=======================================================================
Re: News Release - Thursday, July 24, 2008
U.S. Silver Begins Repair Activity in the Caladay Mine
=======================================================================
July 24, 2008 - Toronto, Ontario - U.S. Silver Corporation (USA-TSXV)
("U.S. Silver" or the "Company") is pleased to announce the beginning
of repair activities associated with bringing the Caladay mine into
production. The Caladay Shaft lies approximately 1.3 miles southeast of
the Galena Mine No.3 Shaft in Wallace, Idaho. The two mines are already
interconnected on the 4900 foot level of the Galena Mine.
The four-phase program includes:
.. The repair of the Placer Creek and Caladay portals and the
installation of new hoist ropes on the Caladay hoist. This includes
upgrades to the timbered sections in the tunnels, repair of the rail
access to the hoist room where necessary, and replacing the hoist rope
that has been in service for more than 30 years. The repair should be
completed by early 4th quarter, 2008.
.. Concurrent with the portal repair, additional exploration drilling
in the Caladay mineralized zone between the 4900 and 5200 levels of the
Galena Mine will begin. This drill program is designed to explore the
western zone of the Caladay mineralized area and will provide
information for the test mining program. Once drilling is completed, a
new resource model will be constructed to aid in the economic
evaluation of the Caladay mineralization.
.. After the additional exploration drilling is completed, test mining
will explore the continuity of the mineralization, ore grades, mining
widths, ground conditions, and the applicability of large scale mining
techniques. The test mining is expected to start early in 2009.
.. Following test mining, a decision will be made regarding large scale
mining. Full scale mining activity would utilize the Caladay shaft
with either ramps connecting the Caladay 4900 level to the ore zone, or
by deepening the Caladay shaft to provide access to the ore.
In the early 1980's, a joint venture of Day Mines, Callahan Mining, and
ASARCO spent approximately $32.5 million (about $80.0 million in 2008
dollars) on the Caladay property to construct surface facilities and to
sink a 5,100 foot deep shaft, and associated underground workings to
explore the property. The existing hoist is currently operational.
The historical underground exploration program conducted in the late
1980's included 94 drill holes. This program was designed to extend the
"Silver Belt" of the Coeur d'Alene District further east by delineating
the down plunge extensions from the Galena Mine. Exploration was
curtailed in 1989 due to the softening of the silver market. As a
result, exploration on the property remains incomplete.
About 40 of the
Diamond drill holes delineated an interesting zone of
silver-lead mineralization.
Diamond drill holes containing
mineralization are on 50 to 150 foot centers and intercepts occur over
a vertical distance of 400 to 500 feet. The mineralized zone is open
at depth and to the east and west with favorable rock types projected
in both directions. Two types of mineralization are seen in Caladay
drill holes - disseminated silver-lead, and high-grade tetrahedrite
(silver-copper) veins. Selected intercepts are listed in Table 1.
Drill hole data listed in Table 1 includes down hole lengths. The true
thickness of the mineralized zone cannot be estimated until further
geologic interpretation is completed. Callahan Mining Company, the
operator of the project in the 1980's, calculated a polygonal resource
estimate based on the exploration drill holes as summarized in Table 2.
Table 1. Selected
Diamond drill hole intercepts at the Caladay project
--------------------------------------------------------------------------
Drill Hole From (feet) To (feet) Length (feet) opt Ag Pb %
--------------------------------------------------------------------------
49-50 452.0 520.0 68.0 8.30 13.47
--------------------------------------------------------------------------
49-53 368.5 394.0 25.5 5.02 5.67
--------------------------------------------------------------------------
49-26 807.3 837.0 29.7 5.75 8.13
--------------------------------------------------------------------------
49-59 392.0 491.4 99.4 4.28 5.11
--------------------------------------------------------------------------
Table 2. Historical Caladay resource estimate
--------------------------------------------------------------------------
Ore Type Ore Tons opt Ag Cu % Pb % Ag Ounces Cu or Pb Tons
--------------------------------------------------------------------------
Silver-Lead 833,000 5.96 5.76 4,965,000 48,000 (Pb)
--------------------------------------------------------------------------
Silver-Copper 185,700 13.12 0.16 2,436,000 297 (Cu)
--------------------------------------------------------------------------
U.S. Silver has not included the Caladay resource in its current ore
reserves and resources because additional study is needed to verify the
historic data, conduct additional geologic evaluation and
interpretation, and to determine the feasibility of mining. However,
due to the widths and grades of the ore zones reported in the historic
data, the Company believes that the project may be amenable to highly
mechanized, low cost, bulk mining techniques.
In addition to the zone of mineralization above, the Company also
believes the Caladay Mine may host other vein systems similar to those
historically mined at the Galena Mine. This interpretation is based on
an analysis of existing Galena Mine underground workings and drilling
results at both the Galena and Caladay properties. Further, the Company
believes that similar geologic structures which exist at the Galena
Mine extend into the Caladay Mine below the level of the current
Caladay workings. The Company intends to follow up on these concepts
with further intense geologic study of the existing data, followed by a
Diamond drilling program.
QUALIFIED PERSON
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. 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 and developing its extensive
Silver Valley holdings.
The TSX Venture Exchange does not accept 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
U.S. Silver Corporation
Bruce Reid
Chief Executive Officer
(416) 848-0858
or
Vance Loeber
Investor Relations
(604) 805-3530
or visit:
www.us-silver.com
=======================================================================
Copyright (c) 2008 US SILVER CORPORATION (USA) All rights reserved.
For more information visit our website at http://www.us-silver.com/ or
send mailto:hfairhurst@us-silver.com
=======================================================================
.
![]()