Silvercorp Metals Inc (TSE:SVM) (NSYEAMERICAN:SVM) released an updated 43-101 technical report on Tuesday, which showed increased reserves and resources at the company's Gaocheng (GC) silver-zinc-lead project in China.
The updated technical report, effective as of June 30, 2019, highlights a mineral resource of 9.1 million tonnes in the measured and indicated categories, containing approximately 24.5 million ounces of silver, 233 million pounds of lead and 564 million pounds of zinc. Silvercorp's GC mine is located in Guangdong Province, China.
The firm noted that measured and indicated mineral resource tonnes increased by 42%, thanks to a rise in the number of veins and conversion of inferred material to a higher classification level. Inferred tonnes have decreased by 3%.
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Silvercorp said from the start of operations at the GC Mine in 2014 through to December 31, 2018, 1.25 million tonnes have been mined, at an average head grade of 96 grams per tonne (g/t) silver, 1.5% lead and 2.7% zinc.
Of importance to note is the fact that, despite mine production depletion, there has been a 7% increase in proven and probable reserves, as compared to the last mineral reserve estimate, which was effective as of June 30, 2018.
The Vancouver-based company, which is focused on silver-related mineral properties in China, said the report was prepared by AMC Mining Consultants, which examined all aspects of the project, including drill core, underground workings, processing plant and surface infrastructure.
The GC Mine has a projected mine life of 12 years, through to 2031, based on proven and probable reserves, at an average annual production rate of about 300,000 tonnes, with average silver equivalent grades about around 334 g/t for the first six years and 271 g/t for the remainder. The mine life could be extended beyond 2031, through the conversion of existing mineral resources to mineral reserves, and further exploration and development.
Silvercorp noted the results of the underground drilling program at the GC Mine show that vein structures are still open at depth.
Shares of Silvercorp were up 2.8% at C$5.85 on Tuesday.
Contact Katie Lewis at [email protected]