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Silver on Sale

Bob Moriarty
Oct 1, 2009

Minco Silver announced the completion of their feasibility study on the Fuwan silver project in China a few days ago. The numbers show a 46% IRR at $16 dollar silver. If you like silver and like leverage, Minco is selling for cents on the ounce.

Highlights of the feasibility include production in 20-24 months of 5.5 million ounces of silver yearly at a cash cost of $5.65 an ounce. The cost per ton of production for the underground mine will be about $34.42 a tonne with a total pre-production capex of $73.1 million.

There will be a mine life of about 9.2 years and total silver production of 50.4 million ounces. That's paying about $1.10 an ounce for silver: at the feasibility stage that's pretty cheap. With a market cap of $57 million Minco is cheap.

We are shareholders; I do have options on both Minco Gold and Minco Silver as a consultant to Minco. I am biased. Minco is an advertiser.

Minco Silver Corp
MSV-T $1.84 (Sep 30, 2009)
MISVF-OTCBB 31.2 million shares
Minco Silver website

Bob Moriarty
President: 321gold

321gold Ltd