Full value
Lundin says Silvercorp has yet to reach full value
2005-09-01 19:54 ET - In the News
In the August, 2005, edition of the Gold Newsletter, Brien Lundin continues to advise picking up Silvercorp Metals Inc. shares on weakness, arguing that the current lofty share price has yet to reflect its true value. Mr. Lundin said buy Silvercorp, now trading at $3.75, four times between June, 2003, and March, 2005, at prices ranging from 71 cents to $2.48. An investment of $1,000 each time would now be worth a whopping $12,783.75. The newest assays from the company's flagship Ying project in China continue to wow the gold stock guru. The S16W vein hit 9,278 g/t silver, 33.5 per cent lead and 4.91 per cent zinc over 0.9 metre. S16E cut 2,070 g/t silver, 79.85 per cent lead and 1.43 per cent zinc over one metre. The S4, S7 and S8 also turned in high silver and lead grades just before the Gold Newsletter went to press. As Mr. Lundin likes to point out, Ying's current mother lode only comprises a portion of the property. The company's find lies within only 10 per cent of the project's land area, suggesting a lot of blue sky potential. Meanwhile, Silvercorp is financing much of its exploration costs by selling the ore directly to a nearby smelter. Mr. Lundin keenly follows Rui Feng, once president of Pacific Mineral Inc., a past Lundin pick.