May I Inform You Of A Possible Discovery Of Silvercorp Junior?

Yes, that's right!

I have found a stock that really reminds me of Silvercorp, my current favorite Silver Stock.

Yes, it's a Silver explorer and yes it's properties and focus is on China. The company is called Minco Silver.

Here is a quick description taken directly from their website:

Minco Silver is a Canadian mining company involved in the direct acquisition and development of high-grade, advanced stage silver properties in China. Our focus is to acquire a large portfolio of silver dominant properties in China in the shortest time possible.

Minco Silver's primary focus is our Fuwan Silver Property:

* World-class resource: 129.8 million oz silver inferred.
* 22.4 million tonnes @ 180 g/t Ag

Note: NI43-101 Report completed November 2005

Minco Silver's Mission

To Become China's Leading Producer of Silver

Recent Development Highlights

* Acquired the Fuwan Silver Deposit in 2004
* Formed Strategic partnership with Silver Standard Resources (SSO)
* Completed Cdn$8.3 million financing, including Cdn$3.2 million from SSO
* Completed 43-101 Report - November 2005
* Listing on TSX November 2005 ("MSV")
* Acquired remaining 30% of Fuwan Silver Project

Minco has one large property (just like silvercorp) on which they hope to strike silver: The Fuwan Silver Project.

Here is the information they give in regards to this property on their website:

Location

The Fuwan Silver Project is located approximately 45 km southwest of Guangzhou, the capital city of Guangdong Province, China and is adjacent to Minco's Changkeng Gold Property. The project is located close to well established water, power and transportation infrastructure.

Ownership

The Nanling JV is to acquire the Fuwan Silver property exploration permit, through Minco China, from No. 757 Exploration Team. The value of the exploration permit has been appraised at 10,330,000 RMB (approximately $1.52 million) by an independent valuator, and confirmed by the Ministry of Land and Resources of China. The Nanling JV is to pay the 10,330,000 RMB for the exploration permit in three installments within 24 months of the title transfer. The balance will be used for project exploration and feasibility studies on the Fuwan mine property

On April 7, 2005, Minco China received three Reconnaissance Survey Exploration Permits from the Ministry of Land and Resources of China, which are adjacent to the Fuwan permit and cover a total 20,515 ha. These permits cover all the prospective ground along the northwest-trending Fuwan silver belt, which extends northwest and southeast of the Fuwan silver deposit and Changkeng gold deposit. Several gold-silver soil anomalies are present within these permits and major silver showings were discovered in the Luzhou and Dieping areas through the systematic follow-up of the geochemical anomalies. The third permit covers silver-copper-lead-zinc occurrences located near the southern margin of the Sanzhou basin. These showings have received only limited exploration.

Background

Silver and gold were discovered in the area in early 1990 by systematic follow up of stream sediment and soil geochemical anomalies identified from surveys completed by the Guangdong Provincial government (Regional Geological Survey Team of Guangdong Bureau of Geological Exploration). The Guangdong Provincial exploration team (757 Geological Exploration Team) conducted trenching and drilling programs between 1993 and 1995 to evaluate the silver mineralization.

Geology and Mineralization

Silver mineralization at Fuwan is hosted primarily within a Lower Carboniferous limestone sequence that is unconformably overlain by Upper Triassic siliciclastic rocks. The Carboniferous and Triassic units are folded into an open syncline that has northeast trending axis. A series of faults oriented sub-parallel to bedding are developed near the unconformity and are considered the main control for the Fuwan silver mineralization and Changkeng gold mineralization. Most of the Fuwan silver mineralization is hosted in the Lower Carboniferous limestone sequence. The total strike length of the mineralization is 2790m and is open to the north, south and southwest. Drill hole ZK2403 intersected 9 separate mineralized zones with most other holes intersecting 3-5 separate zones. Silver mineralization is characterized by fractured and silificied limestone accompanied by calcite and pyrite with minor galena, sphalerite and barite. Minor amounts of chalcopyrite, arsenopyrite, cinnabar, and fluorite have also been observed in the mineralized zones. Fuwan can be considered a world-class silver deposit based on its present size and grade.

Work Plan

Minco recently completed a two-hole drilling program to verify drill intercepts returned by the Chinese exploration programs. Results from the first twinned hole returned were comparable in grade and width to the original hole. However, there was a marked difference in results from the second hole with the twinned hole returning a greater width and higher grade than the original drill hole. A detailed comparison of results from this verification drilling is presented in a NI 43-101 report filed on SEDAR. Minco is in the final stages of planning a drilling program that will begin in December and continue though the first half of 2006. This drill program is designed to test the extensions of known mineralization, provide more data so the quality of resource estimates can be improved and test other promising targets within the Fuwan licences.

Minco's closing price on Friday was $3.84. This gives them a market cap just under $100 million. Silvercorp has a market cap of nearly $600 million so Minco is approximately 6 times smaller than Silvercorp.

Here are the details of their share structure:

Issued & Outstanding as at February 17, 2006 25,235,900 (*)
Warrants
Broker Warrants - May 2005 Brokered Private Placement (1) 147,700
Broker Warrants - IPO - November 2005 (2) 92,000
Stock Options 2,615,000
Fully Diluted (*) 28,090,600
(*) includes a total of 14,392,500 Escrow Shares of which 3,720,000 are held by Silver Standard Resources and 10,500,000 are held by Minco Mining & Metals Corporation
(1) Expires June 1, 2007. On or before December 1, 2006 @ $1.25. On or before June 1, 2007 @ $1.50
(2) Expires June 1, 2007. On or before December 1, 2006 @ $1.25. On or before June 1, 2007 @ $1.50

Very interesting to me is that about 20 million shares are in escrow by Minco Mining and Silver Standard and some insiders. That means that less than 5 million shares are tradeable right now! I am telling you, that is a very tight supply. This stock has the potential to move extremely quickly if there is enough good news.

Our first bit of good news came out on Friday which stated the following:

Further to its news release dated December 13, 2005, Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV) is pleased to provide the following update for Phase 1 of the 2006 10,000 meter drill program planned for the Company's Fuwan project in southern China. Infill drilling holes 5 and 7 produced outstanding results averaging approximately 1kg/tonne silver.

To January 22, 2006 (the beginning of the Chinese New Year break) a total of 5 holes were completed aggregating 1244.88m. Silification zones which host most of the known silver mineralization was intersected in all five holes with visible sulphide mineralization in four holes. All core intercepts approximate true width.

Additional assay data for gold, lead and zinc is pending.

The 5th hole (FW 01) was an exploration hole 600m from the main Fuwan Zone.

Drill cores with visible mineralization were sawed in half with a diamond saw and 135 samples were collected from the four completed holes. Drill core samples from holes completed to date (FW0001, FW0005, FW0006, FW0007 and FW0009) were shipped to the PRA Kunming lab for analysis for silver, gold, lead and zinc. The samples were prepared according to Minco's QA/QC procedures, namely each batch of 20 samples included 17 regular samples, 1 certified reference sample, 1 duplicate sample and 1 blank. Total number of the samples sent to PRA Lab was160.

Samples were prepared and assayed at PRA Kunming lab (Process Research Associates Ltd.) with supervision of a certified BC assayer. Silver was assayed with acid digestion and AAS finish. Assay results were further checked at PRA's Vancouver lab as an internal check. Reference materials were inserted by Minco staff geologists as a further assay control. The assay data provided by PRA is considered acceptable.

Drilling has resumed following the Chinese New Year break and will continue to focus on resource expansion in the dip direction and infill drilling.

I have a feeling this is just the beginning of positive drill tests for Minco. More investors may get interested in Minco beginning with ones that see their booth at the PDAC conference this week.

I also remember John Embry saying Minco Silver was one of his favorite picks when I saw him on RobTV a couple weeks ago. John is one of the leading managers with Sprott Asset Management. Although these guys aren't always right, it's not a bad thing to have Sprott along for the ride because I'm sure they'll be able to get some more hype on this company if they want to.

Minco trades on the Toronto Stock Exchange under the symbol MSV.

Although I will concede that Silvercorp is (still) my favorite Silver Stock, Minco teases me as a nice trade. That is, an attempt to make 120% as quick (a couple months) as possible and then sell half your position for a guaranteed 10% gain plus the potential for much more.

The extremely thin float and other factors I talked about in addition to an incoming stream of drill results lead me to believe that a double within a couple months in not improbable, but rather highly likely.

If you've made the 46% this week on your Silvercorp shares, perhaps you could think about selling a tiny portion of those to take a gamble on Minco.


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