^[1]By Melissa Pistilli-Exclusive to Silver Investing News ^[2]

Long-Term Outlook for Silver

Many analysts expect strong industrial demand for silver over the medium- to long-term to provide price support going forward. Strong investment demand can also be seen in record combined ETF silver holdings ^[3], which reached 472.7 million ounces Friday, up 0.2 per cent from the previous week.

Kevin Maclean ^[4], Manager of the Sentry Select Precious Metals Growth Fund, sees silver not only keeping up with gold over the long-term, but outperforming its yellow cousin as well. "Silver is also a metal which is challenged in terms of supply," says Maclean. "I think silver will outperform simply because it is a much smaller market, and as investment dollars chase it, it would tend to pushed a little bit higher than gold would be."

Mr. Maclean recently won Lipper awards ^[5] for fund of the year in the precious metals equity category for the three-year and five-year periods ending December 31, 2009. The fund's average annual return was 8.5 per cent and 25 per cent over the three and five year periods, respectively.

Maclean says he holds shares in Silvercorp Metals ^[6] [TSX: SVM], Hecla Mining ^[7] [NYSE: HL], Fortuna Silver ^[8] [TSX : FVI] and Silver Wheaton Royalty Co ^[9]. [TSX: SLW].

Silvercorp to Buy Silver Standard's Silvertip Property

Silvercorp Metals recently announced its acquiring 100 per cent ownership of the Silver Standard Resources ^[10]' [NASDAQ: SSRI] Silvertip ^[11] advanced silver-lead-zinc property in northern BC for C$15 million: half in cash and the other in common shares.

"The Silvertip project ranks among one of the highest grade silver-lead-zinc carbonate replacement deposits in North America — with great potential to grow," said Rui Feng ^[12], Silvercorp chairman and chief executive.

A test conducted on the property a couple years back showed a lead concentrate grade of 65 percent with silver recoveries at 69.2 percent and lead at 80.4 percent.

Silvercorp plans to perform a resource evaluation before the agreement is finalized this Friday. The silver producer will also conduct another mineralogy study and a metallurgical test program to increase metal recoveries and a regional exploration program is planned to help identify new drill targets.

Hecla Has Lucky Year with Lucky Friday

Hecla Mining has reported a record year ^[13] for silver production in 2009 with a 26 per cent increase over the 8.7 million ounces mined in 2008 bringing last year's total to 10.9 million. This is the third consecutive year the US-based miner has reported increased silver production.

"Very strong argument can be made that 2009 was the best year in more than 60 years the Lucky Friday has been in operation," said Hecla Senior Vice President of Operations, Ron Clayton. Clayton added that the company "produced more silver, lead and zinc than at any other time in history at the very low costs we're known for."

CFO James Sabala says 2009 left Hecla "in the best shape it has ever been in." The precious metals producer reportedly has $105 million in cash, no bank debt and about $165 million available for growing its current projects and potential acquisitions.

Hecla says it has proven and probable silver reserves of 139,561,200 ounces and proven and probable gold reserves of 847,400 ounces. Total reserves and resources for silver and gold are reported as 346,104,000 ounces and 1,132,400 ounces, respectively.

The company expects 2010 silver output to reach between 10 million and 11 million ounces at cash costs of $1.90 to $2.25 an ounce based on current prices for its by-product metals.

CEO Phil Baker says Hecla will increase exploration spending to $18 million this year and will reinvest around $50 million to $60 million in its Green's Creek and Lucky Friday projects.

Hecla is looking at the possibility of developing an internal shaft that will allow for deeper access and possibly help extend the life of the mine to at least 2028.

"Lucky Friday is going to continue to be a flagship mine for Hecla for decades to come," said Mr. Baker. "It's pretty unique in the mining industry to have an operation that will at least operate the better part of 100 years."

Last year, the Lucky Friday mine produced 3.5 million ounces of silver, which was a 23 percent increase over 2008 production.

Silver Wheaton to Buy Rights to Rosemont Mine Silver and Gold Production

Silver Wheaton ^[14] has said it will pay $230 million, over 25 per cent of estimated construction costs, to Rosemont Copper Co. for the rights to all future silver and gold produced from the miner's proposed copper project in Arizona.

The Canadian-based company will also pay Rosemont Copper $3.90 an ounce for silver and $450 an ounce for gold once production starts.

Before Silver Wheaton puts up the money it expects Rosemont to raise the rest of the estimated $900 million needed to build the mine.

Silver Wheaton VP Brad Kopp explains that the company is putting up a quarter of the mine's capital costs despite silver and gold only making up 5 per cent of the mine's total value because it won't be contributing to the continuing expenses on equipment and exploration, and with the long-term price already set Silver Wheaton isn't exposed to inflation.

"Due to this, we typically have among the highest operating margins in the mining sector," said Kopp. "Essentially, we do not want to own or operate mines and be faced with the challenges and costs to do so."