After a drill season filled with strong silver grades, Minco Silver (MSV-T, MISVF-O) has increased the resource for its Fuwan silver project in southern China by 145%.
Minco’s primary goal was to upgrade inferred resources to indicated, but the company also focused on expanding known mineralization.
Fuwan’s indicated resource now stands at 11.9 million tonnes grading 186 grams silver per tonne (plus 0.21 gram gold, 0.1% lead and 0.28% zinc) for a total of 71.6 million oz. silver — up from 29.2 million oz.
Inferred resources ring in at 11.6 million tonnes grading 191 grams silver per tonne (plus 0.21 gram gold, 0.17% lead and 0.48% zinc) totalling 71.4 million oz. silver.
That works out to an overall increase of 14.7 million oz. silver from a previous combined resource of 128.2 million oz. silver.
Located in Guangdong province, Minco owns the Fuwan project outright, and while it has drilled about 350 holes on about 2 sq. km, the company has three other licences in the area covering more than 200 sq. km.
In October, SRK Consulting released an economic assessment that found the deposit could support a 2,500-tonne-per-day operation, with preproduction capital estimated around US$57 million and a payback period of 1.7 years.
Annual silver production was estimated at 4.9 million oz. over a mine life of 12 years. Average operating costs were pegged at US$29.02 per tonne milled; cash costs were estimated at US$2.40 per oz. silver after byproduct credits.
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