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TSX:SVM AMEX:SVM

Silvercorp Metals Inc

Market:
TSX
Market Cap:
$1.36 billion
Price
7.77 CAD
Change
4.86%
52 weeks high
11.62
52 weeks low
2.12

This long-term strategy was characterized by three key steps:

  1. Acquire a project and conduct selective exploration to further delineate its potential;
  2. Develop mine operations and generate profits before the project’s potential is fully drilled off; and
  3. Use the cash flows generated from operations to fund further exploration, resource expansion and production ramp up.

Silvercorp's long-term strategy produced three key benefits:

  1. Local Employment – mine development creates jobs for neighbouring communities, boosting the local economy and creating an immediate sense of community involvement in the project.
  2. Tax Revenue for Local Government – boost in local support and the taxes collected from profits ensures the support of the local government for the continuation and success of the project.
  3. Minimum Dilution for Shareholders – immediate profits and returns means immediate value appreciation for Silvercorp’s shareholders and minimum dilution of shareholders’ equity.

Long-term Goals

With over $115.3 million in cash, cash equivalents and short term investments as of March 31, 2019, profitable operations, and high quality development projects, Silvercorp plans to grow through exploration, mine development and acquisitions.

YING MINING DISTRICT

SGX Mine

Silvercorp acquired its flagship SGX silver-lead-zinc property (also sometimes termed the Ying silver-lead-zinc property or Ying Project) in March 2004. Following two years of exploration and development, Silvercorp received its mining permit on March 31, 2006, and commenced commercial production the next day on April 1, 2006. The SGX mine is the largest of Silvercorp’s six significant producing underground mining operations. The SGX mine is located 240 km southwest of Zhengzhou, the capital city of Henan Province in central China.

The SGX area, which includes a smaller satellite deposit, the HZG mine, is in the western part of the Ying Mining District and is permitted by the Yuelianggou Mining License, which is covering 19.83 km2 of area and between 1060 m and 0 m elevation.

HPG Mine

Silvercorp acquired the Haopinggou ("HPG") silver-gold-lead property in January 2007. It is located in the central part of the Ying district, immediately northeast of the SGX mine. Currently, the HPG lead-zinc-silver-gold mine is within the Haopinggou Mining License, which is covering 6.2257 km2 of area. Silvercorp operates HPG since May 1, 2007.

TLP Mine

Silvercorp acquired the TLP silver-lead mine in December 2007. The TLP mine lies about 11 km east-southeast of SGX (240 km southwest of Zhengzhou, the capital city of Henan Province in central China), and it operates under the Tieluping-Longmen Mining License, which is covering an area of 22.916 km2 and from surface at 1,250 m elevation to depth of 700 m elevation (it also covers Silvercorp’s LME and LMW mine). Commercial production commenced in March 2008.

LM Mine

Silvercorp acquired the LM silver-lead mine in November 2007. The LM mine is located just south of the TLP mine and east of SGX mine about 12 km (240 km southwest of Zhengzhou, the capital city of Henan Province in central China). The LM mine is divided to two subareas LME and LMW according to distribution of known mineralized veins, which are 2.4 km apart. The LM mine operates under the Tieluping-Longmen Mining License covering an area of 22.916 km2. Silvercorp commenced production at the mine in March 2008.

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GC Mine

Silvercorp acquired the Gaocheng ("GC") silver-lead-zinc exploration permit in April 2008. Located about 200 kilometres west of Guangzhou City, Guangdong Province, southern China, the permit covers an area of 5.5 km2. Since 2001, the GC permit has been explored for gold, silver, lead, zinc, and sulphur. In December 2010, Silvercorp received a mining permit on the GC project and construction of a 1,600 tpd mine and mill commenced shortly thereafter.  In the fall of 2014 the Company commenced commercial production from the mine. Since then, GC project has contributed 2.3M ounces of silver and 75.2M pounds of lead and zinc ended March 31, 2018.

BYP Mine

Silvercorp acquired control of the BYP Gold-Lead-Zinc (Au-Pb-Zn) mine in January 2011. The mine is located in Hunan Province, China and is 220 km southwest, or a 3 hour drive, from Changsha, Hunan's capital city. The BYP mine has a mining permit covering 3.67 km2, a safety production permit and a 500 tonne per day (t/d) floatation mill.    In August 2014, the Company has suspended mining activities at the BYP mine. As the BYP mine is not viewed as a core asset, the Company is considering various strategic options for this project.

China

RUI FENG, PH. D., GEOLOGY.
CHAIRMAN AND CEO

Dr. Rui Feng, a Canadian citizen, has worked as both a geologist and an executive in the mineral resource industry for over 20 years. He is an entrepreneur with an extensive track record in successfully acquiring and exploring mineral properties and ultimately turning them into profitable mining operations. Dr. Feng, was the founder of several successful publicly listed companies in Canada which have made significant discoveries of mineral resources in China, including Jinshan Gold Mines Inc., formerly, Pacific Minerals Inc. and Silvercorp. Dr. Feng is well-versed in China's legal framework related to the mining industry and has an extensive network in China's mining and exploration industry.

Dr. Rui Feng obtained his B.Sc. and M.Sc. degrees in Geology in China and his Ph.D. in Geological Sciences from the University of Saskatchewan in Canada in 1992. He was awarded a Post-Doctoral Fellowship from the National Engineering and Science Council of Canada from April 1992 to April 1993 to work as a Research Scientist at the University of Montreal. From 1993 to 1994, Dr. Feng worked for the Institute of Sedimentary and Petroleum Geology of the Geological Survey of Canada in Calgary as research scientist. He is currently a Director of the Canada China Business Council - BC Chapter Board.

DEREK LIU, CGA, CPA
CHIEF FINANCIAL OFFICER

Derek Liu is a professional accountant with over 15 years of diverse international experience in financial reporting, auditing, and accounting. He is a member of Certified General Accountants Association of British Columbia ("CGA, BC") and a Certified Public Accountant ("CPA") in the State of Colorado, USA. He has held senior accounting positions, such as corporate controller and chief financial officer, at a number of public Canadian mining companies for the past several years including the role of financial controller of Silvercorp from 2006 to 2010. He has a MBA from Laurentian University and is a Canadian Citizen.

YONG-JAE KIM, LL.B.
GENERAL COUNSEL AND CORPORATE SECRETARY

Yong-Jae Kim has joined Silvercorp as General Counsel and Corporate Secretary.  Mr. Kim has extensive experience as legal counsel.  He was a partner at Gowling WLG (Canada) LLP, where he advised a number of large companies in the resource sector active in various international jurisdictions.  Yong-Jae has been recognized as a leading cross-border corporate lawyer and awarded a Rising Star award by Lexpert.  He will be responsible for overseeing the legal function Company-wide and providing strategic legal advice to management and the Company’s board of directors.

Address: Suite 1378 – 200 Granville Street
Vancouver, BC
Canada, V6C 1S4

Telephone: 604-669-9397
Fax: 604-669-9387
Toll Free: 1-888-224-1881