Minco Silver: Summary of 2007 Activities and Plans for 2008
21 Januar 2008 - 3:00PM
Marketwired
VANCOUVER, BRITISH COLUMBIA (TSX: MSV) is pleased to announce
that the Company reached four important milestones during 2007 and
considerably advanced the Fuwan project. Minco Silver completed 100
drill holes totaling 25,836 metres, delivered two resource updates
that expanded the deposit and increased the level of confidence in
the resource, completed initial metallurgy testing indicating 97.9%
recovery of silver, announced a positive Preliminary Economic
Assessment and a positive Hydrology report on the project. Progress
to date is summarized below:
Exploration Results
Minco Silver continued with its aggressive infill and step-out
drilling campaign during 2007 and completed 100 holes for a total
of 25,836 metres. The Company's Phase IV and Phase V programs were
designed primarily to increase the level of confidence in the
resource through infill drilling and the success of these two
programs can be measured by the 145% increase in the indicated
resource announced in December. Based on the positive results from
several step-out holes during Phases IV and V, a Phase VI program
was designed to test the strike and down-dip extensions of the
deposit. The program, comprising 49 holes for approximately 13,000
metres of drilling, is progressing well.
Resource Expansion
Minco Silver announced two resource updates during 2007 that
included step-out and infill drilling on the project. The December
11th resource estimation upgraded the indicated silver resource to
71.6 million ounces representing a 145% increase over the previous
indicated resource. The overall deposit was also increased by 11.4%
for a total indicated and inferred silver resource of 142.9 million
ounces. The Fuwan deposit remains open along strike to the
southwest and down dip to the southeast with Phase VI drilling
testing these extensions.
Preliminary Economic Assessment
SRK Consulting completed an independent Preliminary Economic
Assessment (PEA) on the Fuwan deposit and results were released in
October. Using drill data up to the completion of the Phase III
program and the corresponding Resource Model released in April, SRK
concluded that the Fuwan Project is technically and economically
viable as an underground mining operation with a processing rate of
the order of 2,500 tonnes per day over a 12 year mine life, annual
average silver production of 4.9 million ounces and a cash cost of
US$2.40 per ounce after credits from other contained metals. The
project economics were found to be robust with an after-tax
internal rate of return (DCF-IRR) of 38%, a pre-production capital
cost of US$57 million and a payback period of 1.7 years from the
start of production when using a US$12.11 per ounce silver price.
The deposit is highly leveraged to the price of silver and
demonstrates an after-tax internal rate of return (DCF-IRR) of 53%
when using a US$16.00 per ounce silver price.
Metallurgical Testing
The Company announced the results of metallurgical testing
completed by Process Research Associates (PRA) of Vancouver on
September 17, 2007. Tests were carried out on material
representative of the Fuwan deposit. Using conventional flotation
and standard reagents, a "locked cycle" flotation test on the
composite sample resulted in overall recoveries from lead and zinc
concentrates of 97.9% for silver, 97.9% for zinc, 94.0% for lead,
and 77.4% for gold.
Hydrology Testing
On December 4, 2007, Minco Silver released the results of a
positive Hydrogeology Review Report completed by SRK Consulting.
Using data from 18 hydrogeological test holes drilled to test the
connectivity of the various structures in place at Fuwan, pumping
tests returned varying inflow rates from 0.25m3/day to 1,300m3/day.
Based on the available data, important conclusions from the report
included the following:
- Initial testing, done to date, at the Fuwan Silver Deposit has
not indicated that excessive water inflow would be encountered
during mine development.
- Testing done to date indicates that the Xijiang River appears
to be poorly connected hydraulically with the proposed underground
mine envelope.
2008 Work Programs
Minco Silver is currently operating 8 drill rigs on the property
to test the open extensions of the deposit and plans to provide a
resource update during the second quarter. Once the Phase VI
step-out drill program has been completed, the Company will focus
on investigating additional showings along the Fuwan Silver Belt
with a 15,000 metre drill program planned. The 757 Chinese Brigade
completed 50,000 soil samples in the mid 90's that identified 3
strong showings on the belt within close proximity to the Fuwan
deposit.
The Company has already begun the permitting process and expects
to initiate an International Feasibility Study on the project
during the second quarter of 2008. Additionally, the construction
and development work is scheduled to begin during the second half
of 2008.
Dr. Ken Cai, Chairman and CEO commented: "We are very pleased
with our progress throughout 2007. We achieved 4 major milestones
with the completion of metallurgical testing, hydrology testing, a
resource estimate that upgraded a significant portion of the
deposit to indicated, and a Preliminary Economic Assessment that
demonstrates a very robust project and strong leverage to the price
of silver. Minco Silver will continue with its aggressive
exploration and development programs throughout 2008 to advance the
project to production in two years time."
The Company would also like to announce that Van Eck Associates
Corporation has acquired 1,000,000 shares of Minco Silver,
facilitated by Minco Gold Corporation, through a private sale.
Founded in 1955, Van Eck was among the first U.S. money managers
helping investors achieve greater diversification through global
investing and as at September 30, 2007, Van Eck managed over $7
billion in investor assets.
About Minco Silver
Minco Silver Corporation (TSX: MSV) is a TSX company focusing on
the acquisition and development of silver dominant projects in
China. The Company is the exclusive vehicle for pursuing silver
opportunities in China pursuant to a strategic alliance agreement
between Minco Gold Corporation (formerly "Minco Mining & Metals
Corporation") (TSX: MMM)(AMEX: MGH)(FRANKFURT: MI5) and Silver
Standard Resources (TSX: SSO).
ON BEHALF OF THE BOARD
Dr. Ken Z. Cai, Chairman & CEO
Certain terms or statements made that are not historical facts,
such as anticipated advancement of mineral properties or programs,
productions, sales of assets, exploration plans or results, costs,
prices, performance are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
and involve a number of risks and uncertainties that could cause
actual results to differ materially from those projected,
anticipated, expected or implied. These risks and uncertainties
include, but are not limited to; metals price volatility,
volatility of metals production, project development risks and
ability to raise financing. The Company undertakes no obligation
and has no intention of updating forward-looking statements.
The Toronto Stock Exchange does not accept responsibility for
the accuracy of this news release.
Contacts: Minco Silver Corporation Ute Koessler 1-888-288-8288
or (604) 688-8002 Email: info@mincosilver.ca Website:
www.mincosilver.ca
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