SVL - Silver Mines

[yogi-in-oz]

Hi folks,

SVL ... Silver Mines stags may not get what they
expect, with this one ... will be waiting for a
low on this end, before entry around 23012007,
because time cycles come into play, like this:

23012007 ... 3 underlying and negative cycles
here, looking for lows ... ???

29012007 ... significant and negative news ???

02022007 ... minor and intraday - positive?

12-13022007 ... negative spotlight on SVL, so
will be looking for another low
about this time - double bottom?

16022007 ... 2 difficult cycles, may bring news

12-14042007 ... 2 mixed cycles may bring first
signs of recovery ...??

April 2007 should be a better month for SVL and
16-22 November 2007, it should be booming ... lol

More later .....

happy days

yogi

 

[yogi-in-oz]

Hi folks,

SVL ..... as expected, a very ordinary first day's
trading, today .....

happy days

yogi



=====

 

[Bluebeard]

can you tell us when Richmond wins its next AFL Premiership?

 

[drillinto]

June 16, 2009

Silver Mines[SVL] Looks To Join The Dots At Its Webbs Silver Prospect In New South Wales

By Our Man in Oz | www.minesite.com

Gold has underpinned many investment portfolios over the past years, but it hasn’t been the best performer of all the precious metals. That title belongs to gold’s close precious metal cousin, silver. Since the start of 2009, the gold price has risen an encouraging 10.5 per cent. Silver has risen by 39 per cent. There are reasons for the difference, which has reduced the silver-to-gold ratio from 78.5 ounces of silver to one ounce of gold, to 62.5 ounces of silver to one ounce of gold. But that’s not the purpose of this report, which is rather to examine a rare beast on the Australian stock exchange, an almost pure silver play called, appropriately, Silver Mines Ltd.
Over the past year, as the silver price has been rising, the share price of Silver Mines has been falling. One of the reasons for the decline - from around A14 cents to A3.5 cents - is that the company is yet to start mining at its flagship Webbs project in the north-east corner of New South Wales. Another is that the company has been short of cash, raising its most recent pot of A$200,000 in capital at the current share price of A3.5 cents.

But, once you cut through a cash shortage similar to that which confronts many small explorers what you find here is a business with its foot on a historically rich silver field, and a plan to start early production, while continuing to grow the resource base with targeted exploration. It will not be easy, but the chief executive of Silver Mines, Charles Straw, is determined to plug ahead because the economics of developing a new mine at Webbs are compelling.

“It would be a completely different matter if it was gold we were chasing at Webbs”, Straw told Minesite’s Man in Oz. “We have outlined a 4.5 million ounce inferred silver resource at Webbs from just 5,500 metres of drilling. There’s no doubt that we will find more because of the nature of the geology.” Finding silver at Webbs is not the major challenge. The area has been mined intermittently over the past 100 years, yielding a classic polymetallic ore rich in silver, but with useful grades of zinc, lead and copper. At current prices, about 65 per cent of the metal value is in the silver. The deepest mine dig by the old-timers went to about 200 metres, with the miners only chasing the richest seams. The plan being worked up by Silver Mines is to develop shallower open pits to keep costs down and maximise profits.

Looked at from a bird’s eye view Webbs is a series of separate silver lodes and older workings. In effect, it is a series of dots waiting to be joined and extended along a regional structural shear zone which has brought mineralised fluids to the surface. The most recent resource estimate stands at 670,000 tonnes of material assaying 210 grams a tonne, with an additional 510,000 tonnes at 230 grams a tonne at Webbs South. More ore-grade material is required, but the grade is interesting because it is the equivalent to gold at 3.4 grams a tonne, and all of it is close to the surface.

“The work we’re doing at the moment includes a fresh geophysical survey and detailed metallurgical test work”, Straw said. “We expect those results to be received over the next few weeks.” He said the geophysics was designed to “in-fill” ground between the Webbs Silver South prospect where the highest grades had been obtained from the earlier work, and the main Webbs silver mine. The metallurgy is to confirm what will be required in a process plant which is likely to yield two streams of concentrate, one rich in silver and the other containing the base metals.

The next phase of work at Webbs is likely to include fresh drilling in late August. “That work will look to extend the Webbs South prospect further to the south”, Straw said. “The geophysics we’ve run shows that the target extends for at least another 50 metres south. If we can drill that out, and update the resource then we could be very close to having enough open-pittable material to justify really going forward, on a small scale development.”

Straw said the plan for Webbs was to not develop a big mine, but with material at the surface assaying as high as 230 grams a tonne of silver, the project would be very profitable. “We can’t provide any financial estimates yet, but it is likely to be worth pretty good money”, he said. “What makes it so attractive is that the mineralisation is sticking out of the ground. Any mining would be straight into ore.”

The major difference between what Silver Mines is seeking to achieve and what happened in previous campaigns in the area is the switch from seeking small, high-grade seams, to recognising the value in an open-pit development. “Our view is that Webbs comprises a number of discrete pods”, Straw said. “The Webbs mine was one of those, and the Webbs South structure is another. It is highly likely that we will eventually pinpoint another three or four of those pods. As you start to add that up you might find in the top 150 metres you could easily have in the order of 10 million ounces of silver, which is quite a nice little project. In gold equivalent terms 10 million ounces of silver converts to 160,000 ounces of gold worth around US$150 million – a tantalising prize for a company currently capitalised at less than A$2 million.

 

[hobo-jo]

Some pretty impressive drilling results released in today's announcement, here is a break down on the company. One of the few predominantly Silver plays on the ASX...

Silver Mines Ltd (SVL)
Number of Shares: 69m (well managed capital structure)
Current Share Price: 10c
Market Cap: $6.9m
Cash: $663,000 (Dec 09)
Resource: 4.6 million ounces silver, of potentially open pittable material (updated resource expected soon)

From April 21st Announcement:
High grade Silver intersected in drilling (over 100 ounces per tonne)
The updated resource model, expected imminently, does NOT include these results. Once the assays have been received from the laboratory in the next few weeks, they will be incorporated into the evolving and growing model.

Other Information regarding their projects/tenements:

Silver explorer in the New England Region of NSW. Also listed on the London PLUS market.

Webbs Silver (EL5674)
NW of Emmaville, NSW. Silver-Polymetallic. 12 sq km. Resource of 4.6m Moz silver @ 200 g/t (inferred) plus copper, zinc and lead. Strike length of 600m and open in all directions.
Recent downhole (not true width) results include 2m @ 614 g/t Ag, 9m @ 312 g/t Ag, 13m @ 223 g/t Ag plus Zn, Cu, Pb and Sb. Updated results are expected by the end of Feb 2010.
11 Feb 2010 Metallurgical studies recover 62% silver, 47% copper, 66% zinc and 3% arsenic

Webbs Consols
SW of Emmaville, NSW. Silver and base metals. 12 sq km. Recent results include 22.5 g/t silver, 3.07% lead and 2.6% zinc from 4-5m.

Mole River
NW of Tenterfield, NSW. Silver, gold and base metals. 295 sq km. Drilling from mid 2007. Encouraging results recorded; up to 552 g/t Ag, 5.39 % Pb, 1.47 % Zn & 0.5 % Cu (Q Activities 30 July 2007).

Rockvale
NW of Guyra, NSW. Silver, gold and base metals.

Booroowah JV (EL6269)
Booroowah, Sth Central NSW. Wallah Wallah Silver-Lead-Zinc mine. Located in the Lachlan Fold Belt. SVL can earn 50% by spending $95k over the next 12 months in a joint venture with Australian Oriental Minerals (ASX.AOM) - Current spend $65k

EL 20/208
Western Tasmania southwest of the Roseberry mine. 15 km². Gold. Gold-copper. Lead-zinc-silver. License previously held by Zinifex.

*Please DYOR, I can't guarantee the accuracy of the information above, but to best of my knowledge it is all correct. Disclosure: I hold SVL.

 

[tinbuzzard]

Must this company do a financing soon ? What are the other pure silver plays on the ASX ? Thank you for any help.

 

[hobo-jo]

Must this company do a financing soon ? What are the other pure silver plays on the ASX ? Thank you for any help.

Sorry tinbuzzard, don't check in here all that often. As you would have seen they made a small placement just recently, history has shown they are trying to keep to their tight capital structure. It will be very interesting to see how their resource model is affected by these and future drill results!

Some other (close to pure) Silver plays are CCU, AYN (previously MMN) & CXC.

Personally I think CCU & SVL have the most promise for upside potential in the SP.

 

[berbouy]

long time between posts on svl .
started to have a look at them in relation to the booming silver price at the moment.they are one of a few pure silver plays listed-anybody else have an interest in the current drilling program at webbs-certainly the share price has had a pleasing ascent for holders.could be some upside if the silver price stays bullish, and the resource meets or exceeds expectation.one to watch in the next couple of weeks, came up on my scan late on friday at close, any thoughts appreciated from dedicated silver bugs (are there any?)

 

[pixel]

long time between posts on svl .
started to have a look at them in relation to the booming silver price at the moment.they are one of a few pure silver plays listed-anybody else have an interest in the current drilling program at webbs-certainly the share price has had a pleasing ascent for holders.could be some upside if the silver price stays bullish, and the resource meets or exceeds expectation.one to watch in the next couple of weeks, came up on my scan late on friday at close, any thoughts appreciated from dedicated silver bugs (are there any?)

good points, berbouy

and from a technical angle, it's broken out of an ascending triangle, which in this case initiated a Bullish continunation.
Already on board.



PS: AYN is another neat silver play, further advanced than SVL as it had already been producing in its former incarnation as MMN. I hold them too.

 

[berbouy]

cheers pixel- and thanks for posting up that chart.have taken a position in light of the expected drilling update , due soon, and if the drill results are as good as hinted at, then perhaps a resource definition will be forthcoming- giving at least a sense of direction for this company. anyway , as always, time will tell, just need to keep an eye on the silver price, hopefully the chart can continue its upward trajectory.quite happy to see a consolidation period, as the program continues.dyor .

 

[Logique]

Getting interested here. It has run up a fair bit, like many others similar, but the underlying fundamentals of the silver market look positive, see article link under. So a little toe in the water to join the register.

With thanks to earlier posters on this thread. Hard to find much info on SVL.

http://www.kitco.com/ind/Lewis/sep172010.html
17 Sept 2010

Swapping Gold for Silver Has Historical Merit

....Now more than ever, appreciation in silver prices is only a matter of time, nearly guaranteed as a result of a changing market structure and a sky-high silver to gold ratio.

When investment bank activity shutters for good in October, expect a surge in prices never before seen. Silver's previous seasonal autumn runs will look like blips on the radar, and many investors are positioned well to become filthy rich on the climb. If you haven't already, consider swapping a portion of your gold bullion holdings for physical silver, as history is on your side.

Dr. Jeff Lewis

 

[Logique]

Damn, silver is a monster.

Should have put two toes in the water with this one. Silver +4.6% overnight and SVL up a couple of % today. Oh well, it should give me another chance at some point.

 

[explod]

Damn, silver is a monster.
.

Correct, it has been caged up by the bullion bank shorts for many years and with new regulations being enacted in the US to curtail some of that, the silver monster is about to excape.

Go back a couple of months on the "silver" thread and read Robert Kyosaki's take.

On Kitco today they are talking US$2000 gold coming, if the silver ratio was to normalise, and it will in my view, we could see US$50 silver in this run forming now. And that is just a bit over the peak for silver in 1980.

 

[Mofra]

Having a look at SVL, does anyone else have concerns over the cash position?

The quarter ending June 2010 notes $388k cash on hand, expected cash outflows for the next quarter are $650k. This is noting a cap raising had been completed recently, and cash had earlier been raising in the 09/10 FY.

The resource estimates & drilling program look very promising, but it seems to be akin to a project home where a new room is built as soon as more cash comes in. Has anyone looked at the financing activities in more depth? How much cash will the need to raise to bring Webb's into production, noting they would be likely to attract some bank funding once feasibility studies are established?

 

[berbouy]

after a strong showing for the week, silver mines has gone into a trading halt today.some large buys last night hinted that today may be the day, so hopefully the resource upgrade is pleasing for all concerned.good luck if you are holding/buying.
the options i believe are well in the money-which will add some cash to the coffers for ongoing program-would not surprise me to see sophisticates getting a look in if the reserves are substantially upgraded, although would hope us "unsophisticated" investors may get a look in.all will be revealed in due course.certainly has been a nice steady rise ,without too many pump,n,dumps...good fortune all.

 

[Logique]

An up day across the market generally, with the announcement in the US of of 'QE'II, and the US dollar index falling again. Plenty of mining/metals stocks doing well today.

Price of silver (Ag) went mad overnight +6%, it seems the favourable conditions for precious metals remain in place.

Particularly happy with SVL, also +6% so far today, as I had earlier in the week increased my weighting.

 

[mr. jeff]

fantastic news for SVL with great grades and a good size resource.
This may really help them follow through with this breakout, with increasing volume and excellent mining propects, at exactly the right time with all the hype surrounding the silver/gold ratio...






happy hunting

 

[Logique]

... we could see US$50 silver in this run forming now. And that is just a bit over the peak for silver in 1980.

Good call on silver back on 6 October Explod. Spot silver this morning = $USD 39.22/oz.

Happy with this holding in Silver Mines, it's chugging along, leveraged to the stratospheric run of the metal. The reports coming through on the grades and resource size at the Webbs silver prospect in northern NSW have been encouraging. Recovering in the order of 62% silver, 47% copper, 66% zinc.

 

[Chasero]

So.. really strong downtrend since highs of 28c in sept 2011 to close at 11c at february 2012.

Anyone know the reason why?

It's very interesting to see if it will bounce of yearly low of 8c...

Cap raising soon? Only 1.4m left in the kitty...

 

[mr. jeff]

Better silver out there at the moment ? That's all I can offer.
No mine plans close term perhaps. Go CCU!

Then of course there is the up and comer IVR who have kg's of silver all through Paris....

Personally I think SVL has decent prospects, but obviously it is not viewed that way in the market, so will wait and watch.