ECU Silver Reports Gold and Silver Shipments and Production in Third Quarter
TORONTO, ONTARIO -- (Marketwire) -- 10/22/10 -- ECU Silver Mining Inc. (TSX: ECU) ('ECU' or the 'Company') is pleased to announce silver and gold output for third quarter of 2010 ('Q3 2010') from its mining operations at Velardena in Durango State, Mexico.
Shipments for Q3 2010 consisted of 72,264 ounces of silver; 5,988 ounces of gold; 141,215 pounds of lead; and 65,616 pounds of zinc. Expressed in terms of silver equivalent ounces, and based on current commodity prices (see Table 1 below), the Company shipped 418,553 silver equivalent ounces ('AgEq oz') during this period. Compared to the second quarter of 2010 (Q2 2010), silver shipments decreased by 36%, gold shipments increased by 157%, lead shipments increased by 106% and zinc shipments decreased by 30%. On a silver equivalent basis, shipments increased by 66%.
Table 1 - Shipments
----------------------------------------------------------------------------
Commodity Price Metal Shipped Silver Equivalent Shipped
----------------------------------------------------------------------------
Silver $23.93 /oz 72,264 oz 72,264 oz
Gold $1346 /oz 5,988 oz 336,809 oz
Lead $1.10 /lb 141,215 lb 6,491 oz
Zinc $1.09 /lb 65,616 lb 2,989 oz
Total 418,553 oz
In Q3 2010 the operations generated silver totalling 95,324 ounces and gold totalling 2,137 ounces. In addition, the mines generated 222,184 pounds of lead and 221,831 pounds of zinc. Expressed in terms of silver equivalent ounces, and based on current commodity prices (see Table 2 below), total metal output was 235,842 AgEq oz.
Table 2 - Mill Operations
----------------------------------------------------------------------------
Commodity Price Metal Output Silver Equivalent Output
----------------------------------------------------------------------------
Silver $23.93 /oz 95,324 oz 95,324 oz
Gold $1346 /oz 2,137 oz 120,201 oz
Lead $1.10 /lb 222,184 lb 10,213 oz
Zinc $1.09 /lb 221,831 lb 10,104 oz
Total 235,842 oz
Mineralized material mined for silver and gold averaged 112 g/t and 2.69 g/t, respectively, a decrease of 17.6% for silver and 10% for gold compared to the first six months of 2010 while milling grades averaged 95 g/t and 2.22 g/t for silver and gold, respectively, an increase of 6.7% for silver and decrease of 24.4% for gold compared to the first six months of 2010.
During the quarter, the Company sold 5,961 tonnes of gold/pyrite concentrate containing 3,999 ounces of gold. The sales of the gold/pyrite offset some of the lower mine production which resulted from the Company testing several exploration areas, notably the Chicago areas where vein extensions and new veins were discovered (see 2010 press releases dated October 7, August 31 and August 25). In addition, the Company increased the inventory of mineralized material at the mine by focusing more on development to enhance future production. In Q2 2010, a total of 9,489 tonnes of development material (lower grades than stopes) was mined while in Q3 2010, a total of 18,240 tonnes of development material was mined which provides the Company with the possibility to increase production from stopes for much better milling results in the fourth quarter of 2010.
Michel Roy, CEO and Chairman stated, 'We continue to be pleased with operations at the oxide mill with tonnage running above design capacity. We have advanced our underground development in order to ramp up our sulphide operations and bring the sulphide mill up to its design capacity of 320 tonnes per day. Once complete, the two mills will be operating at a combined rate of up to 900 to 1,000 tonnes per day.'
Stephen Altmann, President added, 'Through our mining activities, we have gained additional insights into our mineral resources and have also gained additional access to the undeveloped portion of our mineral resource. We expect to use this knowledge to upgrade our inferred resources into measured and indicated and we also expect to significantly increase the size of our mineral resource as we continue exploration efforts within the Velardena area.
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent ounces in the measured and indicated category and 391 million silver equivalent ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena.
Cautionary Statements
Readers are cautioned that there are no assurances that all or any part of ECU Silver's mineral resource will be economically viable. Until a prefeasibility study is completed, there are no assurances the release of an updated mineral resource will be economically viable.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company's inability to obtain any necessary permits, consents or authorizations required for their activities, to produce minerals from their properties successfully or profitably, to continue their projected growth, to raise the necessary capital or to be fully able to implement their business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release.
Contacts:
ECU Silver Mining Inc.
Michel Roy
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
ECU Silver Mining Inc.
Stephen Altmann
President
Toronto, Canada
(416) 366-2428
ECU Silver Mining Inc.
Mark Butler
Investor Relations
Toronto, Canada
(905) 602-4248
