Silvercorp falls after new allegations on alfredlittle.Com

Silvercorp Metals Inc., the Canadian miner accused of fraud in two anonymous reports, fell as much as 7.9 percent after a website published new allegations about the company.

Silvercorp, which mines silver in China, fell 19 cents, or 2.8 percent, to C$6.62 at 12:35 p.m. in Toronto Stock Exchange trading. The shares dropped 20 percent this month through Sept. 16.

Alfredlittle.com, a website that publishes research about companies doing business in China, posted a report that said Vancouver-based Silvercorp and Henan Found Mining Co., an operating subsidiary, may both have overstated their net income in 2010 by at least fivefold.

Silvercorp, which describes itself as China’s largest silver miner, has denied previous allegations posted on Alfredlittle.com that questioned the quality of Silvercorp’s ore and transactions with a related party. On Sept. 2, Silvercorp denied allegations contained in an anonymous report that alleged Silvercorp reported a profit in calendar 2010 to the U.S. Securities and Exchange Commission while posting a loss to regulators in China.

“All of the allegations made against Silvercorp have been anonymous,” Silvercorp Chairman and Chief Executive Officer Rui Feng said today in a statement. “All of the allegations are baseless and designed to be manipulative.”

The new material on the Alfredlittle.com site is based in part on Silvercorp’s response to the first posting, Simon Moore, who said he’s a managing editor at Alfredlittle.com, said today in a telephone interview.

“This is more of a detailed report, a more complete report,” Moore said, declining to say where he was speaking from.