ECU Silver Releases Second Quarter Results for 2011
TORONTO, ONTARIO -- (Marketwire) -- 08/16/11 -- ECU Silver Mining Inc. (TSX: ECU) reports that it has recently released its consolidated financial statements for the second quarter ended June 30, 2011 (Q2 2011) and the related management's discussion and analysis of financial position and results of operations (MD&A).
The Company generated net revenues from the sale of dore bars and concentrates for a total of $4,125,261 versus $5,966,092 over the first quarter ended March 31, 2011 (Q1 2011). The decrease in revenue is a result of a cessation in payments for deliveries of the gold/pyrite stockpile and a shortage of cyanide supply due to a plant shutdown of a major industrial supplier in the United States. The shortage in cyanide supply required that the Oxide Plant operate at a reduced rate. Cyanide supply levels resumed to normal levels in late July. Revenues were also impacted by a buildup of concentrate and dore product on hand.
The revenues were applied against cash development costs of $5,691,393 versus $4,383,608 in Q1 2011. The cash development costs were higher than Q1 2010 due to an increase in exploration activities pertaining primarily to drilling programs on the Velardena Property and the San Diego Property. Development costs were also higher due to increased ramp development to enable increased mine output.
Cash balance as at June 30, 2011 was $655,565, down from $1,219,934 as at March 31, 2011 due in part to repayment of certain debt obligations.
In Q2 2011 the operations generated silver (Ag) totaling 96,593 ounces and gold (Au) totaling 1,633 ounces versus 85,600 Ag ounces and 1,893 Au ounces in Q1 2011. In addition, the mines generated 116,586 pounds of lead (Pb) and 212,083 pounds of zinc (Zn) versus 161,977 Pb pounds and 172,736 Zn pounds in Q1 2011.
Shipments for Q1 2011 consisted of 62,906 Ag ounces, 1,192 Au ounces, 0 Pb pounds, and 98,398 Zn pounds versus 80,118 Ag ounces, 2,553 Au ounces, 108,215 Pb pounds, and 164,965 Zn pounds in Q1 2011.
During Q2 2011, the Company reported a loss of $4,385,910, or $0.014 per share, versus $2,081,960, or $0.007 per share, in Q1 2011.
Copies of the financial statements and related MD&A can be found on SEDAR at www.SEDAR.com.
About ECU Silver
ECU Silver Mining Inc. is focused on the exploration, development and mining of gold, silver and base metals at its Velardena District Properties in Durango, Mexico. The Company holds a NI 43-101 compliant mineral resource of 40 million silver equivalent ounces in the measured and indicated category and 391 million silver equivalent ounces in the inferred category. The Company also owns two mills with a combined capacity of 820 tonnes per day. ECU's mission is to become a pre-eminent silver and gold producer through the development of its existing and potential mineral resources at Velardena.
Cautionary Statements
Readers are cautioned that there are no assurances that all or any part of ECU Silver's mineral resource will be economically viable. Until a prefeasibility study is completed, there are no assurances the release of an updated mineral resource will be economically viable.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 27E of the Exchange Act. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including potential property acquisitions, the timing, content, cost and results of proposed work programs, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, proposed production rates, potential mineral recovery processes and rates, the proposed construction of a mill, business and financing plans, business trends and future operating revenues. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, significant downward variations in the market price of any minerals produced, the Company's inability to obtain any necessary permits, consents or authorizations required for their activities, to produce minerals from their properties successfully or profitably, to continue their projected growth, to raise the necessary capital or to be fully able to implement their business strategies. All of the Company's public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this Press Release.
Contacts:
ECU Silver Mining Inc.
Michel Roy
Chairman and CEO
Torreon, Mexico
011 52 871 747 5750
ECU Silver Mining Inc.
Stephen Altmann
President
Toronto, Canada
(416) 366-2428
ECU Silver Mining Inc.
Mark Butler
Investor Relations
Toronto, Canada
(905) 602-4248
www.ecu.ca