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« TWENTY OZS OF ENDEAVOUR SILVER HAS BEEN WON | Main | SK OptionTrader Banks 38.66% Profit In 13 Days »

Silver Wheaton Corporation Reports 9% Increase In Attributable Reserves

Just in case you missed this news release from Silver Wheaton Corporation (SLW) has announced that attributable proven and probable reserves increased by over nine percent in 2010, as a result of an increase of 80 million ounces of silver and 23,000 ounces of gold, to a record 954 million silver equivalent ounces1. Over the same period, attributable measured and indicated resources increased by one percent, as a result of an increase of four million ounces of silver and 22,000 ounces of gold, to 377 million silver equivalent ounces. Attributable inferred resources increased by 22%, as a result of an increase of 89 million ounces of silver, to 497 million silver equivalent ounces.

"We are very proud to announce our sixth consecutive year of strong attributable silver reserve and resource growth," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "More importantly, on a per share basis, attributable silver reserves have increased in every year since the company's inception in 2004, growing at an annualized rate of 36%, and resulting in the creation of significant shareholder value."

Silver Wheaton's increase in 2010 attributable reserves was a combination of acquisition and organic growth. The Company acquired 100% of the life of mine silver and gold production from Augusta Resource Corporation's Rosemont Copper Project located in Arizona, which increased attributable reserves by approximately 7%. In addition, continued exploration success at the mines from which Silver Wheaton purchases its silver led to another year of strong organic reserve growth, more than replacing reserves mined during the year.

The table below summarizes the growth in attributable silver reserves year over year. Year end reserve and resource updates for the Cozamin, Campo Morado and Aljustrel mines are forthcoming and have not been included in this calculation.

Proven and probable silver reserves as of Dec. 31, 2009: 861.8Moz
Net acquisitions during 2010: 62.9Moz
Mined ounces during 2010 (includes silver lost to process): (50.6)Moz
Organic reserve growth during 2010: 67.9Moz
Proven and probable silver reserves as of Dec. 31, 2010: 942.0Moz
Proven and probable gold reserves as of Dec. 31, 2010*: 248koz
Total proven and probable silver eq. reserves as of Dec. 31, 2010: 954.4Moz

With silver stream agreements relating to 16 operating mines and three development stage assets around the globe, Silver Wheaton now has more silver reserves and resources than any other silver company in the world. In addition to completing accretive acquisitions, consistent strong organic reserve growth from the mines underlying our agreements has resulted in Silver Wheaton having one of the highest-quality reserve and resource bases in the precious metals industry. Our core assets continue to replace reserves mined each year, a testament to the very high-quality, long-term sustainability of these mines.

* A gold/silver ratio of 50:1 was used to calculate silver equivalent ounces

Based upon its current agreements, forecast 2011 attributable production is 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. Beyond the initial upfront payment, no ongoing capital expenditures are required to generate this growth and Silver Wheaton does not hedge its silver production.

A quick look at what the some of the other analysts have to say is as follows:

24th March 2011
Silver Wheaton Target Raised To $50 From $48 By RBC >SLW

23rd March 2011
Silver Wheaton Cut To Hold From Buy By GMP >SLW
Silver Wheaton Target Raised To $45 From $36 By GMP >SLW

Thomson Reuters – Neutral.
Market Edge Second Opinion – Long

Our target remains unchanged at $100.00.

The Company plans to file its 2010 Annual Information Form on or before March 31, 2011 on SEDAR and by way of Form 40-F with the Securities and Exchange Commission.

Silver Wheaton Corporation trades on the NYSE and in Toronto under the symbol of SLW. The market capitalization is $15.45 billion, a P/E Ration of 69.98, with 52 week low of $14.83 and a high of $46.38, closing at $43.80 yesterday.

PS: Over at we have just closed another winning trade in the options market, banking a profit of 38.66% on this trade in just 13 days.

Our model portfolio is up 140.79% since inception, Average return of 41.23% per trade, 68 closed trades, 66 closed at a profit, or a 97% success rate. Average trade open for 42.76 days.

A gentle reminder for those of you who are still thinking about it, prices will double as of 2nd April 2011, but will remain as is for existing subscribers, join us now while this bargain lasts.

sk chart 25 March 2011.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

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