TORONTO, Nov. 28, 2012 /PRNewswire/ - U.S. Silver & Gold Inc. ("U.S. Silver & Gold" or the "Company") (TSX:USA; OTCQX:USGIF) is pleased to provide an update on its 2012 exploration results. The Company's assets are comprised of two 100% owned operating mines: the high grade silver Galena Mine Complex in Idaho and the high grade gold and silver Drumlummon Mine in Montana.
"We are very pleased with our exploration progress at both the Galena Complex and the Drumlummon Mine," stated Jim Atkinson, Vice President, Exploration for U.S. Silver & Gold. "Results for the last eight holes from the 4900 level of the Galena Mine Lead Zone are especially encouraging. These holes are close to existing infrastructure and can be easily accessed. They were focused in an area where little drilling existed and displayed wide zones of continuous, good grade silver and lead mineralization. We plan to include these drilling results in our year-end resource calculation, and are working toward further defining the Lead Zone while examining low cost bulk mining methods."
Galena Mine Complex
The Lead Zone
Ongoing exploration work continues to define a significant potential silver resource in what is known as the Lead Zone ("LZ") of the Galena Mine Complex. It has over 750 drill holes, many of which were created to test other veins, principally the Silver Vein. The LZ has a global target of between 60 and 70 million tons and a potential global resource of between 150 and 200 million ounces of silver1. Please see Figure 1 for illustration. The 2012 drilling program focused on the initial delineation of a resource on the 4000 and 4900 Levels.
The underground drilling program continues to expand the size of the LZ and confirm the presence of potentially mineable grades and widths of silver and lead mineralization. Table 1 (below) shows the results of the eight most recent holes drilled at the LZ. They confirm mineralization grade and thickness in the accessible area on the 4900 level. They also test an area in the center of the mineralization block where there had been little previous drilling, and focus on expanding the known extent of the LZ at this level and below.
Holes have generally been drilled at a favorable angle to the mineralization and intersect close to true thickness, although actual thickness has yet to be determined. Mineralization is accessible from the 4900 level and the Company anticipates that it will be included in the year-end resource calculation for the LZ.
Recent Drilling Results - Lead Zone
To convert ounces per ton to grams per tonne, multiply by 34.286.
|Note: Since these drill holes were completed from different drill stations and intersect the veins at various angles, the recovered intersections may not reflect true widths.|
The LZ is a semi-continuous mineralized zone that extends throughout the Galena Mine from the 2400 level to the 5200 level, and potentially into the Caladay Mine at depth. The estimated strike length on the known levels ranges between 1,200 and 3,600 feet and the apparent widths range between 200 and 400 feet. Highly mineralized portions can exceed 100 feet as shown in Table 1 above. The LZ occurs as a large lead-silver (Ag-Pb) zone of disseminated and stringer-controlled mineralization containing higher grade linear zones. It is anticipated that lower cost bulk mining methods will be used to exploit this potential resource.
The LZ appears to have potential global grades of 3 to 4 ounces per ton (103 to 137 grams per tonne) silver and 3 to 5 percent lead with higher grade occurring in zones within the LZ. All targeted areas contain 1 to 3 continuous zones of higher grade mineralization, ranging between 5.5 to 10.0 ounces per ton (189 to 343 grams per tonne) silver and 5 to 11 percent lead, surrounded by lower grade material. High grade zones represent 30 to 40 percent of the total global tonnage with continuous widths ranging between 15 and 30 feet.
1 Note that potential quantities and grades disclosed in this news release are conceptual in nature and there has been insufficient exploration to define a mineral resource on the all of the targets in the Galena Mine Complex. It is uncertain if further exploration will result in all of the targets in the Galena Mine Complex being delineated as a mineral resource.
The previously producing Belmont Mine in the Drumlummon area of Montana was purchased in the summer of 2012 by U.S. Silver & Gold. The mine produced approximately 500,000 tons in the early 1900s from the Bald Mountain and Belmont veins. In the late 1980s and early 1990s previous owners re-examined the property and Gulf Titanium completed a non 43-101 compliant resource estimate of 77,000 tons of 0.59 ounce per ton gold, and conducted test mining from a surface decline. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. The Company is not treating the historical estimate as a current resource.
In the fourth quarter of 2012, the Company began a program to confirm previous drilling in the Belmont and Bald Mountain veins and discover new veins in the area. This drill program was established to "twin" previous intersections that had been discovered in the early 1990s. Early and deep snow resulted in cancellation of the drilling before the full program could be finished—however, two holes were completed and a third was started. The first hole (Bel 12-01) obtained seven intercepts with gold and silver mineralization as outlined in Table 2 below.
Belmont DH #1
Azi: 319 Dip: - 40 Total Depth: 1,094.5 ft.
|466-469.5||3.5||0.50||17.18||3.8||131.0||West Belmont vein|
|791-792||1.0||0.41||14.19||0.3||9.6||Possible new vein|
|892-900||8.0||0.47||14.95||0.9||32.2||Bald Mountain vein zone|
|932-935||3.0||2.67||91.54||7.4||255.1||Bald Mountain footwall vein|
|988-989||1.0||0.19||6.34||0.2||7.2||Possible new vein|
|1015-1016.5||1.5||0.37||12.65||2.6||90.5||Possible new vein zone|
To convert ounces per ton to grams per tonne, multiply by 34.286.
|Note the true thickness of the veins is not known but calculations based on the angle of the drill hole and the intersections suggest that they will be 80 to 90% of the intersected width.|
Belmont Drill Hole (DH) #1 was completed at an azimuth of 319 degrees and a dip of minus 40 degrees with a total depth of 1,094 feet. It was drilled from the top of Bald Mountain at an elevation of approximately 6,550 feet.
The second drill hole intersected a drift at the target depth in the Bald Mountain vein, but did encounter several veins in the upper parts of the hole with those assays still pending. The third hole was abandoned due to heavy snowfall and winter conditions which made it too hazardous to access to the drill site. The hole was capped and prepared for re-entry in the spring.
Quality Assurance / Quality Control ("QA/QC")
U.S. Silver & Gold maintains a QA/QC Program for all assays, whether completed at the Drumlummon laboratory or at a contract laboratory including the use of standards, blanks, duplicates. All QA/QC results are evaluated using a program of QA/QC monitoring. Both the contract laboratory and the Drumlummon laboratory maintain programs of QA/QC as well. Assays for the Belmont drilling were completed at the Company's laboratory at the Drumlummon Mine in Montana while the assays for the Lead Zone were prepared by a commercial laboratory located in Osburn, Idaho
About U.S. Silver & Gold Inc.
U.S. Silver & Gold Inc. is a newly formed silver and gold mining company focused on growth from its existing asset base and the execution of targeted accretive acquisitions. U.S. Silver & Gold owns and operates the Galena Mine Complex in the heart of the Silver Valley/Coeur d'Alene Mining District, Shoshone County, Idaho and the Drumlummon Mine Complex in Lewis and Clark County, Montana. Within the Galena Mine Complex, the Galena mine produces high-grade silver and is the second most prolific silver mine in U.S. history, delivering over 200 million ounces to date, the Coeur mine is under re-development with production expected in late 2012 and the Lead Zone is being evaluated for bulk mining development. The Drumlummon mine currently produces high-grade gold and silver with historical production of 1 million ounces of gold and 12 million ounces of silver and has never been fully exploited or explored. Visit www.us-silver.com.
Mr. Jim Atkinson, Vice President, Exploration and a Qualified Person under Canadian Securities Administrators guidelines has approved the contents of this news release.
Some of the potential quantities and grades disclosed in this news release are conceptual in nature. At the current stage of exploration, there is insufficient drilling to determine the extent of continuity of the mineralization required to define a mineral resource for all mineralization at the Galena Mine Complex and Drumlummon Mine. It is uncertain if further exploration will result in certain exploration targets being delineated as a mineral resource.
Please see SEDAR or www.us-silver.com for the 43-101 compliant Technical Report and Resource Estimate on the Drumlummon Mine Project dated April 9, 2012 and the Galena Project dated March 19, 2012.
Cautionary Statement Regarding Forward Looking Information:
This news release contains "forward‐looking information" within the
meaning of applicable securities laws. Forward‐looking information
includes, but is not limited to, the Company's expectations intentions,
plans, and beliefs with respect to, among other things, the Galena Mine
Complex and the Drumlummon Mine. Often, but not always, forward‐looking
information can be identified by forward‐looking words such as
"anticipate", "believe", "expect", "goal", "plan", "intend",
"estimate", "may", and "will" or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions, or statements about future events or
performance. Forward‐looking information is based on the opinions and
estimates of the Company as of the date such information is provided
and is subject to known and unknown risks, uncertainties, and other
factors that may cause the actual results, level of activity,
performance, or achievements of the Company to be materially different
from those expressed or implied by such forward looking information.
This includes the ability to develop and operate the Galena and
Drumlummon properties, risks associated with the mining industry such
as economic factors (including future commodity prices, currency
fluctuations and energy prices), failure of plant, equipment, processes
and transportation services to operate as anticipated, environmental
risks, government regulation, actual results of current exploration
activities, possible variations in ore grade or recovery rates,
permitting timelines, capital expenditures, reclamation activities,
social and political developments and other risks of the mining
industry. Although U.S. Silver and Gold has attempted to identify
important factors that could cause actual results to differ materially
from those contained in forward‐looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such
information. By its nature, forward‐looking information involves
numerous assumptions, inherent risks and uncertainties, both general
and specific those contribute to the possibility that the predictions,
forecasts, and projections of various future events will not occur. The
Company undertakes no obligation to update publicly or otherwise revise
any forward‐looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law.
SOURCE U.S. Silver & Gold Inc.