The suprise extension drilling results yesterday have set SVL up...

The suprise extension drilling results yesterday have set SVL up perfectly for a sustained run over the coming weeks.


Resource Upgrade

We have been expecting a resource upgrade for some time. The Company keeps interesecting more high grade Silver, which fortunately just keeps adding to the upgrades potential. The footprint of the extension drilling exceeds the footprint of the current resource significantly.

The new resource should include the GAP between the surface and the current resource (approximately 30m), the extension to Webbs South (100-200m), the bonanza grades from the infill at Webbs South and the Webbs Main results just released.

Remember on old economic modelin the Company is looking for a minimum 10,000,000 ounce deposit to sustain a 300,000 tonne per year operation. So if this resource upgrade exceeds 7-8million ounces the market will factor in an expectation that the 10million ounces is going to be achieved in the near future.

Should the Company be able to move some of this resource up into Indicated or Measured this will also be viewed positively.


Ongoing Drilling

This drilling will be ongoing almost continuously throughout the year. The potential for more high grade intersections is a always present.

Unlike many Company's we don't have to sit on our hands and wonder when the next campaign is going to start.

Its happening all the time.


So as I see it the sequence of news is going to be a combination of

Resource upgrade - drill results - resource upgrade - drill results all year around.

I expect a price closer to 25 cents should the Company indicate to the marke that 10milion ounces of high grade ore is achievable. This could happen within a couple of weeks.

IMO
DYOR