|January 25, 2006|
Minco Silver Aquired Additional 30% Interest on the Fuwan Silver Project
|Minco Silver Corporation (the "Company" or "Minco Silver") (TSX: "MSV") is pleased to announce that it has signed an agreement with Guangdong Geological Exploration and Development Corporation (GGEDC) to acquire GGEDC's 30% interest on the Fuwan Silver Project (the "Project"). To acquire the additional 30% interest on the property, Minco Silver will pay the GGEDC an additional 30% of the evaluated value (10.33 million RMB, or about C$1.6 million) of the Fuwan Deposit. With the current existing 70% interest owned by Minco Silver, the Company now owns 100% of the interest on the whole Fuwan Silver Project, including a total of 4 exploration permits covering a total of 205.63 km2 and the Dadinggang Application. Minco Silver will be responsible for 100% of the exploration and development expenditures on the Fuwan Silver Project, while GGEDC will retain a 10% net profit interest. |
Since Minco Silver owns 100% of the Project, the Company will not proceed with the incorporation of the joint venture company for the Project. Minco Mining (China) currently holds all the above exploration permits on behalf of Minco Silver.
According to the NI 43-101 report prepared by Qualified Persons, Eugene Puritch, P.Eng. and Tracy Armstrong, P.Geo. of P & E Mining Consultants Inc., of Brampton, Ontario, the Fuwan Silver Project hosts an Inferred Resource of 20,378,000 tonnes grading 181g/t Ag, 0.33g/t Au, 0.21% Pb and 0.67% Zn. Silver content is 118.4 million oz. The resource estimate uses a cut-off grade of 75 g/t Ag. An additional resource was calculated on the adjacent Dadinggang area (0.395 km2), which covers the northeast extension of the Fuwan Silver deposit. Minco Mining (China) Corporation ("Minco China") has applied for an exploration permit (the "Daginggang Application") on the area in August 2005, which is currently in the approval process with the Ministry of Lands and Resources. Utilizing a 75 g/t Ag cut-off grade, the inferred resource for this area is estimated as 2,047,000 tonnes grading 171 g/t Ag, 0.59 g/t Au, 0.32% Pb and 0.65% Zn. Silver content is 11.25 million oz.
The Company would also like to announce that the drilling program on the Fuwan Silver Project is progressing very well with three drill rigs. Four holes have been completed so far and assay results are pending.
This news release has been reviewed and approved for release by William Meyer, P.Eng. Chairman of the Board, and designated Qualified Person.
About Minco Silver
Minco Silver Corporation is a TSX-listed company focusing on the acquisition and development of silver dominant projects in China. The Company is the exclusive vehicle for pursuing silver opportunities in China pursuant to a strategic alliance agreement between Minco Mining and Metals Corporation (TSX:MMM) and Silver Standard Resources (TSX:SSO). For more information on Minco Silver and its properties, please visit the website at www.mincosilver.ca or contact Robert Tyson, Investor Relations Manager at 1-888-288-8288 or (604) 688-8002 firstname.lastname@example.org.
ON BEHALF OF THE BOARD
"Ken Z. Cai"
President & CEO
The Toronto Stock Exchange does not accept responsibility for the accuracy of this news release. Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. The Company undertakes no obligation and has no intention of updating forward-looking statements.
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