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The Company placed an emphasis on exploration, rehabilitation and development during the first two years of operation. Contractors were employed to speed up the work and to cope with the severe shortage of experienced miners. In excess of $30 million has been invested in exploration, development and capital projects.
In late 2008, a new Board and management realized that declining silver and metal prices required a much greater focus on production. All non-essential capital and development expenditures were curtailed, the second circuit in the Galena mill was activated and production of both tons and ounces increased. December, 2008 production of 248,223 ounces of silver exceeded any previous US Silver monthly production by 30%.
For 2009, U.S. Silver announced a record silver production of 2,427,156 ounces and lead production of 6,446,856 pounds. Silver production exceeded 200,000 ounces per month during each month of Q409. Silver and lead production levels in the last quarter were both higher than the corresponding production levels in each of the prior three quarters.
Un-audited cash cost per silver ounce produced, net of by-product credits, totaled $11.73 for Q409 and $11.72 for the calendar year.
For 2010, an emphasis will continue on main level track development as well as driving raises to develop additional mining stopes. Production in 2010 will remain just above 200,000 ounces per month for the first half of the year. In the second half of 2010, thanks to increased development work making more mining stopes with slightly higher head grades available, production will grow to over 250,000 ounces per month. Total production in 2010 is targeted at 2.7 million ounces of silver, 5.9 million pounds of lead and 1.5 million pounds of copper. Cash costs are expected remain at current levels for the first half of the year and decline with increased production in the second half of 2010.
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