Shares in Minco Silver gained 5.22% yesterday possible due to a combination of the recent press release by the company and higher silver prices.

In the release a couple of days ago, Minco Silver said that they were continuing to advance hydro-geological studies at their Fuwan project. Source

We consider the Fuwan project in China to be an excellent project, which is somewhat undervalued at the moment.

The Fuwan deposit has 128.2 million ounces of indicated and inferred silver at a grade of 185 g/t Ag. Minco is currently trading at a market cap or about C$75 million or about US$71.89.

Therefore Minco is currently trading for US$0.56 per ounce of silver in the ground and with currently silver prices above $13.00, we see buying Minco shares now to be very profitable when this project goes into production and sells into $13+ silver prices.

With this in mind we continue to own shares in Minco Silver and keep the stock as a BUY in our silver stocks portfolio.

Minco Silver trades as MSV on the Toronto Stock Exchange.