TORONTO (miningweekly.com) – Vancouver-based Minco Silver has completed a feasibility study on its Fuwan silver project, in Southeast China, which puts the total preproduction capital for the mine at $73,1-million.

The study envisages an operation based on underground mining and milling of the ore, producing a silver/lead concentrate and a zinc concentrate on site in the township of Fuwan, approximately 45 km south west of the provincial capital of Guangzhou, China.

The mine will have a daily throughput of 3 000 t, over a 9,2-year life-of-mine.

Mill recovery of silver in both concentrates is forecast at 91%, with a total recovery of silver of 50,4-million ounces.

The cash cost per payable ounce of silver is estimated at $5,65/oz, Minco said.

The company used a silver price of $13,57/oz in its calculations, which would generate total revenue of $648,2-million and operating cash flow of $310-million.

The construction period is expected to be between 20 and 24 months.

“We are very pleased with the results of the feasibility study,” commented Minco CEO Ken Cai.

“The present reserve base is an excellent starting point for the project and can be expanded significantly by upgrading the inferred resources into reserves and by potentially expanding the operation into the silver mineralisation on the Changkeng permit,” he added.

The company is making progress with the permitting process, and plans to move towards production as fast as possible, Cai said.

Minco shares rose 0,5% on Monday, to C$1,96 apiece by 15:12 in Toronto.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.