Silver Stocks

News on Silverstone

VANCOUVER BC, -  SILVERSTONE RESOURCES CORP. (“Silverstone”) and CAPSTONE MINING CORP. (“Capstone”) is pleased to announce that Silverstone has completed its initial public offering by way of distribution as a dividend-in-kind to the shareholders of Capstone. The dividend-in-kind was paid on the basis of one unit of Silverstone for every three shares of Capstone held.  The units consist of one common share in the capital stock of Silverstone and one half of one transferable share purchase warrant to purchase common shares in the capital stock of Silverstone.  Delivery of the units of Silverstone will be made by Silverstone’s transfer agent to all registered shareholders of Capstone, provided that for certain shareholders resident in the United States the units will be held in trust until dividend entitlements can be distributed in accordance with applicable U.S. federal and state securities laws.  Delivery of Silverstone’s common shares to shareholders of Capstone holding shares through broker-dealers will be conducted through the applicable securities depositories.

Posted by Mike – June 5, 2006 – 12:53

Silvercorp Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - Silvercorp Metals Inc. ("Silvercorp) (TSX:SVM - News) is pleased to report the completion of an update of the mineral resources at the Ying mine. The National Instrument ("NI") 43-101 Technical Update Report (the "Resource Report") dated May 26, 2006 supplements the Scoping Report completed April 18, 2006. This Resource Report almost doubles the Measured + Indicated mineral resources and more than doubles the Inferred mineral resources previously reported.

The Resource Report estimate is summarized below:

The current estimated mineral resources of Silver (Ag), Lead (Pb) and Zinc (Zn) in parts of 14 veins explored to date at the Ying mine in grams per tonne (g/t) and Troy ounces per metric tonne (oz/t) are as follows:

Summary of mineral resource estimates at the Ying mine - 26 May 2006

Posted by Mike – May 31, 2006 – 18:08

Great Capstone News

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 25, 2006) - CAPSTONE MINING (TSX:CS - News) is pleased to report the recent progress at its Cozamin copper-silver-zinc mine located in Zacatecas State, Mexico.

Highlights

- Construction is 95% complete with mill and plant testing currently underway.

- Commissioning is planned to begin June 1.

- Total cash on hand will be US$20.0 million after all construction costs are incurred.

- Estimated average annual metal production is 16 million lbs of copper, 700,000 oz of silver and 4 million lbs of zinc at 1,000 tonnes per day.

San Roberto Mine

Four stopes are being developed for mining (2 are complete) and producing ore. These stopes are located on the east and west side of level 8 and central and east side of level 9. On level 9, an additional 30 m of drifting to the east will be completed by the end of May. Development on level 10 has commenced with drifting both east and west on this level. To date, 15,000 tonnes of ore have been stockpiled on surface.

Posted by Mike – May 25, 2006 – 20:18

Where's the Market Heading Next?

This correction we've had for a week or two now has really begun to unveil some nice bargains. Many stocks are down 30-50% from their highs. Like I said, I think we might have a bounce this week but will go lower and/or sideways until around august.

Let me now highlight some other people's opinions:

Clive Manud :

The action on Friday was characteristic of a reversal and it was sector wide with Reversal Days showing up in the charts of the gold stock indices and many gold and silver stocks. The action in the metals themselves was less convincing, with silver looking like it had bottomed, at least for now, but gold itself looks rather ambiguous.

Even before they started to head south in earnest, Precious Metals stocks were seriously underperforming gold and silver, and as soon as the metals broke down, stocks caved in. The flip side of this relationship is that we can expect PM stocks to hit bottom ahead of the metals, and, when the time comes, we should be on the lookout for this as a great buying opportunity. On a trading basis we appear to be at a buy spot now, and some of the stronger stocks may not drop below the current lows. We should remain aware that while the metals are likely to drop to lower levels after a near-term bounce, stocks may not drop below current levels, or if they do, not by much.

Posted by Mike – May 22, 2006 – 20:58

Silverstone Situation

Perhaps some of you (like me) decided that the Capstone spinoff of Silverstone might be a good investment.

So far it is not looking very nice for Capstone for reasons that I cannot understand.

I have done the due diligence and cash flow analysis for them and they look extremely cheap to me. In my opinion they should be a $10 stock, not one struggling at $1.50.

But the markets are never rational so it may take some time for the market to value Capstone as it should be. At these levels in the $1.40 range are looking very nice. However, there could be further downside. I don't know how much but if it hits a dollar (in worst case?), I think that is a sreaming buy! 

But keep in mind that as long as you bought at the right time, you will soon be getting Silverstone shares and warrants. The great thing is that Silverstone shares will be only held by the people who held Capstone shares.

Because of the low float of about 24 million shares that could be held tightly, I think Silverstone, on a single piece of good drill results could really soar.

Posted by Mike – May 18, 2006 – 11:05
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