U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

April 05, 2007 11:43 ET

U.S. Silver Corporation Secures a Smelter Contract for Lead-Silver Concentrates

TORONTO, ONTARIO--(CCNMatthews - April 5, 2007) - U.S. Silver Corporation ("U.S. Silver" or the "Corporation") (TSX VENTURE:USA) is pleased to announce that a smelter contract has been signed with Teck Cominco Metals Ltd. to process lead-silver concentrates produced at U.S. Silver's mining complex in the Silver Valley, Idaho.

Recent discoveries of high grade lead-silver mineralization in the Galena Mine (see press releases dated 1/17/07 and 3/22/07), combined with previously known lead-silver resources, have resulted in the decision to restart the currently idle Coeur Mill to process the lead-silver material from the Galena Mine. Ore from the Galena Mine will be hoisted up the Coeur Shaft, and concentrated in the Coeur Mill. The mill is scheduled to start shipments to the smelter in September 2007.

Bruce Reid the Chief Executive Officer commented that, "This contract will allow U.S. Silver to more fully optimize the potential of this mine by producing substantial amounts of lead-silver concentrates in addition to the traditional production of copper-silver concentrates particularly when metal prices are so buoyant."

Repair activity in the Coeur Mine and Mill has been ongoing and will be completed by August 2007. Development of lead-silver resources within the Galena Mine will begin in April and will be ready for mining by August, 2007. Initial development activities will begin on the 2400, 3000, and 3700 levels of the mine.

Selected drill hole intercepts containing lead-silver mineralization are listed in the table below:



True
From To Length Thickness
Hole # (feet) (feet) (feet) (feet) Ag opt Pb%
--------- ----- ----- ------ --------- ------ ------

2400 LEVEL
----------
24-127 370.1 381.5 11.4 7.3 28.49 20.84

24-128 558.2 575.1 16.9 7.1 11.21 12.68
780.0 788.1 8.1 4.9 21.02 8.88

3400 LEVEL
----------
34-067 270.8 278.8 8.0 4.9 13.12 3.51
286.2 303.4 17.2 11.1 5.61 10.54
365.2 372.8 7.6 4.9 7.23 14.06
390.8 400.8 10.0 6.4 10.56 3.10

34-072 65.0 77.3 12.3 5.2 6.65 13.47
122.3 129.2 6.9 4.4 12.98 14.47

34-073 238.4 246.7 8.3 6.4 6.86 13.36
435.0 439.0 4.0 3.5 17.17 3.91

34-078 36.0 45.0 9.0 4.5 12.39 14.54
82.5 92.2 9.7 4.1 35.93 31.75

3700 LEVEL
----------
37-191 503.6 509.8 6.2 4.4 34.33 23.16
555.1 560.0 4.9 3.1 15.12 9.82
579.0 583.8 4.8 2.4 62.00 19.98
594.4 604.0 9.6 5.8 15.67 7.60

37-193 398.6 411.6 13.0 6.5 7.63 8.86

37-206 648.0 657.8 9.8 4.1 8.86 11.62

37-207 611.3 616.1 4.8 4.7 10.73 8.49
650.3 653.0 2.7 2.1 22.60 16.40

37-209 392.0 402.0 10.0 5.7 15.98 13.44
442.0 446.8 4.8 4.5 10.10 5.76

37-210 340.8 353.7 12.9 6.5 25.36 14.86

37-214 616.5 620.8 4.3 3.5 16.33 13.43

37-215 47.0 52.0 5.0 3.5 11.29 8.03

37-216 215.5 221.0 5.5 5.2 10.76 11.23

37-218 34.5 50.0 15.5 5.3 8.52 12.65


Portions of the lead-silver zone on the 3000 level of the Galena Mine were initially developed between 1950 and 1953. During the development of this lead-silver zone, drifting began toward what became known as the Silver Vein. As a result of the Silver Vein discovery in 1953, the mining focus switched from the lead-silver ores to high grade silver-copper ores. Mining from the Silver Vein complex since 1953 has produced more than 100 million ounces of silver. Reserves and resources still remaining in the Silver Vein contain more than 4 million ounces of silver and 2.5 million lbs of copper.

The Galena Mill will continue to process copper-silver ore mined from the Galena Mine. Extensive infrastructure repairs and re-development of existing ore reserves are continuing, with production levels of the copper-silver ores continuing to increase throughout the year. With both mills operating, production levels from U.S. Silver operations are expected to be as much as 1,000 tons per day of combined production by the end of 2007. Production for all of 2007 is expected to exceed 3 million ounces of silver, 2 million pounds of copper, and 3.5 million pounds of lead.

QUALIFIED PERSON

Information of a technical nature in this press release respecting the properties has been prepared and reviewed by Mr. Daniel H. Hussey, Chief Geologist of U. S. Silver. Mr. Hussey is a "qualified person" within the meaning of National Instrument 43-101 of the Canadian Securities Administrators.

All silver assay results reported in this press release were analyzed using standard fire assay techniques by American Analytical Services located in Osburn, Idaho. Check assays are conducted by ALS Chemex, located in Sparks, Nevada. All samples are obtained and assays are reported under a formal quality assurance and quality control program. All diamond drill core holes were drilled with BQ size tools.

ABOUT U.S. SILVER CORPORATION

U.S. Silver Corporation. owns and operates the producing Galena Silver Mine, in Shoshone County, Idaho which is the second most prolific silver mine in US history with over 200 million ounces of silver produced since 1953. The Mine is currently anticipated to produce 3.2 million ounces of silver in 2007 with associated by-product lead and copper production. U.S. Silver acquired the Galena Mine as well as the Coeur Mine and the Caladay Property and over 11,000 acres of ground in the heart of the Coeur D'Alene Silver Mining District in June 2006. The Company 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
    or
    U.S. Silver Corporation
    Mark Hartmann
    President
    (208) 556-1535
    or
    U.S. Silver Corporation
    Vance Loeber
    Investor Relations
    (604) 805-3530