The near term potential of SVL as very profitable Silver play has largely gone un-noticed by the market. This has been due mainly to the Company's reputation of being rather measured in its aims and commitments to the market.
However overseas interest and recent results would suggest that is all about to change. The Company now has the cash to undertake a journey which should see the Company appreciate by many multiples in value.
In the 2009 AGM presentation SVLs CEO Mr Charles Straw indicated that the Companys aims for the immediate future were to: * Maintain tight capital structure * Provide investors with solid, low entry level silver Opportunity with excellent upside potential * Continue to deliver on promises and remain focused
For those of you who have been following this little treasure the report card would almost certainly read: * A+ * A+ * A+
Current Resource
Just under 8,000m RC drilling was enough to delineate an inferred resource: 720,000 tonnes - 200(g/t) Ag, 0.19% Cu, 1.10% Zn 0.49% Pb for 4.6 million ounces silver at a cut off grade of 70(g/t)
Important Resource facts
The Resource was delineated in the top 150m and was designed to target an open pittable operation. The resource is open at significant depth and presents Future potential should Silver prices continue to rise in the future. However for the purposes of current resource modelling the Company appears focussed on its near surface mineralisation.
Significant Drilling Results outside the resource area which may be included in the new Resource Statement are(excluding Zinc, Copper and Lead)
70,000 tonnes of ore was extracted at the historic Webbs Silver mine (also known as the Collisons Silver Mine). It was reported that 700,000oz of Ag was extracted, however only 20-30,000 tonnes were actually processed at a head grade of 930g/t.
The balance some 40-50,000 tonnes of ore is sitting above the surface in dumps. The dumps contain materials that have been crushed to <150mm and samples with the majority of samples reporting grades of >150g/t from assays released. The Company has indicated that these dumps may provide initial feed for a small plant. This being said the opportunity for early valuable positive cash flows is very attractive.
IP Surveys and the potential Blue Sky
The IP Surveys have identified a number of targets along strike and parallel to the current know zone of mineralisation. Should the Company identify additional zones of mineralisation above and beyond those already known, then Webbs potential would be increased even further.
Whats on the horizon:
* Target a large gap in drilling coverage immediately north and south of the old workings at Webbs Main from surface to 100m This drilling will also test the Eastern Zone.
* Target up dip and shallow strike extensions of existing mineralisation at Webbs South.
* Drill the trend extending south of Webbs South where geophysical and geochemical anomalies and old workings ndicate good potential for additional resources.
* Reconnaissance and infill around Webbs Adit.
* Extensive rock chip sampling program targeting outcrops and old costeans to assist with interpretation and resource modelling.
* Complete an updated resource model incorporating all new data.
* Conduct preliminary open pit optimisations on identified resources.
In Summary:
The Company's aim to develop a low cost open pittable operation at Webb's looks to be gaining momentum. With a diluted market Cap of a mere $10million, pending resource upgrades, international interest and cash to continue its resource base expansion, SVL should be well and truly on the radars of those looking for a junior with significant unerpinning resource value.
IMO DYOR
SVL Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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