VANCOUVER, British Columbia--(BUSINESS WIRE)--United Silver Corp. (“United Silver Corp”, the “Company” or “USC”: TSX; USC: OTC; USCZF: Frankfurt: UM8) announced today the filing on SEDAR of an updated National Instrument 43-101 (“NI 43-101”) compliant resource estimate and a positive Preliminary Economic Assessment (“PEA”). This Technical Report is independently prepared by SRK Consulting (U.S.) Inc. (“SRK”) of Reno, Nevada, USA. The full report will also be accessible on USC’s website.
|PEA Mineralized Tons Processed (Diluted)||601,000 Tons|
|Silver Recovered||6,108,000 Ounces|
|Mine Life||6 Years|
|IRR @ $20 US Silver||32% Post Tax|
|Net Present Value @ 8% Discount Rate||$8,575,000|
|Preproduction Development Cost||$12,121,000|
|Total Capital Cost||$13,993,000|
|Production Rate||400 Tons Per Day|
|Mining Costs||$55.09 Per Ton|
|Processing Cost (Including Haulage, Mine to Mill||$26.76 Per Ton|
|General and Administrative||$18.08 Per Ton|
|Total Operating Cash Costs||$99.93 Per Ton|
|Smelting and Refining Costs||$44.58 Per Ton|
|Site Operation Cash Costs||$144.51 Per Ton|
The IRR is higher (32% vs. 31%) than reported in the July 29, 2013 press release based on a correction in how the royalty was calculated. The Net Present Value was corrected to $8,575,000 from $8,834,000 in the July 29, 2013 press release due to a logic error in the previous spreadsheet.
“We are very pleased with the results of the PEA and updated resource estimate,” said Greg Stewart, CEO of United Silver Corp. “The results confirm our belief that the Crescent Mine will become an efficient and productive mining operation, and consistent with mining experience in Silver Valley, we expect the Crescent Mine to continue to increase and develop resources to extend its active mining life well beyond the PEA’s six year mine life.”
The Project is very sensitive to the price of silver. The following table illustrates how quickly the project IRR and NPV’s change with a change in the price of silver. The base case for the analysis is $20.00/oz.
Silver Price Sensitivity
|Ag Price Per Ounce In US $|
|NPV @ 8% (X000)||($633)||$8,575||$17,188||$23,324||$29,341||$35,279|
SRK recommends that USC undertake to complete the following recommended work to improve geologic understanding and confidence in the project.
- Implement an underground 20 hole diamond drill program to confirm the presence of width and grade of inferred resources in areas of widely spaced drilling.
- Undertake metallurgical test work to improve recoveries in oxidized mineralization.
- Construct and implement an underground grade control laboratory utilizing an XRF analyzer to assist in timely marking of faces to reduce and eliminate blasting delays.
- Undertake test mining to confirm that the conceptualized mining methods are both productive and improve grade control practices, improving economics.
- Conduct hydrogeochemical characterization of post-closure mine drainage water quality.
The cost estimate for these recommended work items is approximately $1.8M.
The technical aspects of this press release have been reviewed and approved by Michael P. Gross M.S., P.Geol., Chief Operating Officer of United Silver Corp., and Kent Hartley P.E., SRK Consulting, both of whom are the “Qualified Persons” for this project as defined by NI 43-101 regulations.
ABOUT UNITED SILVER CORP.
USC is a vertically integrated Canadian mining company with operations in Idaho, USA. It has an 80% interest in the Crescent Silver Mine project in the Silver Valley’s prolific Silver Belt - directly between two of the district’s historically largest silver producing properties, the Sunshine and Bunker Hill mines. USC also offers a full suite of mining services including contract mining and providing a complete fabrication shop and service for building and repairing mining equipment to silver miners in the district. USC's common shares trade on the Toronto Stock Exchange under the symbol "USC". For more information about USC, please visit: www.unitedsilvercorp.com
ON BEHALF OF UNITED SILVER CORP.
Chairman and CEO
Tel. (855) 238-0202
FORWARD LOOKING STATEMENTS: This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this press release include that the Crescent Mine will become an efficient and productive mining operation, and that we expect the Crescent to continue to increase and develop resources to extend its active mining life well beyond the PEA’s six year mine life.
These forward-looking statements are based on the opinions and estimates of management and its consultants at the date the information is disseminated. They are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing costs for mining and processing and their impact on the cut off value established; increased capital costs; changing forecasts of mine production rates; the timing and content of upcoming work programs; geological interpretations based on drilling that may change with more detailed information; potential process methods and mineral recoveries assumption based on limited test work; the availability of labour, equipment and markets for the products produced; market pricing for the products produced; our possible inability to service our debts and pay liabilities as they become due; and despite the current expected viability of the project, conditions changing such that the minerals on our property cannot be economically mined, or that the required permits to build and operate the envisaged mine can be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.