KELLOGG, Idaho--(BUSINESS WIRE)--June 27, 2006--Shoshone (OTC:SHSH) has placed a high priority on getting its 100 ton per day Lakeview mill back into production. When operational, the mill will begin processing existing stockpiles of ore produced during past mining efforts on Shoshone's Lakeview District properties. The facility will be available for the custom milling of ores produced by other companies in and around the Lakeview district as it was in the past. Shoshone plans to aggressively market this service to regional mining companies.
An upgrade plan for the mill's electrical system has been developed based on a June 8th assessment by a professional electrician with extensive mill experience that found only minor repairs are required. Work on necessary electrical upgrades will begin immediately and is expected to be completed within four weeks. These upgrades will be followed by restoration and refurbishment of the mill's machinery. Shoshone's goal is to have the mill back online and producing concentrate by late summer, 2007.
Shoshone president, Lex Smith, said, "Our objective is to move the Lakeview mill rehabilitation along as quickly as possible so Shoshone can take advantage of the prices for silver, gold and lead in today's metals market. We have stockpiled mined ore close at hand, ready to be processed in our mill, and are eager to get into production as rapidly as we can. We also look forward to offering milling services to other companies in the region."
Shoshone estimates the size of its stockpiles of mined ore available for processing at approximately 15,000 tons or a 150-day supply of feedstock for the mill. Previous sampling of these Shoshone owned stockpiles have returned silver assays ranging from 1 to 44 ounces per ton with accompanying values in lead and minor concentrations of gold. Recent, more extensive sampling of the stockpiles was performed by Shoshone's consulting geologist Richard Morris. These fresh samples were delivered to Dawson Metallurgical Laboratory in Salt Lake City, Utah for analysis on June 13, 2006.
Shoshone will use assay, grindability test, and reagent test results obtained from Dawson to fine tune the mill's crushing, grading, and flotation circuit to produce the highest quality concentrates. Shoshone plans to send the mill concentrates to the Cominco smelter in Trail, British Columbia for smelting and refining.
Shoshone Silver Mining Company was founded in 1969 as a silver exploration, development and production company centered on its Lakeview Mine and Mill, south of Lake Pend d'Oreille in northern Idaho. Shoshone has acquired several formerly producing precious and base metal properties in northern Idaho in preparation for a return to production at Lakeview. Shoshone also maintains a diverse portfolio of mineral exploration projects across the western United States, in addition to the Bilbao properties in Mexico. Shoshone stock trades on the OTC Market under the symbol "SHSH".
Certain statements contained in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on beliefs of management as well as assumptions made by and information currently available to management. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
