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Silvercorp Metals boosts mineral resource at Ying complex in a new technical report on the flagship property

The mining firm said that measured and indicated silver resources increased by 18% at six underground mines on the property

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The report also revealed a pre-tax net present value of US$954 million, with 62% of net revenue projected to come from silver

Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) has boosted the silver resource at its flagship Ying silver-lead-zinc operation in Henan province, China, according to a new technical report.

The mining firm said that measured and indicated silver resources at Ying increased by 18% in its new NI 43-101 technical report, while proven and probable silver reserves increased by 4%.

The new technical report covers the SGX, HZG, HPG, TLP, LME, and LMW underground mines on the property.

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Other highlights from the report were an estimated mineral resource of 20.1 million tonnes (including mineral reserves) in the measured and indicated categories grading 234 grams per tonne (g/t) silver, 0.2 g/t gold, 3.6% lead, and 1.3% zinc, containing 151 million ounces silver, 98 thousand ounces gold, 732,000 tonnes lead, and 257,000 tonnes zinc. 

In the proven and probable reserves category, the report outlines 12 million tonnes grading 257 g/t silver, 0.1 g/t gold, 3.8% lead, and 1.4% zinc, containing 99 million ounces silver, 50 thousand ounces gold, 456,000 tonnes lead, and 169,000 tonnes zinc.

Ying now boasts 23% more measured and indicated resources, with silver increasing by 18% and gold increasing by 109%. Lead and zinc resources are also higher at 16% and 20% respectively. Inferred resource tonnes increased by 78% in comparison with the 2017 technical report.

Projected mine life to 2040

The increase in resources and reserves at Ying means the mine can keep operating for at least another 20 years, according to Silvercorp.

“Based on proven and probable mineral reserves only, the Ying mine complex is a viable operation with a projected life of mine through to 2040, assuming an average annual production rate of approximately six million ounces of silver between fiscal 2021 and 2027, five million ounces between 2028 and 2033, four million ounces between 2034 and 2036, and 2.5 million ounces between 2037 and 2040,” the Toronto-based miner told shareholders in a statement.

“There is also the potential to extend the life of mine beyond 2040 via further exploration and development, particularly in areas with identified inferred resources.”

Most of the major mineralized vein structures at Ying are still open at depth and laterally, Silvercorp added, based on an extensive drill program at the property.

The report also reveals a pre-tax net present value of US$954 million, with 62% of net revenue projected to come from silver, 29% from lead, 6% from zinc and 2% from gold.

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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