U.S. Silver Corporation
TSX VENTURE : USA

U.S. Silver Corporation

June 10, 2008 08:48 ET

U.S. Silver Reports May Silver Production Up 24% Over 1st Quarter 2008, Provides Operational Update for the Galena Mining Complex

TORONTO, ONTARIO--(Marketwire - June 10, 2008) - U.S. Silver Corporation (TSX VENTURE:USA) ("U.S. Silver" or the "Company") is pleased to announce that silver production for the month of May was 145,000 ounces which is 24% higher than average production in the 1st quarter 2008 and 46 % higher than the average monthly production in 2007. This is an annualized rate of approximately 1.8 million ounces. The Company is also pleased to provide an update of operations for the Galena Mining Complex located in North Idaho.

Recent highlights include:

Production Rates

The mine averaged 640 tons per day in May, an increase of 90% over the 2007 average of 338 tons per day and a 15% increase compared to Q108 numbers. The last 10 days of May averaged more than 720 tons per day of mill feed to the two concentrators. May's production of 145,000 ounces is the highest production level since US Silver acquired the Galena Mining Complex. The Company expects to increase production levels steadily and achieve a rate of over 250,000 ounces of silver per month by the end of 2008. Bruce Reid, Chief Executive Officer commented "that these production numbers confirm that the turnaround at this operation is well underway."

Exploration Drilling

- Drilling of silver-copper ore continues in the newly discovered 114 Vein system on the 2400 level with recent intercepts of 4.4 feet of true width assaying 141.4 ounces silver per ton (opt Ag) and 1.92% copper, 4.1 feet assaying 134.2 opt Ag and 2.14% copper, and 4.4 feet assaying 114.8 opt Ag and 1.28% copper.

- Drilling of the silver-lead ore in the same vein system (114 vein) has discovered true widths of 3.7 feet assaying 22.6 opt Ag and 25.3% lead, 6.3 feet assaying 16.6 opt Ag and 13.6% lead, and 1.9 feet assaying 36.1 opt Ag and 43.9% lead.

- An extension of the 4 Vein has been drilled on the 2400 level with a true vein thickness of 29 feet assaying 5.6 opt Ag and 5.5% lead.

- Discovered a new vein system on the 4000 level with assays as high as 45.3 opt Ag and 0.68% copper over a true thickness of 5.0 feet.

- Continued successful drilling for an extension of the 3000 level silver-lead mineralized zone to the 4000 level with assays of 14.1 opt Ag and 17.8% lead over a true thickness of 5.0 feet.

- Surface drilling is expected to begin this summer in an area between the Galena and Coeur mines on a known high grade vein system. Additional surface targets include a newly discovered surface outcrop assaying 4 opt Ag immediately above the Galena mine surface plant as well as possible up dip extensions of the Silver Vein. The "Silver Vein" was the most prolific mineralized silver-copper Tetrahedrite vein in the Galena Mine with over 100 million ounces of silver produced since it's discovery in 1947.

2400 Level New Discovery

The Company continues with its exploration program on the 2400 level of the Galena mine. The second phase of the development program includes additional crosscuts into the ore zone as well as westerly lateral development to provide drilling access for the continuing expansion of this newly discovered mineralization.

Initial exploration drifting on the 114 vein recently began on two of the silver-copper bearing veins. Exploration will continue for several months as at least two silver-copper veins and three silver-lead veins systems have been identified. The estimated strike length of the vein system based on drilling is at least 900 feet with exploration continuing in the westerly, up dip, and down dip directions.

A new drill jumbo was purchased and should be commissioned in early June. An additional 2.5 yard loader is also being mobilized to the 2400 level and should be available for operation by mid June. Short term production from 2400 is projected to exceed 150 tons per day during the exploration period.

Recent diamond drilling on the 4 Vein below the 2400 level indicates a wide vein with good silver and lead values. Drilling continues to define this zone with assays still pending on several completed holes. The No. 4 Vein is only a few hundred feet from the Galena Shaft and would be easily accessible should mining commence on this new discovery.

All of the 2400 level exploration activity is in areas outside the established ore reserves. These new discoveries have potential to expand the ore reserves and resources at the Galena mine.

4600 Level Ramp System

Development and mining continue in the 4600 level ramp system. This large scale mechanized mining area will have three entry ramps into the silver-copper ore zone providing a total of 14 ore headings available for mining. This work area should provide about one-third of the feed to the Galena mill by the 3rd quarter. Three additional high grade veins have been discovered in the development process and will provide additional opportunities for efficient production of high grade ores. Drilling has also indicated several additional veins in the footwall of the main vein system that could become a significant contributor to this highly mechanized ramp system. Production rates from the 4600 ramp are expected to exceed 200 tons per day by the 3rd quarter.

4900 Level Ramp System

The 4900 level ramp intersected the 306 Vein recently after numerous equipment and infrastructure delays. A 60.4 opt Ag (ounces per ton silver) ore reserve block with 1.49% copper at an average width of 6.4 feet was accessed as well as a secondary target, the 293 Vein, with a resource averaging 12.3 opt Ag and 0.24% copper at an average width of 6.4 feet. Once developed, testing of a modified longhole mining method will be utilized on the 293 Vein and should provide information and valuable experience for longhole mining on the Caladay silver-lead Vein system as well as on the Silver Vein system.

3000 Level Silver-Lead Zone

Development and mining continue on the numerous silver-lead veins on the 3000 level. Full scale mining has been delayed due to the number of unexpected veins that have been encountered. The new high grade veins are being explored with the total extent of mineralization being larger than originally thought. Once the exploration has been completed, production volumes of about 250 tpd are projected from the 3000 level by the end of the year.

5200 Level Development of the 175 Vein

Development of another recent discovery on the 5200 level continues as planned. The drift will access a large resource on the 175 Vein averaging 9.0 opt Ag (ounces per ton silver) and 8.6% lead over an average width of 9.9 feet. Additionally, an ore reserve on the 185 Vein with a grade of 12.9 opt Ag and 19.6% lead over an average width of 6.8 feet, will be accessed. Although development activities will take an additional six months, initial exploration drifting on the vein should begin in August.

Galena Shaft Repair

The Galena Shaft repair will be completed to the 2800 level shaft station in June and should be completed to the 3200 level as scheduled before the end of the year. As anticipated, one of the more difficult repair sections of the shaft above the 2800 level has already been completed without interruption. Once the entire 800 foot section is completed, the Galena Shaft repair will provide improved hoisting capability, ventilation, and services into the Galena Mine.

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 who supervised the drilling and sampling programs, and resource estimation. 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, through its wholly-owned subsidiaries, 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 U.S. 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 in the Coeur D'Alene Mining district.

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
    (416) 848-0858
    or
    U.S. Silver Corporation
    Vance Loeber
    Investor Relations
    (604) 805-3530
    Website: www.us-silver.com