U.S. Silver Corporation (USA-TSXV “USA” and Pink Sheets-“CYLPF”) (“U.S.
Silver” or the “Company”) is pleased to announce that the
Galena Mine produced 1,218,244 ounces of silver in the first half of
2009 (“1H 2009”) at a cash cost of $10.95 per ounce produced. The
Company produced 72% more silver ounces in 1H 2009 than in the first
half of 2008 (“1H 2008”) (1,218,244 vs. 708,175). When comparing 6-month
periods, the cash cost per ounce produced decreased 23% from $14.29 in
2008 to $10.95 in 2009.
Lead and copper production also improved from 1H 2008 to 1H 2009. The
Galena mine produced 55% more pounds of lead (2,891,285 vs. 1,859,679)
and 41% more pounds of copper (551,571 vs. 390,447).
The Galena Mine produced 583,453 ounces of silver in the second three
months of 2009 (“2Q 2009”) (cash cost of $11.34 per ounce produced)
compared to 634,791 ounces of silver in the first three months of 2009
(“1Q 2009”) (cash cost of $10.59). The decline in ounces was primarily
due to lower head grades in 2Q 2009 than in 1Q 2009.
Thomas Parker, President and Chief Executive Officer of U.S. Silver,
stated, “We initiated an aggressive turn-around plan for the mine in
late 2008. The positive results of our plan, first seen in Q1 2009, have
now continued into Q2 2009, in terms of increased production at lower
unit costs. We thank our dedicated workforce for their efforts and we
expect these positive outcomes to continue. Additional details will
become available when we release our second quarter 2009 financial
results in August.”
The Company is also pleased to announce that, as a result of the of the
successful completion of the equity offering as described in yesterday’s
press release, the repair of the Galena shaft will resume starting July
27, 2009. The Galena shaft caved in from the 2400 foot level to the 3200
level late in 1998. The Company began repairing the shaft in May 2007
and completed repairs to the 3060 foot level by January 15, 2009. At
that time repairs were halted to conserve cash. It is estimated that the
repair of the remaining 140 feet of the shaft will take approximately
six months.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly-owned subsidiaries, owns and operates
the Galena, and owns the 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 216 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, assumptions and
uncertainties that are difficult to predict, including the risk that the
net proceeds may not be sufficient for the purposes stated in the
prospectus and the risk that regulatory approvals may not be obtained
within the timeframe contemplated. 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.
U.S. Silver Corporation
Tom Parker, President and CEO,
208-752-0400
