TORONTO, ONTARIO, Aug 16, 2011 (MARKETWIRE via COMTEX) — ECU Silver Mining Inc. 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.
