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United Silver Corporation Announces Reorganization of Exploration and Development Priorities at the Crescent Mine

24.08.2012 | 23:30 Uhr | Business Wire

United Silver Corp. ('United Silver Corp.?, the 'Company?, or 'USC?:
TSX; USC: OTC; USCZF: Frankfurt: UM8)
is pleased to announce that
the Board of Directors has approved a revision and new emphasis of
exploration and development priorities at the Crescent Mine, located
near the town of Kellogg, in the prolific Coeur d′Alene Silver Belt, in
the state of Idaho. Together, the Crescent Mine, along with the
adjoining Sunshine and Bunker Hill mines, historically produced more
than 550 million ounces of silver. The Crescent remains largely
unexplored both to depth and along strike of its 3500 meter ownership of
the South Vein and the Alhambra Vein.


Recent drifting on the South Vein from the spiral decline (see below)
has returned face samples yielding up to 188 ounces per ton silver,
amongst the highest values from panel sampling of the advancing face yet
encountered. This opens up new territory for exploratory drifting to
test the down-rake extent of the shoot. Below is a table listing the
newly-received values from the third test drift.

Recent Geochemical Results:


Three test exploration drifts have been made along the mineralized South
Vein. Results from the first drift were reported in a news release dated
28 February 2012. A strike length of 788 feet has been opened up in the
second drift, 40 feet vertically below the first exploration drift. The
first 351 feet of a third test exploration drift, situated 90 feet below
the first drift have been completed.


 ?

 ?

WEST I

 ?

WEST II

 ?

CENTRAL

 ?

EAST


Test I-


drift


length


(feet)


 ?


average


width


(feet)


 ?


average


grade


(opt Ag)


length


(feet)


 ?


average


width


(feet)


 ?


average


grade


(opt Ag)


length


(feet)


 ?


average


width


(feet)


 ?


average


grade


(opt Ag)


length


(feet)


 ?


average


width


(feet)


 ?


average


grade


(opt Ag)


first

88

9

15.7

not present at this elevation

210

8.3

16.3*

246

7.3

14.2

second

115

7

10.9

not present at this elevation

241

10.3

11.4

202

7.3

6.6

third

not reached yet

51

9

25.6

106

11.2

12.6

not reached yet


* incorrectly stated as 15.8 in 28 February 2012 press release


Recently-Discovered High-Grade Shoot


A new shoot was encountered on the third exploration drift between the
west and central shoots which is called the 'west II? shoot. This
high-grade silver-bearing zone is concentrated on the immediate footwall
of the main fault and includes individual face samples of up to 188 opt
Ag.


Selected face samples from the newly discovered west II shoot:


distance along strike from centerline (feet)

 ?

sample width (feet)

 ?

opt Ag

152.6

1.2

24.0

152.6

2.6

179.0

163.7

1.5

21.0

163.7

1.4

74.2

169.8

2.6

43.0

169.8

0.6

54.4

175.4

1.4

69.6

182.5

3.5

36.6

187.0

1.7

115.8

187.0

1.6

43.1

193.0

1.0

54.3

193.0

1.8

188.0

193.0

1.8

28.5

197.7

1.0

163.5

197.7

0.8

99.8


All samples are chip samples from vertical drift faces, with sample
widths measured in the horizontal plane perpendicular to strike. Samples
were analyzed by American Analytical Services, an ISO 17025-accredited
laboratory located in Osburn, Idaho. All results reported are fire
assays.


A siderite vein splay into the footwall of the main South Vein shear
appears within the central zone on all three test elevations. This
footwall splay is not fully tested at any of the three elevations, but
the splay has demonstrated persistent strong mineralization through the
vertical range tested so far. The splay has been opened up for a length
of about 30′ to date on the third test drift, contributing 220 tons of
material at an average grade of 10.7 opt Ag. Further exploration on the
splay is expected to contribute additional ounces per vertical foot to
all three test elevations.


Much of the mineralization has been sheared into lenses of higher grade
by movement on the predominantly parallel South Vein shear, and such
lenses may abruptly terminate against the main fault, but while they are
of small size, they contribute a disproportionate percentage of the
contained ounces at each elevation.


Recently, the majority of underground work at the Crescent has focused
on pre-development preparation and test mining to develop material for
test milling at the newly-expanded New Jersey Mining Company mill,
located 4.5 road-kilometers from the Crescent portal. Initial mill
testing using silver-bearing material excavated from the first two
exploration drifts has already begun. However, Management has recently
analyzed the underground progress, noted discrepancies in the mill head
grade relative to the voluminous geochemical sampling which accompanied
the bulk sample excavation from the drifts, and, taking into account the
higher grades and greater variability recently encountered, decided to
re-focus on more detailed exploration before proceeding with additional
test milling.


The exploration work will include a more detailed mapping and
geochemical sampling, a search for conjugate and take-off veins beyond
the tunnel walls (which may contain very high grades of silver), and a
more exact identification of the contact between silver-bearing
mineralization and waste.


Mine development activities, principally directed towards advancing the
Big Creek #4 Incline and the Countess Spiral Decline have been
curtailed, including a substantial reduction in our work force, until
the geological evaluations described above, and elaborated on below,
have been completed. Test exploration drifting will continue on the
third exploration drift (3840) level on a limited basis.


Ongoing exploration work will include selective re-sampling of the backs
along both the first and second exploration drifts. Detailed sampling
and re-mapping will determine more precise contacts between ore and
waste, leading to a re-assessment of mining width. Detailed mapping will
identify the potential presence of splays and off-shoots (such as
described above) of the silver mineralization, utilizing both short
cross-cuts and drilling into the hanging-wall and foot-wall of the
drift. Three-dimensional figures will aid the analysis. Large, bulk
samples will be used for specific gravity re-assessments on a regular
basis. With these data, a detailed estimation will be calculated as to
the degree of internal waste that has been mined, and newly-calculated
mining widths will be determined.


The objective of the above program is to maximize the grade of the South
Vein mineralized block determined by earlier core drilling. The third
level exploration drift will provide a proving ground to test the new
geological sampling and estimation protocols thus developed, leading to
optimized silver excavation and recovery. Material handling methods,
moving the mineralized stockpiles from the surface to the mill, will
also be evaluated to prevent any potential errors in material movement.
The results of the new program will result in higher grade material
being shipped to the New Jersey mill.


States USC CEO Graham Clark: 'Management and the Board of Directors have
decided to scale back pre-development activities while we continue to
become more knowledgeable about the characteristics of the
silver-bearing mineralization at the Crescent Mine. The results of our
revised geological studies and exploration protocols, along with future
underground and surface drilling of our large landholding position, will
result in a much more accurate understanding of the nature of the
Crescent mineralization.'

ABOUT UNITED SILVER CORP.


USC is a vertically integrated mining company with operations in Idaho,
USA. It has a majority interest in the Crescent Silver Mine project in
Idaho's prolific Silver Belt - directly between two of the world's
historically largest silver producing properties, the Sunshine and
Bunker Hill mines. USC also offers a full suite of mining services
including contract mining and mine machine repair and fabrication
services to silver miners in the district. USC's common shares trade on
the Toronto Stock Exchange under the symbol 'USC'. For more information
about USC, please visit:

'Graham Clark'

Chairman and CEO


FORWARD LOOKING STATEMENTS: This press release contains forward-looking
statements, which address future events and conditions, which are
subject to various risks and uncertainties. Forward looking statements
in this press release include that further exploration on the splay is
expected to contribute additional ounces per vertical foot to all three
test elevations; that ongoing exploration work will include selective
re-sampling of the backs along both the first and second exploration
drifts; that sampling and re-mapping will determine more precise
contacts between ore and waste, leading to a re-assessment of mining
width; that mapping will identify the potential presence of splays and
off-shoots of the silver mineralization, that bulk samples will be used
for specific gravity re-assessments on a regular basis; that results of
the new program will result in a superior ore being shipped to the New
Jersey mill and a better understanding of the mineralization; the
details of the plans for development as set out in this press release;
and that there may be additional mineral resources at our property. The
Company's actual results and financial position could differ materially
from those anticipated in such forward-looking statements as a result of
numerous factors, some of which may be beyond the Company's control.
These factors include: results of exploration and development
activities, mis-estimation of mineral reserves and resources,
fluctuations in the marketplace for the sale of minerals, the inability
to implement corporate strategies, the inability to obtain sufficient
financing, labor shortages, possible delays in completing the mill, the
inability to keep key employees, currency fluctuations, general market
and industry conditions and other risks disclosed in the Company's
filings with Canadian Securities Regulators.


Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. The Company expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise.

The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news
release.

United Silver Corp.

Investor Relations

Graham Clark,Chairman and CEO

Tel. (855) 238-0202


 
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