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MINI NG US Silver & Gold poised for success in the US northwest by Stephen Mussart US Silver & Gold Inc. [USA-TSX; USGIFOTCQX] is the second largest primary silver producer in the United States with a current annual rate of silver production of 2.6���2.8 million ounces as well as 20,000���25,000 ounces of gold. The company���s assets are comprised of two 100%-owned operating mines: the Galena Mine Complex in the heart of the Silver Valley/Coeur d���Alene Mining District, Shoshone County, Idaho and, the Drumlummon Mine Complex in Lewis and Clark County, Montana. By 2015, US Silver and Gold anticipates that its silver production will exceed 5 million ounces through the strategic execution on its brownfield expansions, the securing a line of credit to provide the company with additional liquidity and a careful assessment of acquisition opportunities to replenish its reserves. Within the flagship Galena Mine Complex is the Galena Mine, a high-grade, narrow vein deposit consisting of silver, copper and lead; it produces high-grade silver and is the second most prolific mine in US history, delivering over 200 million ounces to date. The Coeur Mine has recently started production and the Lead Zone is being evaluated for bulk mining development. The Galena Mine which has a modern history dating back to 1953 has reserves of 23.2 million ounces at average grades of 14.3 g/t silver. Current 2012 production at Galena was 2.25 million ounces of silver at $20/ounce from 25 production sites. Q4/2012 was the best production quarter of 2012 (Q4/2012 silver production was 625,604 ounces). A month of time was lost due to shaft and mill re-habilitation. Further productivity improvements are expected with the adoption of a new 24 hour, seven days per week shift schedule 46 www.resourceworld.com Drilling at the Galena Mine in Idaho. Photo courtesy of US Silver & Gold Inc. which is to take place in early 2013. At Coeur, re-development started in February 2012 and small production amounts started in late 2012 with production expected to ramp up to 125,000 silver ounces by 2013 and 500,000 silver ounces by 2016. The current measured and indicated reserve at Coeur is 3.3 million ounces of silver. Continued new development as well as the rehabilitation of existing workings will contribute to overall site production and provide access for exploration in 2013. The 100%-owned Drumlummon Mine currently produces high-grade gold and silver with historical production of 1 million ounces of gold and 12 million ounces of silver. Total 2012 production at Drumlummon was 316,194 ounces of silver and 20,070 ounces of gold. It is expected that in 2013, mining will be initiated on the Christmas, North Star and Frankie Veins and continued on the Charlie and Drumlummon Veins. Looking ahead to 2013, Darren Blasutti, President and CEO of US Silver & Gold stated, ���Our goals for 2013 are to increase production, reduce costs and raise the profitability of the ounces we mine. With the increased silver production achieved in the fourth quarter of 2012, and expected higher productivity from our new 24/7 schedule, we are confident we can meet the goals.��� 2013 production is expected to be between 2.7 and 3 million ounces of silver (a 10 ��� 15% increase over 2012) which can be attributed to higher planned grades at Galena, expected productivity increases from mine schedule changes and modest production at the Coeur Mine. In addition, gold production is forecast at 14,000 to 18,000 ounces. During late 2012 and early 2013, a review of historic data for the Caladay Zone at the Galena Mine along with recent exploration, identified an area MARCH 2013