U.S. Silver reserves increase for fifth consecutive year

U.S. Silver Corporation announced Thursday that year-end reserves have once again increased in excess of production for the fifth consecutive year.

According to a media release, proven and probable silver reserves are 23.2 million ounces, an increase of 1.3 million ounces of silver after replacing 2011 production.

The exploration program continues to be cost effective at adding reserves at modest expenditure levels. In addition, the rate of reserve addition is expected to increase as the drilling program is expanded still further in 2012. Since 2006, the company has more than doubled proven and probable reserves and extended the mine life.

"Our exploration program at the Galena mine complex continues to deliver positive results in terms of adding additional silver reserves very cost effectively at modest activity levels," said Gordon Pridham, Executive Chairman of U.S. Silver. "In 2012, we plan to increase our drilling footage by over 40 percent both in terms of underground reserve expansion and a surface drilling program in pursuit of new areas of mineralization. The development and drilling of the Coeur Mine area in 2012 is also expected to result in increases in our reserve base."

In 2011, proven and probable silver reserves increased by more than 1.26 million ounces over 2010. Copper-silver ore reserves are at 19.2 million ounces of silver and 5,860 tons of copper, and lead-silver ore reserves at 4 million ounces of silver and 45,576 tons of lead. Total proven and probable ore reserves at 23.2 million ounces of silver. Copper reserves up 6.5 percent and lead reserves are up 6.2 percent relative to the Dec. 31, 2010 reserve. Reserves do not include those expected to be added from the Coeur mine currently under re-development.

U.S. Silver conducted the year-end and fourth quarter financial results in a conference on Thursday.