The Henan Provincial Department of Land and Resources has renewed the mining permit for Silvercorp Metals’ SGX mine at the Ying Mining District for another 10 years to September 14, 2024.
The permit was renewed after a series of required Chinese government documents and reports were prepared and filed, and a first instalment of a mining right fee of RMB 22 million (US$3.55 million) of the total RMB 107.04 million (US$17.32 million) was paid. The balance is payable in four annual instalments.
The key document required for the renewal was a Chinese government qualified Mineral Resource and Reserve Report (2013 Mineral Reserve Report), which replaces the original Mineral Reserve Report for SGX filed in 2005 in the application for the original SGX Mine mining permit. The mining permit was then consolidated in 2008 to include three adjacent exploration permits covered by three 2006 detailed exploration reports. Based on the significant increase in the Chinese Qualified Mineral Resource and Reserve in the 2013 Mineral Reserve Report, the Mining Right Fee was evaluated at RMB 107.04 million.
In comparison with the 2005 and 2006 Mineral Reserve Reports, the Chinese qualified resource estimate in the 2013 Mineral Reserve Report increased by about 271%, and contained silver, lead, and zinc metals increased by about 410%, 366%, and 317%, respectively. The resource increase was due to including the results of continuous extensive drilling and tunnelling on the 11 existing veins and 20 newly discovered veins at the lateral extension and at depth.
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.