extra cash-putting dayrock into production?U.S. Silver Corporation Announces the Acquisition of the Historic Dayrock Lead-Silver Mine and Mill
I doubt it would cost too much to put back into production. 450 tons per day * 250 days * 11 oz per ton= 1.2 million oz.
TORONTO, ONTARIO - July 10, 2007 - U.S. Silver Corporation (TSX VENTURE:USA), is pleased to announce the acquisition of the historic Dayrock Lead-Silver Mine and Mill facility located about 3 1/2 miles northeast of the Company's Galena Mining Complex in the Silver Valley of North Idaho. The Dayrock operated intermittently from 1924 until 1977 having produced 155 million pounds of lead and 6,500,000 ounces of silver. The total tonnage milled was 1,276,488 tons at an average grade of 6.07% lead, 0.32% zinc, and 5.11 ounces of silver per ton. The purchase price for the 80 acre package was USD $175,000. There are no royalties on this property going forward. In addition, U.S. Silver has staked an additional 385 mining claims in the vicinity of the Dayrock, increasing its land package in the Silver Valley by more than 7,000 acres to approximately 18,000 acres.
U.S. Silver's intention is to explore for new undiscovered vein systems as well as extensions of the four known high grade oreshoots that were historically mined at the Dayrock mine. The mill, although idle for many years, has a historic capacity of 450 tons per day. Low metals prices, inefficient mining activities, and property issues resulted in the mine being idled in the 1970's. Head grades from the Dayrock Mine during the last full year of operation were 11.9 ounces of silver and 12.0% lead per ton of ore mined. While the mill appears to be in good condition due to the high level of care and maintenance activities during the past 30 years, repairs and upgrades will be required to put the mill back into operation. The Company will undertake an engineering study to determine the best course of action for the Dayrock property, including the feasibility of returning the mine and mill to full operation. Also included in the study will be the option to utilize the Dayrock mill as a third milling option in the event U.S. Silver is successful in discovering ore in one of the many silver, lead, and zinc prospects now under control by the Company. The Company currently produces a silver-copper concentrate at the Galena mill and will produce a silver-lead concentrate at the Coeur mill beginning in September, 2007. U.S. Silver has also started an aggressive surface exploration program within the Company's vast Silver Valley mining properties with surface drilling activities planned to start later this summer.