Fuwan Property

(click to enlarge photos)

Project Location

Drill Rig Location

Fuwan Township

Shipping Port Adjacent to Project

Local Power Plant

Location

The Fuwan Silver Project is situated approximately 45 kilometres southwest of Guangzhou City, the capital of Guangdong Province and the fourth largest city in China, with a population of 13 million people. The property is adjacent to Minco Gold Corporation's Changkeng Gold Property.


Deposit
The Fuwan silver deposit falls into the broad category of sediment-hosted epithermal deposits and it is characterized by 8 zones of vein and veinlet mineralization within structural zones which have wide spread zones of silicification. The deposit currently has reserves of 9.118 Mt averaging 189 g/t Ag which will sustain an underground operation of 3,000 tpd for a mine life of 9.2 years. There is excellent potential to expand the reserves by upgrading the current indicated resources of 6,857,000 t averaging 173 g/t Ag for 38,203,000 ounces and the inferred resources of 11,290,00o t tonnes averaging 174 g/t Ag for 63,283,00 ounces of silver (Changkeng property included). Only one third of the 10 km long Fuwan belt as been explored to date with drilling and there is a good exploration potential to find new resources which could also potentially expand the mine life.

Infrastructure - A Miner's Dream

Unlike most mining properties, the Fuwan property is one of the few mineral projects in the world that already has a significant infrastructure in place, which is expected to save the company tens of millions of dollars in development costs.

Transportation is made easy with a four-lane highway that passes by the property and labour is available from the town of Fuwan (pop. 5,000) and nearby Gaoming City (pop. 100,000). Water and telecommunications are readily accessible and a high-voltage power line crosses the property. The adjacent Xijiang River also provides access to the South China Sea, which is the international waterway for shipping.

Easy access to a shipping channel also facilitates the disposal of waste rock and carries with it a significant economic benefit. The Company has been approached by several construction companies from Guangzhou City to purchase the waste material at an estimated price of US$2.50 per tonne to be used for gravel and construction material. This is expected to reduce mining costs significantly.


Ownership

Minco Silver owns 100% of the Fuwan Silver Deposit, subject to a 10% profit sharing agreement with the Guangdong Geological Exploration and Development Cooperation. The Company also holds three additional exploration permits covering more than 200 square kilometres.

Minco Silver successfully incorporated Foshan Minco Mining Co., Ltd. ("Foshan Minco") as the operating company for the Fuwan Silver project. Subsequently, the exploration permits for the project held by Minco Mining (China) were transferred to Foshan Minco. Minco Silver retains 90% ownership in Foshan Minco with the remaining 10% held by Guangdong Geological Exploration and Development Cooperation ("GGEDC") as per the original 10% profit sharing agreement.


 

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Geology and Mineralization

Silver and gold were discovered in the area in early 1990 by systematic follow up of stream sediment and soil geochemical anomalies identified from surveys completed by the Guangdong Provincial government (Regional Geological Survey Team of Guangdong Bureau of Geological Exploration). The 757 Geological Exploration Team conducted trenching and drilling programs between 1993 and 1995 to evaluate the silver mineralization.

Silver mineralization at Fuwan is hosted primarily within a Lower Carboniferous limestone sequence that is unconformably overlain by Upper Triassic siliciclastic rocks. The Carboniferous and Triassic units are folded into an open syncline that has a northeast trending axis. A series of faults oriented sub-parallel to bedding are developed near the unconformity and are considered the main control for the Fuwan silver mineralization and Changkeng gold mineralization. Most of the Fuwan silver mineralization is hosted in the Lower Carboniferous limestone sequence. The total strike length of the mineralization is 2,790 metres and is open to the north, south and southwest. Silver mineralization is characterized by fractured and silificied limestone accompanied by calcite and pyrite with minor galena, sphalerite and barite. Minor amounts of chalcopyrite, arsenopyrite, cinnabar, and fluorite have also been observed in the mineralized zones.

The mineralized zones at the Fuwan Silver Deposit are currently considered primary mineralization and have been divided into two types:

1. Siliceous (silicified) material: This type of material is grey to dark grey in colour and mainly composed of secondary quartz, illite, argillaceous and carbonaceous material, and pyrite. Fractures and mariolitic cavities were highly developed;
2. Calcareous-siliceous material (silicified limestone): This type of material is light grey to dark grey in colour and is composed of secondary quartz, residual limestone, calcite, and pyrite. The mineralization occurs in the second-order faults in the footwall limestone of the contact zone.

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Fuwan Silver Belt -- Generalized
Geology Map
View PDF Version Feasibility Study

Minco Silver released the results of its International Bankable Feasibility Study (IBFS) on September 28, 2009. The report was completed by Wardrop, with portions of the study completed by NERIN, and concluded that the Fuwan Silver Project, based on available information, is technically and economically viable as an underground mining operation.

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

Project Overview

Deposit

The Fuwan silver deposit (the "Deposit") falls into the broad category of sediment-hosted epithermal deposits and is characterized by 8 zones of vein and veinlet mineralization within zones of silicification. Zones 7 and 8 are not included in the reserve estimate. The predominant sulphide minerals are sphalerite and galena with lesser pyrite, as well as rare arsenopyrite, chalcopyrite, and bornite. The deposit is poor in gold (typically <0.2 ppm).

Highlights of Feasibility Study:

Feasibility Study Highlights (Pre-Tax)	Feasibility Results
Probable Mineral Reserve	9.118 Mt averaging 189 g/t Ag
Mine Life	9.2 Years
Daily Mine Throughput	3,000 tpd
Mill Recovery (Ag Recovered in both concentrates)	91%
Average Annual Recovered Ag in both concentrates	5.5 M oz
Total Recovered Ag in both concentrates	50.4 M oz
Total Operating Cost/t Ore Milled	$34.42/t
Total Cash Cost per Payable oz Ag	$5.65/oz
Pre-Production Capital Costs	$73.1 M
Silver Price Used for Feasibility Study Economics	13.57/oz Ag
Total Revenue	$648.2 M
Total Operating Cost	$313.8 M
Total Royalty Payment	$24.3 M
Total Operating Cash Flow	$310.0 M
Net Present Value Before Tax @ 6% Discount Rate	$111.5 M
Net Present Value Before Tax @ 8% Discount Rate	$95.3 M
Internal Rate of Return Before Tax	33.2 %
Payback Period of Pre-Production Capital Costs	2.3 years
Construction Period	20 – 24 months

Resource Estimation

P&E completed five resource estimates for the Fuwan silver deposit in November 2005, November 2006, June 2007, December 2007 and May 2008. The May 2008 estimate, which is an update of the December 2007 estimate on the basis of infill drilling, formed the basis of the Study. All resource estimation technical reports were done in compliance with NI 43-101 and CIM standards, most of which were filed on SEDAR. There has been no additional drilling on the deposit area since that time.

Contained Mineral Resources (at a 40g/t Silver cut-off)

Resource Area & Classification (does not include Changkeng mineralization)	tonnes (M t)	Ag (g/t)	Ag (M oz)	Au (g/t)	Pb (%)	Zn (%)
Fuwan Permit Indicated	13.95	188	84.3	0.17	0.20	0.56
Fuwan Permit Inferred	10.24	171	56.1	0.26	0.26	0.72

Reserve Estimation

The resource estimate provided by P&E classified the resources for the Fuwan Zones 1 to 4 as indicated and inferred. The reserve does not include any resources from the Changkeng property. Only indicated mineral resources as defined in NI 43-101 were used to establish the probable mineral reserves. No reserves were categorized as proven.

Wardrop used a stope recovery factor of 95%, an average mining extraction rate of 97%, and an average 7% internal dilution, 8% external dilution, and 3% fill dilution to estimate the total amount of diluted probable mineral reserves. Ore reserve calculations conservatively assumed dilution to contain no metal.

Operating Costs

The operating cost estimates are based on a process rate of 990,000 t of ore annually or 3,000 tpd of ore.

Mining	$18.01/t
Processing	$ 9.90/t
Tailings	$ 1.13/t
G&A	$ 4.78/t
Surface Services	$ 0.60/t
Total	$34.42/t

Capital Costs

This estimate has been completed partially by NERIN and partially by Wardrop. The majority of the information used in the estimate is based on the quantities and pricing provided by NERIN to Wardrop.

Area Cost Direct Works	(US$ x 1,000)
A – Mining (Wardrop) B – Primary Crushing C – Crushed Ore Stockpile and Reclaim D – Secondary and Tertiary Crushing E – Grinding, Flotation, Dewatering, Reagents & Service F – Tailings Disposal Facilities G – Plant Site, Infrastructure & Ancillary Facilities H – Temporary Services L – Site/Plant Mobile Equipment N – Power Lines (Included in G1 – Power Supply)	21,637 660 305 52 9,140 4,250 8,627 35 1,190 Included in G1
Direct Works Subtotal	$45,896
Indirect
X – Project Indirect Y1 – Land Acquisition Y1 – Owner’s Costs Z – Contingency	13,330 2,120 5,663 6,051
Indirect Subtotal	$27,164
TOTAL PRE-PRODUCTION CAPITAL COSTS (US$)	$73,060
Working Capital	$8,300
Sustaining Capital	$59,900

Sensitivity Analysis

The project economics are sensitive to silver price, Operating costs and Capital expenditures. The sensitivity analysis results are in the table below:

Parameter	Economic Indicator	Change
		-20%	-10%	Base Case	10%	20%
Silver Price	NPV ($M)	33	72	112	151	190
	IRR (%)	15	25	33	41	48
Opex	NPV ($M)	157	134	112	89	66
	IRR (%)	41	37	33	29	24
Capex	NPV ($M)	126	119	112	105	97
	IRR (%)	42	37	33	30	27

View The Complete News Release in PDF Format:
http://www.mincosilver.ca/i/pdf/2009-09-28_NR.pdf Hydrogeology

Minco Silver released the results of a Hydrogeology Report on December 4th, 2007. Independent engineering firm SRK Consulting was contracted in July 2007 by the Company to provide hydrogeological services to support those being provided by Minco Silver's local consultants, the 757 Exploration Brigade Team.

Based upon the available data, important conclusions from the report include the following:

• Initial testing, done to date, at the Fuwan Silver Deposit has not indicated that excessive water inflow would be encountered during mine development.

• Testing done to date indicates that the Xijiang River appears to be poorly connected hydraulically with the proposed underground mine envelope.

As of the News Release date, 18 hydro-geological test holes have been drilled to test the connectivity of the various structures in place at Fuwan. Pumping tests from open holes have returned varying inflow rates from 0.25m3/day to 1,300m3/day (0.003 L/s to 15 L/s) with varying related drawdowns in each test hole.

As outlined in the recent Preliminary Economic Assessment, completed by SRK, the proposed mining area is located approximately 600 m west of the Xijiang River, and 600 m south of the Changkeng Ditch and is contained within an envelope between sections 43W and 16E. Exploration drilling indicates that mining will proceed in a southwest direction away from the river.

A map outlining the above features is provided below:


Click to Enlarge

View The Complete News Release in PDF Format:

File:	http://www.mincosilver.ca/i/pdf/2007-12-04_NR.pdf
	116 KB, approx. 23 seconds at 56.6Kbps

   Metallurgy

Minco Silver released the results of initial metallurgy testing on material representative of the mineralization at the Fuwan silver project on September 17, 2007. The work was carried out by Process Research Associates (PRA) of Vancouver and included options of gravity separation, cyanidation, and flotation. As a basis for the test work, 400 kilograms of representative material of the Fuwan deposit was taken from drill core and pulp rejects from the drill core to form three samples. These included a sample from Zone 1, a sample from Zone 2, and a composite sample prepared from Zone 1 and 2 samples.

Following a series of "open cycle" tests using different grind sizes and a variety of reagents, it was found that a simple flow sheet using conventional flotation and standard reagents provided encouraging recoveries. Subsequent "locked cycle" flotation tests on the composite sample have resulted in overall recoveries for silver from lead and zinc concentrates of 97.9%. In addition, good results were obtained for other contained metals with recoveries of 97.9% for zinc, 94.0% for lead, and 77.4% for gold.

Results of the Locked Cycle Test for the composite sample are as follows:

Composite Sample	Grades				Recoveries
	Au g/t	Ag g/t	Zn %	Pb %	Au %	Ag %	Zn %	Pb %
Head Grade	0.20	244.5	1.16	0.28	-	-	-	-
Lead Concentrate	2.6	9325.1	1.51	7.79	44.7	86.0	3.3	90.1
Zinc Concentrate	2.18	1,473.60	49.85	0.38	32.7	11.9	94.6	3.9
Total Recovery	-	-	-	-	77.4	97.9	97.9	94.0

Other results completed by PRA during the metallurgical testing included a determination of the Bond ball-mill index. Based on a closed screen size of 200 microns, this was calculated to be 17.8kWh/tonne. The Fuwan ore is therefore judged to be of average hardness.

View The Complete News Release in PDF Format:

File:	http://www.mincosilver.ca/s/NewsReleases.asp?ReportID=208780
	116 KB, approx. 23 seconds at 56.6Kbps

   Drill Results

Phase I & II

Minco Silver Corporation (the "Company" or "Minco Silver") (TSX: MSV) by October 2006 completed a two Phase, 8,500m, 35 hole drill program, of which 34 were mineralized on the west side of its Fuwan Silver Project. The drill area covered an area of approximately 700m by 500m increasing the drilling grid over the Fuwan silver deposit 80m×160m.

The assay results of 35 holes are summarized below. Of note are holes FW0005 returning 15.85 meters grading 516.90 g/t, FW0019 returning 8.85 meters grading 338.47 g/t silver and FW0035 returning 5.0 meters grading 439.55 g/t silver.

Average Grade of Drill Holes in the Phase I and II DDH at Fuwan Project, Guangdong Province.

Hole	From (m)	To (m)	Intercept (m)	Average Grade Au (g/t) Ag (g/t) Pb (%) Zn ( %)
FW0002	128.55	130.55	2.00	0.07	64.50	0.06	0.25
	133.55	135.60	2.05	0.10	71.40	0.10	0.16
	147.34	152.73	5.39	0.04	129.80	0.10	0.36
	165.35	166.15	0.80	0.22	1,280.00	0.08	1.50
	191.25	191.75	0.50	0.12	380.00	0.07	9.83
	195.04	208.00	12.96	0.26	234.20	0.05	1.64
	227.04	228.45	1.41	0.07	98.00	0.02	0.02
FW0003	242.70	251.80	9.10	0.27	248.10	0.24	0.46
	257.00	264.10	7.10	0.07	74.40	0.09	0.39
	292.30	293.30	1.00	0.03	894.00	1.44	0.69
FW0004	285.38	287.86	2.48	0.06	190.50	0.14	0.16
	300.23	302.65	2.42	0.05	106.80	0.07	0.12
FW0005	236.57	252.42	15.85	0.25	516.90	0.10	0.27
FW0006	129.95	137.25	7.30	0.16	261.20	0.11	0.46
FW0007	95.00	98.00	3.00	0.17	168.00	0.04	0.12
	115.76	118.16	2.40	0.22	1,183.40	0.21	0.50
FW0008	178.00	179.40	1.40	0.22	116.30	0.34	3.21
	181.87	182.27	0.40	0.02	468.50	0.11	0.07
FW0009	167.16	167.88	0.72	0.16	103.00	0.06	0.13
	178.15	182.05	3.90	0.05	221.40	0.04	0.31
	232.55	236.28	3.73	0.08	292.50	0.31	0.94
FW0010	226.50	227.60	1.10	0.09	57.00	0.03	0.01
	250.90	254.90	4.00	0.04	183.90	1.26	0.67
	288.65	289.35	0.70	0.09	62.10	0.17	0.70
FW0011	154.97	156.97	2.00	0.12	267.30	0.08	0.18
	178.63	179.30	0.67	0.04	70.00
FW0012	128.16	134.03	4.48	0.15	253.90	0.31	0.11
	140.37	146.65	6.28	0.12	155.60	0.10	0.49
	201.00	203.20	2.20	0.20	154.00	0.20	1.08
FW0013	237.00	243.00	6.00	0.41	575.20	0.57	2.36
	256.10	265.40	9.30	0.10	270.60	0.36	3.35
FW0014	236.92	240.62	3.70	0.12	143.50	0.09	0.48
	266.15	271.02	4.87	0.04	76.10	0.18	0.84
	287.00	288.20	1.20	0.07	228.00	1.27	0.52
FW0015	42.29	43.09	0.80	0.10	118.00	0.60	0.53
	50.40	52.44	2.04	0.10	81.60	0.12	0.35
	55.59	56.69	1.10	0.09	152.00	0.04	0.04
FW0016	250.37	250.90	0.53	0.11	325.00	0.36	1.17
	268.56	270.14	1.58	0.27	136.20	0.24	0.23
FW0017	97.32	98.32	1.00	0.16	271.00	0.12	0.28
	113.73	114.73	1.00	0.11	391.00	0.27	2.06
	158.70	161.68	2.98	0.07	166.20	0.49	1.36
FW0018	154.84	158.14	3.30	0.14	251.90	0.17	0.40
	161.10	162.10	1.00	0.13	128.00	0.09	0.55
	183.10	183.90	0.80	0.26	322.80	0.48	3.18
	195.45	197.45	2.00	0.01	90.90	0.04	0.11
	208.35	209.15	0.80	0.11	1,930.50	1.08	2.21
	256.43	256.73	0.30	0.08	192.50	0.76	2.23
FW0019	223.92	232.77	8.85	0.09	338.47	0.52	0.78
	234.27	236.97	2.70	0.27	64.36	0.15	0.61
FW0020	No Mineralization
FW0021	71.91	80.01	8.10	0.24	152.60	0.16	0.16
	91.10	92.10	1.00	0.10	620.50	0.47	3.20
	95.50	99.93	4.43	0.15	176.20	0.36	0.70
	110.80	111.16	0.36	0.14	2,100.00	9.31	5.80
FW0022	235.20	235.70	0.50	0.08	68.00
FW0023	281.20	282.00	0.80	0.04	66.00	0.043	0.14
	319.00	319.70	0.70	0.04	235.00	0.140	0.21
FW0024	86.50	87.60	1.10	0.18	234.00	0.10	0.08
	89.90	93.05	3.15	0.16	75.30	0.11	0.56
	103.07	104.79	1.72	0.13	126.40	0.08	0.28
FW0026	285.06	295.14	10.08	0.47	295.80	0.20	0.67
	301.14	306.39	5.25	0.06	236.40	0.42	0.80
FW0027	255.30	255.90	0.60	0.10	92.00	0.12	0.17
FW0028	277.11	277.47	0.36	0.06	292.00	0.13	0.68
	289.01	289.49	0.48	0.04	152.00	0.11	0.16
FW0029	268.87	270.92	2.05	0.11	97.10	0.08	0.21
	289.06	289.46	0.40	0.18	1,413.00	0.95	2.44
FW0030	181.53	182.53	1.00	0.51	281.50	0.44	1.82
	210.00	216.36	6.36	0.04	228.30	0.51	0.34
FW0031	108.20	114.00	5.80	0.38	55.30	0.05	0.24
	149.97	150.27	0.30	0.07	1,095.00	1.59	0.76
FW0032	95.87	96.68	0.81	0.31	855.00	0.49	1.79
	132.20	133.65	1.45	0.28	98.25	0.36	0.31
FW0033	135.31	135.89	0.58	0.03	228.00
	138.99	139.79	0.80	0.18	112.50	0.04	0.42
	143.20	143.66	0.46	0.07	498.00	0.27	0.27
	165.39	166.37	0.98	0.03	88.00	0.03	0.04
FW0034	87.80	89.80	2.00	0.44	161.80	0.08	0.20
	92.80	94.80	2.00	0.29	131.50	0.10	0.09
	97.70	98.70	1.00	0.20	65.27	0.09	0.03
FW0035	65.00	66.60	1.60	0.29	114.90	0.26	2.76
	73.80	78.80	5.00	0.22	439.55	0.40	0.99
	111.10	113.25	2.15	0.16	269.50	1.30	8.26
	117.60	118.50	0.90	0.13	181.00	1.08	4.84

Phase III

Minco Silver completed and announced 65 holes for a total of 16,009 metres of core drilling, completing Phase I, II, and III by April 3, 2007. Phase III, results of the first 11 holes were released March 22, 2007 and were highlighted by hole FW0025 (329.81 g/t silver over 15.35m), hole FW0040 (581.52 g/t silver over 2.90m), hole FW0041 (458.12 g/t silver over 12.15m), hole FW0053 (1,223.75 g/t silver over 3.96m), and hole FW0062 (388.64 g/t silver over 7.54m). April 3, 2007 Minco Silver announced a further 19 and widths varied from 0.28 metres to 12.65 metres with silver grades ranging from 56.92 grams per tonne to 1,438.00 grams per tonne. The assay results are highlighted by hole FW0050 (599.09 g/t silver over 3.01m), hole FW0057 (404.16g/t silver over 3.32m), hole FW0058 (867.20 g/t silver over 1.82m), and hole FW0059 (160.96 g/t silver over 7.85m).

Phase III drilling program:

Hole	From (m)	To (m)	Intercept (m)	Average Grade Au (g/t) Ag (g/t) Pb (%) Zn (%)
FW0025	115.50	118.90	3.40	0.28	345.18	0.10	0.15
	182.85	198.20	15.35	0.17	329.81	0.52	0.99
FW0036	175.80	177.80	2.00	0.32	285.05	0.24	0.99
FW0037	117.60	119.60	2.00	0.69	67.00
	121.60	134.24	12.65	0.22	121.11	0.15	1.26
FW0038	303.01	304.18	1.17	0.10	81.50
FW0039	147.45	154.88	7.43	0.30	139.92	0.10	0.78
	172.65	173.73	1.08	0.13	95.00	0.18	0.22
	195.52	196.70	1.18	0.05	89.00	0.06	0.25
FW0040	185.00	187.90	2.90	0.13	581.52	0.96	0.54
FW0041	170.25	182.40	12.15	0.57	458.12	0.36	0.68
FW0042	130.80	134.55	3.75	0.20	123.76	0.02	0.03
	163.83	164.53	0.70	0.06	165.00	0.09	0.30
FW0043	198.70	199.20	0.50	0.01	133.50
	242.87	243.15	0.28	0.15	1,438.00	0.51	1.74
FW0044	205.00	207.30	2.30	0.35	407.22	0.21	0.33
FW0045	140.50	147.70	5.50	0.10	56.92	0.03	0.03
FW0046	259.34	261.08	1.74	0.29	343.51	0.37	3.24
	275.43	276.66	1.23	0.14	109.00	0.56	1.88
FW0047	No Mineralization
FW0048	227.50	245.50	11.10	0.21	99.67	0.16	0.45
FW0049	230.03	231.03	1.00	0.15	115.00	0.02	0.06
	245.48	246.48	1.00	0.18	240.00	0.13	0.09
FW0050	248.37	251.38	3.01	0.24	599.09	0.52	0.75
	281.45	282.57	1.12	0.03	255.00	0.11	0.02
	308.00	309.06	1.06	0.02	160.00	0.24	0.36
FW0051	321.60	321.85	0.25	0.04	713.00	0.21	0.39
FW0052	221.40	227.30	3.40	0.08	148.29	0.10	0.03
	245.60	246.10	0.60	0.21	203.00	0.06	0.09
	278.45	279.35	0.90	0.30	444.50	0.11	0.37
FW0053	284.29	288.25	3.96	0.22	1,223.75	0.98	2.02
	300.55	302.02	1.47	0.10	501.52	0.19	1.14
FW0054	301.56	302.46	0.90	0.13	576.00	3.22	2.66
FW0055	194.89	197.63	2.74	0.17	126.17	0.06	0.25
FW0057	80.40	83.65	3.25	0.08	190.98	0.15	0.29
	97.53	98.66	1.13	0.39	463.00	0.99	6.06
	102.35	105.67	3.32	0.17	404.16	0.55	1.41
	119.75	120.70	0.95	0.10	223.50	1.26	0.58
FW0058	76.64	78.46	1.82	0.55	867.20	0.76	0.98
	112.72	113.32	0.60	0.05	148.00	1.25	0.10
	135.86	136.75	0.89	0.04	445.00	0.56	1.12
FW0059	224.92	233.47	7.85	0.19	160.96	0.23	0.40
	257.37	258.62	1.25	0.02	85.00	0.05	0.16
FW0060	176.11	176.69	0.58	0.18	287.50
FW0061	132.52	133.52	1.00	0.36	112.00	0.06	0.05
	148.00	149.50	1.50	0.04	348.50	1.01	0.17
	178.16	179.24	1.08	0.08	165.50	1.26	4.43
	204.43	207.20	2.77	0.06	386.20	1.66	3.50
	211.45	213.65	2.20	0.07	106.30	0.28	2.35
FW0062	222.24	226.34	4.10	0.34	268.00	0.07	0.21
	230.52	238.06	7.54	0.21	388.64	0.59	1.23
	261.04	264.48	3.44	0.19	233.57	0.28	2.55
	269.06	269.56	0.50	0.07	700.00	3.99	3.76
	284.00	284.58	0.58	0.10	173.75	0.58	1.76
FW0063	188.22	191.22	3.00	0.11	311.33	0.12	0.16
	199.22	200.22	1.00	0.08	308.00	0.18	0.26
FW0064	221.80	237.00	15.20	0.11	130.93	0.14	0.53
FW0065	262.50	264.50	2.00	0.16	113.80

Phase IV

Phase IV drilling was completed in late June, 2007, for a total of 11,451.8 metres in 45 holes. The program was designed to further increase the level of confidence of the resource through infill and step out drilling and encompassed a broad spectrum of detailed engineering work designed to investigate the geotechnical, hydrological, and metallurgical aspects of the project. Thirteen of the holes (FW0066, 67, 68, 69, 74, 76, 78, 80, 99, 101, 103, 105, and 106) were step out holes that have extended the mineralization to the Northeast and to the South. The deposit remains open in both directions.

The Phase IV assay results are highlighted by the following intersections:

• FW0076: 1,143.80 g/t silver over 3.25m
• FW0077: 1,047.00 g/t silver over 2.00m and 405.00 g/t over 1.10 m
• FW0083: 314.18 g/t silver over 7.65m
• FW0072: 208.33 g/t silver over 6.66 m, 136.30 g/t silver over 3.20 m
• FW0078: 434.32 g/t silver over 14.25 m
• FW0081: 194.83 g/t silver over 7.50 m
• FW0085: 293.90 g/t silver over 6.10 m
• FW0090: 91.64 g/t silver over 7.00 m and 557.49 g/t silver over 7.81 m
• FW0095: 204.51 g/t silver over 3.82 m and 99.67 g/t silver over 6.00 m
• FW0096: 768.67 g/t silver over 5.40 m
• FW0099: 149.09 g/t silver over 6.80 m and 200.63 g/t silver over 3.10 m
• FW0102: 1,602.89 g/t silver over 3.33 m
• FW0105: 1,165.28 g/t silver over 2.65 m
• FW0106: 808.24 g/t silver over 2.05 m
• FW0109: 282.27 g/t silver over 2.54 m

Phase IV drilling program:

Hole	From (m)	To (m)	Intercept (m)	Average Grade Au (g/t) Ag(g/t) Pb (%) Zn (%)
FW0066	46.76	50.25	3.49	0.27	137.87	0.05	0.08
	55.05	55.51	0.46	0.10	440.00	1.14	3.43
FW0067	209.07	210.04	0.97	0.05	208.00	0.07	0.07
FW0068	266.59	267.59	1.00	<0.01	47.00
FW0069	285.08	286.42	1.34	0.07	180.50	0.08	1.30
FW0070	259.45	263.38	3.93	0.13	364.50	0.44	1.28
	264.80	265.44	0.64	0.06	41.00
	269.02	270.06	1.04	1.04	70.00
	284.94	285.74	0.80	0.06	616.50	0.61	0.11
FW0071	176.25	177.60	1.35	0.42	549.00	0.28	3.37
	183.05	188.05	5.00	0.38	164.70	0.10	0.45
	207.84	209.51	1.67	0.19	193.34	0.23	3.15
FW0072	130.86	137.52	6.66	0.39	208.33	0.12	0.36
	172.47	175.67	3.20	0.12	136.30	0.04	0.18
FW0073	190.86	191.21	0.35	0.35	10,429.00	4.00	5.72
FW0074	No significant values
FW0075	176.42	177.22	0.80	0.03	505.00	0.98	2.51
FW0076	167.17	169.17	2.00	0.14	118.50	0.04	0.22
	195.59	198.84	3.25	0.08	1,143.8	0.42	0.55
FW0077	171.00	173.00	2.00	0.89	1,047.00	0.33	0.63
	178.10	179.20	1.10	0.53	405.00	0.09	0.28
FW0078	172.90	187.15	14.25	0.16	434.32	0.23	1.43
	194.82	196.98	2.16	0.11	153.00	0.10	0.80
FW0079	141.38	143.68	2.30	0.05	508.20	0.11	0.31
FW0080	123.08	124.28	1.20	0.21	188.00	0.06	0.11
FW0081	188.87	196.37	7.50	0.06	194.83	0.10	0.43
	202.98	204.08	1.10	0.08	107.50	0.42	2.03
FW0082	217.39	218.52	1.13	0.07	118.50	0.12	0.41
FW0083	196.46	204.11	7.65	0.42	314.18	0.12	0.51
FW0084	166.92	168.92	2.00	0.07	101.00	0.03	0.09
	191.12	193.00	1.88	0.15	95.61	0.20	0.31
FW0085	191.44	192.55	1.11	0.16	93.50	0.17	1.43
	205.60	211.70	6.10	0.28	293.90	0.21	0.39
	226.75	227.75	1.00	0.14	113.00	0.13	0.37
	245.88	246.88	1.00	0.25	108.00	0.12	0.43
FW0086	240.00	240.20	0.20	0.04	1,17.5.00
FW0087	230.61	230.89	0.28	0.23	1,171.50	0.42	1.75
FW0088	302.69	303.52	0.89	0.11	32.00
FW0090	158.93	165.93	7.00	0.28	91.64	0.03	0.11
	223.15	230.96	7.81	0.11	557.49	0.27	1.28
	250.20	251.50	1.30	0.10	177.00	0.06	0.17
FW0091	241.90	242.75	0.85	0.11	26.10
FW0092	220.60	226.10	5.50	0.33	108.97	0.06	0.08
	255.50	256.40	0.90	0.9	377.00	0.25	0.49
FW0093	230.40	230.85	0.45	0.06	455.50	0.22	0.15
	245.80	248.55	2.75	0.06	126.63	0.42	0.66
	272.40	274.00	1.60	0.06	109.50	0.58	2.28
FW0094	239.93	240.93	1.00	0.25	334.50	0.15	0.65
	249.33	253.68	4.35	0.05	107.85	0.22	0.32
FW0095	197.97	201.60	3.82	0.38	204.51	0.02	0.02
	240.40	246.40	6.00	0.12	99.67	0.09	0.16
	260.75	261.55	0.80	0.07	196.00	0.06	0.22
FW0096	241.70	247.10	5.40	0.07	768.67	0.49	0.82
FW0097	224.60	248.40	3.80	1.68	54.53	0.04	0.12
	270.15	270.60	0.45	0.34	663.50	0.37	0.42
	287.55	288.65	1.10	0.08	103.00	0.23	3.41
	290.80	291.65	0.85	0.11	231.00	0.42	4.04
	314.25	317.90	3.65	0.10	84.39	0.19	3.48
	322.80	323.90	1.10	0.20	117.50	0.26	5.18
FW0098	260.02	261.47	1.45	0.16	54.34	0.07	0.18
FW0099	243.75	250.55	6.80	0.12	149.09	0.26	1.77
	260.03	263.40	3.10	0.18	200.63	0.30	3.49
FW0101	240.48	241.48	1.00	0.01	151.00	0.01	0.01
	244.41	246.26	1.85	0.10	152.55	0.16	1.36
FW0102	122.43	125.76	3.33	0.37	1,602.89	0.42	1.16
	188.63	189.95	1.32	0.09	92.50	0.51	1.01
FW0103	218.65	219.65	1.00	<0.01	26.30
FW0105	265.35	268.00	2.65	0.17	1,165.28	1.55	2.46
FW0106	242.45	244.45	2.00	0.09	57.00	0.30	0.42
	264.27	266.32	2.05	0.07	808.24	0.39	2.12
FW0108	235.97	237.13	1.16	0.12	50.00	0.05	0.05
FW0109	284.42	287.20	2.78	1.27	65.10	0.06	0.25
	296.36	298.90	2.54	0.03	282.27	0.17	1.69

Phase V

Phase V drilling was completed in late September with a total of 18 holes being drilled for 3,650 metres. The combined in-fill and step out drilling program over the Northeast area occurred between section lines 3 and 16. The in-fill drilling predominantly confirmed the consistency of north eastern mineralized zone. Two holes reported here (FW0115 and FW0120) are step out holes that have extended the mineralization to the south. The deposit remains open in the southwest strike direction and down-dip to the south. Zone widths for these 16 holes completed varied from 0.75 metres (m) to 7.90 m with silver grades ranging from 93.03 grams per tonne (g/t) to 1,456.50 g/t.

The Phase V assay results are highlighted by the following intersections:

• FW0110: 118.52 g/t silver over 6.00 m, 107.20 g/t silver over 4.30 m, 655.69 g/t silver over 4.70 m, and 216.16 g/t silver over 7.64 m
• FW0111: 574.00 g/t silver over 2.00 m
• FW0114: 372.58 g/t silver over 3.24 m
• FW0115: 292.20 g/t silver over 7.90 m and 1,456.50 g/t silver over 1.07 m
• FW0117: 233.92 g/t silver over 6.00 m, 209.41 g/t silver over 2.23 m, 353.90 g/t silver over 4.20 m and 412.67 g/t silver over 3.30 m
• FW0118: 177.27 g/t silver over 4.63 m
• FW0120: 190.67 g/t silver over 7.13 m, 265.46 g/t silver over 3.28 m
• FW0122: 160.64 g/t silver over 5.92 m
• FW0124: 1,166.00 g/t silver over 1.25 m

Phase V drilling program:


True widths for the mineralized zones are typically from 85% to 100% of the stated intercepts.

Samples were prepared and assayed at PRA Kunming lab (Process Research Associates Ltd.) with supervision of a certified BC assayer. Silver was assayed with fire assay and AAS or gravimetric finish. Assay results were further checked at PRA's Vancouver lab as an external check. Reference materials were inserted by Minco staff geologists as a further assay control

Reserve / Resource Statement

Classification	tonnes	Ag (g/t)	Ag (oz)	Au (g/t)	Pb (%)	Zn (%)
Probable Reserve (diluted - In Situ)	9,118,000	189	55,300,000	0.15	0.20	0.57
Total Probable Reserves*	9,118,000	189	55,300,000	0.15	0.20	0.57
Indicated Resources** (Contained)
Fuwan Permits - Indicated***	4,830,000	188	28,968,000	0.17	0.20	0.56
Changkeng Permits - Indicated****	2,027,000	142	9,235,000	0.40	0.20	0.61
Total Indicated Resources	6,857,000	173	38,203,000	0.24	0.20	0.57
Inferred Resources** (Contained)
Fuwan Permits - Inferred	10,241,000	171	56,147,000	0.26	0.26	0.72
Changkeng Permits - Inferred****	1,049,000	212	7,136,000	0.29	0.37	0.86
Total Inferred Resources	11,290,000	174	63,283,000	0.26	0.27	0.73

*	NI 43-101 compliant, Wardrop (October 2009) Reserve based on: Silver 13.00 US$/oz; Gold 688 US$/oz; Lead 0.88US$/lb; Zinc 1.28US$/lb; Operating cost of $37.13/t with Silver cut off grade of 119 g/t
**	NI 43-101 compliant, P&E Engineering ( May 2008) 40 g/t cut off
***	Probable reserves were subtracted from the Indicated resources at the Fuwan Permit
****	Resources reported on the Changkeng permit represents 51% of the actual resource s and reflects Minco's actual ownership.

click to enlarge

click to enlarge

Drill Results

Minco Silver began its first phase of drilling on the Fuwan Silver deposit in December of 2005 and completed over 200 holes, totaling more than 50,000 metres, by May of 2008. A table of completed holes can be found below.

• NSR - indicates No Significant Results.
• True widths for the mineralized zones are typically from 85% to 100% of the stated intercepts.
• *The indicated holes are part of the hydrology study completed by SRK Consulting and released on December 4, 2007.
• ** Indicates holes drilled for condemnation drilling for proposed Mine--Mill site facilities.
• Samples were prepared and assayed at PRA Kunming lab (Process Research Associated Ltd.) with supervision of a certified BC assayer. Silver was assayed with fire assay and AAS or gravimetric finish. Assay results were further checked at PRA's Vancouver lab as an external check. Samples have also been sent to ASL Chemex Laboratories in Guangzhou, Guangdong Province, PRC for additional check analysis. Reference materials were inserted by Minco staff geologists as a further assay control.

Hole	From (m)	To (m)	Intercept (m)	Average Grade
				Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)
FW0002	128.55	130.55	2	0.07	64.5	0.06	0.25
	133.55	135.6	2.05	0.1	71.4	0.1	0.16
	147.34	152.73	5.39	0.04	129.8	0.1	0.36
	165.35	166.15	0.8	0.22	1,280.00	0.08	1.5
	191.25	191.75	0.5	0.12	380	0.07	9.83
	195.04	208	12.96	0.26	234.2	0.05	1.64
	227.04	228.45	1.41	0.07	98	0.02	0.02
FW0003	242.7	251.8	9.1	0.27	248.1	0.24	0.46
	257	264.1	7.1	0.07	74.4	0.09	0.39
	292.3	293.3	1	0.03	894	1.44	0.69
FW0004	285.38	287.86	2.48	0.06	190.5	0.14	0.16
	300.23	302.65	2.42	0.05	106.8	0.07	0.12
FW0005	236.57	252.42	15.85	0.25	516.9	0.1	0.27
FW0006	129.95	137.25	7.3	0.16	261.2	0.11	0.46
FW0007	95	98	3	0.17	168	0.04	0.12
	115.76	118.16	2.4	0.22	1,183.40	0.21	0.5
FW0008	178	179.4	1.4	0.22	116.3	0.34	3.21
	181.87	182.27	0.4	0.02	468.5	0.11	0.07
FW0009	167.16	167.88	0.72	0.16	103	0.06	0.13
	178.15	182.05	3.9	0.05	221.4	0.04	0.31
	232.55	236.28	3.73	0.08	292.5	0.31	0.94
FW0010	226.5	227.6	1.1	0.09	57	0.03	0.01
	250.9	254.9	4	0.04	183.9	1.26	0.67
	288.65	289.35	0.7	0.09	62.1	0.17	0.7
FW0011	154.97	156.97	2	0.12	267.3	0.08	0.18
	178.63	179.3	0.67	0.04	70
FW0012	128.16	134.03	4.48	0.15	253.9	0.31	0.11
	140.37	146.65	6.28	0.12	155.6	0.1	0.49
	201	203.2	2.2	0.2	154	0.2	1.08
FW0013	237	243	6	0.41	575.2	0.57	2.36
	256.1	265.4	9.3	0.1	270.6	0.36	3.35
FW0014	236.92	240.62	3.7	0.12	143.5	0.09	0.48
	266.15	271.02	4.87	0.04	76.1	0.18	0.84
	287	288.2	1.2	0.07	228	1.27	0.52
FW0015	42.29	43.09	0.8	0.1	118	0.6	0.53
	50.4	52.44	2.04	0.1	81.6	0.12	0.35
	55.59	56.69	1.1	0.09	152	0.04	0.04
FW0016	250.37	250.9	0.53	0.11	325	0.36	1.17
	268.56	270.14	1.58	0.27	136.2	0.24	0.23
FW0017	97.32	98.32	1	0.16	271	0.12	0.28
	113.73	114.73	1	0.11	391	0.27	2.06
	158.7	161.68	2.98	0.07	166.2	0.49	1.36
FW0018	154.84	158.14	3.3	0.14	251.9	0.17	0.4
	161.1	162.1	1	0.13	128	0.09	0.55
	183.1	183.9	0.8	0.26	322.8	0.48	3.18
	195.45	197.45	2	0.01	90.9	0.04	0.11
	208.35	209.15	0.8	0.11	1,930.50	1.08	2.21
	256.43	256.73	0.3	0.08	192.5	0.76	2.23
FW0019	223.92	232.77	8.85	0.09	338.47	0.52	0.78
	234.27	236.97	2.7	0.27	64.36	0.15	0.61
FW0020	NSR
FW0021	71.91	80.01	8.1	0.24	152.6	0.16	0.16
	91.1	92.1	1	0.1	620.5	0.47	3.2
	95.5	99.93	4.43	0.15	176.2	0.36	0.7
	110.8	111.16	0.36	0.14	2,100.00	9.31	5.8
FW0022	235.2	235.7	0.5	0.08	68
FW0023	281.2	282	0.8	0.04	66	0.043	0.14
	319	319.7	0.7	0.04	235	0.14	0.21
FW0024	86.5	87.6	1.1	0.18	234	0.1	0.08
	89.9	93.05	3.15	0.16	75.3	0.11	0.56
	103.07	104.79	1.72	0.13	126.4	0.08	0.28
FW0025	115.5	118.9	3.4	0.28	345.18	0.1	0.15
	182.85	198.2	15.35	0.17	329.81	0.52	0.99
FW0026	285.06	295.14	10.08	0.47	295.8	0.2	0.67
	301.14	306.39	5.25	0.06	236.4	0.42	0.8
FW0027	255.3	255.9	0.6	0.1	92	0.12	0.17
FW0028	277.11	277.47	0.36	0.06	292	0.13	0.68
	289.01	289.49	0.48	0.04	152	0.11	0.16
FW0029	268.87	270.92	2.05	0.11	97.1	0.08	0.21
	289.06	289.46	0.4	0.18	1,413.00	0.95	2.44
FW0030	181.53	182.53	1	0.51	281.5	0.44	1.82
	210	216.36	6.36	0.04	228.3	0.51	0.34
FW0031	108.2	114	5.8	0.38	55.3	0.05	0.24
	149.97	150.27	0.3	0.07	1,095.00	1.59	0.76
FW0032	95.87	96.68	0.81	0.31	855	0.49	1.79
	132.2	133.65	1.45	0.28	98.25	0.36	0.31
FW0033	135.31	135.89	0.58	0.03	228
	138.99	139.79	0.8	0.18	112.5	0.04	0.42
	143.2	143.66	0.46	0.07	498	0.27	0.27
	165.39	166.37	0.98	0.03	88	0.03	0.04
FW0034	87.8	89.8	2	0.44	161.8	0.08	0.2
	92.8	94.8	2	0.29	131.5	0.1	0.09
	97.7	98.7	1	0.2	65.27	0.09	0.03
FW0035	65	66.6	1.6	0.29	114.9	0.26	2.76
	73.8	78.8	5	0.22	439.55	0.4	0.99
	111.1	113.25	2.15	0.16	269.5	1.3	8.26
	117.6	118.5	0.9	0.13	181	1.08	4.84
FW0036	175.8	177.8	2	0.32	285.05	0.24	0.99
FW0037	117.6	119.6	2	0.69	67
	121.6	134.24	12.65	0.22	121.11	0.15	1.26
FW0038	303.01	304.18	1.17	0.1	81.5
FW0039	147.45	154.88	7.43	0.3	139.92	0.1	0.78
	172.65	173.73	1.08	0.13	95	0.18	0.22
	195.52	196.7	1.18	0.05	89	0.06	0.25
FW0040	185	187.9	2.9	0.13	581.52	0.96	0.54
FW0041	170.25	182.4	12.15	0.57	458.12	0.36	0.68
FW0042	130.8	134.55	3.75	0.2	123.76	0.02	0.03
	163.83	164.53	0.7	0.06	165	0.09	0.3
FW0043	198.7	199.2	0.5	0.01	133.5
	242.87	243.15	0.28	0.15	1,438.00	0.51	1.74
FW0044	205	207.3	2.3	0.35	407.22	0.21	0.33
FW0045	140.5	147.7	5.5	0.1	56.92	0.03	0.03
FW0046	259.34	261.08	1.74	0.29	343.51	0.37	3.24
	275.43	276.66	1.23	0.14	109	0.56	1.88
FW0047	NSR
FW0048	227.5	245.5	11.1	0.21	99.67	0.16	0.45
FW0049	230.03	231.03	1	0.15	115	0.02	0.06
	245.48	246.48	1	0.18	240	0.13	0.09
FW0050	248.37	251.38	3.01	0.24	599.09	0.52	0.75
	281.45	282.57	1.12	0.03	255	0.11	0.02
	308	309.06	1.06	0.02	160	0.24	0.36
FW0051	321.6	321.85	0.25	0.04	713	0.21	0.39
FW0052	221.4	227.3	3.4	0.08	148.29	0.1	0.03
	245.6	246.1	0.6	0.21	203	0.06	0.09
	278.45	279.35	0.9	0.3	444.5	0.11	0.37
FW0053	284.29	288.25	3.96	0.22	1,223.75	0.98	2.02
	300.55	302.02	1.47	0.1	501.52	0.19	1.14
FW0054	301.56	302.46	0.9	0.13	576	3.22	2.66
FW0055	194.89	197.63	2.74	0.17	126.17	0.06	0.25
FW 0056				NSR
FW0057	80.4	83.65	3.25	0.08	190.98	0.15	0.29
	97.53	98.66	1.13	0.39	463	0.99	6.06
	102.35	105.67	3.32	0.17	404.16	0.55	1.41
	119.75	120.7	0.95	0.1	223.5	1.26	0.58
FW0058	76.64	78.46	1.82	0.55	867.2	0.76	0.98
	112.72	113.32	0.6	0.05	148	1.25	0.1
	135.86	136.75	0.89	0.04	445	0.56	1.12
FW0059	224.92	233.47	7.85	0.19	160.96	0.23	0.4
	257.37	258.62	1.25	0.02	85	0.05	0.16
FW0060	176.11	176.69	0.58	0.18	287.5
FW0061	132.52	133.52	1	0.36	112	0.06	0.05
	148	149.5	1.5	0.04	348.5	1.01	0.17
	178.16	179.24	1.08	0.08	165.5	1.26	4.43
	204.43	207.2	2.77	0.06	386.2	1.66	3.5
	211.45	213.65	2.2	0.07	106.3	0.28	2.35
FW0062	222.24	226.34	4.1	0.34	268	0.07	0.21
	230.52	238.06	7.54	0.21	388.64	0.59	1.23
	261.04	264.48	3.44	0.19	233.57	0.28	2.55
	269.06	269.56	0.5	0.07	700	3.99	3.76
	284	284.58	0.58	0.1	173.75	0.58	1.76
FW0063	188.22	191.22	3	0.11	311.33	0.12	0.16
	199.22	200.22	1	0.08	308	0.18	0.26
FW0064	221.8	237	15.2	0.11	130.93	0.14	0.53
FW0065	262.5	264.5	2	0.16	113.8
FW0066	46.76	50.25	3.49	0.27	137.87	0.05	0.08
	55.05	55.51	0.46	0.1	440	1.14	3.43
FW0067	209.07	210.04	0.97	0.05	208	0.07	0.07
FW0068	266.59	267.59	1	<0.01	47
FW0069	285.08	286.42	1.34	0.07	180.5	0.08	1.3
FW0070	259.45	263.38	3.93	0.13	364.5	0.44	1.28
	264.8	265.44	0.64	0.06	41
	269.02	270.06	1.04	1.04	70
	284.94	285.74	0.8	0.06	616.5	0.61	0.11
FW0071	176.25	177.6	1.35	0.42	549	0.28	3.37
	183.05	188.05	5	0.38	164.7	0.1	0.45
	207.84	209.51	1.67	0.19	193.34	0.23	3.15
FW0072	130.86	137.52	6.66	0.39	208.33	0.12	0.36
	172.47	175.67	3.2	0.12	136.3	0.04	0.18
FW0073	190.86	191.21	0.35	0.35	10,429.00	4	5.72
FW0074	NSR
FW0075	176.42	177.22	0.8	0.03	505	0.98	2.51
FW0076	167.17	169.17	2	0.14	118.5	0.04	0.22
	195.59	198.84	3.25	0.08	1,143.80	0.42	0.55
FW0077	171	173	2	0.89	1,047.00	0.33	0.63
	178.1	179.2	1.1	0.53	405	0.09	0.28
FW0078	172.9	187.15	14.25	0.16	434.32	0.23	1.43
	194.82	196.98	2.16	0.11	153	0.1	0.8
FW0079	141.38	143.68	2.3	0.05	508.2	0.11	0.31
FW0080	123.08	124.28	1.2	0.21	188	0.06	0.11
FW0081	188.87	196.37	7.5	0.06	194.83	0.1	0.43
	202.98	204.08	1.1	0.08	107.5	0.42	2.03
FW0082	217.39	218.52	1.13	0.07	118.5	0.12	0.41
FW0083	196.46	204.11	7.65	0.42	314.18	0.12	0.51
FW0084	166.92	168.92	2	0.07	101	0.03	0.09
	191.12	193	1.88	0.15	95.61	0.2	0.31
FW0085	191.44	192.55	1.11	0.16	93.5	0.17	1.43
	205.6	211.7	6.1	0.28	293.9	0.21	0.39
	226.75	227.75	1	0.14	113	0.13	0.37
	245.88	246.88	1	0.25	108	0.12	0.43
FW0086	240	240.2	0.2	0.04	1,17.5.00
FW0087	230.61	230.89	0.28	0.23	1,171.50	0.42	1.75
FW0088	302.69	303.52	0.89	0.11	32
FW0089				Incomplete
FW0090	158.93	165.93	7	0.28	91.64	0.03	0.11
	223.15	230.96	7.81	0.11	557.49	0.27	1.28
	250.2	251.5	1.3	0.1	177	0.06	0.17
FW0091	241.9	242.75	0.85	0.11	26.1
FW0092	220.6	226.1	5.5	0.33	108.97	0.06	0.08
	255.5	256.4	0.9	0.9	377	0.25	0.49
FW0093	230.4	230.85	0.45	0.06	455.5	0.22	0.15
	245.8	248.55	2.75	0.06	126.63	0.42	0.66
	272.4	274	1.6	0.06	109.5	0.58	2.28
FW0094	239.93	240.93	1	0.25	334.5	0.15	0.65
	249.33	253.68	4.35	0.05	107.85	0.22	0.32
FW0095	197.97	201.6	3.82	0.38	204.51	0.02	0.02
	240.4	246.4	6	0.12	99.67	0.09	0.16
	260.75	261.55	0.8	0.07	196	0.06	0.22
FW0096	241.7	247.1	5.4	0.07	768.67	0.49	0.82
FW0097	224.6	248.4	3.8	1.68	54.53	0.04	0.12
	270.15	270.6	0.45	0.34	663.5	0.37	0.42
	287.55	288.65	1.1	0.08	103	0.23	3.41
	290.8	291.65	0.85	0.11	231	0.42	4.04
	314.25	317.9	3.65	0.1	84.39	0.19	3.48
	322.8	323.9	1.1	0.2	117.5	0.26	5.18
FW0098	260.02	261.47	1.45	0.16	54.34	0.07	0.18
FW0099	243.75	250.55	6.8	0.12	149.09	0.26	1.77
	260.03	263.4	3.1	0.18	200.63	0.3	3.49
FW0100				Incomplete
FW0100-1 *	176.22	177.22	1	0.63	55	0.02	0.01
	188.7	203.3	14.6	0.07	26.25	0.03	0.03
	270.4	271.4	1	0.03	63	0.04	0.07
	280.4	284.1	3.7	0.18	91.86	0.05	0.35
FW0101	240.48	241.48	1	0.01	151	0.01	0.01
	244.41	246.26	1.85	0.1	152.55	0.16	1.36
FW0102	122.43	125.76	3.33	0.37	1,602.89	0.42	1.16
	188.63	189.95	1.32	0.09	92.5	0.51	1.01
FW0103	218.65	219.65	1	<0.01	26.3
FW0104	217.36	220.30	2.94	0.14	275.61	0.18	0.47
	238.00	239.00	1.00	0.08	266.00	0.16	0.24
	246.00	249.95	3.95	0.14	377.90	0.87	1.87
FW0105	265.35	268	2.65	0.17	1,165.28	1.55	2.46
FW0106	242.45	244.45	2	0.09	57	0.3	0.42
	264.27	266.32	2.05	0.07	808.24	0.39	2.12
FW0107				NSR
FW0108	235.97	237.13	1.16	0.12	50	0.05	0.05
FW0109	284.42	287.2	2.78	1.27	65.1	0.06	0.25
	296.36	298.9	2.54	0.03	282.27	0.17	1.69
FW0110	281.5	287.5	6	0.41	118.52	0.06	0.44
	297.3	301.6	4.3	0.15	107.2	0.15	0.4
	315	319.7	4.7	0.08	655.69	0.71	0.6
	324.7	332.34	7.64	0.08	216.16	0.43	1.18
	353.5	355.3	1.8	0.07	168.11	0.49	1.11
FW0111	262.2	264.2	2	0.15	574	0.44	0.49
	295.1	295.85	0.75	0.05	267.5	0.3	1.98
	321.8	322.6	0.8	0.17	253.5	0.12	0.06
FW0112	258.2	259.5	1.3	0.05	165	0.06	0.13
FW0113				NSR
FW0114	181.24	184.48	3.24	0.07	372.58	0.54	1.72
FW0115	98.7	106.6	7.9	0.09	292.2	0.46	0.36
	124.58	125.65	1.07	0.45	1,456.50	4.5	10.73
FW0116				NSR
FW0117	92.81	98.81	6	0.24	233.92	0.15	0.52
	104.94	105.94	1	0.19	165	0.12	0.31
	113.98	116.21	2.23	0.06	209.41	0.48	0.93
	126.94	131.14	4.2	0.09	353.9	1.28	2.63
	153.59	156.89	3.3	0.04	412.67	1.08	2.05
FW0118	65.67	70.3	4.63	0.19	177.27	0.1	0.15
FW0119	101.28	103.23	1.95	0.2	472.95	0.84	3.3
	107.69	109.33	1.64	0.04	80	0.03	0.05
	116.72	120.4	3.68	0.21	354.13	0.71	1.41
FW0120	116.7	123.83	7.13	0.19	190.67	0.64	0.45
	128.7	131.98	3.28	0.23	265.46	1.2	2.19
	145.01	146.06	1.05	0.11	356	0.59	2.1
FW0121	107.3	110.3	3	0.13	173	0.1	0.38
FW0122	100.33	106.25	5.92	0.17	160.64	0.78	1.4
FW0123				Incomplete
FW0124	127.75	129	1.25	0.11	1,166.00	2.35	1.63
FW0125	165.95	170.18	4.23	0.1	93.03	0.33	1.77
FW0126	107.82	109.85	2.03	0.15	152.24	1.62	4.35
FW0127				NSR
FW0128*	128.1	129.77	1.67	0.14	81.01	0.4	1.43
	153.13	154.35	1.22	0.08	192	0.36	0.91
FW0129				NSR
FW0130	233.93	234.33	0.4	0.07	93	0.26	1.02
	236.5	238.1	1.6	0.04	173.44	0.55	0.54
	265.83	267.97	2.14	0.09	251	0.47	3.17
	283.06	284	0.94	0.07	346
FW0131	162.35	163.49	1.14	5.24	196	0.09	0.05
	168.61	171.44	2.83	0.28	130.31	0.13	0.2
	209.27	210.35	1.08	0.26	2,867.50	1.24	11.31
FW0132				NSR
FW0133	76.06	84.74	8.68	0.13	125.83	0.14	0.64
	114.35	115.45	1.1	0.14	409.5	1.12	3.26
	134.56	135.4	0.84	0.08	90	0.07	0.03
	152	155.4	3.4	0.05	95.28	0.73	0.19
	188.83	189.15	0.32	0.05	163	0.34	0.64
	211	211.7	0.7	0.09	238	0.89	1.32
	213.7	214.7	1	0.1	53	0.08	0.06
FW0134	185.65	186.3	0.65	0.09	1,196.00	1.69	2.19
FW0135*	85.18	111.87	26.69	0.09	87.50	0.13	0.47
FW0136	170.8	175.76	4.96	0.11	203.27	0.08	0.72
	209.7	211.7	2	0.11	74
FW0137	164.07	167.03	2.96	0.16	253.41	0.14	0.85
	214.05	214.76	0.71	0.07	502.5	0.74	0.66
	261.47	262.57	1.1	0.22	125	0.16	0.57
	296.15	296.46	0.31	0.1	119.5	0.07	0.28
FW0138	129.65	130.65	1	0.14	208.5	0.57	1.85
FW0139	135.1	136.1	1	0.45	56	0.01	0.04
	199.4	200.9	1.5	0.1	851.08	0.39	0.85
FW0140	119.05	122.45	3.4	0.17	286.81	0.16	0.32
	204.77	206.1	1.33	0.04	178.5	0.21	0.59
	208.45	210.18	1.73	0.12	116.36	0.61	1.83
FW0141				NSR
FW0142	193.71	194.71	1	0.07	91.5	0.06	0.18
FW0143	184.85	185.22	0.37	0.1	169.5	0.14	0.13
	254.87	255.72	0.85	0.03	193.5	0.15	0.38
FW0144	128.45	134.45	6	0.19	482.83	0.55	1.25
	142.45	143.45	1	0.06	75	0.19	0.32
	175.11	175.45	0.34	0.11	50	0.41	6.46
	220.54	221.54	1	0.02	65	0.23	0.28
	223.3	224.3	1	0.11	59	0.09	2.7
	229.45	229.85	0.4	0.07	218.5	0.25	2.44
	236.85	238.45	1.6	0.02	61.5	0.66	0.46
	265.25	265.95	0.7	0.15	54	0.34	3.64
FW0145	117	118	1	0.05	351	0.68	1.27
FW0146	284.05	284.55	0.50	0.11	117.50	0.76	3.10
	292.85	293.85	1.00	0.05	227.50	0.40	0.54
	300.75	301.75	1.00	0.01	118.00	0.04	0.01
	311.55	312.55	1.00	0.17	53.00	0.03	1.60
FW0147	43	83.3	40.3	0.14	241.4	0.09	0.29
	96.7	101.6	4.9	0.11	926.33	2.35	9.31
	104.6	108.5	3.9	0.07	893.19	1.72	9.79
	145.55	146.3	0.75	0.01	199	0.14	0.45
	150.14	152	1.86	0	284.13	0.38	0.33
	163.2	164.2	1	0	293.5	0.09	0.32
FW0148				NSR
FW0149	173.05	174.05	1	0.15	232.5	0.77	2.05
	232.03	232.45	0.42	0.02	318	0.93	1.54
FW0150				NSR
FW0151	223.3	224.1	0.8	0.08	101.5	0.24	0.24
FW0152	189.7	190.45	0.75	0.32	1,264.00	2.63	5.64
	197.33	208.45	11.12	0.15	108.45	0.4	0.66
FW0153	186.8	187.8	1	0.11	150	0.05	0.33
	190.8	191.8	1	0.08	127.5	0.12	0.33
	195.2	196.2	1	0.06	105	0.06	0.09
	255.7	256.7	1	0.01	89	0.06	0.18
	263.81	264.96	1.15	0.02	101	0.15	0.32
FW0154	182.15	184.55	2.4	0.37	724.56	2.2	4.36
FW0155	296.4	297.43	1.03	3.29	275.5	3	4.72
FW0156	169.65	170.65	1	1.3	2,142.00	0.58	1.33
	174.65	183.55	8.9	0.09	175.2	0.03	0.18
FW0157 **				NSR
FW0158	130.58	132.9	2.32	0.03	211.46	0.46	0.78
	136.28	140.17	3.89	0.15	74.95	0.23	1.09
	161.9	165.21	3.31	0.03	202.72	0.21	0.41
	182.89	183.86	0.97	0.14	156	0.24	1.28
FW0159	183.95	185.62	1.67	0.03	251.13	0.09	0.12
FW0160	85.85	96.3	10.45	0.2	105.84	0.08	0.24
	98.3	99.15	0.85	0.21	94.5	0.16	0.62
	101.85	102.85	1	0.12	57	0.08	0.63
	127.02	127.52	0.5	0.21	379.5	1.49	0.15
	156.03	156.3	0.27	0.28	458	0.44	1.02
FW0161	160.7	161.6	0.9	0.08	133.5	0.11	0.49
FW0162				NSR
FW0163	35.35	36	0.65	0.05	330.5	0.15	0.05
	47.6	48.4	0.8	0.16	366.5	0.09	5.18
	106	106.6	0.6	0.11	79	0.06	0.19
FW0164	92.35	93.2	0.85	0.06	168	0.14	0.4
	114.05	114.95	0.9	0.03	87	0.24	1.23
FW0165	195.03	196.03	1	0.15	427	0.37	0.97
FW0166	65.6	66.6	1	0.21	276	0.24	0.66
	69.6	70.6	1	0.4	308	0.28	0.85
FW0167	96.5	98.7	2.2	0.16	139	0.1	0.31
FW0168	28.57	46	17.43	0.29	185.35	0.07	0.2
FW0169				NSR
FW0171	87.7	94.7	7	0.05	88.89	0.13	0.59
	107.1	108.8	1.7	0.22	76.41	0.09	0.42
FW0172	111.4	143.95	2.7	0.59	183.67	0.11	0.79
FW0173				NSR
FW0174				NSR
FW0175	38.35	41.35	3	0.1	74.33	0.02	0.09
FW0176	73.87	76.87	3	0.06	98.17	0.02	0.1
	87.5	91.04	3.54	0.04	80.72	0.01	0.01
	129.3	140.74	11.44	0.04	89.5	0.07	0.13
	159.2	159.74	0.54	0.08	144	0.22	0.42
FW0177	139.3	141.3	2	0.37	1,468.25	0.16	0.27
	144.8	145.9	1.1	0.29	429.5	0.22	1.32
	156.44	156.9	0.46	0.09	169	0.11	0.56
	158.8	159.25	0.45	0.18	328.5	0.18	0.47
	182.7	183.7	1	0.25	115.5	0.08	0.18
	185.31	187	1.69	0.25	485.79	0.41	1.31
	193.8	196.8	3	0.21	159.67	0.07	0.16
FW0178	188.15	189.95	1.8	0.11	187.65	0.04	0.28
	193.1	194.2	1.1	0.05	123.5	0.07	0.33
	280.8	281.2	0.4	0.02	361.5	0.25	0.11
	288.78	289.68	0.9	0.08	112	0.41	1.83
FW0179	210.1	225.3	15.2	0.29	474.12	0.1	0.19
FW0180	218.2	218.5	0.3	0.13	79	0.03	0.3
	222.82	226.36	3.54	0.09	218.54	0.13	0.69
	242.91	243.66	0.75	0.02	88	0.02	0.03
	251.64	253.8	2.16	0.04	185.42	0.04	0.05
	257.75	260.14	2.39	0.17	448.99	0.89	5.59
	261.99	262.79	0.8	0.12	57	0.13	0.2
FW0181	233.56	234.31	0.75	0.23	64	0.03	0.48
	235.8	236.7	0.9	0.05	66	0.04	0.05
	245.6	250	4.4	0.08	116.66	0.4	0.6
	267.75	267.97	0.22	0.1	76	0.21	0.35
	282	282.16	0.16	0.1	1,999.50	1.46	0.04
	300.9	301.85	0.95	0.04	258.5	0.8	0.92
	304.1	305.15	1.05	0.19	135.52	0.47	0.94
	340.93	341.26	0.33	0.18	205.5	0.19	0.67
FW0182	189.5	195.5	6	0.64	304.5	0.17	0.32
	200.25	203.25	3	0.13	78.17	0.08	0.16
FW0183	198.8	199.3	0.5	0.03	343	0.58	0.86
	250.85	251.3	0.45	0.08	513.5	0.44	2.06
	256.6	257.25	0.65	0.16	628	1.01	3.02
	263.8	264.2	0.4	<0.01	142	0.01	0.3
	277.75	278.7	0.95	<0.01	54	0.06	0.12
	288.5	289.25	0.75	0.02	72	0.06	0.3
FW0184	25.35	27.35	2	0.39	117.25	0.02	0.02
	293.8	294.55	0.75	0.01	70	0.79	3.97
FW0185				NSR
FW0186	85.6	99.9	14.3	0.02	39.65	0.01	0.03
	117.5	119.3	1.8	0.15	105.5	0.04	0.14
	128.95	131.25	2.3	0.21	103.5	0.04	2.62
	137.33	138.45	1.12	0.07	79	0.1	0.52
FW0187				NSR
FW0188	127.05	127.85	0.8	<0.01	58	0	0.01
	132.65	133.65	1	0.03	54	0	0.01
	143.9	144.16	0.26	0.08	494	0	0.03
	248	249.35	1.35	0.02	114.37	0.16	0.06
FW0189	98.05	99.05	1	<0.01	65	0	0.02
	103.05	107.05	4	0	50.25	0	0.02
FW0190	121.7	121.8	0.1	0.12	258	0.45	2.67
	130.2	130.35	0.15	0.06	315	0.41	2.02
FW0191	68.3	69.3	1	0.83	52	0.08	0.34
	152.1	152.8	0.7	0.09	125	0.36	1.43
FW0192	53.05	55.8	2.75	0.15	124	0.01	0.04
	66.3	72.1	2.5	0.15	89.56	0.02	0.04
	161.74	164.24	2.5	0.13	361.33	0.22	0.61
	169.24	171.2	1.96	0.26	388.78	1.29	3.26
	203.07	208.25	5.18	0.18	469.3	1.3	2.93
	215.4	215.72	0.32	0.14	934	0.45	1.49
FW0193	55.11	56.2	1.09	0.39	154	0.04	0.09
	72.83	73.17	0.34	<0.01	647	0.25	0.46
	78.13	79.38	1.25	0.13	89.6	0.06	0.15
FW0194	256.2	256.3	0.1	0.08	318	0.22	0.05
	295.5	295.9	0.4	0.05	105	0.6	0.58
FW0195	95.2	113.85	6.1	0.33	49.83	0.01	0.06
	161.35	165.35	4	0.1	229.5	0.83	0.6
	238.66	238.97	0.31	0.1	152	0.1	1.69
	252.55	253.55	1	0.35	168	0.12	6.06
FW0196	72.6	74.03	1.43	0.58	121.62	0.15	0.49
FW0197	130.6	133.9	0.8	0.21	145	1.04	3.02
	163.8	167.3	1.3	0.85	216.77	0.25	0.5
FW0198	101.1	110.45	6.78	0.18	79.03	0.02	0.04
	130.5	131.6	1.1	0.07	104	0.04	0.24
	205.85	206.85	1	0.18	385	0.35	2.45
	241.7	243.2	1.5	0.17	521	0.54	0.66
	262.8	263.5	0.7	0.03	198	0.36	0.52
FW0199	56.8	57.8	1	0.04	50	0.02	0.02
	68.7	69.7	1	0.02	50	0.02	0.12
	104.3	112	2.1	0.07	121.33	0.02	0.05
	120.6	120.9	0.3	0.06	56.1	0.01	0.01
	142.36	143.36	1	0.03	101	0.08	0.11
	154.4	156.4	2	0.38	306.58	0.25	5.08
	186.4	188.25	1.85	0.01	64.57	0.07	0.17
FW0200	97.75	102.95	5.2	0.17	316.44	0.3	0.57
FW0201	13.1	14	0.9	1.84	37	0.16	0.01
	272.6	273.35	0.75	0.06	71	0.08	0.86
FW0202	19.05	20.05	1	0.06	84	0.03	0.15
	142.8	143.5	0.7	0.13	124	0.02	0.03
FW0203				NSR
FW0204	91.6	94	0.5	0.54	149.7	0.05	0.08
	101.45	107.4	2.05	1.21	70.64	0.06	0.07
	140.81	144.95	4.14	0.09	105.13	0.15	0.41
	165.8	166.8	1	0.23	173	0.03	3.5
	278.09	281.65	3.56	0.07	43.18	0.05	0.03
FW0205	18.14	26.34	8.2	0.1	87.48	0.03	0.08
FW0206				NSR
FW0207				NSR
FW0208	130.28	130.5	0.22	0.03	176	0.03	0.06
	173.9	175.1	1.2	0.1	356	0.13	0.84
FW0209	86.5	86.7	0.2	0.19	108	0.06	0.05
	249.65	250.7	1.05	0.03	243	0.22	0.27
FW0210				NSR
FW0211	34.6	44.05	8.35	0.3	41.25	0.02	0.03
	185.1	185.95	0.85	0.05	51.2	0.11	0.08
FW0212	41.52	45.93	1.91	0.06	111.12	0.03	0.15
	58.7	62.1	3.4	0.03	48.53	0.02	0.1
	68.35	68.7	0.35	0.21	362	0.28	0.08
	246.68	247.2	0.52	0.04	61	0.04	0.15
FW0213				NSR
FW0214	402.64	403.84	1.2	0.25	154	0.61	4.17
FW0219				NSR
FW0220	75.9	77	1.1	0.03	62	0.01	0.03
	79.8	81.9	2.1	0.32	50.52	0.03	0.07
	86.1	94.05	7.95	0.12	203.86	0.13	0.11
	121.8	124.9	3.1	0.11	180.87	0.08	0.59
	135.8	136.1	0.3	0.03	97	0.04	0.23
FW0221	43.9	44.2	0.2	0.25	1079	0.18	0.44
	57.4	57.6	0.2	0.07	616	0.67	0.3
	119.87	120.05	0.18	0.86	3107	1.69	2.67
FW0223	83.1	84	0.9	0.02	155	0.14	0.84
CK2002*	184.42	188.3	3.88	0.18	152.37	0.03	0.07
	205.4	213.3	7.9	0.16	264.55	0.13	0.25

Fuwan Silver Belt: Soil Anomalies Map



Fuwan Silver Belt: DDH on Soil Ag & GxT Map



Fuwan Silver Belt: DDH on Magnetics Map



Fuwan Silver Belt: DDH on Geology Map

Preliminary Economic Assessment

Minco Silver released the results of a Preliminary Economic Assessment (PEA) on October 22nd, 2007. The report was completed by independent engineering firm SRK Consulting and concluded that the Fuwan Silver Project, based on available information, is technically and economically viable as an underground mining operation.

The PEA is based on the results up to Minco Silver's phase 3 drilling program completed in January, 2007, and does not take into account the Phase IV or V programs. Further, the mineralization that lies within the Changkeng permit has not been included (51% ownership of 8.0 million tonnes yielding 4.1 million tonnes inferred, averaging 142 g/t Ag, for an additional 18.7 million ounces of silver).

Highlights of the PEA are provided below:

• Processing rate of 2,500 tonnes per day with a 12 year mine life
• Average annual silver production of 4.9 million ounces
• Cash cost per ounce of silver US$ 2.40
• After tax IRR 38% and NPV US$ 113.3 million @ 8% annual discount rate
• Drift and fill mining method with 90% ore recovery and 12% dilution
• Pre-production capital costs of US$ 56.9 million
• Payback of pre-production capital in 1.7 years from the start of production

A Summary of the PEA is provided below:

Economic Indicator	Unit	Value
Total revenue	US$M	712.8
Total pre-production capital cost	US$M	56.9
Total operating cost	US$M	312.8
Total tonnage mined	Mt	9.7
Cash operating cost	US$/t milled	29.02
Cash cost	US$/ oz produced	$2.40
Total silver production	M oz	58.8
Total project cash flow	US$M	320.9
Income tax payable	US$M	79.8
Royalty payable	US$M	26.0
Total net after-tax cash flow	US$M	241.1
NPV@ 8% annual discount rate	US$M	113.3
NPV@ 10% annual discount rate	US$M	94,3
NPV@ 12% annual discount rate	US$M	78,4
Internal rate of return	%	38
Payback period	Year	1.7

Sensitivity Analysis

The project cash flow is sensitive to silver price, operating cost, capital cost, and other variables. As may be expected, the price of silver is the most sensitive since about 80% of the projected revenue is from silver.

Silver price sensitivity is provided in the table below:

Silver Value (US$/tr oz)	NPV @ 8% (million)	DCF-IRR
7.00	18.0	14%
10.00	74.0	29%
12.00	111.3	38%
14.00	148.6	46%
16.00	186.0	53%
18.00	223.3	60%
20.00	260.6	67%
22.00	298.0	74%

View The Complete News Release in PDF Format:

File:  http://www.mincosilver.ca/i/pdf/2007-10-22_NR.pdf   61 KB, approx. 12 seconds at 56.6Kbps