U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

September 12, 2007 09:27 ET

U.S. Silver Announces the Commencement of Lead-Silver Processing at the Coeur Mill

TORONTO, ONTARIO--(Marketwire - Sept. 12, 2007) - U.S. Silver Corporation (TSX VENTURE:USA) ("U.S. Silver" or the "Company") is pleased to announce the start-up of the Coeur mill and the production of lead-silver concentrates. Mill feed will come from the extensive lead-silver resources at the Company's Galena mine located approximately 1.5 miles east of the Coeur mill. During the past two weeks, approximately 2,500 tons of lead-silver ore has been hoisted for delivery to the Coeur mill. The Coeur crushing plant was commissioned during the week of September 2nd with production of concentrates anticipated by the end of this week.

Recent discoveries of high grade lead-silver mineralization in the Galena mine (see press releases dated 1/17/07 and 2/27/07), combined with previously known lead-silver resources, resulted in the decision to restart the previously idle Coeur mill to process the lead-silver material from the Galena mine. The Company will extract ore in the Galena mine, haul it underground through a connecting tunnel with the Coeur mine, hoist up the Coeur Shaft, and concentrate the ore in the Coeur Mill. Concentrate shipments to TeckCominco's Trail Smelter are scheduled to begin during the last half of September 2007.

Repair activity in the Coeur mill and connecting tunnel has been ongoing throughout the year and will be completed in September 2007. Development of lead-silver resources within the Galena mine began in June with initial ore production and hoisting initiated in August. Development activities have started on four separate lead-silver veins on the 3000 and 3700 levels with an additional four veins to be developed by year end. The lead-silver ore will be run through the Coeur mill at an initial rate of 100-200 tons per day increasing to 400 tons per day by early 2008. The initial rock processed in the Coeur mill will be lower grade development ore, with ore grades improving to a range of 7-9 ounces of silver per ton and 9-11% lead as the developments are completed and full production activities commence.

The Galena mill will continue to process silver-copper ore mined from the Galena mine. Extensive infrastructure repairs and re-development of existing ore reserves are continuing, with production levels of the silver-copper ores continuing to increase throughout this year and 2008. With both mills operating, production levels from U.S. Silver operations are expected to be as much as 900 tons per day of combined production by the end of 2007.

Mark Hartmann, President and Chief Operating Officer, stated "the commencement of lead-silver production and the start-up of the Coeur mill in conjunction with the silver-copper production at the Galena mill are important achievements for U.S. Silver as the company continues its growth focus toward high levels of low cost silver, lead, and copper production."

The Qualified Person for the technical information in this news release is Mr. Daniel H. Hussey, Chief Geologist of U. S. Silver Corporation, as defined by National Instrument 43-101 of the Canadian Securities Administrators.

ABOUT U.S. SILVER CORPORATION

U.S. Silver owns and operates the Galena, Coeur, and Caladay silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver producer in US history. Total silver production from U.S. Silver's mining complex has exceeded 210 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 18,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding its production from existing operations as well as exploring its extensive Silver Valley holdings.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • U.S. Silver Corporation
    Bruce Reid
    Chief Executive Officer
    (647) 500-4495
    or
    U.S. Silver Corporation
    Vance Loeber
    Investor Relations
    (604) 805-3530