United Silver Files Preliminary Economic Assessment for Crescent Mine on SEDAR
September 25 2013 - 8:42AM
Business Wire
United Silver Corp. (âUnited Silver Corpâ, the
âCompanyâ or âUSCâ: TSX; USC: OTC; USCZF: Frankfurt:
UM8) announced today the filing on SEDAR of an updated National
Instrument 43-101 (âNI 43-101â) compliant resource estimate and
a positive Preliminary Economic Assessment (âPEAâ). This
Technical Report is independently prepared by SRK Consulting (U.S.)
Inc. (âSRKâ) of Reno, Nevada, USA. The full report will also be
accessible on USCâs website.
PEA Summary
PEA Mineralized Tons Processed (Diluted) Â Â Â
  601,000 Tons Silver Recovered  Â
   6,108,000 Ounces Mine Life  Â
   6 Years IRR @ $20 US Silver  Â
   32% Post Tax Net Present Value @ 8%
Discount Rate      $8,575,000
Preproduction Development Cost    Â
 $12,121,000 Total Capital Cost   Â
  $13,993,000 Production Rate   Â
  400 Tons Per Day Dilution   Â
  33% Mill Recovery    Â
 92% Mining Costs     Â
$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    Â
 $99.93 Per Ton Smelting and Refining Costs  Â
   $44.58 Per Ton Site Operation Cash Costs
     $144.51 Per Ton Â
   Â
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.
âWe are very pleased with the results of the PEA and updated
resource estimate,â said Greg Stewart, CEO of United Silver Corp.
âThe 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 PEAâs six year mine
life.â
The Project is very sensitive to the price of silver. The
following table illustrates how quickly the project IRR and NPVâs
change with a change in the price of silver. The base case for the
analysis is $20.00/oz.
Silver Price Sensitivity
   Â
Ag Price Per Ounce In US $
    $18.00   Â
$20.00 Â Â Â $22.00 Â Â
 $24.00    $26.00  Â
 $28.00
IRR Â Â Â 6% Â
 Â
32% Â Â Â 56% Â
  76%    97%  Â
 117%
NPV @ 8% (X000) Â Â Â ($633)
  Â
$8,575 Â Â Â
$17,188 Â Â Â $23,324 Â Â Â
$29,341 Â Â Â $35,279 Â Â Â
       Â
      Â
Recommendations
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 âQualified Personsâ 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 Valleyâs prolific Silver Belt -
directly between two of the districtâs 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.
"Gregory Stewart"Chairman and CEO
Investor RelationsTel. (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 PEAâs 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.
United Silver Corp.Investor RelationsGregory Stewart,
855-238-0202Chairman and CEO