Azco Mining Inc., a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, today announced it will proceed with production of its Summit silver-gold deposit, after receiving positive pre-feasibility study results. Chapman, Wood and Griswold (”CWG”), consulting mining engineers and geologists of Albuquerque, coordinated the study of the Summit deposit in southwestern New Mexico.

Dr. Pierce Carson, Azco Mining CEO, stated, “We are pleased to announce outstanding results, especially at a time when rising precious metals prices have created an exciting climate for the company and its future prospects. CWG concludes that at today’s silver and gold prices, the Summit deposit would form the basis of an attractive and economically viable underground mining operation and that a commitment to production appears to entail minimal project risk.

“With these promising results, we are proceeding to explore avenues of financing. Once financing is in hand, we intend to immediately commit to develop the mine, construct the mill and begin production. Concurrently, we are finalizing necessary permits and preparing bid packages for mining and construction activities.”

Looking forward, Carson said cash flow generated from Summit would be important in funding the company’s future growth, including the expansion of resources at Summit, development of the Ortiz gold project and acquisition of other precious and base metal projects.

At gold and silver prices of $650 and $13 per ounce respectively, CWG estimates Summit revenues over an initial seven-year mine life would total approximately $130 million, and pre-tax net income would exceed $70 million. The company has approximately $40 million in tax loss carry-forwards to shelter federal income tax otherwise due. Direct operating costs, assuming that mine development and ore production will employ contract mining, are estimated as $76.65 per ton of ore milled. The total estimated capital cost to bring the mine into production is $13.4 million, inclusive of mine development, mill construction, bonding requirements, and project management and working capital. The economic model shows payback of capital will be achieved eighteen months after the commencement of production. CWG estimates the project could be developed and brought into production in a twelve-month time frame.

The planned mining rate at Summit is 120,000 tons of ore per year. Ore will be trucked 57 miles to the Lordsburg mill site, where it will be crushed and milled to produce a flotation concentrate. Metallurgical test work has indicated that flotation milling can achieve a recovery of 80-85 percent of the contained silver and gold. The precious metals concentrate is anticipated to grade on the order of 1,000 ounces of silver and 12 ounces of gold per ton. The study assumes that this high-grade concentrate will be marketed to one of the area copper smelters.

Silver-gold mineralization at the Summit deposit is contained in a vein-like structure in the footwall section of a 50 to 100-foot-wide, steeply-dipping, siliceous fault breccia. The mineralization of economic importance occurs across average widths of 10 to 15 feet in a zone about 1,000 feet long with a vertical dimension of 500 to 1,000 feet. The deposit is reasonably well defined by $8.5 million of exploration work carried out in the 1980s and early 1990s, including 1,550 feet of underground workings driven into the mineralized structure and core drilling totaling 78,000 feet in 88 holes. The mineralization is epithermal in nature and consists principally of finely divided argentite, electrum, and pyrite (less than 1%) in a siliceous matrix.

CWG used a minable resource estimation for the current study of 758,000 tons grading 10.28 ounces of silver per ton and 0.143 ounces of gold per ton in the main footwall zone. This estimation was adopted from a previous estimation, and represents an in-place, diluted, minable resource with a minimum six-foot horizontal width, based on results of assays from core holes and samples of underground workings. All high assay values were cut to 45 ounces of silver and 0.45 ounces of gold per ton.

CWG prepared a mine design that employs rubber-tired equipment to gain access to the minable resource through two declines, one on each end of the deposit, which will be driven from existing headings to and along the mineralized structure to a connecting point in the central part of the deposit. Further development of the deposit will continue by extending a decline to the lower limits of mineralization. Sufficient longhole drilling and trial extraction methods will be done to further plan the operation.

Carson said that establishment of the Summit mine will allow the company to further expand the resource base at the Summit deposit and to develop other properties in the Steeple Rock Mining District. The flotation mill at Lordsburg also could generate other mining and processing opportunities from surrounding mining districts, many of which historically have yielded substantial production of base and precious metals.

Azco Mining acquired the Summit deposit and Lordsburg mill site together with related operating permits in May 2006. As part of the transaction, the company also purchased a ball mill and a 400-ton-per-day flotation plant.

About Chapman, Wood and Griswold, Inc.

Chapman, Wood and Griswold, Inc., is a highly respected mine engineering and geological firm that specializes in technical and financial advice to mining and related industries. CWG’s areas of expertise include exploration, feasibility and production in relation to open-pit and underground mines, with a focus on base and precious metals, uranium and industrial minerals. CWG’s clients include mining companies, nuclear power companies, financial institutions, law firms and government agencies.

About Azco Mining Inc.

Azco Mining is a U.S.-based mining and exploration company focused on acquiring and developing gold, silver, copper and industrial mineral properties. The company owns the Summit silver-gold property and a mill site and processing equipment in southwestern New Mexico; mineral lease rights to the Ortiz gold property in north-central New Mexico, believed to contain two million ounces of gold; the Black Canyon mica mine and processing facility near Phoenix, Ariz.; and a large resource of micaceous iron oxide (MIO) in western Arizona. Azco Mining intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals. To learn more about Azco Mining Inc., visit http://www.azco.com.

An investment profile about Azco Mining may be found at http://www.hawkassociates.com/azmnprofile.aspx. To receive free e-mail notification of future press releases for this company, sign up at http://www.hawkassociates.com/email.aspx.

For investor relations information regarding Azco Mining, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com.

The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a “forward-looking statement” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.

Contact:

Azco Mining Inc., Albuquerque
Frank Hawkins or Ken AuYeung, 305-451-1888
info@hawkassociates.com
http://www.hawkassociates.com

Source: Azco Mining Inc.