Minco Silver says it has the funds to put the Fuwan silver project into commercial production this year. The company says it will continue to advance the permitting process, with a revised environmental impact assessment and water monitoring survey report submitted to the Chinese environmental protection authority.
A preliminary mine design is nearing completion for the flagship project, which is in southeast China.
“With a working capital of about Can$67.7 million at the end of 2012 and a local facility of Can$47.5 million previously arranged with the Industrial and Commercial Bank of China (ICBC), the company has sufficient funds to meet the capital requirements to put the Fuwan silver project into production,” says Minco’s vice president of corporate development Peter Voulgaris.
He says several large Chinese mining groups have expressed an interest in the project. Minco has been hosting site visits, data review and preliminary discussions with those groups, since confidentiality agreements were signed with each of the groups. “While the company is actively pursuing this alternative strategy, no agreement has been reached so far.”
Minco will also actively evaluate silver dominant projects outside China for potential acquisition in 2013.
The Canadian-based company owns a 90% interest in the world-class Fuwan silver deposit, which is along the northeast margin of the highly prospective Fuwan Silver Belt in Guangdong, China.
It has a reserve of 9.12 million tonnes @ 189 grams/tonne silver, which will be able to support a 3000 tonne per day operation for more than 9 years. Minco says there are excellent opportunities to expand the mine life through upgrading the current resource and discovering new resources along the Fuwan belt which is relatively unexplored.