U.S. Silver & Gold announces 2012 production totals, 2013 guidance and high-grade silver copper in Caladay Zone
Thursday, Jan 31, 2013TORONTO, Jan. 30, 2013 /CNW/ - U.S. Silver & Gold Inc. ("U.S. Silver & Gold" or the "Company") (TSX: USA) (OTCQX: USGIF) today announced 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. 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.
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 pproximately 500,000 ounces of silver production by 2016.
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 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. Visit www.us-silver.com.
SOURCE U.S. Silver & Gold Inc.