Silver Falcon Mining, Inc. (OB: SMFI) has received the result from its first smelted pour which occurred on November 22, 2010. The Company’s shipment to a smelter of 498 net pounds of precious metal concentrate produced 283.3 pounds of dore bars after smelting which are currently being assessed for their gold and silver contents. The management of Silver Falcon anticipates the final results within the next three calendar weeks.
Dore bars are a semi-pure alloy of silver and gold which can contain varying amounts of the precious metals with the true value not known until a final assessment is conducted. Many times, the low-purity, rough dore bars are sent to gold refineries for upgrading into tradable bars of high purity.
The Company previously announced a share buyback program in which 15 percent of the cash aggregate of gross revenues from the sale of the dore bars as well as all other revenues will be used to buyback at market price a portion of the approximately 300 million issued shares. The shares will then be retired to lower overall share structure.
Additional work is ongoing at other Silver Falcon properties as well. The approaches to the Sinker Tunnel project have been reshaped and winter has made no impact on progress at the Diamond Creek project. A new belt scale is being installed currently at Diamond Creek Mill and anticipated to be completed in the first full week of December. Upon installation, the ore from the Oso Zone (a higher grade throughput) that is stock piled at the facility will be processed.
Addressing progress, revenues and the buyback program, Pierre Quilliam, President of Silver Falcon, commented, “This is an important milestone since the opening of our mill, as it completes the circle of extraction of the gold and silver from the ore taken from the War Eagle Mountain to the sale and revenue generated by this process. The Company is readying a second, larger shipment of concentrate to the smelter. As more revenue is generated, the Company will continue to meet its obligations and retire more shares from its anticipated monthly buy-back program."
Technically speaking, the SFMI chart is in a nice position to make a stronger move. Coming off of twelve cents in October, the stock price has made a nice higher low with a rounded appearance to it which can often lead to a nice climb in share price as it rolls off the bottom. The moving averages are tucked in under the share price and it appears that the previous high of $0.19 may be tested as the price tries to climb and hold over both the 50 and 200 day simple moving averages; a sign of a bullish chart. As always, proper due diligence is mandatory.
More information on Silver Falcon Mining and its projects can be found on the Company’s website at www.silverfalconmining.com.
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