Silvercorp Metals Inc. has reported that its first underground drill hole at the DCG Mine in the Ying Mining District, Henan Province, China intercepted a 1.90-m interval grading 15.0 g/t gold.
In 2006, Silvercorp acquired the DCG exploration permit, which is adjacent to the north of its TLP Mine. It covers an area of 19.77 square km. The company successfully converted the exploration permit to a mining permit in 2015, and decided to bring the mine into production in 2018. At present, 1,670 metres of a 4.2-m wide by 3.8-m high access ramp has been developed and the remaining 95 m should be completed by mid-August, which will allow for mining later this year.
Silvercorp’s 2020 underground drill program at the DCG Mine comprises of 8,000 m in 22 holes. Similar to previous drilling, it was focused on extending previously-identified lead-zinc veins. Three holes have been completed and assay results have been received for one hole, the company said in a statement.
Previously, only very select intervals with obvious lead-zinc mineralization alteration were sampled for the drill holes from the Ying Mining District. Recently, as potential gold mineralisation was identified at the nearby LMW, LME and TLP Mines, Silvercorp decided to sample the full length of the drill core.
As a result, one hole intercepted a 1.02-m interval from 259.01- to 260.03-m grading 1.5 g/t gold and a 1.90-m interval from 406.86- to 408.76-m grading 15.0 g/t gold. The extension of this gold discovery will now be the focus of the 2020 drilling program.
Information regarding the DCG Mine, including a resource estimate, will be contained in an upcoming NI 43-101 update for the Ying Mining District planned to be released this quarter, currently being prepared by Silvercorp with assistance from AMC Mining Consultants (Canada) Ltd.