After a drill season filled with strong silver grades, Minco Silver (MSV-T) 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 has increased to 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 from 29.2 million oz. before.
Inferred resources now stand at 11.6 million tonnes grading 191 grams silver per tonne (plus 0.21 gram gold, 0.17% lead and 0.48% zinc) totaling 71.4 million oz. silver.
That works out to an overall increase of 14.7 million oz. of silver from 128.2 million oz. silver combined according the last resource.
Located in Guangdong province, the company owns 100% of the project, and while it has drilled about 350 holes on about 2 sq. km, the company has three other licenses in the area covering a more than 200 sq. km.
In October, SRK Consulting released a economic assessment that found the deposit could support a 2,500-tonne-per day operation, with preproduction capital estimated around US$57 million with a payback period of 1.7 years.
Annual silver production was set at 4.9 million oz. silver per year over a mine life of 12 years with average operating costs at US$29.02 per tonne milled or cash costs estimated at US$2.40 per oz. silver after credits from byproducts.
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