United Silver Corp. Announces Mill Construction Status and Corporate Reorganization
09 June 2011 - 11:07PM
Marketwired
United Silver Corp. (formerly United Mining Group, Inc.) ("USC" or
the "Company") (TSX: USC)(OTCQX: USCZF)(FRANKFURT: UM8) is pleased
to update progress on the New Jersey Mill Joint Venture Agreement
("NJMC Agreement") with New Jersey Mining Company ("NJMC"). The
NJMC Agreement was established to secure near-term milling capacity
for the Crescent Silver Mine project, through funding a $2.5
million expansion program at NJMC's fully permitted flotation mill
and tailings facility. The expansion program remains on budget and
on schedule for completion in the fourth quarter of 2011.
NJMC has informed the Company that detailed engineering is 60%
complete and final process design is close to completion. All long
lead time equipment has been ordered including ball mill, cone
crusher, flotation cells and pumps, with most equipment scheduled
for delivery by August or already on site. Fabrication of mineral
processing tanks is about 60% complete at Mine Fabrication &
Machine, a business unit of the Company's wholly owned subsidiary
United Mine Services, Inc. All concrete footings for buildings, as
well as concrete pads for fine ore bin and cone crusher, have been
completed. Steel building plans have been finalized, all materials
have arrived on site and erection of the building is approximately
70% complete. Under the NJMC Agreement, the Company will earn
one-third equity ownership in the mill upon completion of the
expansion, with the operator, NJMC, maintaining two-thirds
ownership. To date, the Company has committed approximately
$1,650,000, and is expected to incur the balance through December
2011. In addition to its one third ownership interest, USC will
earn an exclusive right to 7,000 tonnes per month of milling
capacity.
W. C. Rust, Consulting Metallurgist, of Mine Systems Design,
Inc., has reviewed the process parameters and written reports
describing the performance of the New Jersey Mill for processing
approximately 100 tonne samples of the Alhambra and South veins.
Samples from the South Vein test have been sent to G & T
Metallurgical Services Ltd. for confirmatory testing, to be used in
support of the ongoing NI 43-101 compliant Preliminary Economic
Assessment of the Crescent Silver Mine project currently being
undertaken by SRK Consulting (U.S.), Inc. In addition, bulk samples
of concentrate have been sent to a regional refinery who has
expressed an interest in testing the material to determine
suitability for further processing at their facility.
The Company plans to stockpile underground mineralised vein
material ahead of the mill start-up period to ensure a steady
source of mill feed. Located in the Coeur d'Alene Mining District
of northern Idaho, less than 4 miles from the Crescent Silver Mine
project, the NJMC mineral processing plant is in a convenient
location relative to the Crescent Silver Mine project. The Company
anticipates that the joint venture will allow it to achieve
significant Capex savings while maintaining its accelerated
timeline to bring the Crescent Silver Mine project back into
production in Q1, 2012.
Corporate Reorganization
The Company also announces the internal reorganization of United
Silver Corp. with the formation of a wholly owned subsidiary United
Silver (USA) Corp., an Idaho corporation focussing on the
exploration and development of the Crescent Silver Mine project.
Mr. Greg Stewart, founder of United Silver Corp. and United Mine
Services, Inc., has been appointed Chief Executive Officer of
United Mine Services, Inc., and will step down as President and
Chief Operating Officer of United Silver Corp. Mr. Stewart will
focus his professional efforts on growing the profitable and
strategic United Mine Services, Inc., a wholly owned subsidiary of
United Silver Corp., which will continue to operate three contract
mine services divisions in northern Idaho. Mr. Stewart also
continues as a director of United Silver Corp. The Company thanks
Mr. Stewart for his considerable effort and time over the past
year, overseeing the acquisition and development of the Crescent
Silver Mine project, outstanding achievements during this period of
rapid growth.
ABOUT UNITED SILVER CORP.
United Silver Corp. is a vertically integrated mining company
with operations in Idaho, USA. The Company is currently earning,
through development and operations, an 80% interest in the Crescent
Silver Mine project in Idaho's prolific Silver Belt - directly
between two of the world's historically largest silver producing
properties, the Sunshine and Bunker Hill mines. The Crescent Mine
has historically produced 25 million ounces of silver at an average
grade of 27.0 opt (Crescent Mine Updated NI 43-101 Technical Report
on Resources, March 1, 2010). The Company believes this historical
data to be reliable and relevant). The Company also offers a full
suite of mining services including contract mining and mine machine
repair and fabrication services to silver miners in the district.
UMG is committed to building a senior silver-producing mining
company based on aggressive exploration and development of the
highly-prospective current land position at the Crescent Silver
Mine project and through the acquisition of additional precious
metals interests. The Company trades on the Toronto Stock Exchange
under the symbol "USC". For more information about the Company,
please visit: www.unitedsilvercorp.com.
ON BEHALF OF UNITED MINING GROUP, INC.
Charles Pitcher, Chief Executive Officer
FORWARD LOOKING STATEMENTS: This press release contains
forward-looking statements, which address future events and
conditions, which are subject to various risks and uncertainties.
Forward looking statements in this press release include that the
New Jersey mill will open on budget and on schedule; that we can
achieve significant Capex savings while maintaining accelerated
timeline to bring the Crescent Silver Mine project back into
production; that production will commence in Q1, 2012; that we can
grow United Mine Services, Inc. and that UMS will remain
profitable; that we can build a senior silver-producing mining
company based on aggressive exploration and development of the
Crescent Silver Mine project and through the acquisition of
additional precious metals interests; The Company's actual results
and financial position could differ materially from those
anticipated in such forward-looking statements as a result of
numerous factors, some of which may be beyond the Company's
control. These factors include: results of exploration activities
and development of mineral properties, fluctuations in the
marketplace for the sale of minerals, the inability to implement
corporate strategies, the inability to obtain financing, currency
fluctuations, ability to attract and retain key employees, general
market and industry conditions and other risks disclosed in the
Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and
opinions of the Company's management on the date the statements are
made. The assumptions used in the preparation of such statements,
although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, undue reliance should not be
placed on forward-looking statements. The Company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
Contacts: Cathy Hume CHF Investor Relations (416) 868-1079 x231
cathy@chfir.com
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