An updated NI 43-101 Technical Report for Silvercorp Metals’ Ying silver-lead-zinc mining district in Henan Province reveals a significant gain in measured and indicated mineral resources.
The reported resources are 14.01 million measured and indicated tonnes @ 237 grams/tonne silver, 0.10 grams/tonne gold, 3.64% lead and 1.22% zinc for 107.30 million ounces of silver, 43,800 ounces of gold, 512,200 tonnes of lead and 172,600 tonnes of zinc. These figures represent a 52% increase in tonnage and 12% and 8% increases respectively in contained silver and lead resources when compared to the 2012 Technical Report.
The update was prepared by AMC Mining Consultants (Canada) and covers the SGX/HZG, HPG and TLP/LM underground mines on the Ying silver-lead-zinc property. AMC examined all aspects of the project, including drill core, exploration sites, underground workings, processing plant and surface infrastructure.
There are defined reserves of 12.64 million tonnes in the proven and probable categories grading 203 grams/tonne silver, 0.07 grams/tonne gold, 3.01% lead and 1.01% zinc, containing 82.52 million ounces of silver, 29,200 ounces of gold, 380,400 tonnes of lead and 127,200 tonnes of zinc. In comparison with the 2012 Technical Report contained silver in proven and probable reserves is up 5%.
Based on proven and probable reserves only, the Ying mine complex is a viable operation with a projected life of mine (LOM) through to 2030, assuming annual average production of about 6 million ounces of silver from 2014 to 2025, about 3 million ounces from 2026 to 2028 and about 1 million ounces from 2029 to 2030. It also has the potential to extend the LOM beyond 2030, via further exploration and development, particularly in areas of inferred resources.
The results of the 2012-2013 underground drilling program on the Ying property show that most of the major mineralized vein structures are still open at depth and laterally.
Between 2004 and 2011, Silvercorp completed 1744 underground diamond drill holes and 265 surface holes for a total of about 591,000 metres. In 2012 and the first half of 2013, an additional 1013 underground holes and 24 surface holes were drilled for a total of about 267,000 metres.
Other than drilling, the projects have been explored primarily from underground workings. The workings follow the vein structures along strike, on levels spaced about 40 metres apart. Chip samples across the structures are collected at 5 metre intervals. During 2012 and the first half of 2013, Silvercorp undertook 58km of tunnelling and collected about 9000 channel/chip samples.
Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China. The company is currently developing the GC project in southern China which it expects will become its next operating mine. www.silvercorpmetals.com