Mexican-focused explorer Minco is investigating another, potentially larger, prospect near its 20 million oz-plus Laguna silver tailings project.

AIM-quoted Minco hopes to start producing at Laguna next year at an initial annual rate of 3.5 million oz, producing 1.3 million tonnes of ore, potentially worth nearly $10 each, and is talking to banks about possible £12 million project financing. The timetable has been somewhat delayed, but chairman and chief executive officer Roger Turner contends that is more than compensated for by the new, as yet undisclosed, silver and zinc project now under consideration.

This project, an already-built mine now mothballed according to Turner, is larger than Laguna, with more 'blue sky' potential. If current negotiations succeed, Minco, whose shareholders include RAB Capital, Fidelity and Irish entrepreneur John Teeling, could find it its most important project so far.

With zinc and silver both enjoying price booms – and even Laguna's mercury waste commanding historically high prices – the company also has an option to acquire 75 per cent of another Mexican silver and zinc project at Bilbao, with an estimated one million tonnes of near-surface ore and perhaps more underground. Minco has 50 per cent of another silver, zinc, copper and gold project at Minera Sisa in Mexico's north-eastern Durango state.

Closer to home, Minco has 23.6 per cent of Ireland's potentially rich Pallas Green zinc project, where Canada's Falconbridge has a majority. At 13.75p, Minco's shares, which have fluctuated between 3.5p and 35.25p over the past three years, combine risk and volatility with significant speculative potential.

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Minco	AIM	£3.58m	2.12p	0.00p
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Other company articles:
More lead for Minco			31/01/2008
Changing the guard at Minco			03/04/2007
Bilbao boost for Minco			15/03/2007
Minco eyes new project			28/03/2006
Study boost for Minco			31/10/2005