TORONTO, Apr 16, 2010 (BUSINESS WIRE) -- U.S. Silver Corporation (CA:USA 0.18, -0.01, -2.70%) ("US Silver" or "the Company") is pleased to announce today an increase in proven and probable ore reserves for the fourth consecutive year at the Galena mine in Wallace, Idaho. Reserves have increased every year since U.S. Silver assumed ownership of the mine in June 2006.
Reserve highlights include:
-- Copper-Silver ore reserves at 17.0 million ounces of silver, 5,160 tons of copper
-- Lead-Silver ore reserves at 4.7 million ounces of silver, 49,930 tons of lead
-- Total proven and probable ore reserves at 21.7 million ounces of silver
-- Silver reserves up 3% over the December 31, 2008 reserve, up 113% over June 2006 reserve
-- Reserves up over last year, after producing 2.4 million ounces of silver during 2009
-- Copper reserves down 2% relative to the December 31, 2008 reserve
-- Lead reserves up 15% relative to the December 31, 2008 reserve
Resource highlights include:
-- Copper-Silver measured and indicated resources at 7.7 million ounces of silver and 2,500 tons of copper; silver ounces down 9% relative to December 31, 2008, copper tons down 11%
-- Lead-Silver measured and indicated resources at 0.8 million ounces of silver and 8,370 tons of lead; silver ounces and lead tons both up 3% over the December 31, 2008
U.S. Silver retained Chlumsky, Armbrust & Meyer, LLC (CAM) to independently review and audit the reserve methodology, and updated reserves and resources, for the Galena mine complex. The Qualified Persons who worked on the project for CAM are Fred Barnard PhD. and Steve Milne P.E. CAM's technical report on reserves and resources for the Galena mine was prepared in compliance with the Canadian National Instrument 43-101. The report will be filed on SEDAR. Reserves and resources were estimated using metal prices of $12.50 per ounce for silver, $2.00 per pound of copper and $0.80 per pound of lead. All monetary values are in U.S. dollars. Process recoveries are 96% for silver, 96% for copper and 91% for lead. A breakeven equivalent cutoff grade of 11 oz Ageq was used for reserve and resource estimation.
The company attributes the increase in reserves year by year to the emphasis that has been placed on exploration diamond drilling and development. The level of exploration and development was cut back in 2009 to conserve cash but the company expects to increase the amount of exploration and development in 2010. Daniel H. Hussey, CPG, Manager of Exploration for U.S. Silver Corp, a Qualified Person, reviewed this news release. He also supervised the updated reserve and resource estimation.
Option Grant
The Company also announces that it has granted to the Chief Financial Officer, Joseph Rauhala, options to purchase up to 500,000 common shares of U.S. Silver pursuant to the share option Plan of the Company. The options are priced at $0.18 per share and expire five years from the date of issue. Such options are subject to the terms and conditions of the Plan, certain vesting provisions, and the policies of the Exchange.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly owned subsidiaries, owns and operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine 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 the production from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur D'Alene Mining District.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.
