had a 27% increase in silver equivalent to 79,443 ounces, using a silver-to-gold ratio of 65 to one (base metals not included as equivalents) with an average daily throughput at the oxide mill of approximately 494 tonnes per day ("tpd").

The Company has gained a better understanding of the metallurgy which has resulted in enhanced recoveries of gold and silver in the oxide mill. The quantity of gold and silver recovered has increased substantially, primarily due to the cessation of feeding gold rich tailings to the oxide mill, which was having a negative impact on recoveries. The Company continues to expect that enhanced recoveries will be achieved in the next quarter, through modifications of the oxide mill's Merrill-Crowe system.

During the quarter, ECU Silver's Mexican operating unit received a "Licencia Ambiental Unica" (the LAU), effectively, a unified environmental license. The LAU replaces all existing environmental permits for the operations at Velardeña and provides the necessary license for expansion of the current sulphide operations by adding a 1500 tonnes per day ("tpd") mill as well as the continuation of all current operations.

The granting of the LAU is a very important accomplishment in the Company's work to expand its mining operations that will eventually encompass a new 1500 tpd mill for processing sulphides. The, economics for the larger milling operations will be outlined in a scoping study.

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
    (416) 366-8131 (FAX)
    or
    ECU Silver Mining Inc.
    Mark Butler, Investor Relations
    Toronto, Canada
    (905) 602-4248
    www.ecu.ca