Canada Hilway Metal Co., Ltd. inspected the mine, and after cataloging the privately-mined roadway, it was found that along the strike and tendency of the ore-bearing structural fracture zone, the ore body pinches out and reappears. Along the vein tunnel, the cumulative length of small ore bodies is about 300 meters per kilometer. For this extremely thin and unstable ore body, the exploration scheme proposed by Canada Sylvie Metal Co., Ltd. is to explore resources/reserves mainly by controlling the position of the fracture zone of ore-bearing structure with pit drilling and controlling the ore body with tunnel.
The Chinese partner and prospecting right owner, Henan Nonferrous Metals Geological Exploration Bureau, has a strong sense of openness and follows the operating rules of commercial mineral exploration. It took only two months to reach a joint venture agreement with Victor Mining Company, a wholly-owned subsidiary of Yinlu Metal Co., Ltd., and established Henan Fahlander Mining Co., Ltd. in April 2004. The Chinese side invested 54.2 square kilometers in the exploration right of Shagou West, accounting for 22.5% of the rights and interests, and the foreign side invested 3.76 million US dollars in cash, accounting for 77.5% of the rights and interests after completing the investment period. According to the joint venture agreement law, the value of exploration right is 165438+ ten thousand dollars, about 9.06 million yuan.
As soon as Henan Fallunde Mining Co., Ltd. was established, it immediately put into rapid exploration. From April 2004 to August 2006, * * * invested 30.304 billion pounds in drilling and 37.053 billion pounds in pit exploration. On the 13 vein, the estimated and determined resources are 8 1. 1 10,000 tons of ore, containing silver 1.535g/ ton, lead 26.48% and zinc 8.6 1%. The estimated mineral resources are 65438 0264000 tons, including 65438 0426 g/ton of silver, 25.47% of lead and 8.39% of zinc. Accumulated resources at all levels have been found, including 3022 tons of silver, 532,000 tons of lead and 6,543.8+074,000 tons of zinc.
During the exploration period, investment institutions bought 500,000 shares and 654,380,500 shares of the company at the price of10.5 on February 5 and February 22, 2005 respectively, and bought 2 million shares of the company at the price of $3.2 on August 3, 2005. Raise 9.4 million Canadian dollars for exploration. At the same time, the corresponding share options were placed. Due to sufficient exploration funds, Hilway Metal Co., Ltd. completed the investment in the stock return period ahead of schedule and obtained 77.5% rights and interests of Henan Fahlander Mining Co., Ltd.
In the exploration stage, according to the grades of silver, lead and zinc in Shagouxi deposit, Sylvie Metal Co., Ltd. made a rough economic evaluation according to the grades of silver, lead and zinc, and decided to make a decision according to silver 10.94 Canadian dollars/ounce, gold 2610.4 Canadian dollars/pound, lead 0.66 Canadian dollars/pound and zinc/kloc-. It is expected that the profit level will be higher after development. In April 2005, three mines started construction. In July, 2005, Changsha Nonferrous Metals Research Institute began engineering tests such as mineral processing. In February 2006, the environmental assessment report of mining was adopted, and South African mining engineers were invited to design a mining scheme suitable for extremely thin ore bodies. On March 30, 2006, the mining license was obtained and the mine was put into production.
It took only two years from the beginning of exploration to the mine's production. In the second quarter after the mine was put into production, that is, in the third quarter of 2006, dividends were distributed to shareholders holding shares in Sylvie Metal Co., Ltd., with a share of 0. 1 1 Canadian dollar. The commissioning of the mine prompted the company to further expand exploration, acquired two mining rights, such as Houpinggou, which is adjacent to Shagou West Mining Area, and built a 600-ton/day concentrator.
Due to the good performance of Sylvie Metal Co., Ltd., mining analysts gave the company a good evaluation. Choose partners with strong market awareness and openness awareness; According to the occurrence characteristics of mineral deposits, break through the requirements of relevant codes in China, choose appropriate exploration methods and carry out exploration according to local conditions; At the initial stage of exploration, make overall economic evaluation and make reasonable exploration decisions; Large-scale rapid exploration, after quickly controlling some rich mineral resources, do a good job in mine development and plant selection in advance, and quickly turn to mine mining; The company's cash flow changes from negative to positive, and there is no need to raise funds to maintain exploration. This company changed from a primary exploration company to a mining company. Mining revenue supports the company to expand exploration and development; Shareholders who invest in primary exploration companies get dividends in advance. This has become a new model for the development of first-class exploration companies. The company's stock rose from 0.4 ~ 0.5 Canadian dollars/share in the third quarter of 2004 to 17 ~ 20 Canadian dollars/share in the fourth quarter of 2006, an increase of about 40 times (Figure 10-3). Investors of Silverway Metal Co., Ltd. have gained high-risk excess returns. Feng Rui, Chairman and CEO of Silver Metal Co., Ltd., received his bachelor's and master's degrees in geology in China and his doctorate in Canadian. From 1995, we began to explore the road of Sino-foreign joint venture exploration and development of minerals, and persisted in the low tide of global exploration in 1997-2003. His concept of mineral exploration and development under market conditions, special perspective of project selection, practical experience of exploration and development in China and rapid decision-making methods are worth learning from other exploration companies.
On June 5438+February 18, 2006, the main board of Toronto Stock Exchange listed Silvermetal Co., Ltd. as a company to calculate the global Standard & Poor's Index. Sylvie Metal Co., Ltd. is the most successful first-class exploration company invested by Canadian mining industry in mineral exploration in China, and its performance has played an exemplary role, encouraging other first-class exploration companies and investors to invest in mineral exploration in China.
Figure 10-3 Share price of Sylvie Metal Co., Ltd. (listing code SVM)