High Grade Siver Copper Ib Caladay Zone At Galena Complex

High Grade Siver Copper Ib Caladay Zone At Galena Complex

TORONTO – U.S. Silver & Gold Inc. reported production for 2012, production guidance for 2013 and positive new findings in the Caladay Zone (previously known as the Lead Zone) of the Galena Complex.
"Our goals for 2013 are to increase production, reduce costs and raise the profitability of the ounces we mine," stated Darren Blasutti, President and CEO of U.S. Silver & Gold.  "With the increased silver production achieved during the fourth quarter of 2012, and expected higher productivity from our new 24/7 schedule, we are confident we can meet the goals set for 2013. We are particularly excited about the increasing potential of the Caladay Zone in the Galena Complex.  Recent drilling, along with the modelling of past results, has led to the expansion of existing silver-lead areas and the discovery of a large, high-grade silver-copper target that is close to our existing mine infrastructure.  These new areas will enable us to take advantage of our additional hoisting and milling capacity to increase production in 2014 and beyond, with modest capital outlays."
The Galena Complex produced 625,604 ounces of silver during the fourth quarter of 2012 and 2.25 million ounces in total for the year.  Ore grade for the quarter increased to 10.7 ounces per ton silver from 10.0 ounces per ton in the previous quarter.  Quarterly ore tonnage grew 7 percent to 60,497 tons following a planned workforce increase.  Further productivity improvements are expected as the adoption of a new 24 hour, seven-days-a-week shift schedule is completed early in 2013.
During late 2012 and early 2013, a review of historic data for the Caladay Zone, along with continued exploration, identified an area of high grade silver-copper mineralization between the 4700 and 5200 Levels.  It is a zone of silver-copper mineralization found on the hanging wall side of a broader area of silver-lead mineralization.  It occurs as a cluster of narrow stringer veins, shear fillings, and siderite veins.  This discovery is in a location that is distinct from the area previously known as the Lead Zone, but overlaps it.  The high grade silver-lead and new silver-copper areas between the 4700 and 5200 Levels in the Caladay Zone are in close proximity to existing Galena mine infrastructure. The Galena Complex has over 600 tons of unused hoisting and milling capacity which will allow for increased production from these areas as early as Q4, 2013. The first priority will be to pursue a low capital cost option to fully utilize existing production capacity over the next several years while the Company studies expansion options beyond the existing 1,500 tons per day milling and hoisting capacity. These studies will consider activation of the adjacent 4,900 foot Caladay shaft which is currently idle. Current drilling and planned second-quarter 2013 test mining will provide a further opportunity for geologists and engineers to better understand both the high grade silver-lead resource and the new silver-copper discovery.  A scoping study has been initiated to determine the timing and most profitable approach to integrating this zone into existing mine plans. 
Initial production from redevelopment of the Coeur Mine began during the fourth quarter of 2012.  As expected, the silver-copper ore mined here has been of a similar grade to the silver ore that is mined at the Galena Mine.  Continued new development as well as rehabilitation of existing workings will contribute to overall site production and provide access for exploration in the coming year.  Activities in this section of the Galena Complex are planned to be cash flow positive in 2013 at current metal prices.  The Coeur Mine is expected to ramp-up from roughly 125,000 ounces of silver production in 2013 to approximately 500,000 ounces of silver production by 2016.
A new silver-copper vein system called the 350-370 was identified at the Galena Complex.  Additional drilling has since traced this mineralization to within 150 feet of existing workings on the 5200 level.  This area has the potential to offer near-term production opportunities at grades and widths comparable to other silver-copper ore currently being mined.
During the fourth quarter of 2012, the Drumlummon mine, in Montana, produced 3,469 ounces of gold and 35,733 ounces of silver.  Total production for the year was 20,070 ounces of gold and 316,194 ounces of silver.  Mining was continued on the Charlie and Drumlummon Veins.
It is anticipated that in 2013, mining will be initiated on the Christmas, North Star and Frankie Veins and continue on the Charlie and Drumlummon Veins. Gold production is forecast to be 14,000 to 18,000 ounces and is dependent on resource delineation on the aforementioned mining areas.
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 first production having been achieved in late 2012 and the Caladay 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.