Re: News - Monday, January 26, 2009
Minco Silver: Progress in 2008 and Plan for 2009
Minco Silver Corporation (the "Company" or "Minco Silver") (TSX: MSV)
provides a summary of the progress during 2008 and plan for 2009 on its
Fuwan Silver project. In 2008, the Company completed a drilling program
totaling 23,292 metres in 79 holes, delivered an updated resource
estimate which expanded the deposit significantly, initiated an
International Feasibility Study ("IFS"), made solid progress in
permitting, conducted a regional exploration program, and won two
awards for work completed on the project.
Exploration on Fuwan Deposit
Minco Silver completed an aggressive infill and step-out drilling
campaign on the Fuwan deposit during 2008 and completed 56 holes for a
total of 16,833 metres. The program was designed primarily to increase
the level of confidence in the resource through infill drilling and the
assay results were released in the first half of 2008.
The updated resource estimate was prepared by P&E Mining Consultants
Inc. of Brampton, Ontario and released on May 22nd, 2008. Drilling was
successful in expanding the indicated resource. From the previous
resource announced in December 2007, the indicated resource increased
from 11.9 million tonnes containing 71.6 million ounces of silver ("MM
oz Ag") to 16.0 million tonnes containing 93.5 MM oz Ag, or a 31%
increase. The overall resource base (indicated and inferred silver
resources) also increased from 142.9 MM oz Ag to 156.8 MM oz Ag. These
silver resources reflect Minco Silver's current exploration permit
holdings, including 51% of the silver resources on the Changkeng
permit. The Fuwan deposit remains open along strike to the southwest
and down dip to the southeast.
Minco Silver initiated a regional exploration program along the Fuwan
Silver Belt in May of 2008. The Company completed a detailed ground
magnetic survey covering approximately 155 line kilometres as well as
21 line kilometres of dipole-dipole induced polarization survey over
the main target areas. Combined with previous geochemical surveys
consisting of 50,000 individual soil samples, a number of highly
prospective targets were generated. The Company drilled 18 holes for a
total of 5,003 metres testing some of these targets. Regional drill
results are pending.
International Feasibility Study
Wardrop Engineering Inc. ("Wardrop") was retained in April of 2008 to
conduct the international feasibility study using the resource update
released in May of 2008. Significant progress has been made to date and
mine planning and process engineering are well advanced. Currently, the
process flowsheet and metallurgical test work are nearing completion
and surface infrastructure sites are being finalized. Mine planning,
surface layout, and development and production schedules are
Additional metallurgical tests to optimise the initial work completed
for the Preliminary Economic Assessment in October of 2007 were also
initiated. Minco Silver received a comprehensive metallurgical report
on Fuwan samples from the Beijing General Research Institute of Mining
& Metallurgy ("BGRIMM"). The results confirmed initial work carried out
by Process Research Associates ("PRA") with overall recoveries of
silver, using conventional flotation, reported as above 96%. Recoveries
for lead and zinc were also over 95%.
Environmental Impact Assessment ("EIA")
Environmental aspects of the feasibility study are being compiled by
Environmental Resources Management ("ERM"), one of the world's leading
providers of environmental consulting services, and will be done to IFC
("International Finance Corporation") and World Bank standards.
To satisfy Chinese regulatory requirements, Guangdong Nuclear Design
Institute ("GNDI") has been contracted to complete the Chinese
environmental impact assessment which is nearing completion. GNDI is
working closely with ERM to cover all necessary aspects for national
and international environmental acceptance.
Minco Silver has made solid progress in permitting on the Fuwan Silver
deposit during 2008. Reports completed and in progress are summarized
-The Exploration Report on the Fuwan Silver deposit has been accepted
and approved by the Ministry of Land and Resources ("MOLAR") in
-The Chinese Preliminary Feasibility Study was completed by Changsha
Non-Ferrous Mine Design Institute and approved by an expert panel.
-The reserve/resource has been registered and received approval from
Guangdong Bureau of Land and Resources and MOLAR in Beijing.
-The mining area application was approved by Gaoming county, Foshan
district, and the Guangdong provincial government. MOLAR's approval is
-The Soil and Water Conservation Plan is nearing completion.
-The Safety Assessment and Geological Hazard Assessment are well
-The Land Usage application is being prepared for submission.
Additionally, the Gaoming county government granted official approval
for the development of the project. Upon completion and approval of all
required reports, the application for the mining permit will be filed
with MOLAR in Beijing.
Minco Silver successfully incorporated Foshan Minco Mining Co., Ltd.
("Foshan Minco") as the operating company for the Fuwan Silver project.
Subsequently, the exploration permits for the project held by Minco
Mining (China) were transferred to Foshan Minco. Minco Silver retains
90% ownership in Foshan Minco with the remaining 10% held by Guangdong
Geological Exploration and Development Cooperation ("GGEDC") as per the
original 10% profit sharing agreement.
Minco Silver won two awards during 2008 for its work in advancing the
Fuwan Silver project. In January, the Company received a Corporate
Award for Project Development from Cambridge House International Inc.,
for the project's meaningful progress during 2007. Minco Silver
received the Prospector / Explorer of the Year Award at the 2008 China
Mining Conference for its outstanding progress of the Fuwan Silver
project. This prestigious national Award was presented to Minco Silver
by Mr. Wang Min, the Vice Minister of MOLAR on November 12, 2008.
In July of 2008, Mr. Christopher Zahovskis was appointed Chief
Operating Officer for Minco Silver, replacing Mr. Tim Marlow, former
In January of 2009, Ms. Ellen Wei was appointed the Company's
Controller replacing Ms. Fiona Zhou. Ms. Wei's qualifications include
an AICPA designation in the United States and a CPA designation in
China. Ms. Wei has 10 years experience with a major Chinese auditing
firm and 3 years with Ernst & Young respectively. Ms. Wei has worked
with the Minco Group for 4 years in the capacity of CFO for Minco
Mining (China) Ltd. She was the former Controller of Dragon
Pharmaceuticals Inc., a listed company for 2.5 years.
Minco Silver would also like to announce that Mr. Garnet Clark has
resigned as Chief Financial Officer. The Company would like to thank
Mr. Clark and Mrs. Zhou for their valuable contributions and wishes
them well in their future endeavours.
Plan for 2009
In 2009, Minco Silver will focus its resources on advancing the Fuwan
Silver deposit and work diligently to complete the international
feasibility study and permitting. Upon completion, a production
decision will be made based on feasibility results, commodity price
outlook, and market conditions for financing for mine construction.
Given the current economic downturn, Minco Silver has implemented a
number of cost-saving measures to preserve its treasury. The Company
has suspended the regional exploration program until market conditions
improve. Additional cost-saving measures include a reduction in
non-essential personnel and streamlining of office space.
About Minco Silver
Minco Silver Corporation (TSX: MSV) is a TSX listed company focusing on
the acquisition and development of silver dominant projects. The
Company owns 90% interest in the world class Fuwan Silver Deposit,
situated along the northeast margin of the highly prospective Fuwan
Silver Belt. For more information on Minco Silver, please visit the
website at www.mincosilver.ca or contact Ute Koessler at 1-888-288-8288
or (604) 688-8002 email@example.com.
ON BEHALF OF THE BOARD
"Dr. Ken Z. Cai"
Chairman & CEO
The Toronto Stock Exchange does not accept responsibility for the
accuracy of this news release. 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
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