resource stocks aug 2011 feat mco - gold, page-13

Bit bored with no postings yet today.

Columbia - are you asleep. Maybe this might wake you.

You posted the link on the write up MCO got in "Resource Stocks". Also on the MCO website.

The same issue of "Resources Stocks" on pages 104 & 105 is an interesting article on SVL - Silver Mines Limited which I recall MCO has quiet a stake in. And bought in at a very low price....Somone may be able to confirm our shareholding, and its cost, compared to today's top (so far) of 32.5 cents.

Interestingly its quite a parallel story to MCO following up the New England NSW silver boom of the 1800's. Even the head honcho Charles Straw looks a bit like Nick Garling.

Straw says while it produced around 55,000 tonnes of ore, the grade was high - returning 700gms per tonne.

"We listed in 2007 when we listed the silver price was aaround $12 an ounce - but we had a bullish view of silver and that's now paying off.

"Since then value has increased four fold when it reached its peak in April this year."

Silver Mines has just wrapped up a scoping study, which indicated that a 350,000 tonne per annum processing plant would cost about $66 million.

Using a silver price of $31 per ounce in the pit optimisation, the base case scenario would see approximately 432,000 at 344grams per tonne silver extracted.

Operating coast would be $55/t while open pit mining costs would be around $4.36/t. This would generate pre-tax and capital revenue of about $50 million over a 15 month period.

Also some pretty interesting posts by very wise men on SVL's Hot Copper too!

Cheers big ears!