Wednesday, February 24, 2010

Silver Standard Resources (NASDAQ:SSRI) Silvertip Property

Silver Standard Resources (NASDAQ:SSRI) Silvercorp Metals (NYSE:SVM)

Silver Standard Resources (NASDAQ:SSRI) has sold its stake in its Silvertip property to Silvercorp Metals (NYSE: SVM) for C$15 million. The property includes silver, lead and zinc. The terms of the deal was half in common shares of the company and the other half in cash.

“The Silvertip project ranks among one of the highest grade silver-lead-zinc carbonate replacement deposits in North America — with great potential to grow,” said Rui Feng, Silvercorp chairman and chief executive.

The lead could be especially rewarding, as it had a concentrate grade of 65 percent and 80.4 percent was deemed as recoverable in a test a couple of years ago.

Another factor is lead for batteries continues to be in strong demand, while there are only about 7 lead mines in the world to provide it.

Silvercorp wil perform its own due diligence before the deal is officially completed in a couple of days.

Silver Standard Resources (NASDAQ:SSRI) Silvercorp Metals (NYSE:SVM)

No comments: