U.S. Silver Corporation

U.S. Silver Corporation

March 22, 2007 10:39 ET

U.S. Silver Corporation Updates Mineral Potential of its Caladay Property

TORONTO, ONTARIO--(CCNMatthews - March 22, 2007) - U.S. Silver Corporation ("U.S. Silver") (TSX VENTURE:USA) is pleased to provide an update on its Caladay exploration project. Over the last several months, company personnel have been reviewing historic records on the Caladay property, which adjoins the producing Galena Mine to the east. The Caladay Shaft lies approximately 7,300 feet southeast of the Galena Mine No.3 Shaft and the two mines are interconnected on the 4900 foot level of the Galena.

In the early 1980's a joint venture of Day Mines, Callahan Mining, and ASARCO spent approximately $32.5 million (about $80.0 million in 2006 dollars) on the Caladay property to construct surface facilities, a 5,101foot deep shaft and associated underground workings to explore the property. The hoist is currently fully operational.

The historical underground exploration program undertaken in the late 1980's included 94 drill holes. This program was designed to extend the "Silver Belt" of the Coeur d'Alene District further east by delineating the down plunge extensions from the Galena Mine. Exploration was curtailed in 1989 due to the softening of the silver market. As a result, exploration on the property remains incomplete.

In light of current metal prices, apparent widths and continuity of discovered mineralization, and the proximity of the Caladay property to the Galena and Coeur mines, the Company is encouraged about the future potential of the property. In addition, the Caladay facilities benefit the Galena Mine operations through improved ventilation, possible additional muck hoisting capacity, and as a secondary potential escapeway.

About 40 of the diamond drill holes delineated an interesting zone of silver-lead mineralization. Diamond drill holes containing mineralization are on 50 to 150 foot centers and occur over a vertical distance of 400 to 500 feet. The mineralized zone is open at depth and to the east with favorable rock types projected in both directions. Two types of mineralization are seen in Caladay drill holes - disseminated silver-lead, and high-grade tetrahedrite (silver-copper) veins. Typical selected intercepts are listed in Table 1. Drill hole data listed in Table 1 are down hole lengths. The true thickness of the mineralized zone cannot be estimated until further geologic interpretation is completed. Callahan Mining Company, the operator of the project in the 1980's, calculated a polygonal resource estimate based on the exploration drill holes as summarized in Table 2.



Table 1. Selected diamond drill hole intercepts at the Caladay project
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Drill Hole From (feet) To (feet) Width (feet) opt Ag Pb %
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49-50 452.0 520.0 68.0 8.30 13.47
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49-53 368.5 394.0 25.5 5.02 5.67
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49-26 807.3 837.0 29.7 5.75 8.13
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49-59 392.0 491.4 99.4 4.28 5.11
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Table 2. Historical Caladay resource estimate
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Ore Type Ore Tons opt Ag Cu % Pb% Ag Ounces Cu or Pb Tons
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Silver-Lead 833,000 5.96 5.76 4,965,000 48,000 (Pb)
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Silver-Copper 185,700 13.12 0.16 2,436,000 297 (Cu)
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U.S. Silver does not intend to include this resource at the Caladay in its stated ore reserves and resources because it believes that additional study is needed to verify the historic data, conduct additional geologic evaluation and interpretation, and to determine the feasibility of mining. However, due to the widths and grades of the ore zones reported in the historic data, the Company believes that the project may be amenable to highly mechanized, low cost, bulk mining techniques.

In addition to the zone of mineralization above, the Company also believes the Caladay may host other vein systems similar to those historically mined at the Galena Mine. This interpretation is based on an analysis of existing Galena Mine underground workings, and drilling results at both the Galena and Caladay properties. Further, the Company believes that similar geologic structures, which exist at the Galena, extend into the Caladay below the level of the current Caladay workings. The Company intends to follow up on these concepts with further intense geologic study of the existing data, followed by a diamond drilling program.

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.

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 assayed 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 on 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. U.S. Silver 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 U.S. Silver Corporation. Additional information identifying risks and uncertainties is contained in filings U.S. Silver 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
    Vance Loeber
    Investor Relations
    (604) 805-3530