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U.S. Silver Focused On Growing its Silver Assets

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NYBob Member Level  Tuesday, 03/27/12 02:06:42 AM
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U.S. Silver Focused On Growing its Silver Assets
in 2012 with Goal of Opening A Second Mine
Aggressive Exploration Planned to Develop New Areas for Mining

Company Financially Strong with More than $27 Million Cash on Hand



As the second largest primary silver producer in
the United States with annual silver production of
2.4 million ounces from its flagship
Galena Mine, U.S. Silver Corporation’s

http://www.us-silver.com --

huge land package of 14,000 acres of under-explored property
provides the company with tremendous future potential reserve
growth in the country’s most prolific silver district –
Idaho’s Silver Valley where more than 1.2 billion ounces of
silver have been produced historically.

This is a company with a strong balance sheet, a stable
operating cash flow, and an increasingly aggressive
exploration program.
Quite simply, U.S. Silver is poised to equal or perform better
than that record in 2012, and could well post annual revenues
of about $100 million.

U.S. Silver Moves to Apply for NYSE Amex Listing, Consolidates
Common Share Structure and Will Buy Back Common Shares

U.S. Silver recently was cleared to apply for a listing on
the NYSE Amex.

The company must also satisfy additional conditions and
confirmations prior to being authorized to list on the U.S.
exchange, including share distribution and satisfaction of
minimum trading price requirements, corporate governance
compliance and filing of a Form 40-F registering the common

U.S. Silver outstanding common shares were recently
consolidated on the basis of five (5) pre-consolidation common
shares for each one (1) post-consolidation common share.

The consolidation was approved by U.S. Silver shareholders in
June 2011 and took place on January 31, 2012.
As a result, the approximately 309 million pre-consolidation
issued and outstanding common shares were reduced to
approximately 62 million post-consolidation common shares.

Over the next year, U.S. Silver plans to buy back up to about
3 million or 5% of those shares.
Under a recently announced Normal Course Issuer Bid, the share
purchase program will terminate no later than Feb. 20, 2013.
Repurchases will be made by the company on the open market
through the facilities of the TSX in accordance with TSX
requirements, and at the market price at the time of

Daily repurchases will be limited to 22,377 common shares,
other than block purchase exceptions, based on an average daily
trading volume of 89,509 common shares since October 3, 2011,
the date of U.S. Silver’s listing on TSX.

U.S. Silver’s action is based on the belief that the company’s
common shares have not been trading at prices that fully
reflect it’s underlying value, offering an inviting
investment opportunity.

“With a cash balance in excess of our planned needs and an
expected continued strong silver market, we feel that this is
a very prudent investment for the benefit of shareholders at
this time,” says Gordon Pridham, Executive Chairman and
Interim CEO of U.S. Silver.

“We intend to begin repurchasing stock subject to the terms of
this Normal Course Issuer Bid at our earliest opportunity.”

Management Team Strengthened
with Board of Directors Appointment

Tom Ryley, who has a career that spans over 35 years in the
natural resources sector, joined the U.S. Silver Board of
Directors in February 2012.
He leads an advisory firm specializing in business planning and
strategy, new business development and investment analysis.
He spent 25 years with Suncor Energy Inc. in variety of
increasingly senior roles and was executive vice president of
refining and marketing during the last nine years of his career
with the company.
He sits on the boards of several public, private and charitable
“We are pleased to add Tom to the Board and look forward to
benefitting from his 35 years of wide ranging experience in
operations management, strategic corporate development and
public company board directorships,” says Pridham.
“His senior corporate blue chip experience and knowledge will
be invaluable to U.S. Silver as it manages its growth
Ryley joins a diversified management team with over 100 years
of mining and business experience.
Pridham has a strong background in investment banking, capital
markets, and corporate banking. COO Steve Long has extensive
experience in mine engineering and management.
CFO Chris J. Hopkins is skilled in financial management,
strategic planning, mergers and acquisitions, corporate finance
and management reporting within the mining sector.

U.S. Silver’s Strong
Financials Support Expansion Plans

“Operational consistency and favorable commodity prices continue
to provide U.S. Silver with improved financial strength and the
ability to pursue our ongoing goal of production growth,”
says Pridham.

The company has a solid revenue stream, substantial receivables
in the form of concentrates on the way to the smelters, no
long-term debt and no royalties.
As a result, U.S. Silver can comfortably self-fund expanding
its silver resource at the Galena and development of its
Coeur and Caladay Mines.

U.S. Silver recently reported $28.3 million in Q3 revenues,
compared to $12.0 million for the same period in 2010.

The company will report its 2011 end-of-year performance
results in March.

U.S. Silver reported net income of $5.2 million in the quarter,
compared to $0.5 million for the same period in 2010.

Cash flow from operating activities totaled $5.4 million in
the quarter, compared to $1.8 million for the same period
in 2010, while cash on hand totaled $27.5 million.

Expanded Exploration Drilling Planned to Increase Resource Base

U.S. Silver’s 2011 exploration program yielded such encouraging
results, the company is significantly expanding both surface
and underground drilling in 2012 to provide even greater
potential for reserve expansion.

From August through December 2011, U.S. Silver drilled 21,433
feet underground at both its flagship
Galena Silver Mine and at its advanced-stage, former producing
Coeur Mine.

Rehabilitation of 140 miles of existing tunnels, many nearly
40 years old, continues.

In 2011 the company spent over $3.3 million on level repairs.

Underground exploration drilling at Galena confirmed additional
resources that will be developed for mining in 2012 and beyond.

Investment Considerations

U.S. Silver’s Galena, Coeur, Caladay and Dayrock silver-lead-
copper mines are part of a 14,000 acre land package in an area
recognized as one of the world’s most prolific silver belts.

The company is a solid silver producer with more than 300
people on its payroll who help to produce 800-1000 tons of ore
per day, five days a week.

A significant 2011 milestone for U.S. Silver was its promotion
to the Toronto Stock Exchange (TSX), the senior Canadian
exchange for mining companies, giving the company greater
accessibility to investors, as well as greater liquidity,
increased market recognition and access to capital.

Listing on the TSX is representative of the significant growth
and strength the company has delivered to its investors.

The TSX is a premier stock exchange for mining companies and
a main board listing will increase our visibility with
investors throughout the world.

Now, U.S. Silver is making a similar move in the U.S. with its
application for listing on the NYSE AMEX to give the company
increased access to and credibility with U.S. investors.

U.S. Silver’s core business plan remains unchanged –
to focus on expanding silver and copper production from
existing operations as well as exploring and developing
its extensive Silver Valley holdings.

The success of that plan is evident – each year
U.S. Silver has more than replaced its mined resources.

“We are confident we will continue to provide additional
reserves for years to come as we explore more aggressively
to prove those reserves on our large land position in the
prolific Silver Valley,” says Pridham.

To date, U.S. Silver has mined 120 different veins at its
flagship Galena Silver Mine, which has been in operation
for almost 60 years.

Incredibly, exploration shows no evidence that the quality
of mineralization is diminishing.

U.S. Silver’s Board of Directors has authorized re-starting
mining operations at its
Coeur Mine, a milestone that will enable the company to
maintain and expand its current production levels
for years to come.

The former producing -
Coeur Mine contains an estimated 5.9 million ounces of silver

The mine has been idle for about 15 years and has aging tunnels
and vertical passageways that must be rehabilitated to provide
miners with at least two safe exit points from all operational

Currently, there is only the main shaft and a tunnel at one
level connecting to the adjacent Galena mine.

No additional permitting or acquisition costs will be required
to reopen the mine.

Once in operation, the U.S. Silver will have two mills –
one at Galena and the other at Coeur –
capable of processing up to 1,400 tons of ore per day at
recovery rates of 96% for silver-copper and
92% for silver-lead ores.

U.S. Silver forecasts 2012 production levels at about
2.4 million ounces of silver, with by-product production of
lead at about 6.5 million pounds and
copper at about 1.2 million pounds.

“2012 will be a year of continued, enhanced exploration at the
Galena Mine,” says Pridham.

“Our focus is to create more places to mine.
By spending money on infrastructure and development at the
Galena, we are ensuring the mine will provide a stable
platform of growth for U.S. Silver Corporation.”

Heather Bailey-Foster, Manager I.R.

P.O. Box 440, Wallace, ID 83873

Phone: 208-556-1535 Ext. 2

Fax: 208-556-1587

Corporate Office:
Christopher Hopkins, CFO
401 Bay Street, Ste 2702
Toronto, ON M5H 2V4

Phone: 416-907-5501
Fax: 647-722-9652

E-Mail: info@us-silver.com
Web Site: http://www.us-silver.com

Shares Outstanding: 61.8 million
52 Week Trading Range:
(as of Feb. 20, 2012)
Canada: Hi: C$4.15 • Low: C$1.95

Given the current environment, we see much greater risk holding
cash in a bank than we do in holding precious metals.”
Furthermore, holding silver instead of cash as a form of
savings allows silver miners to convert their silver into cash
at an opportune time.

When asked about silver specifically, Embry responded,
“Nothing has changed. The supply/demand is powerful....


$Silver Chart TA alert MACD & slow STO @ the buy zone





God Bless

My opinions are my own and and DD I post should be confirmed as unbiased
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