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By: AllPennyStocks.com
With all the attention focused on gold this year – and the stratospheric price
levels that shiny, yellow metal achieved – silver appears to have taken a back
seat. Just before Christmas, and just before Olympic season, when athletes will
vie for gold, silver and bronze, favourable news reached the public regarding
Orko Silver Corporation (TSX-Venture: OK), based out of the Olympic city of
Vancouver.
Only nine days before mistletoe and holly dominated the landscape, OK joined
with Pan American Silver Corporation (NASDAQ:PAAS) for a joint project on which
they were both working on in the Durango area of Mexico. It was there that phase
one metallurgical testing conducted on representative samples of the different
veins at the La Preciosa joint venture project in Durango, Mexico had made eyes
pop and jaws drop.
Pan American, also headquartered in Vancouver, has completed a first-phase
detailed metallurgical program, which included work index tests, abrasion tests,
mineralogical studies, gravity tests, floatation tests and cyanide leach tests.
The program was a follow-up to the preliminary testing conducted in 2008 by OK.
Additional flotation studies are still underway.
It was found that simple cyanide leaching yielded average silver recoveries of
91%. This, even though the use of selective oxidants could further enhance these
results. What’s more, PAAS has been successful in reducing cyanide consumption
to 1.6 kilograms per ton (kg/t), which is a fair amount lower than the results
from the metallurgical work previously completed by OK. Lastly, the current test
work has shown that with the use of oxidants, the leach cycle times can be
reduced to 48 hours with minimal impact on ultimate silver recovery.
The December news provides evidence of further momentum from drilling throughout
the year. In November, OK reported encouraging yields from La Preciosa. One
diamond drill hole yielded 15.65 metres grading 0.579 grams per ton (g/t) gold
and 439.4 g/t silver for a silver-equivalent of 474.1 g/t. Included in this hole
is an interval of 5.85 metres grading 1.146 g/t gold and 942.0 g/t silver for a
silver-equivalent of 1,010.7 g/t. One hole showed 16.89 metres grading 0.441 g/t
gold and 225.3 g/t silver for a silver-equivalent of 251.8 g/t.
This momentum has been reflected in the upward journey taken by the stock’s
price, a trip small-cap investors ignore at their peril. The day before the
latest news was announced from Durango, the stock hit its 52-week high of $1.25,
a stark contrast to its gulch of 36.5 cents hit just before last Christmas. If
more of these results pan out over the winter, this stock could turn into a hot
buy, and a more expensive one.
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