From my previous valuation and comment, i said "It should be...

From my previous valuation and comment, i said "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."

Looks like this has come to fruition. Below i have done a new evaluation of SVL's project based on today's new resource estimates.

---------------------------------------------------

I have included ratios of EV/lb [for zinc] or EV/oz [for silver] for the summary below. Basically, this tells you how many dollars per ounce or per pound the market is giving SVL's resources and reserves. Therefore;

EV / OZ OR EV / LB = MARKET APPRAISED $ PER OZ OR LB FOR COMPANY RESOURCES AND RESERVES

Taking into account that Enterprise Value or 'EV' = [MCap adjusted for cash and liabilities] and that the;

Cash and cash equivalents = 0.507m [as per statutory accounts 2010]

Debt = 0.553m [as per statutory accounts 2010]

MCap = 21.14m

EV = [MCap adjusted for cash and liabilities]
= $21m + $0.553m - $0.507m
= $21.186m

Therefore;

EV / Oz = $21.186m / 10.2 million ounces* = $2.07 dollars an ounce

Current silver spot price = $23.5 dollars an ounce

* Latest resource estimates of SVL
--------------------------------------------------------

Comments; Share price should be 40cps and above...with new drilling happening next week on the Webbs Silver South and metallurgical studies done, we should have more figures to rerate this firm.

Never ever go against the rerate of a company...

Well done shareholders. Another derisking event.