The following is a post of mine from months ago. I just thought i rehash it as it is relevant to SVL's situation in 2011. It looks like the 10 million ounce figure was right on the money.
after doing a sufficient amount of due diligence looking for silver companies on the ASX, it does look like SVL is the real deal. Their robust vein targets and incredibly high grades are generating a lot more interest [as they should in rising silver prices] though i am afraid that there are still many waiting for a confirmation of a higher resource figure. To be honest, if one is to look at their recent drilling results and the corresponding geo structures, the results will be pretty obvious.
Let me explain....
For most geos, an ideal vein would be basically straight, thick, and highly consistent. However, most veins aren't like that and instead swell to mineable thicknesses and then 'pinch' to almost nothing. They twist and get displaced by faults, or they continue but might have lower content. However, when the geologists running the program understand the controls of the mineralisation and can predict - and then hit - economic grades, you know they are on to something with serious potential. As such, SVL's management has done a stellar job and looks to have got their bearings right.
1. What to look for when looking for the mother lode?
Size potential - In my opinion, most vein systems have only a few hundred meters of vertical extent to them, so one needs a lot of strike length for the potential deposit to amount to anything that will really fire the imagination. It's not proof of tonnage, but it's a great start when one can walk over a vein outcropping that's a couple of meters wide on surface, and it actually keeps going for kilometers.
Alternatively, if there are multiple veins on a property, and they add up to many kilometers of strike, as on SVL's drilling results, that's just as good.
2. Good drill plans and sections
If the geos really understand the mineralisation, they should be able to draw up maps, cross sections, and long sections that show what's going on, where they plan to drill, and what it will mean if they hit or miss on those planned holes.
SVL's current drilling program at the WEBB project clearly shows that the geos have got their game faces on. With IP surveys conducted, they had a good understanding of the multiple mineralised structures around the area and where the economic accumulations of the metals were to be.
In my opinion, the interpretation suggested that the project had potential to host multiple parallel silver lodes that would significantly increase the size of the project. SVL's geos then selected their targets and again intersected 'resource grade silver-rich polymetallic mineralisation'. It clearly exhibits their increased awareness of the size of their project deposits and has thus derisked their tenements to knowledgeable investors.
3. High Grade
This almost goes without saying, but what's 'high grade'?
In my opinion, any significant width over 5.0g/t gold or 300 g/t silver should get the big investor's attention. Although what makes for an economic grade depends will depend on many variables, an ounce per tonne of gold or a kilo per tonne of silver is worth chasing in almost any setting and to almost any depth. By 'significant' width, i mean at least a meter, but preferably 1.5 meters or more [this is good for more economic, mechanized techniques].
SVL has just intersected further high grades of silver at their Webb's project of up to 100 ounces per tonne...This means they have discovered lodes up to 2.83 kg per ton of silver...absolutely incredible grades by all accounts. This does not include the bonanza hits of previous drilling undertaken.
SVL's recent hits...
RC097; 4m @823 g/t silver from 90m (incl. 1m @ 2095 g/t Ag) RC098; 24m @316 g/t silver from 84m (incl. 1m @ 1600 g/t) RC100; 11m @ 635 g/t silver from 74m (inlc. 1m @ 3008g/t Ag) RC102; 2m @ 244 g/t silver from 10m 12m @ 285g/t Ag from 47m (including 1m @ 1,913g/t Ag)
RC076; 25m at an average silver grade of 1.1 kg/t of silver [this includes a 1m intersection at 6.1 kg/t silver, 5.7 percent copper and 7.9 percent zinc]...these are incredibly high grades.
Costean sampling results
11m @ 231g/t Ag including (1m @ 1,160g/t Ag)
These recent results clearly indicate that we are looking at a multiple lode system that extends at strike for more than 1.5 km on a north-south trend.
As i had done an evaluation of OVR's projects, i decided to do a brief valuation of SVL's in-ground resources for investors to look at.
Additional Comment; It should be fairly obvious that we are sitting on a big deposit. I would not be surprised with a greater than 10 million ounce resource estimate in their coming announcement after perusing the drilling results and the relevant geo structures.
This is now a LONG TERM BUY for me at current prices.
Happy investing and do remember to always do your due diligence and understand your risk horizons prior to putting in your hard earned money in the market.
* Also a brief thank you to Aksier, for presenting this firm to me via his posts.
SVL Price at posting:
26.0¢ Sentiment: LT Buy Disclosure: Held
(20min delay)