U.S. Silver & Gold Intersects Wide Zones of Silver
Mineralization in Lead Zone at Galena Complex
TORONTO,
Nov. 28, 2012 /CNW/ - 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.
Table 1
Recent Drilling Results - Lead Zone |
Hole
# |
From |
To |
Width
(ft) |
Ag
(oz/t) |
Ag
(g/t) |
Pb
(%) |
Ag
Equivalents
(oz/t) |
Ag
Equivalents
(g/t) |
DH49-194 |
218.6 |
229.8 |
11.2 |
7.41 |
254.1 |
3.05 |
9.24 |
316.80 |
|
257.1 |
285.0 |
27.9 |
7.26 |
248.9 |
11.18 |
13.97 |
478.91 |
|
311.0 |
362.0 |
51.0 |
2.12 |
72.7 |
3.19 |
4.03 |
138.31 |
|
362.0 |
389.3 |
27.3 |
4.95 |
169.7 |
8.06 |
9.79 |
335.52 |
DH49-195 |
252.0 |
294.0 |
42.0 |
2.76 |
94.6 |
3.28 |
4.73 |
162.10 |
|
317.0 |
360.0 |
43.0 |
2.30 |
78.9 |
5.28 |
5.47 |
187.48 |
DH49-196 |
250.0 |
361.0 |
111.0 |
3.44 |
117.9 |
6.39 |
7.27 |
249.40 |
Including |
258.0 |
279.0 |
21.0 |
9.82 |
336.7 |
17.40 |
20.26 |
694.63 |
DH49-197 |
202.7 |
227.7 |
25.0 |
2.71 |
92.9 |
1.41 |
3.56 |
121.92 |
|
249.0 |
349.5 |
100.5 |
5.08 |
174.2 |
7.55 |
9.61 |
329.49 |
DH49-200 |
208.0 |
239.0 |
31.0 |
6.75 |
231.4 |
1.88 |
7.88 |
270.11 |
|
263.7 |
265.7 |
2.0 |
8.27 |
283.5 |
9.23 |
13.81 |
473.42 |
|
277.3 |
376.0 |
98.7 |
3.57 |
122.4 |
4.99 |
6.56 |
225.05 |
DH49-203 |
236.7 |
331.5 |
94.8 |
4.71 |
161.5 |
7.38 |
9.14 |
313.31 |
Including |
241.3 |
255.0 |
13.7 |
9.41 |
322.6 |
13.80 |
17.69 |
606.52 |
DH49-204 |
233.3 |
381.8 |
148.5 |
3.89 |
133.4 |
6.52 |
7.80 |
267.50 |
DH49-205 |
243.9 |
254.0 |
10.1 |
10.56 |
362.1 |
23.10 |
24.42 |
837.26 |
|
254.0 |
340.0 |
86.0 |
6.13 |
210.2 |
9.15 |
11.62 |
398.40 |
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.
Drumlummon Mine
Belmont Mine
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.
Table 2
Belmont DH #1
Azi: 319 Dip: - 40 Total Depth: 1,094.5 ft. |
Intercept (ft) |
Width
(ft) |
Au
(oz/t) |
Au
(g/t) |
Ag
(oz/t) |
Ag
(g/t) |
Comments |
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.
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