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ECU Silver Doubles NI 43-101 Mineral Resource Estimate and
Highlights Significant Potential Resources
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Highlights
- Measured & Indicated Resources have increased by 116% to 38 million
ounces of silver equivalent.
- Inferred Resources have increased by 121% to 179 million ounces of
silver equivalent.
- Potential Resources have increased by 1,300% - 1,365% to 465 - 807
million ounces of silver equivalent.
TORONTO, ONTARIO, January 24, 2008 - ECU Silver Mining Inc. ("ECU
Silver" or the "Company") (TSX:ECU) is pleased to report the results of
its "Updated" National Instrument 43-101 ("NI 43-101") compliant
mineral resource estimate (the "Resource Estimate") on its Velarde�a
District Properties in Durango State, Mexico (the "Velarde�a
Properties"). The results confirm an increase to over twice ECU
Silver's mineral resources. A report of the Resource Estimate will be
filed on SEDAR within 45 days. The Resource Estimate (refer to Tables
1,2 and 3 below) was audited by MICON International Limited ("MICON").
The previous resource estimate in respect of the Velarde�a Properties
was set out in the NI 43-101 technical report dated October 2006
completed by Broad Oak and Associates (the "BroadOak Report"). The
result of this latest Resource Estimate represents a 121% increase over
the BroadOak Report.
NI 43-101 Resource Estimate:
- Measured Resource: 24,768,000 ounces of silver equivalent
- Indicated Resource: 12,864,000 ounces of silver equivalent.
- Inferred Resource: 179,004,000 ounces of silver equivalent.
The Resource Estimate does not include several areas within the
Velarde�a Properties where the potential may exist to increase uture
mineral resources. Many of the veins and vein packages in the Velarde�a
Properties remain open along strike in both directions and at depth,
providing for an estimate of potential resources ("Potential
Resources") which has been reviewed by MICON (refer to Table 4 below).
ECU Silver and MICON believe the potential to increase mineral
resources on the Velarde�a Properties is substantial. As such, MICON
has reviewed the conceptual Potential Resource, which is not included
in the Resource Estimate.
This Potential Resource is compliant with NI 43-101 disclosure
requirements and reflects the observed lateral and interpreted downward
extensions of veins identified in the Reource Estimate. Further
exploration and development work is expected to convert a portion of
the Potential Resources into a future resource esimate.
The most recent Potential Resource range has increased approximately 13
-- 14 times, which is significantly larger than the range of 33 to 55
million silver equivalent ounces as reported in the previous
BroadOakReport. This increase is a direct result of the significant
exploration and development program that the Company has completed over
th last two years.
The material increase in the Resource Estimate and the Potential
Resources was based strictly on veins included in this resourc
estimation and does not incorporate other known veins identified
through historical data within the Velarde�a Properties, nor does it
include the mineralized skarns. Insufficient data has been collected to
estimate mineral resources in these other veins. A portion of the
Company's next exploration program will be designed to collect
additional data from these areas.
In total, more than 39 veins have been identified on the Velarde�a
Properties, which is comprised of the main Velarde�a Property, the
Chicago Property and the joint venture San Diego Property, all of which
are within close proximity to each other. The Resource Estimate was
based on 32 of the 39 veins. The remaining seven veins, which are well
known and have been identified through surface sampling and/or
underground workings, require further evaluation. It is anticipated
that more veins exist in the Velarde�a Properties based on past
geological mapping.
Readers are cautioned that there are no assurances that all or any part
of the Resource Estimate or the Potential Resources wil be economically
viable and although the information in this press release is based on
the best available data the Company has ollected to date, a material
difference between the actual results and the Company's expectations
may arise once further exploration is complete.
Michel Roy, the Chairman and CEO of ECU Silver stated, "Our mineral
inventory of over 200 million silver equivalent ounces now represents a
growth in excess of nine times over our firt 43-101 Resource Report
issued by Roscoe, Postle and Associates in July 2005. Furthermore, we
are pleased with the results of the exploration work started in 2006.
Our main objectives were to significantly increase the Measured and
Indicated resources and convert the Potential resources ino the
Inferred category. As such, the Measured and Indicated category has
increased by 116% from the BroadOak Report and the new Inferred
resources include most of what had been previously presented as
Potential Resoure."
Stephen Altmann, the President of ECU Silver added that, "The Resource
Estimate and Potential Resources confirm that the Velarde�a Properties
are host to a significant mineral resource ith a potential for
considerable growth as evidenced by the large Potential Resource
category. We have commenced the construction of a new ramp that will
provide access to several areas where we may convert some of our
Poential Resources into a new resource estimate and confirm the
district potential of the Velarde�a Properties."
The Resource Estimate is based on additional information collected
beyond that of the BroadOak Report. Additional information was derived
from 24,000 metres of drilling plus underground development which
included 2,000 metres of rifting and ramps, in addition to 500 metres
of raises.
In total, the Resource Estimate has been based on 295 drill holes,
44,500 metres of drilling plus underground development of approximately
3,780 metres of drifting and ramps and 1,260 metres ofraises. In
addition, 5,800 chip samples and 7,300 drill core samples have been
entered into the database. The Resource Estimate has been included in a
MinTek MineSite database.
A cut-off value of US$45 per tonne was used for the narrow veins and
was based on information derived from previous mining activities on the
main Velrde�a Property. A cut-off value of US$25 per tonne was used for
the bulk tonnage vein packages and was based on previous bulk mining
tests completed by ECU Silver. In determining the silver equivalent
value, the Net Smelter Return ("NSR") value was calculated for each
commodity based on metallurgical recoveries from the most recent tests
and contracts for mineralconcentrates produced from the mining
activities on the Velarde�a Property.
The Company would like to thank MICON for their efforts and guidance
over the past 16 months.
Table 1: Mineral Resource Summary(1)
Velardena District Properties
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Gold Silver Lead Zinc Copper Silver Silver
(Au) (Ag) (Pb) (Zn) (Cu) Equiv.(2) Equiv.(2)
(Au,Ag) (Au,Ag,Pb,
Zn,Cu)
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000 oz 000 oz 000 lb 000 lb 000 lb 000 oz 000 oz
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Measured 195 9,332 12,914 23,221 6,195 22,799 24,768
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Indicated 81 5,870 14,740 16,853 3,376 11,298 12,864
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Measured 276 15,202 27,653 40,075 9,570 34,097 37,632
and
Indicated
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Inferred 886 82,024 430,651 444,866 49,698 139,207 179,004
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(1) Resource estimates are based on a NSR value cut-off of US$45 per tonne
and US$25 for vein packages.
(2) Silver equivalents incorporate the following assumptions:
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Recovery Recovery
Commodity Price Sulphides Oxides
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Gold US$640/oz 71% 78%
Silver US$12/oz 58% 55%
Lead US$0.60/lb 45% n/a
Zinc US$1.20/lb 25% n/a
Copper US$2.50/lb 21% n/a
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Table 2: Mineral Grade Summary - Oxides
Velardena District Properties
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Tonnes Gold Silver Lead Zinc Copper
(Au) (Ag) (Pb) (Zn) (Cu)
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000 t g/t g/t % % %
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Measured 633 3.50 162 n/a n/a n/a
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Indicated 364 2.36 176 n/a n/a n/a
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Measured 998 3.08 167 n/a n/a n/a
and
Indicated
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Inferred 447 1.46 206 n/a n/a n/a
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Table 3: Mineral Grade Summary - Sulphides
Velardena District Properties
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Tonnes Gold Silver Lead Zinc Copper
(Au) (Ag) (Pb) (Zn) (Cu)
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000 t g/t g/t % % %
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Measured 2,167 1.78 87 0.27 0.49 0.13
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Indicated 581 2.85 204 0.94 1.11 0.26
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Measured 2,748 2.00 112 0.41 0.62 0.16
and
Indicated
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Inferred 13,293 2.02 185 1.46 1.51 0.17
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Table 4: Mineral Potential Summary
Velardena District Properties
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Mineral Mineral Avg. Avg. Potential Potential
Potential Potential Gold Silver Contained Contained
Range Grade Grade Silver Eq. Silver Eq.
(Au,Ag) (Au,Ag,Zn,
Pb,Cu)
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000 t g/t g/t 000 oz 000 oz
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Minimum 30,872 3.31 251 464,660 549,040
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Maximum 63,038 2.50 234 806,503 960,395
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The reader is cautioned that mineral resources that are not mineral
reserves do not have demonstrated economic viability. This preliminary
economic assessment of the resources is preliminary in nature and there
is no certainty that a preliminary ecnomic assessment will be realized.
Additional Information
Resource Methodology
1. Measured, Indicated and Inferred resources tonnages were estimated
using longitudinal sections for each of the veins and/or vein packages
combined with the width and density information for each cross-section
for the measured and indicated resources and on the average widths and
densities of all intercepts for the inferred.
2. The geological continuity of each zone was determined on 20 meters
cross sections based on stratigraphy, mineralization and structure
using underground development and sampling plus
Diamond drill holes and
surface information when pplicable.
3. The area of these blocks was measured on long sections (oriented
vertically but parallel to strike of the vein) using MineSite.
4. All intercepts were calculated at a 1 metre minimum horizontal width
for narrow veins and at 2.70 metres minimum horizontal widh for the
bulk mining areas with representative local background values for
internal dilution in both cases.
5. The undiluted resource was estimated using an NSR value cut-off
factor of US$45 per tonne for the narrow, high grade veins, whereas a
cut-off factor of US$25 per tonne was applied to the bulk tonnage vein
packages. Blocks that did not meet these criteria were removed from the
Resource Estimate. However, in parts of the measured and indicated
resources, there remained internal blocks that did not meet the above
criteria but would naturally be part of the mining sequence. These
blocks were included in the resource estimate provided the overall
grade of the mining level was above the NSR value cutoff factor.
6. Capping of high values was set at the 95th percentile of all assay
results calculated for each element in each vein.
7. Measured Resources were defined as that portion of mineralization
between mine levels, 10 metres on each side of the drifts and 25 to 50
metres below the lowest drifts depending on proven vertical continuity.
8. Indicated Resources were defined to a vertical depth of 25 metres
below Measured Resources and 10 metres laterally adjacent to easured
Resources.
9. Inferred Resources were defined as that portion of mineralization
defined by surface sampling and/or drill-hole samples. In most cases
where the extent of the mineralized zone is unknown, the extent of the
Inferred Resources has been estimated at a maximum of 100 metres. The
depth of Inferred Resources for those zones which have been explored by
drill holes has been set at 50 metres below the loest mineralized drill
intersection.
10. Mineral Resources that are not mineral reserves do not have
demonstrated economic viability.
Estimate of Potential Resources
The mineral potential of a property cannot be estimated to the same
accuracy as a mineral resource and must be stated as a rang. To
calculate a range for grades, a factor of minus 10 % was applied for
the downside and plus 10 % for the upside potential. In the potential
for the extensions of the veins belonging to the Santa Juana vein
system where grades were used from drill hoes only, the upside was set
at plus 50%.
The upside potential factor is larger than the downside potential
factor because of the possibility that the mineralized zones ill be
similar in nature to, and as extensive as, the main veins on the
Velarde�a Properties. Consequently a significant difference between the
grades from drilling and the higher grades from stoping is expected.
Furthermore, an additional 59,956,000 ounces silver-equivalent was
added to both the minimum and maximum to reflect the fact that gold and
silver grades from actual stopes were sinificantly higher than grades
from drill holes that defined those blocks prior to mining them. The
increase was material in all cases and averaged approximately 300%
using four well documented cases. Using the three smallest increases
for gold and silver, the average increase obtained was 93% for gold and
134% for silver. This difference was applied to the 4,872,000 tonnes
grading 3.28g/t gold and 137g/t silver representing the inferred
resources at Santa Juana which were based uniquely on drill-hole
information, yielding the potential increase mentioned above.
MICON also indicated that contributing to the upside potential is the
possibility that additional veins on the Velarde�a Properies may be
discovered.
The mineral potential of the Velarde�a District property is conceptual
in nature and there has been insufficient exploration coducted within
the mineral potential evaluation to define a mineral resource. It is
also uncertain if further exploration will result in the targets being
delineated as mineral resources.
However, a multi-phase exploration program is being proposed to test
the areas concerned, as was done in 2006 which resulted in the
conversion of most of the then mentioned Potential into Inferred
Resources.
Methodology to Calculate Tonnages in Potential
1. The maximum lateral extent of the Potential Resources was estimated
using the known lateral extent, from geological mapping, of the veins
which exhibited surface expressions and carrying the Potential
Resources to the limits of the surface expressions
2. The lateral extent of the Potential Resources on veins not having
any surface expression was set at a maximum of 400 metres, unless the
property boundary or a fault was encountered whereupon the lateral
extent was cut to that distance.
3. The maximum dip extension of the Potential Resources was set at 600
metres, based on the known mined height of the major veins systems,
unless the property boundary or a fault was encountered whereupon the
dip extent was cut to that distance.
4. The minimum lateral extent of the Potential Resources was estimated
by extending laterally for 200 metres plus half the remainig maximum
lateral extent, unless the property boundary or a fault was encountered
whereupon the lateral extent was cut to that distance.
5. The minimum dip extension of the Potential Resources was estimated
by extending vertically at depth for 300 metres, unless the property
boundary or a fault was encountered whereupon the dip extent was cut to
that distance.
6. Once a surface area was obtained from the above criteria, vein
width, density and grades from the nearest resource blocks were applied
to estimate the tonnages and the base case for the grades, the range
for the grades then being used according to the criteria explained
above.
The qualified persons within the meaning of NI 43-101 responsible for
the evaluation of the Resource Estimate are William J. Lewis, B.Sc., P.
Geo., a senior geologist with MICON based in Toronto, Canada, and
Michel Roy, P. Geo., the Chairman and CEO of ECU Silver.
About ECU Silver
ECU Silver is focused on the exploration, development and mining of
gold, silver and base metals at its Velarde�a District Properties in
Durango, Mexico. The area includes five historical mines - Santa Juana,
Terneras, San Mateo, San Juanes and the San Diego mine. ECU Silver is
defining the "Mineralized Corridor" at Santa Juana and also further
defining several higher grade narrow veins within the area. ECU
Silver's mission is to become a pre-eminent silver producer through the
development of existing and potential additional resources at
Velarde�a.
For additional information please contact:
ECU Silver Mining Inc.
Michel Roy, Chairman and CEO
Ph: 011 52 871 747 5750
Email: ecu@ecu.ca
Stephen Altmann, President
Ph : 416-644-8640
Email: ecu@ecu.ca
Statements in the release that are "forward-looking statements" are
based on current expectations and assumptions that are subject to risks
and uncertainties. Actual results could differ materially. We undertake
no duty to update any forward-looking statement to conform the
statements to actual results or changes in our expectations.
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Copyright (c) 2008 ECU SILVER MINING INC. (ECU) All rights reserved.
For more information visit our website at http://www.ecu.ca/ or send
mailto:ecu@ecu.ca
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