ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

December 29, 2010 08:46 ET

ECU Silver to Start Deep Drilling on Massive Sulphides in First Quarter 2011

TORONTO, ONTARIO--(Marketwire - Dec. 29, 2010) - ECU Silver Mining Inc. (TSX:ECU) is pleased to announce that it has signed a contract with LandDrill International to start drilling the high grade deep massive sulphide targets below the Santa Juana mine, on the Velardeña Property.

A special high performance drill will be moved on site early in the first quarter and drilling will begin immediately thereafter to confirm the extensions of the intercepts that were reported in drill hole SJ-08-21 on July 9th 2008.

Drill hole SJ-08-21 intersected two massive sulphide veins (the "M-S Veins"). The first intercept yielded 3.66 grams per tonne (g/t) gold (Au), 295 g/t silver (Ag), 7.87% lead (Pb) and 12.07% zinc (Zn) (20 g/t Au equivalent or 945 g/t Ag equivalent) over a core length of 12.04 metres (40 feet). The second intercept yielded 7.90 g/t Au, 550 g/t Ag, 11.25% Pb and 27.68% Zn (39 g/t Au equivalent or 1,845 g/t Ag equivalent) over a core length of 1.75 metres (6 feet). Silver and gold equivalents are calculated based on current commodity prices.

The four key points regarding the M-S Veins include:

  • The grades in the M-S Veins are substantially higher than the Santa Juana NI 43-101 Inferred Resource grades which supports the geological model for higher grades of veins at depth.

  • Drilling has entered a zone where a multiple number of massive sulphide lenses may be found, which is expected as drilling gets nearer to the intrusive, which is associated with the source of mineralization in the area.

  • The extent of the alteration zone is unknown as drilling has not yet reached the intrusive and hence there is an expectation to find additional massive sulphide lenses.

Between the date of the discovery of the M-S Veins and the fall of 2008, ECU tried to reach the same sector again to obtain additional intercepts but the drilling equipment used was not adequate enough to complete the task. In 2009 and 2010, ECU shifted its focus on production following the acquisition of the oxide mill with the objective to re-start exploration as soon as cash flows permitted it. This having been reached this fall, an exploration program was designed and approved which will use controlled deep drilling to cut the projections of the mineralized bodies at specific locations.

In addition, the Company intends to contract a surface drill to test new targets identified in recent months on the Chicago property as well as on the main Velardeña property. In both cases, these targets were not included in the past NI 43-101 compliant mineral resources estimate.

Michel Roy, CEO of ECU stated, "It will be good to finally restart our exploration drive, starting with this high priority target that could be so important in defining the future of the Company. At the same time, other targets will be tested to confirm new areas of mineralization and define old ones."

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 the massive sulphide veins. Samples were assayed at the ERSA laboratory in Torreón, 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.

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
    011 52 871 747 5750
    Torreon, Mexico
    or
    ECU Silver Mining Inc.
    Stephen Altmann
    President
    (416) 366-2428
    Toronto, Canada
    or
    ECU Silver Mining Inc.
    Mark Butler
    Investor Relations
    1 888 513 3444
    Toronto, Canada