US Silver & Gold Exploration and Corporate Update Lead Zone to Add
Substantial Resources
TORONTO, Oct. 11, 2012 /PRNewswire/ -
U.S. Silver & Gold Inc.
("U.S. Silver & Gold" or the "Company") (TSX:USA; OTCQX:USGIF) is
pleased to provide a comprehensive update on its year-to-date
exploration results and exploration plans for the remainder of
2012 and beyond, as well as an update on other corporate
developments.
The Company's assets are comprised of two 100% owned operating
mines - the high grade gold and silver Drumlummon Mine in Montana
and the high grade silver Galena Mine Complex in Idaho.
Galena Mine Complex
The Lead Zone
Drilling by previous owners identified a large area of lead /
silver mineralization in the Galena Mine Complex.
Recently, the exploration staff at the mine compiled past results and
incorporated recent underground drilling to define a significant
potential resource in what is known as
the Lead Zone ("LZ" previously referred to as the "Caladay Lead Zone").
The LZ is a semi-continuous mineralized zone that extends from the
2400 level to the 5200 level and potentially into
the Caladay Mine at depth.
The zone covers approximately 2,800 vertical feet.
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.
The LZ occurs as a large lead-silver (Ag-Pb) zone of disseminated and
stringer-controlled mineralization containing higher grade linear
zones.
Figure 1 located -
Galena Lead Zone shows the drill indicated extent.
Only a small portion of the LZ has been drilled extensively.
In 2012, a drilling program allowed the development of a resource
on the 4000 and 4900 Levels of
approximately 600,000 to 700,000 tons where test mining
will be carried out in the fourth quarter of 2012.
This drilling indicates potential global grades of
3 to 4 ounces per ton (103 to 137 grams per tonne) silver and
3 to 5 percent lead.
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.
Between these zones are lower grade areas, 60 to 80 feet wide with
grades of approximately 1 to 3 ounces per ton (34 to 103 grams
per tonne) silver and 1 to 4 percent lead.
Drilling to date by others (principally ASARCO Incorporated) and recently by
U.S. Silver & Gold has led to a global tonnage target for the LZ
of between 60 to 70 million tons and a potential global resource
of between 150 to 200 million ounces of silver.
"The Galena Mine Complex has been in production for almost
60 years, and ore continues to be found year after year.
Exploration has consistently exceeded annual production and we
expect this will be the case in 2012 with resources growing once
again extending the life of the Complex," stated
Darren Blasutti, President and CEO of U.S. Silver & Gold.
"Recent drilling results in the Lead Zone are particularly
noteworthy.
Based on what we've seen, this area has the potential to redefine
the Galena Complex as we become more comfortable in our ability
to use lower cost bulk mining methods in exploiting this deposit."
The results of some significant intersections in the LZ are
presented in Table 1 below. These intersections indicate two
zones approximately 25 feet apart
averaging 13.4 feet of 8.63 ounces per ton (296 grams per tonne)
silver and 3.38 percent lead, and
77.3 feet of 6.76 ounces per ton (232 grams per tonne) silver and
10.92 percent lead.
There are zones of higher grade silver within the broader
mineralized zones.
Table 1
Lead Zone - Representative Drill Intersections
From To Width (ft) Ag (oz/t) Cu (%) Pb (%)
218.60 220.00 1.40 27.50 1.10 10.74
220.00 223.00 3.00 2.07 .03 1.77
223.00 226.50 3.50 7.63 .16 2.99
226.50 229.80 3.30 3.51 .07 1.04
229.80 232.00 2.20 1.62 .05 .37
257.10 261.70 4.60 6.30 .25 2.57
261.70 265.50 3.80 2.21 .01 2.92
265.50 269.00 3.50 2.28 .01 2.88
269.00 273.00 4.00 2.95 .01 3.92
273.00 275.80 2.80 5.08 .01 8.93
275.80 278.50 2.70 18.40 .01 34.48
278.50 280.00 1.50 6.67 .01 12.77
280.00 282.80 2.80 24.50 .04 42.92
282.80 285.00 2.20 1.39 .01 2.60
285.00 289.00 4.00 1.59 .01 2.20
289.00 293.00 4.00 3.03 .04 4.02
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.
Please refer to www.us-silver.com for additional drilling results on
the Lead Zone.
The drill program for 2013 will focus on the area between the 4600 and
5200 levels, which has the potential to add between 10 million and
15 million ounces of silver to the mine's resources next year.
Silver Vein and 350-370 Vein
The majority of expected silver production from
the Galena Mine Complex is currently being sourced from
the Silver Vein.
Drilling during 2012 has extended several of the known higher
grade veins including the prolific Silver Vein.
The Silver Vein and the 350-370 Vein have yielded high grade
intersections suggesting veins extend at depth and in areas close
to existing workings available to develop additional resources in
the near term.
Two newly identified veins are thought to be splays off one of
the existing veins and could be exploitable in the near future.
Examples of recent drill intersections can be found in Table 2 below.
Table 2
Silver Vein and 350-370 Vein
Hole # From To Width (ft) Ag (oz/t) Cu (%) Pb (%) Description
DH52-379 81.4 84.4 3.0 2.18 0.05
84.4 86.0 1.6 25.20 0.41 4.6ft at 9.52 oz/t Ag
209.0 210.3 1.3 112.60 1.93 0.26 4th Vein
210.3 213.0 2.7 3.39 0.07 4.0ft at 38.9 oz/t Ag
225.8 226.8 1.0 35.80 0.58
226.8 230.5 3.7 1.29 0.02 4.7ft at 8.63 oz/t Ag
233.9 236.4 2.5 25.00 0.36 0.11
DH52-380 170.9 172.0 1.1 104.40 1.87 0.13 4th Vein
172.0 174.0 2.0 0.61 0.01 0.10 3.1ft at 37.4 oz/t Ag
199.7 201.9 2.2 0.92 0.01 0.10
201.9 203.0 1.1 42.40 0.55 0.59
203.0 206.3 3.3 7.66 0.08 0.23 6.6ft at 11.43 oz/t Ag
DH52-381 0.0 3.5 3.5 9.96 0.21
3.5 8.0 4.5 10.70 0.18
8.0 12.5 4.5 7.58 0.15 12.5ft at 9.36 oz/t Ag
70.0 73.1 3.1 1.62 0.02
73.1 74.2 1.1 283.20 4.23 New Veins
74.2 77.2 3.0 1.52 0.02 7.2ft at 44.59 oz/t Ag
135.8 136.4 0.6 117.40 1.93 0.6ft at 117.4 oz/t Ag
158.5 162.3 3.8 8.50 0.14 3rd Vein
162.3 165.6 3.3 15.80 0.24
165.6 169.0 3.4 21.40 0.35
169.0 172.2 3.2 12.90 0.25 13.7ft at 14.07 oz/t Ag
262.5 263.6 1.1 25.70 0.58
319.5 321.5 2.0 14.40 0.25
506.5 508.2 1.7 88.00 2.5
DH52-382 84.0 85.0 1.0 35.80 0.71 4th Vein
85.0 86.0 1.0 1.22 0.02 2.0ft at 18.51 oz/t Ag
196.0 197.0 1.0 45.40 0.69
197.0 198.0 1.0 1.47 0.02 2.0ftat 23.45 oz/t Ag
211.0 212.0 1.0 1.85 0.02
212.0 214.0 2.0 99.00 1.20 5th Vein
214.0 215.0 1.0 2.33 0.03 4.0ft at 50.5 oz/t Ag
DH52-382Z 13.6 14.4 0.8 10.20 0.20 0.10 350 Vein Delineation
103.0 104.0 1.0 7.49 0.08 6.06
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. Please refer to
www.us-silver.com for additional drilling results on the Silver Vein and 350-370 Vein.
Coeur Mine
Resource definition drilling resumed late in the third quarter in the Coeur Mine from the 3100 Level. To date, approximately 3,000 feet of drilling has been completed. These results will be included in the next exploration release. The program is targeting to expand the existing 3.3 million ounces of silver resource to a target of 6 million ounces by the end of 20131.
Drumlummon Mine
Frankie Vein
The Frankie Vein System was discovered during a surface drilling program in the spring of 2012. In September, an incline was driven from the Drumlummon decline into the Frankie Vein establishing an underground drilling station to explore the veins discovered through surface drilling. This incline exposed the Frankie Veins in the face of the drift. Analysis of face samples in Drill Station 22 averaged 0.816 ounces per ton (28 grams per tonne) gold and 75.23 ounces per ton (2,579 grams per tonne) silver. It should be noted that samples were collected along the strike of the vein not perpendicular to the vein. Therefore they do not represent the true width which varies between 1.4 and 8 feet across the exposure. See Figure 2 - Frankie Section.
The vein at this position is a quartz-calcite-adularia crustiform vein including amethyst and colloform banding with sulfides. Sulfides are locally abundant. See Table 3 below for recent Frankie Vein Intersection Drilling Highlights. The Frankie Vein system is expected transition to production in early 2013.
__________________________________________________________________________________________________________________________________________
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.
Table 3
Frankie Vein - Intersection Drilling Highlights
Drill Hole From To Width (ft) Au (oz/t) Ag (oz/t) Level
DDH12-619 338 350 12 0.322 56.19 600
324 338 14 0.280 2.41
324 350 26 0.299 27.23
DDH-12-614 116 126 10 0.116 4.73 600
DDH-12-617 27 28 1 0.286 15.64 600
73 75 2 0.322 2.09
96 98 2 0.164 3.93
108 110 2 0.262 11.91
120 121 1 0.676 19.30
129 133 4 0.421 15.90
159 163 4 0.357 0.39
DDH-12-632 180 182 2 0.156 0.25 720
DDH-12-633 32 34 2 0.302 0.40 600
DDH-12-633 214 216 2 0.330 0.81 600
DDH-12-633 306 309 1 0.668 12.05 590
DDH-12-633 307 309 2 0.144 0.20
306 309 3 0.317 4.15
DDH-12-633 408 410 2 0.108 1.99 580
DDH-12-634 193 194 1 0.676 2.28 670
DDH-12-634 195 197 2 1.790 2.03
193 197 4 1.064 1.59
DDH-12-634 332 334 2 0.212 0.59 720
DDH-12-640 194 196 2 0.174 0.37 510
DDH-12-641 235 237 2 0.022 1.06 540
DDH-12-644 107 109 2 0.094 3.27 580
DDH-12-645 91 93 2 0.116 1.34 580
DDH-12-647 192 194 2 0.392 25.05 580
DDH-12-649 44 54 10 0.523 41.8 570
DDH-12-649 112 122 10 0.198 0.14 660
DDH-12-651 19 49 30 0.252 4.42 550
DDH-12-662 197 199 2 0.296 0.45 750
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. Please refer to www.us-silver.com for
additional drilling results on the Frankie Vein.
Deep Drumlummon
Drilling on the 400 Level in the old workings continues to identify potential mineralization in the deeper parts of the Drumlummon Mine. The existing mineralized zones, previously mined in the Jubilee #2 South and Sampson areas, have been extended below the 700 Level. In the area between the # 1 and # 2 shafts, new mineralized material has been intersected below the 600 level (See Figure 3 - Drumlummon Long Section).
Two narrow potential high grade veins, which are apparent splays off the Charlie and Drumlummon Veins, have also been intersected and are being explored. These are the New Year Vein (splay off the Charlie Vein) and the St. Louis Vein (splay off the Drumlummon). Historically, the St Louis Vein was mined further to the south of the existing workings. The New Year and St. Louis Veins, and the Pixley area are sufficiently near existing infrastructure to allow for immediate mining. However accessing the South Drumlummon area will require additional development. Parts of the South Drumlumon area could be available for mining in 2013. See Table 4 below for recent drilling highlights from the Drumlummon Mine.
Table 4
Recent Drilling Highlights - Drumlummon Mine
Target Hole # From To Width (ft) Au (oz/t) Ag (oz/t)
New Year DDH-12-592 87 91 4 0.258 0.230
DDH-12-599 181 183 2 0.786 3.354
DDH-12-599 208 210 2 0.608 0.432
DDH-12-601 264 270 6 0.504 2.340
South Drumlummon DDH-12-608 294 302 8 0.39 1.160
DDH-12-608 308 314 6 0.59 1.190
CP-12-061 79 83 4 0.803 0.56
CP-12-070 66 70 4 0.332 0.16
St Louis CP-12-072 81 85 4 0.484 0.36
CP-12-072 129 135 6 0.206 0.27
CP-12-077 52 60 8 0.635 0.74
Pixley CP-12-077 62 68 6 0.263 0.23
CP-12-084 81 87 6 0.293 0.66
CP-12-084 107 111 4 1.140 3.92
CP-12-086 39 41 2 1.090 11.96
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. Please refer to www.us-silver.com for additional drilling results on the
Drumlummon Mine.
North Star Vein
Previous drilling in the Northstar Vein (See December 11, 2011 RX Gold & Silver press release) indicated there are potential mineralized shoots in this system. See Figure 4 - North Star Vein Long Section. An underground drilling program is in progress which will seek to define and expand the known mineralization. Three drill holes have been completed and while all show intersected quartz veins and breccia with varying sulphide content, assays have not yet been completed.
Belmont Mine
The Belmont property, located approximately one mile west of the Drumlummon mine, was purchased in 2012. The property was mined from the late 1800s through the early 1900s and is reported to have produced 500,000 tons at an average grade close to one ounce per ton (34 grams per tonne) from two main veins: the Belmont and Bald Mountain.
More recently, it was explored by AMEX and Gulf Titanium ("the previous owners") from 1982 to 1991 and non-NI 43-101 compliant mine reserves of 77,000 tons of 0.59 ounce per ton (20 grams per tonne) silver were reported, along with additional resources of 170,000 tons of similar grade (See Figure 5 - Belmont Long Section). They conducted mining operations using a decline developed to the 750 Level and there is a reported 7,000 tons of broken material remaining within the mine.
The previous owners discovered two new mineralized shoots below the stopes of the Bald Mountain Vein and "blind" splays or parallel veins in the hanging wall of the known structure. Calculations using historical drill-hole results from Gulf Titanium, indicate additional potential for over 50,000 (non-43-101 compliant) tons at an average grade of 0.56 ounces per ton (19 grams per tonne) silver.
Please note that a qualified person has not done sufficient work to classify this historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Geological mapping, data compilation and sampling during the past field season confirmed the presence of a minimum of eight veins on the property. A surface drilling program is planned for the fourth quarter of 2012 to test the more significant veins by "twinning" some of the existing drill holes from locations on the surface to confirm the presence of the known mineralization and test for other veins indicated by previous drilling in the hanging wall of the structure. A second phase of drilling will attempt to expand the known mineralized zones and will be completed in 2013.
QA/QC
US 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 internal laboratory maintain programs of QA/QC as well.
Corporate Update
Vice President, Technical Services
Daren Dell has joined U.S. Silver & Gold in the newly-created position of Vice President, Technical Services. Mr. Dell brings over 20 years of experience to this role gained at Barrick Gold and precursor companies. While at Barrick he was Director, Corporate Development and prior to that, Director, Technical Evaluations. Before joining Barrick, Mr. Dell was at Placer Dome for over 15 years where he held various positions of increasing responsibility.
"I am extremely pleased to have Daren join our team," said U.S. Silver & Gold President and CEO Darren Blasutti. "The extensive knowledge that Daren has gained from evaluating mining assets around the globe will be of significant benefit to our operational and strategic plans moving forward. He not only brings solid technical skills to this role, he is also very strong at building and nurturing the kinds of relationships that will help successfully complete organic growth projects and acquisitions. With growth as our focus, he will be a tremendous asset."
Mr. Dell will work with the CEO on external opportunities and with the Chief Operating Officer at the Drumlummon and Galena Mines assisting with operations and organic projects while also providing support as the Company expands mine operations.
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
http://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" ----
future events or other such factors which affect this
information, except as required by law.
SOURCE
U.S. Silver & Gold Inc.
Image with caption: "Figure 1 - Galena Lead Zone (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: "Figure 2 - Frankie Section (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: "Figure 3 - Drumlummon Vein Long Section (Looking Northwest) (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: " Figure 4 - North Star Vein Long Section (Looking North) (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: "Figure 5 - Belmont Long Section (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
http://tmx.quotemedia.com/article.php?newsid=54947428&qm_symbol=USA
US Silver and Gold, Inc. @ The Silver Summit 10th Anniversary : Spokane
Friday October 26, 2012
1:30 SPEAKING HALL by US Silver and Gold, Inc.
CORPORATE PRESENTATION
http://cambridgehouse.com/event/silver-summit-10th-anniversary
Upcoming Conferences
The Silver Summit 10th Anniversary
Thu Oct 25, 2012
Vancouver Resource Investment Conference 2013
Sun Jan 20, 2013
USGIF Chart TA Alert AgBull Golden Cross -
USGIF Target#1 Bull ride back to fiat$6.50
Substantial Resources
TORONTO, Oct. 11, 2012 /PRNewswire/ -
U.S. Silver & Gold Inc.
("U.S. Silver & Gold" or the "Company") (TSX:USA; OTCQX:USGIF) is
pleased to provide a comprehensive update on its year-to-date
exploration results and exploration plans for the remainder of
2012 and beyond, as well as an update on other corporate
developments.
The Company's assets are comprised of two 100% owned operating
mines - the high grade gold and silver Drumlummon Mine in Montana
and the high grade silver Galena Mine Complex in Idaho.
Galena Mine Complex
The Lead Zone
Drilling by previous owners identified a large area of lead /
silver mineralization in the Galena Mine Complex.
Recently, the exploration staff at the mine compiled past results and
incorporated recent underground drilling to define a significant
potential resource in what is known as
the Lead Zone ("LZ" previously referred to as the "Caladay Lead Zone").
The LZ is a semi-continuous mineralized zone that extends from the
2400 level to the 5200 level and potentially into
the Caladay Mine at depth.
The zone covers approximately 2,800 vertical feet.
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.
The LZ occurs as a large lead-silver (Ag-Pb) zone of disseminated and
stringer-controlled mineralization containing higher grade linear
zones.
Figure 1 located -
Galena Lead Zone shows the drill indicated extent.
Only a small portion of the LZ has been drilled extensively.
In 2012, a drilling program allowed the development of a resource
on the 4000 and 4900 Levels of
approximately 600,000 to 700,000 tons where test mining
will be carried out in the fourth quarter of 2012.
This drilling indicates potential global grades of
3 to 4 ounces per ton (103 to 137 grams per tonne) silver and
3 to 5 percent lead.
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.
Between these zones are lower grade areas, 60 to 80 feet wide with
grades of approximately 1 to 3 ounces per ton (34 to 103 grams
per tonne) silver and 1 to 4 percent lead.
Drilling to date by others (principally ASARCO Incorporated) and recently by
U.S. Silver & Gold has led to a global tonnage target for the LZ
of between 60 to 70 million tons and a potential global resource
of between 150 to 200 million ounces of silver.
"The Galena Mine Complex has been in production for almost
60 years, and ore continues to be found year after year.
Exploration has consistently exceeded annual production and we
expect this will be the case in 2012 with resources growing once
again extending the life of the Complex," stated
Darren Blasutti, President and CEO of U.S. Silver & Gold.
"Recent drilling results in the Lead Zone are particularly
noteworthy.
Based on what we've seen, this area has the potential to redefine
the Galena Complex as we become more comfortable in our ability
to use lower cost bulk mining methods in exploiting this deposit."
The results of some significant intersections in the LZ are
presented in Table 1 below. These intersections indicate two
zones approximately 25 feet apart
averaging 13.4 feet of 8.63 ounces per ton (296 grams per tonne)
silver and 3.38 percent lead, and
77.3 feet of 6.76 ounces per ton (232 grams per tonne) silver and
10.92 percent lead.
There are zones of higher grade silver within the broader
mineralized zones.
Table 1
Lead Zone - Representative Drill Intersections
From To Width (ft) Ag (oz/t) Cu (%) Pb (%)
218.60 220.00 1.40 27.50 1.10 10.74
220.00 223.00 3.00 2.07 .03 1.77
223.00 226.50 3.50 7.63 .16 2.99
226.50 229.80 3.30 3.51 .07 1.04
229.80 232.00 2.20 1.62 .05 .37
257.10 261.70 4.60 6.30 .25 2.57
261.70 265.50 3.80 2.21 .01 2.92
265.50 269.00 3.50 2.28 .01 2.88
269.00 273.00 4.00 2.95 .01 3.92
273.00 275.80 2.80 5.08 .01 8.93
275.80 278.50 2.70 18.40 .01 34.48
278.50 280.00 1.50 6.67 .01 12.77
280.00 282.80 2.80 24.50 .04 42.92
282.80 285.00 2.20 1.39 .01 2.60
285.00 289.00 4.00 1.59 .01 2.20
289.00 293.00 4.00 3.03 .04 4.02
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.
Please refer to www.us-silver.com for additional drilling results on
the Lead Zone.
The drill program for 2013 will focus on the area between the 4600 and
5200 levels, which has the potential to add between 10 million and
15 million ounces of silver to the mine's resources next year.
Silver Vein and 350-370 Vein
The majority of expected silver production from
the Galena Mine Complex is currently being sourced from
the Silver Vein.
Drilling during 2012 has extended several of the known higher
grade veins including the prolific Silver Vein.
The Silver Vein and the 350-370 Vein have yielded high grade
intersections suggesting veins extend at depth and in areas close
to existing workings available to develop additional resources in
the near term.
Two newly identified veins are thought to be splays off one of
the existing veins and could be exploitable in the near future.
Examples of recent drill intersections can be found in Table 2 below.
Table 2
Silver Vein and 350-370 Vein
Hole # From To Width (ft) Ag (oz/t) Cu (%) Pb (%) Description
DH52-379 81.4 84.4 3.0 2.18 0.05
84.4 86.0 1.6 25.20 0.41 4.6ft at 9.52 oz/t Ag
209.0 210.3 1.3 112.60 1.93 0.26 4th Vein
210.3 213.0 2.7 3.39 0.07 4.0ft at 38.9 oz/t Ag
225.8 226.8 1.0 35.80 0.58
226.8 230.5 3.7 1.29 0.02 4.7ft at 8.63 oz/t Ag
233.9 236.4 2.5 25.00 0.36 0.11
DH52-380 170.9 172.0 1.1 104.40 1.87 0.13 4th Vein
172.0 174.0 2.0 0.61 0.01 0.10 3.1ft at 37.4 oz/t Ag
199.7 201.9 2.2 0.92 0.01 0.10
201.9 203.0 1.1 42.40 0.55 0.59
203.0 206.3 3.3 7.66 0.08 0.23 6.6ft at 11.43 oz/t Ag
DH52-381 0.0 3.5 3.5 9.96 0.21
3.5 8.0 4.5 10.70 0.18
8.0 12.5 4.5 7.58 0.15 12.5ft at 9.36 oz/t Ag
70.0 73.1 3.1 1.62 0.02
73.1 74.2 1.1 283.20 4.23 New Veins
74.2 77.2 3.0 1.52 0.02 7.2ft at 44.59 oz/t Ag
135.8 136.4 0.6 117.40 1.93 0.6ft at 117.4 oz/t Ag
158.5 162.3 3.8 8.50 0.14 3rd Vein
162.3 165.6 3.3 15.80 0.24
165.6 169.0 3.4 21.40 0.35
169.0 172.2 3.2 12.90 0.25 13.7ft at 14.07 oz/t Ag
262.5 263.6 1.1 25.70 0.58
319.5 321.5 2.0 14.40 0.25
506.5 508.2 1.7 88.00 2.5
DH52-382 84.0 85.0 1.0 35.80 0.71 4th Vein
85.0 86.0 1.0 1.22 0.02 2.0ft at 18.51 oz/t Ag
196.0 197.0 1.0 45.40 0.69
197.0 198.0 1.0 1.47 0.02 2.0ftat 23.45 oz/t Ag
211.0 212.0 1.0 1.85 0.02
212.0 214.0 2.0 99.00 1.20 5th Vein
214.0 215.0 1.0 2.33 0.03 4.0ft at 50.5 oz/t Ag
DH52-382Z 13.6 14.4 0.8 10.20 0.20 0.10 350 Vein Delineation
103.0 104.0 1.0 7.49 0.08 6.06
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. Please refer to
www.us-silver.com for additional drilling results on the Silver Vein and 350-370 Vein.
Coeur Mine
Resource definition drilling resumed late in the third quarter in the Coeur Mine from the 3100 Level. To date, approximately 3,000 feet of drilling has been completed. These results will be included in the next exploration release. The program is targeting to expand the existing 3.3 million ounces of silver resource to a target of 6 million ounces by the end of 20131.
Drumlummon Mine
Frankie Vein
The Frankie Vein System was discovered during a surface drilling program in the spring of 2012. In September, an incline was driven from the Drumlummon decline into the Frankie Vein establishing an underground drilling station to explore the veins discovered through surface drilling. This incline exposed the Frankie Veins in the face of the drift. Analysis of face samples in Drill Station 22 averaged 0.816 ounces per ton (28 grams per tonne) gold and 75.23 ounces per ton (2,579 grams per tonne) silver. It should be noted that samples were collected along the strike of the vein not perpendicular to the vein. Therefore they do not represent the true width which varies between 1.4 and 8 feet across the exposure. See Figure 2 - Frankie Section.
The vein at this position is a quartz-calcite-adularia crustiform vein including amethyst and colloform banding with sulfides. Sulfides are locally abundant. See Table 3 below for recent Frankie Vein Intersection Drilling Highlights. The Frankie Vein system is expected transition to production in early 2013.
__________________________________________________________________________________________________________________________________________
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.
Table 3
Frankie Vein - Intersection Drilling Highlights
Drill Hole From To Width (ft) Au (oz/t) Ag (oz/t) Level
DDH12-619 338 350 12 0.322 56.19 600
324 338 14 0.280 2.41
324 350 26 0.299 27.23
DDH-12-614 116 126 10 0.116 4.73 600
DDH-12-617 27 28 1 0.286 15.64 600
73 75 2 0.322 2.09
96 98 2 0.164 3.93
108 110 2 0.262 11.91
120 121 1 0.676 19.30
129 133 4 0.421 15.90
159 163 4 0.357 0.39
DDH-12-632 180 182 2 0.156 0.25 720
DDH-12-633 32 34 2 0.302 0.40 600
DDH-12-633 214 216 2 0.330 0.81 600
DDH-12-633 306 309 1 0.668 12.05 590
DDH-12-633 307 309 2 0.144 0.20
306 309 3 0.317 4.15
DDH-12-633 408 410 2 0.108 1.99 580
DDH-12-634 193 194 1 0.676 2.28 670
DDH-12-634 195 197 2 1.790 2.03
193 197 4 1.064 1.59
DDH-12-634 332 334 2 0.212 0.59 720
DDH-12-640 194 196 2 0.174 0.37 510
DDH-12-641 235 237 2 0.022 1.06 540
DDH-12-644 107 109 2 0.094 3.27 580
DDH-12-645 91 93 2 0.116 1.34 580
DDH-12-647 192 194 2 0.392 25.05 580
DDH-12-649 44 54 10 0.523 41.8 570
DDH-12-649 112 122 10 0.198 0.14 660
DDH-12-651 19 49 30 0.252 4.42 550
DDH-12-662 197 199 2 0.296 0.45 750
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. Please refer to www.us-silver.com for
additional drilling results on the Frankie Vein.
Deep Drumlummon
Drilling on the 400 Level in the old workings continues to identify potential mineralization in the deeper parts of the Drumlummon Mine. The existing mineralized zones, previously mined in the Jubilee #2 South and Sampson areas, have been extended below the 700 Level. In the area between the # 1 and # 2 shafts, new mineralized material has been intersected below the 600 level (See Figure 3 - Drumlummon Long Section).
Two narrow potential high grade veins, which are apparent splays off the Charlie and Drumlummon Veins, have also been intersected and are being explored. These are the New Year Vein (splay off the Charlie Vein) and the St. Louis Vein (splay off the Drumlummon). Historically, the St Louis Vein was mined further to the south of the existing workings. The New Year and St. Louis Veins, and the Pixley area are sufficiently near existing infrastructure to allow for immediate mining. However accessing the South Drumlummon area will require additional development. Parts of the South Drumlumon area could be available for mining in 2013. See Table 4 below for recent drilling highlights from the Drumlummon Mine.
Table 4
Recent Drilling Highlights - Drumlummon Mine
Target Hole # From To Width (ft) Au (oz/t) Ag (oz/t)
New Year DDH-12-592 87 91 4 0.258 0.230
DDH-12-599 181 183 2 0.786 3.354
DDH-12-599 208 210 2 0.608 0.432
DDH-12-601 264 270 6 0.504 2.340
South Drumlummon DDH-12-608 294 302 8 0.39 1.160
DDH-12-608 308 314 6 0.59 1.190
CP-12-061 79 83 4 0.803 0.56
CP-12-070 66 70 4 0.332 0.16
St Louis CP-12-072 81 85 4 0.484 0.36
CP-12-072 129 135 6 0.206 0.27
CP-12-077 52 60 8 0.635 0.74
Pixley CP-12-077 62 68 6 0.263 0.23
CP-12-084 81 87 6 0.293 0.66
CP-12-084 107 111 4 1.140 3.92
CP-12-086 39 41 2 1.090 11.96
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. Please refer to www.us-silver.com for additional drilling results on the
Drumlummon Mine.
North Star Vein
Previous drilling in the Northstar Vein (See December 11, 2011 RX Gold & Silver press release) indicated there are potential mineralized shoots in this system. See Figure 4 - North Star Vein Long Section. An underground drilling program is in progress which will seek to define and expand the known mineralization. Three drill holes have been completed and while all show intersected quartz veins and breccia with varying sulphide content, assays have not yet been completed.
Belmont Mine
The Belmont property, located approximately one mile west of the Drumlummon mine, was purchased in 2012. The property was mined from the late 1800s through the early 1900s and is reported to have produced 500,000 tons at an average grade close to one ounce per ton (34 grams per tonne) from two main veins: the Belmont and Bald Mountain.
More recently, it was explored by AMEX and Gulf Titanium ("the previous owners") from 1982 to 1991 and non-NI 43-101 compliant mine reserves of 77,000 tons of 0.59 ounce per ton (20 grams per tonne) silver were reported, along with additional resources of 170,000 tons of similar grade (See Figure 5 - Belmont Long Section). They conducted mining operations using a decline developed to the 750 Level and there is a reported 7,000 tons of broken material remaining within the mine.
The previous owners discovered two new mineralized shoots below the stopes of the Bald Mountain Vein and "blind" splays or parallel veins in the hanging wall of the known structure. Calculations using historical drill-hole results from Gulf Titanium, indicate additional potential for over 50,000 (non-43-101 compliant) tons at an average grade of 0.56 ounces per ton (19 grams per tonne) silver.
Please note that a qualified person has not done sufficient work to classify this historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
Geological mapping, data compilation and sampling during the past field season confirmed the presence of a minimum of eight veins on the property. A surface drilling program is planned for the fourth quarter of 2012 to test the more significant veins by "twinning" some of the existing drill holes from locations on the surface to confirm the presence of the known mineralization and test for other veins indicated by previous drilling in the hanging wall of the structure. A second phase of drilling will attempt to expand the known mineralized zones and will be completed in 2013.
QA/QC
US 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 internal laboratory maintain programs of QA/QC as well.
Corporate Update
Vice President, Technical Services
Daren Dell has joined U.S. Silver & Gold in the newly-created position of Vice President, Technical Services. Mr. Dell brings over 20 years of experience to this role gained at Barrick Gold and precursor companies. While at Barrick he was Director, Corporate Development and prior to that, Director, Technical Evaluations. Before joining Barrick, Mr. Dell was at Placer Dome for over 15 years where he held various positions of increasing responsibility.
"I am extremely pleased to have Daren join our team," said U.S. Silver & Gold President and CEO Darren Blasutti. "The extensive knowledge that Daren has gained from evaluating mining assets around the globe will be of significant benefit to our operational and strategic plans moving forward. He not only brings solid technical skills to this role, he is also very strong at building and nurturing the kinds of relationships that will help successfully complete organic growth projects and acquisitions. With growth as our focus, he will be a tremendous asset."
Mr. Dell will work with the CEO on external opportunities and with the Chief Operating Officer at the Drumlummon and Galena Mines assisting with operations and organic projects while also providing support as the Company expands mine operations.
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
http://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" ----
future events or other such factors which affect this
information, except as required by law.
SOURCE
U.S. Silver & Gold Inc.
Image with caption: "Figure 1 - Galena Lead Zone (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: "Figure 2 - Frankie Section (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: "Figure 3 - Drumlummon Vein Long Section (Looking Northwest) (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: " Figure 4 - North Star Vein Long Section (Looking North) (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
Image with caption: "Figure 5 - Belmont Long Section (CNW Group/U.S. Silver & Gold Inc.)". Image available at:
http://tmx.quotemedia.com/article.php?newsid=54947428&qm_symbol=USA
US Silver and Gold, Inc. @ The Silver Summit 10th Anniversary : Spokane
Friday October 26, 2012
1:30 SPEAKING HALL by US Silver and Gold, Inc.
CORPORATE PRESENTATION
http://cambridgehouse.com/event/silver-summit-10th-anniversary
Upcoming Conferences
The Silver Summit 10th Anniversary
Thu Oct 25, 2012
Vancouver Resource Investment Conference 2013
Sun Jan 20, 2013
USGIF Chart TA Alert AgBull Golden Cross -
USGIF Target#1 Bull ride back to fiat$6.50
My opinions are my own and and DD I post should be confirmed as unbiased
Recent USA News
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM
