U.S. Silver Reports June Silver Production Up 37% Over 1st Quarter
TORONTO, ONTARIO–(Marketwire – July 28, 2008) – U.S. Silver Corporation (TSX VENTURE:USA) (“U.S. Silver” or the “Company”) is pleased to announce that June silver production was 161,000 ounces which is 37% higher than average monthly production in the 1st quarter 2008 and 61% higher than the average monthly production from 2007. This is an annualized rate of approximately 1.93 million ounces.
The mine averaged 879 tons per day in June, an increase of 260% compared to the 2007 average of 338 tons per day and a 198% increase as compared to 1st quarter 2008 numbers. June’s production of 161,000 ounces of silver is the highest monthly production since U.S. Silver acquired the Galena Mine Complex. The mine also produced an additional 33,400 ounces of silver equivalents in the form of lead and copper by-products. Management continues to anticipate silver production levels will increase to over 250,000 ounces of silver per month by the end of 2008.
In the short term, management expects production in July to be similar to the relatively higher levels of May and June. Plans are for production to increase further in the 4th quarter as new production from the 5200 level silver-lead zone begins, and increases from other levels continue.
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The costs at the Galena Mine during June remained in the $12.50 per ounce of silver. Management believes that costs will decline, particularly in the 4th quarter 2008, as the fixed costs of both mining and milling are spread over greater silver production and as grades in both ore types increase as ore production moves from development into regular production where dilution levels will shrink.
During the past month, the Company unwound some of its hedges involving lead that had been put in place during the 4th quarter 2007. Originally, the company had contracted to sell over 6 million pounds of lead during 2008 at an average price of over US $1.55 per pound. The Company unwound approximately 4 million pounds of lead hedges by late June 2008 at an average price of approximately US $0.75 per pound. The gain on these transactions will be booked over the remainder of 2008 in the respective months of the original maturity of each contract closed. Remaining lead hedge contracts run from December 2008 through May 2009. As lead production forecasts are refined, additional lead forward sales may be executed. As always, the Company remains totally unhedged with respect to silver production.
U.S. Silver Corp. remains debt free and has cash and investments of over $16 million.
Information of a technical nature in this press release respecting the properties has been prepared and reviewed by Mr. Daniel H. Hussey, Manager of Exploration for 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.
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.
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