U.S. Silver Corporation

U.S. Silver Corporation

June 05, 2007 17:00 ET

U.S. Silver Corporation Announces New 43-101 Technical Report

TORONTO, ONTARIO--(Marketwire - June 5, 2007) - U.S. Silver Corporation (TSX VENTURE:USA) ("U.S. Silver" or the "Corporation") is pleased to release its newly completed 43-101 Technical Report on the Galena Mine Complex in Northern Idaho. On April 18, 2007 the Corporation issued a press release reporting a significant increase in the total reserves and resources over the initial numbers estimated after United States Silver, Inc. ("United States Silver"), the Corporation's wholly-owned subsidiary, purchased the mine in June 2006. Silver reserves increased by over 40% and total silver reserves and resources increased by 17% to over 48 million ounces. The Corporation's first 43-101 Technical Report dated November 17, 2006 prepared by Fred Barnard, PhD. Robert L. Sandefur, P.E. and Steve Milne, P.E. of Chlumsky, Armbrust and Meyer, LLC, and the second Technical Report dated June 4, 2007 prepared by Daniel H. Hussey, Certified Professional Geologist and Chief Geologist of U.S. Silver-Idaho Inc. (a wholly-owned subsidiary of United States Silver) ("U.S. Silver-Idaho"), can be viewed online at www.sedar.com.

"This new technical report is the compilation of a considerable amount of exploration and development work that has been undertaken at the mining complex over the past year," said Bruce Reid, Chief Executive Officer of U.S. Silver. "The increases in silver reserves and resources are the result of these efforts." U.S. Silver-Idaho has drilled nearly 70,000 feet of core and developed over 12,000 feet of underground drifts and tunnels since the mine was acquired by United States Silver in June, 2006.

U.S. Silver-Idaho is currently operating the Galena Mine at over 400 tons/day of copper-silver tetrahedrite ore with a forecast of about 700 tons/day by the 1st Quarter 2008. In addition, U.S. Silver-Idaho will start mining lead-silver galena ore in the 3rd Quarter of 2007 with production achieving nearly 400 tons/day of this material by the end of 2007. The lead-silver material will be milled at the Coeur Mill which is currently on standby after being repaired and rehabilitated earlier this year.

U.S. Silver-Idaho produced 328,984 ounces of silver during the 1st Qrt of 2007 at an average cash cost of U.S. $10.16 per ounce. This compared with 200,044 ounces in the 4th Qrt, of 2006 at cash costs of U.S. $13 per ounce. By way of further comparison, the U.S. Silver-Idaho produced 149,646 ounces of silver during the 3rd Qrt, 2006 at a cash cost of over U.S. $19 per oz. The headgrades averaged 17.0 oz./sdt up from 12.7 oz./sdt during the 3rd Qrt 2006. The Corporation expects the headgrade to continue to improve through 2007 as infrastructure repairs and new ore developments are completed.

The Corporation, through its wholly-owned subsidiaries, continues to implement a turnaround at the mine which includes an extensive redevelopment of new reserves (see the Corporation's press release dated April 18, 2007), a redesign of the mining method in some areas and numerous challenging repairs of facilities and equipment. "The Company is well on its way to making 2007 the production turnaround year at the Galena Mine, and with continued strong metal prices we should be profitable through the remainder of 2007," stated Mark Hartmann, President of U.S. Silver.


U.S. Silver, through its wholly-owned subsidiaries, owns and operates the producing Galena silver mine in Shoshone County, Idaho, which is the second most prolific silver mine in US history. Total silver production from U.S. Silver-Idaho's Galena and Coeur mining complex has exceeded 210 million ounces of silver production since 1953. The mine is currently anticipated to produce 3.2 million ounces of silver in 2007. In June 2006, United States Silver acquired the Galena mine, Coeur mine, and Caladay property along with a land package of 11,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on the production and exploration of 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 Corporation 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 Corporation. Additional information identifying risks and uncertainties is contained in filings by the Corporation 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
    U.S. Silver Corporation
    Vance Loeber
    Investor Relations
    (604) 805-3530