Commencement of Four-Year Exploration and Development Plan
in response toby
A Profitable Mining Management Company Based in Idaho’s Silver Valley; Advancing the Crescent Mine back to Production
March 23, 2012 09:15 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2012) - United Silver Corp. ("United Silver Corp.", the "Company", or "USC") (TSX:USC)(OTCQX:USCZF)(FRANKFURT:UM8) is pleased to announce that work has started on the Company's phased, property-wide, USD$23 million, four-year plan (the "Plan") to further explore and develop the Crescent Silver Mine ("Crescent") resource. (See news release dated February 28, 2012, for a detailed description of the Plan). The objectives of the Plan are to further explore the existing silver resource, develop the existing resource, and explore for additional resources at the Company's 80 percent-owned Crescent Silver Mine. The Crescent is located on a large, 365 hectare (902 acre) property in the heart of northern Idaho's Silver Belt, in the second largest silver district in the world. The Crescent is situated between the world-class Sunshine silver mine and the Bunker Hill silver-lead-zinc mine, which combined have produced more than 500 million ounces of silver.
Work has commenced ahead of schedule on the Countess spiral ramp system in the footwall of the South Vein resource area, as well as at the portal of the existing Big Creek #4 adit, which will be widened and driven as an incline ramp to connect with the Countess spiral. When complete, the Big Creek #4 will allow ventilation and serve as a secondary escapeway.
As the Countess spiral is driven down to intersect with the Big Creek #4, test exploration drifting will be conducted on the South Vein. Ore generated from the test drifting will be processed at the New Jersey mill, located less than four miles from the Crescent. The mill is in the final stage of expansion to process Crescent ore. Final installation of the conveyor systems and punchlist work is being performed, and mill commissioning has started.
Concentrate produced from the mill will be sold to Formation Metals under an existing agreement (see news release dated December 13, 2011). The Company expects that the ore from underground test drifting will provide cash flow to offset the cost of exploration development.
Crews for the Crescent were transferred over from the Galena Mine owned by U.S. Silver Corporation, where the Company had been providing contract mining services. The Galena contract was recently terminated. USC CEO Graham Clark commented: "While we are disappointed that our longstanding relationship at the Galena Mine has ended, we are extremely pleased to be able to transfer our 25+ miners and nippers over to the Crescent Mine. We have highly trained and productive crews, and we welcome them at the Crescent. Their availability allows us to immediately ramp up our exploration development plan".
Regarding its operating divisions, the Company is pleased to announce that it has begun providing contract mining services at the Kensington Gold Mine near Juneau, Alaska. Also, the Company has been awarded a one- year contract extension by the Idaho Department of Environmental Quality ("DEQ") for cleanup services in the Coeur d'Alene River Basin, continuing its longstanding relationship with the DEQ.
The Company also announced that is has discontinued its relationship with the OTCQX due to high costs and lack of volume. The Company's shares will still trade over the counter in the United States under the same symbol, USCZF, as well as the main listings on the TSX and Frankfurt exchanges.
Lawrence Dick. Ph.D., P. Geo., has approved and is responsible for technical information provided in this news release.
ABOUT UNITED SILVER CORP.
USC is a vertically integrated mining company with operations in Idaho, USA. It has earned, through development and operations, an 80% 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. 20%of the Crescent is owned by Goldfinder Inc., our joint venture partner. 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: www.unitedsilvercorp.com.
ON BEHALF OF UNITED SILVER CORP.
"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 we plan to conduct a USD$23 million, four-year plan to further explore and develop the Crescent Silver Mine; the details of the plans for development as set out in this press release; that there may be additional mineral resources at our property; that ore from underground test drifting and stoping will provide cash flow to the Company which will offset the cost of exploration development... 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 mil, 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 TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.