Bear Creek Mining’s stock marches up 23 percent in anticipation of feasibility study
In the last month Bear Creek Mining’s stock (CVE:BCM) has gained 23% to $5.06 a share in anticipation of the company’s feasibility study for the Corani silver-lead-zinc deposit.
The company says that the study will be released in early November.
The pre-feasibility study said that the Corani project could produce up to 10 million ounces of silver per year.
“Additionally, the Corani project is well endowed with both lead and zinc, so by-product credits will result in low or negative cash costs per ounce of silver,” stated the company.
Brad Humphrey, analyst at Raymond James Ltd., was reported in the Globe and Mail as saying that Corani is one of the world’s largest undeveloped silver projects not already in the hands of a major producer. On Oct. 31 at the Stocks 2011 conference, Chris Thompson said Bear Creek was one stock that worked for him. He said the stock was pushed down too far after losing its Santa Ana project.
In the spring Bear Creek lost nearly 50% after locals started violent protests against the Santa Ana project. The Peruvian government then cancelled the company’s mineral concession. The company has since filed legal action to overturn the government’s ruling.
The company completed a feasibility study for Santa Ana project in the fall of 2010. It showed a low-cost pure silver mine producing five million ounces annually in the first six years of an estimated 11-year mine life.