Trading Symbol: TSX/NYSE American: SVM
VANCOUVER, BC, Aug. 19,
2024 /CNW/ - Silvercorp Metals Inc. ("Silvercorp" or
the "Company") (TSX: SVM) (NYSE American:
SVM) is pleased
to report the results of an updated
Technical Report, prepared in accordance with
National Instrument 43‑101 Standards of Disclosure for
Mineral Projects ("NI 43-101")
on its Ying Mining District ("The Ying
2024 Technical Report" or "Technical Report"), prepared
by AMC Mining Consultants (Canada) Ltd. ("AMC") with a Mineral Reserve
and Mineral Resource effective date of June
30, 2024. The Ying 2024 Technical Report covers all seven
mines in the Ying Mining
District (also referenced as the "Ying Property") in Henan Province, China, namely the SGX,
HZG, HPG, TLP, LME, LMW, and DCG underground mines.
Approximately 89 million ounces (Moz) of silver ("Ag") are
projected to be mined at the Ying Property in the currently planned
14-year life of mine (LOM). There remains significant potential to
extend the LOM beyond 2038 via further exploration and development,
particularly in areas with identified Inferred Resources.
Silvercorp Observations to the Independent Ying 2024
Technical Report:
- The 2024 Mineral Reserves reflect the substantial replenishment
of metals mined-out between January
2022 and June 2024:
- Approximately 14.3 Moz Ag, 13.3 thousand ounces of
gold ("koz Au"), 64.0 thousand tonnes of lead ("kt Pb") and 8.7
thousand tonnes of zinc ("kt Zn") were produced during this
period;
- The above produced metal quantities are referenced against the
Mineral Reserve contained metal values reported in the 2022
Technical Report, namely 95.7 Moz Ag, 104.7 koz Au, 414 kt Pb
and 127.5 kt Zn.
- Annual metal production through FY2031 (including Q1FY2025) is
projected to be:
- Precious metals: between 7.1 and 8.7 Moz Ag and 3.1 and
13.0 koz Au (7.4 and 9.7 Moz Ag Eq 1 );
- Base metals: between 30.8 and 36.4 kt Pb, and 5.1 and 5.9
kt Zn;
- Total LOM production of about 86.3 Moz Ag, 63.0 koz Au, 395.0 kt Pb, and 75.7 kt of
Zn.
- The results of the 2022-2023 underground drilling program at
the Ying Mining District show that most of the major
mineralized vein structures are still open at depth and
laterally.
- Ying Mining District LOM metal production Ag Eq values, which
only consider silver plus conversion of gold ounces to equivalent
silver ounces1, are shown in Table 1.
Table 1. Ying LOM metal production Ag Eq
values
Ying
Mines
|
FY2025
Q2-Q4
|
FY2026
|
FY2027
|
FY2028
|
FY2029
|
FY2030
|
FY2031
|
FY2032
|
FY2033
|
FY2034
|
FY2035
|
FY2036
|
FY2037
|
FY2038
|
Total
|
Ag_Eq (koz)
|
6,828
|
9,204
|
9,665
|
9,010
|
8,593
|
7,940
|
7,415
|
6,877
|
5,996
|
5,779
|
5,571
|
3,869
|
2,045
|
1,235
|
90,028
|
Note: Numbers may
not compute exactly due to rounding.
|
Summary of the Ying 2024 Technical Report
- Estimated Measured and Indicated Mineral Resources of 22.15
million tonnes (inclusive of Mineral Reserves) grading 203 g/t
Ag, 0.20 g/t Au, 3.06% Pb, and 0.87% Zn, containing 144
Moz Ag,
143 koz Au, 677 kt Pb, and 192 kt Zn.
- In comparison with the 2022 Technical Report (Mineral Resources
as of December 31, 2021), Measured
and Indicated Resource tonnes have increased by 18%, and contained
metal has increased by 3% for Pb and decreased by 1% for Ag, 12%
for Au, and 1% for Zn, after accounting for depletion.
- Estimated Proven and Probable Mineral Reserves of 12.76 million
tonnes grading 216 g/t Ag, 0.17 g/t Au, 3.20% Pb, and 0.96% Zn,
containing 89 Moz Ag, 71 koz Au, 408 kt Pb, and 123 kt Zn.
- In comparison with the 2022 Technical Report (Mineral Reserves
as of December 31, 2021), there has
been a 24% increase in total Proven Mineral Reserve tonnes and a 4%
increase in total Proven and Probable Mineral Reserve tonnes. The
decreases in total contained metal for silver, gold, lead, and zinc
are 7%, 33%, 1%, and 4%, respectively.
- In comparison with the 2022 Technical Report, Inferred Resource
tonnes have decreased by 33%, and contained metal has decreased by
8% for Au, 37% for Ag, 37% for Pb, and 44% for Zn.
- Based on only Proven and Probable Mineral Reserves, a
production rate increase is planned from the FY2024 level of 0.83
million tonnes per year ("Mtpa") to approximately 1.0 Mtpa in
FY2025, 1.1 Mtpa in FY2026, and then to close to 1.2 Mtpa for the
next two fiscal years. The projection remains above or close to
1.0 Mtpa from FY2029 through FY2031, with the rate then slowly
declining to around 900 ktpa by FY2035, and then with a more rapid
decline to around 240 ktpa in the final year of currently planned
mining.
- Using the LOM production profile based on the 30 June 2024 Mineral Reserves, with $22/oz Ag, $1,900/oz Au, $1.00/lb Pb and $1.15/lb Zn and a 5% discount rate, pre-tax and
post-tax NPVs of $896M and
$699M, respectively, are projected
(other assumptions are outlined below).
|
__________________________________________
1 Ag Eq (oz)
= Ag (oz) + 86.364* Au (oz); Au and Ag prices at US$1,900/oz and
US$22/oz. Silvercorp notes that Ag Eq calculations in the Technical
Report consider all metals deemed payable.
|
Mineral Resources
The June 2024 Mineral Resources
were estimated using a block modelling approach in Micromine
for a total of 534 mineralized vein structures for the seven active
mines in the Ying Mining District. All grade estimation was
completed using inverse distance squared. Grade estimates were
completed for silver and lead in all deposits, zinc in select
deposits, and gold within select veins at select deposits.
The Mineral Resources are reported
above cut‐offs after applying a minimum practical
extraction width of 0.4 m. Diluted grades were
estimated for blocks with mineralization widths less than
0.4 m by adding a waste envelope
with zero grade. Cut‐off grades are based on in situ values
in silver equivalent (Ag Eq) terms in grams per
tonne and incorporate mining, trucking, and processing costs, with
metallurgical recoveries and payable values
provided by Silvercorp for each
mine and reviewed by the QPs. Ag
Eq formulas by mine are shown in the footnotes of
the table below
The estimated Mineral Resources and metal content for the Ying
Mining District as of June 30, 2024
are detailed in Table 2 below.
Table 2. Ying Mining District – Mineral Resources and metal
content for silver, lead, zinc, and gold as of June 30,
2024 (inclusive of Mineral Reserves)
Mine
|
Resource
category
|
Tonnes
(Mt)
|
Au
grade
(g/t)
|
Ag
grade
(g/t)
|
Pb
grade
(%)
|
Zn
grade
(%)
|
Au
metal
(koz)
|
Ag
metal
(Moz)
|
Pb
metal
(kt)
|
Zn
metal
(kt)
|
SGX
|
Measured
|
4.09
|
0.06
|
252
|
4.88
|
2.50
|
7.24
|
33.14
|
199.57
|
101.99
|
Indicated
|
3.15
|
0.03
|
204
|
3.99
|
2.02
|
3.03
|
20.61
|
125.58
|
63.62
|
Meas +
Ind
|
7.23
|
0.04
|
231
|
4.50
|
2.29
|
10.27
|
53.76
|
325.15
|
165.61
|
Inferred
|
2.26
|
0.01
|
210
|
4.38
|
1.70
|
0.98
|
15.28
|
99.00
|
38.44
|
HZG
|
Measured
|
0.65
|
-
|
294
|
1.05
|
-
|
-
|
6.15
|
6.81
|
-
|
Indicated
|
0.28
|
-
|
283
|
0.83
|
-
|
-
|
2.54
|
2.31
|
-
|
Meas +
Ind
|
0.93
|
-
|
291
|
0.98
|
-
|
-
|
8.68
|
9.12
|
-
|
Inferred
|
0.34
|
-
|
266
|
0.71
|
-
|
-
|
2.94
|
2.43
|
-
|
HPG
|
Measured
|
1.22
|
1.18
|
79
|
3.36
|
1.04
|
46.10
|
3.08
|
40.91
|
12.67
|
Indicated
|
0.81
|
1.34
|
60
|
2.44
|
0.90
|
34.83
|
1.56
|
19.66
|
7.28
|
Meas +
Ind
|
2.02
|
1.24
|
71
|
2.99
|
0.99
|
80.94
|
4.64
|
60.58
|
19.95
|
Inferred
|
1.57
|
2.86
|
103
|
3.76
|
0.95
|
144.71
|
5.22
|
59.18
|
14.88
|
TLP
|
Measured
|
3.64
|
-
|
185
|
3.09
|
-
|
-
|
21.57
|
112.37
|
-
|
Indicated
|
2.58
|
-
|
166
|
2.66
|
-
|
-
|
13.77
|
68.62
|
-
|
Meas +
Ind
|
6.21
|
-
|
177
|
2.91
|
-
|
-
|
35.34
|
180.99
|
-
|
Inferred
|
1.87
|
-
|
175
|
2.35
|
-
|
-
|
10.50
|
43.77
|
-
|
LME
|
Measured
|
0.66
|
0.08
|
293
|
1.38
|
0.31
|
1.76
|
6.23
|
9.13
|
2.05
|
Indicated
|
1.14
|
0.07
|
276
|
1.14
|
0.34
|
2.40
|
10.09
|
12.96
|
3.82
|
Meas +
Ind
|
1.80
|
0.07
|
282
|
1.23
|
0.33
|
4.16
|
16.33
|
22.09
|
5.87
|
Inferred
|
0.89
|
0.16
|
258
|
1.24
|
0.30
|
4.68
|
7.36
|
11.05
|
2.69
|
LMW
|
Measured
|
1.59
|
0.17
|
235
|
2.21
|
-
|
8.88
|
12.00
|
35.24
|
-
|
Indicated
|
2.00
|
0.21
|
201
|
1.84
|
-
|
13.53
|
12.88
|
36.74
|
-
|
Meas +
Ind
|
3.59
|
0.19
|
216
|
2.01
|
-
|
22.41
|
24.89
|
71.99
|
-
|
Inferred
|
1.77
|
0.11
|
199
|
2.33
|
-
|
6.02
|
11.31
|
41.12
|
-
|
DCG
|
Measured
|
0.18
|
2.10
|
61
|
1.60
|
0.24
|
12.34
|
0.36
|
2.92
|
0.44
|
Indicated
|
0.18
|
2.22
|
72
|
2.27
|
0.17
|
12.58
|
0.41
|
4.01
|
0.31
|
Meas +
Ind
|
0.36
|
2.16
|
67
|
1.93
|
0.21
|
24.92
|
0.77
|
6.93
|
0.75
|
Inferred
|
0.10
|
0.63
|
59
|
3.79
|
0.13
|
2.04
|
0.19
|
3.84
|
0.13
|
Ying
Mines
|
Measured
|
12.03
|
0.20
|
213
|
3.38
|
0.97
|
76.33
|
82.54
|
406.96
|
117.16
|
Indicated
|
10.12
|
0.20
|
190
|
2.67
|
0.74
|
66.36
|
61.86
|
269.89
|
75.03
|
Meas +
Ind
|
22.15
|
0.20
|
203
|
3.06
|
0.87
|
142.69
|
144.40
|
676.85
|
192.18
|
Inferred
|
8.80
|
0.56
|
187
|
2.96
|
0.64
|
158.43
|
52.80
|
260.39
|
56.14
|
Notes:
- CIM Definition Standards (2014) were used for reporting.
- Measured and Indicated Mineral Resources are inclusive of
Mineral Reserves.
- Metal prices: gold US$1,800/troy
oz, silver US$21.00/troy oz, lead
US$1.00/lb, zinc US$1.10/lb.
- Exchange rate: RMB 7.00:
US$1.00.
- Mineral Resources exclude the first 5
m below surface.
- The Mineral Resource estimates for the SGX, TLP, and HZG mines
were carried out by Silvercorp and reviewed by independent
Qualified Person, Mr Simeon
Robinson, P.Geo., MAIG of AMC, who takes responsibility for
these estimates.
- The Mineral Resource estimates for the LMW and LME mines were
carried out by Silvercorp and reviewed by independent Qualified
Person, Mr Justin Glanvill,
Pri.Sci.Nat. of AMC, who takes responsibility for these
estimates.
- The Mineral Resource estimates for the HPG and DCG mines were
carried out by Silvercorp and reviewed by independent Qualified
Person, Dr Craig Stewart, P.Geo. of
AMC, who takes responsibility for these estimates.
- Veins factored to minimum extraction width of 0.4 m after estimation.
- Cut Off Grades (COGs): SGX 140 g/t Ag Eq; HZG 130 g/t Ag Eq;
HPG 140 g/t Ag Eq; TLP 125 g/t Ag Eq; LME 130 g/t Ag Eq; LMW 125
g/t Ag Eq; DCG 150 g/t Ag Eq.
- Ag Eq equivalent formulas by mine:
- SGX = Ag g/t+35.05*Pb%+17.97*Zn%.
- HZG = Ag g/t+33.59*Pb%.
- HPG = Ag g/t+80.6*Au g/t+35.17*Pb%+21.60*Zn%.
- TLP = Ag g/t+33.23*Pb%.
- LME = Ag g/t+32.71*Pb%+9.38*Zn%.
- LMW = Ag g/t+34.20*Pb%.
- DCG = Ag g/t+33.18*Pb%.
- Ag Eq formulas used for significant gold bearing veins:
- SGX (Veins S11, S16W_Au, S18E, S74) = Ag g/t+54.44*Au
g/t+35.05*Pb%+17.97*Zn%.
- LME (Veins LM4E2, LM4E3) = Ag g/t+55.12*Au
g/t+32.71*Pb%+9.38*Zn%.
- LMW (Veins LM21, LM22, LM26, LM28, LM50, LM50_3, LM52, LM53,
LM54) = Ag g/t+71.85*Au g/t+34.2*Pb%.
- DCG (Veins C76, C9_1, C9_2, C9_3, C9_4, C9E1, C9W1) = Ag
g/t+83.44*Au g/t+33.18*Pb%
- Includes assay results up to and including 31 December 2023.
- Depleted for mine production to 30 June
2024. Non-recoverable Mineral Resources (sterile areas due
to the proximity to stopes, unstable ground or where access to the
vein is limited) defined as of 30 June
2024.
- Numbers may not compute exactly due to rounding.
A comparison of Mineral Resource estimates between December 31, 2021 and June
30, 2024 for payable metals indicates the following:
- Measured and Indicated tonnes have increased by 18%, Inferred
tonnes have decreased by 33%.
- Measured and Indicated grades have decreased by 25%, 16%, 13%,
and 16% for gold, silver, lead and zinc, respectively.
- Inferred grades increased for gold by 37% but decreased for
silver, lead, and zinc by 7%, 6%, and 17%, respectively.
- The net result in the Measured and Indicated categories has
been a decrease in the contained gold, silver, and zinc of 12%, 1%,
and 1%, respectively, and an increase in contained lead of 3%.
- The net result in the Inferred category has been a decrease in
the contained gold, silver, lead, and zinc of 8%, 37%, 37%, and
44%, respectively.
The reasons for the differences in grade, tonnes, and contained
metal include changes made to vein interpretations for the 2024 Q2
model, conversion to higher categories arising from drilling and
level development, application of different COGs, and depletion due
to mining.
Additional geological sections in the Ying 2024 Technical Report
were prepared by independent Qualified Persons Dr Genoa
Vartell, P.Geo. and Mr Rod Carlson,
FAIG, RPGeo., both of AMC, who take responsibility for those
sections.
Mineral Reserves
The Mineral Reserve estimation assumes that current stoping
practices will continue to be predominant at the Ying Mining
District - namely cut and fill resuing and shrinkage stoping, but
also includes the introduction of room and pillar mining for some
flatter-lying gold-rich veins and some limited longhole mining. The
largely sub-vertical veins, generally competent ground, reasonably
regular vein width, and, traditionally, hand-mining techniques
using short rounds has allowed a significant degree of selectivity
and control in the stoping process. Minimum mining widths of
0.5 m for resuing and 1.0 m for shrinkage are assumed. The QP has
observed the mining methods at the Ying Mining District and
considers the minimum extraction and mining width assumptions to be
reasonable.
Several improvement projects are currently underway at the Ying
Mining District, and these have been reflected in the Technical
Report. The first is a significant initiative towards the use of
more mechanized mining, which, along with the opening up of
additional stopes, will allow for an increase in the number of
tonnes mined per year. The second is a major ramp development
program which will connect most stopes to the individual mine ramp
system and, thereby, increase ore and waste movement capacity with
reduced transport times and allow easier and faster stope
access.
Mining dilution and recovery factors vary from mine to mine,
dependent on vein width and mining method. Average dilution factors
have been estimated as 17% for resuing, 19% for shrinkage, 20% for
longhole, and 30% for room and pillar. Assumed mining recovery
factors are 95% for resuing, 92% for shrinkage, 80% for longhole,
and 92% for room and pillar.
For the total tonnage estimated as Ying Mineral Reserves,
approximately 58% is associated with resuing, 36% with shrinkage,
4% with longhole, and 2% with room and pillar mining.
The estimated Mineral Reserves and metal content for the Ying
Mining District as of June 30, 2024
are detailed in Table 3 below.
Table 3. Ying Mining District
Mineral Reserve estimates and metal content
at June 30, 2024
Mine
|
Category
|
Mt
|
Au
(g/t)
|
Ag
(g/t)
|
Pb
(%)
|
Zn
(%)
|
Metal contained in
Mineral Reserves
|
Au
(koz)
|
Ag
(Moz)
|
Pb
(kt)
|
Zn
(kt)
|
SGX
|
Proven
|
3.14
|
0.03
|
242
|
4.64
|
2.20
|
3.1
|
24.4
|
145.6
|
69.0
|
Probable
|
2.25
|
0.01
|
202
|
4.02
|
1.88
|
0.9
|
14.6
|
90.5
|
42.2
|
Subtotal
P&P
|
5.39
|
0.02
|
225
|
4.38
|
2.06
|
4.0
|
39.0
|
236.1
|
111.2
|
HZG
|
Proven
|
0.36
|
|
292
|
0.92
|
|
|
3.4
|
3.3
|
|
Probable
|
0.13
|
|
336
|
0.75
|
|
|
1.4
|
1.0
|
|
Subtotal
P&P
|
0.49
|
|
304
|
0.87
|
|
|
4.8
|
4.2
|
|
HPG
|
Proven
|
0.47
|
1.44
|
82
|
3.72
|
1.14
|
21.6
|
1.2
|
17.4
|
5.3
|
Probable
|
0.36
|
1.44
|
68
|
2.72
|
0.97
|
16.9
|
0.8
|
9.9
|
3.5
|
Subtotal
P&P
|
0.83
|
1.44
|
76
|
3.28
|
1.07
|
38.5
|
2.0
|
27.3
|
8.9
|
TLP
|
Proven
|
2.02
|
|
194
|
2.93
|
|
|
12.6
|
59.2
|
|
Probable
|
1.34
|
|
176
|
2.59
|
|
|
7.6
|
34.7
|
|
Subtotal
P&P
|
3.36
|
|
187
|
2.79
|
|
|
20.2
|
93.9
|
|
LME
|
Proven
|
0.30
|
0.12
|
311
|
1.29
|
0.29
|
1.1
|
3.0
|
3.9
|
0.9
|
Probable
|
0.61
|
0.14
|
314
|
1.14
|
0.32
|
2.8
|
6.1
|
6.9
|
1.9
|
Subtotal
P&P
|
0.91
|
0.13
|
313
|
1.19
|
0.31
|
3.9
|
9.2
|
10.8
|
2.8
|
LMW
|
Proven
|
0.83
|
0.22
|
251
|
2.12
|
|
5.8
|
6.7
|
17.6
|
|
Probable
|
0.84
|
0.21
|
241
|
1.99
|
|
5.7
|
6.5
|
16.7
|
|
Subtotal
P&P
|
1.67
|
0.21
|
246
|
2.05
|
|
11.5
|
13.2
|
34.3
|
|
DCG
|
Proven
|
0.06
|
2.69
|
61
|
1.21
|
|
5.0
|
0.1
|
0.7
|
|
Probable
|
0.05
|
4.54
|
63
|
1.13
|
|
7.8
|
0.1
|
0.6
|
|
Subtotal
P&P
|
0.11
|
3.58
|
62
|
1.17
|
|
12.7
|
0.2
|
1.3
|
|
Ying
Mines
|
Proven
|
7.17
|
0.16
|
223
|
3.45
|
1.05
|
36.6
|
51.4
|
247.6
|
75.2
|
Probable
|
5.58
|
0.19
|
207
|
2.87
|
0.85
|
34.0
|
37.2
|
160.3
|
47.7
|
Total
P&P
|
12.76
|
0.17
|
216
|
3.20
|
0.96
|
70.6
|
88.6
|
408.0
|
122.9
|
Notes to Mineral Reserve Statement:
- Cut‐off grades (Ag Eq g/t): SGX – 225 Resuing, 190 Shrinkage;
HZG – 235 Resuing, 205 Shrinkage; HPG – 240 Resuing, 200 Shrinkage;
TLP – 205 Resuing, 170 Shrinkage; LME – 235 Resuing, 210 Shrinkage,
205 Room & Pillar; LMW – 250 Resuing, 225 Shrinkage, 195
Longhole, 205 Room & Pillar; DCG – 275 Resuing, 235
Shrinkage.
- Stope Marginal cut‐off grades (Ag Eq g/t): SGX – 200 Resuing,
160 Shrinkage; HZG – 195 Resuing, 165 Shrinkage; HPG – 220 Resuing,
180 Shrinkage; TLP – 185 Resuing, 160 Shrinkage; LME – 205 Resuing,
185 Shrinkage, 150 Room & Pillar; LMW ‑ 195 Resuing, 165
Shrinkage, 140 Longhole, 150 Room & Pillar; DCG – 235 Resuing,
190 Shrinkage.
- Development Ore cut‐off grades (Ag Eq g/t): SGX – 125; HZG –
120; HPG – 145; TLP – 115; LME – 145; LMW – 125; DCG ‑ 150.
- Unplanned dilution (zero grade) assumed as 0.05 m on each wall of a resuing stope and
0.10 m on each wall of a shrinkage
stope. 20% unplanned dilution assumed for LMW longhole. 17% average
dilution for Room & Pillar at LME, 33% average dilution for
Room & Pillar at LMW.
- Mining recovery factors assumed as 95% for resuing and 92% for
shrinkage; for LMW longhole, 80% is assumed; for R&P at LME and
LMW, 92% is assumed.
- Metal prices: gold US$1,800/troy
oz, silver US$21.00/troy oz, lead
US$1.00/lb, zinc US$1.10/lb.
- Processing recovery factors: SGX – 66.6% Au, 96.4% Ag, 97.6%
Pb, 60.5% Zn; HZG – 96.4% Ag, 93.6% Pb; HPG ‑ 92.0% Au, 89.9% Ag,
91.4% Pb, 67.8% Zn; TLP – 94.0% Ag, 90.3% Pb; LME – 66.9% Au, 95.6%
Ag, 90.4% Pb, 31.3% Zn; LMW – 88.3% Au, 96.8% Ag, 95.7% Pb; DCG –
85.7% Au, 80.9% Ag, 77.6% Pb.
- Payables: Au – 85%; Ag – 92.5%; Pb – 98.0%; Zn – 73.7%.
- Exclusive of mine production to 30 June
2024.
- Exchange rate assumed is RMB 7.00
: US$1.00.
- Numbers may not compute exactly due to rounding.
The sensitivity of the Ying Mineral Reserves
to variation in COG has been tested
by applying a 20% increase in COG to Mineral Reserves at each
of the Ying mines. The lowest sensitivity, at 7% reduction in Ag Eq
ounces, is seen at SGX. For the entire Ying Mining District, an
approximate 11% reduction in Ag Eq ounces for a 20% COG increase
demonstrates relatively low overall COG sensitivity.
Total Ying Mineral Reserve tonnes are approximately 58% of
Mineral Resource (Measured plus Indicated) tonnes. Gold, silver,
lead, and zinc Mineral Reserve grades are 86%, 106%, 105%, and
111%, respectively, of the corresponding Measured plus Indicated
Mineral Resource grades. Metal conversion percentages for gold,
silver, lead, and zinc are 49%, 61%, 60%, and 64%,
respectively.
Some significant aspects of a comparison of Mineral Reserve
estimates between December 31, 2021
(previous Technical Report) and June 30,
2024 (Ying 2024 Technical Report) are the following:
- 24% increase in Ying Proven Mineral Reserve tonnes.
- 4% increase in total (Proven + Probable) Ying Mineral Reserve
tonnes.
- Decrease in total Ying Mineral Reserve gold, silver, lead, and
zinc grades of 35%, 11%, 5%, and 7%, respectively.
- Decrease in total Ying Mineral Reserve metal content for gold,
silver, lead, and zinc metals of 33%, 7%, 1%, and 4%,
respectively.
- SGX continues to be the leading contributor to the total Ying
Mineral Reserves, accounting for 42% of tonnes, 44% of silver, 58%
of lead, and 90% of zinc, compared to respective values of 42%,
44%, 60%, and 90% in the previous Technical Report.
- TLP remains the second largest contributor to total Ying
Mineral Reserves, with 26% of tonnes, 23% of silver and 23% of
lead.
- Increases in Mineral Reserve tonnes at SGX, HPG, and TLP of 3%,
5%, and 31%, respectively, with LME tonnes unchanged.,
- Decreases in Mineral Reserve tonnes at HZG, LMW, and DCG of
34%, 10%, and 48%, respectively.
- In terms of Ag Eq metal in total Ying Mineral Reserves,
approximate respective contributions are silver 61%, lead 31%, zinc
5%, and gold 4%.
- In total Ying Mineral Reserves, SGX, TLP, LMW, LME, HPG, HZG,
and DCG contribute 49%, 21%, 12%, 7%, 6%, 4%, and 1% of Ag Eq
metal, respectively.
The projected
production profile for the Ying mines using
current Mineral Reserves is shown in Table 4.
Table 4. Ying Mining District LOM production
profile
Ying
Mines
|
FY2025
Q2-Q4
|
FY2026
|
FY2027
|
FY2028
|
FY2029
|
FY2030
|
FY2031
|
FY2032
|
FY2033
|
FY2034
|
FY2035
|
FY2036
|
FY2037
|
FY2038
|
Total
|
Ore
Production
|
782
|
1,106
|
1,183
|
1,173
|
1,148
|
1,133
|
1,093
|
1,037
|
937
|
923
|
897
|
688
|
414
|
242
|
12,757
|
(kt)
|
Grade
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Au (g/t)
|
0.52
|
0.32
|
0.33
|
0.25
|
0.19
|
0.12
|
0.10
|
0.10
|
0.05
|
0.04
|
0.05
|
0.07
|
0.04
|
0.01
|
0.17
|
Ag (g/t)
|
242
|
246
|
240
|
230
|
229
|
218
|
213
|
207
|
204
|
201
|
198
|
178
|
159
|
164
|
216
|
Pb (%)
|
3.19
|
3.46
|
3.14
|
3.10
|
3.06
|
3.21
|
3.10
|
2.91
|
3.30
|
3.23
|
3.09
|
3.33
|
3.67
|
3.74
|
3.20
|
Zn (%)
|
0.89
|
0.76
|
0.82
|
0.83
|
0.85
|
0.85
|
0.87
|
1.02
|
0.98
|
1.11
|
0.99
|
1.03
|
1.61
|
2.79
|
0.96
|
Metal
production1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Au (koz)
|
11.81
|
9.98
|
11.11
|
8.37
|
6.11
|
4.02
|
3.09
|
3.01
|
1.28
|
0.78
|
1.09
|
1.04
|
0.10
|
0.07
|
61.84
|
Ag (koz)
|
5,808
|
8,343
|
8,705
|
8,287
|
8,066
|
7,593
|
7,149
|
6,617
|
5,886
|
5,711
|
5,477
|
3,779
|
2,036
|
1,229
|
84,687
|
Pb (kt)
|
23.7
|
36.4
|
35.3
|
34.5
|
33.2
|
34.4
|
32.2
|
28.7
|
29.4
|
28.4
|
26.3
|
21.8
|
14.6
|
8.9
|
387.9
|
Zn (kt)
|
4.2
|
5.1
|
5.9
|
5.8
|
5.9
|
5.8
|
5.7
|
6.4
|
5.5
|
6.1
|
5.3
|
4.2
|
4.0
|
4.1
|
74.2
|
Notes:
|
1.Ying LOM average
recoveries: Au – 87.38%, Ag – 95.62%, Pb – 95.07%, Zn -
60.33%.
|
2.Numbers may not
compute exactly due to rounding.
|
Economic analysis
A high-level economic analysis shows the potential economic
impact relative to the latest Mineral Reserve estimations and the
associated production schedules. The following metal prices, costs
(Ying averages over projected LOM), and exchange rate were used for
the economic analysis:
• Gold
price
|
US$1,900/oz
|
• Silver
price
|
US$22/oz
|
• Lead
price
|
US$1.00/lb
|
• Zinc
price
|
US$1.15/lb
|
• Mining
cost
|
US$72.95/t
|
• Milling
cost
|
US$10.94/t
|
•
Shipping
|
US$3.43/t
|
• Mineral
Resources tax
|
US$5.00/t
|
•
G&A
|
US$10.64/t
|
•
Government fees and other taxes
|
US$2.80/t
|
•
Sustaining and growth capital
|
US$20.32/t
|
• Exchange
rate
|
US$1 =
7.00RMB
|
The QP notes that the gold, silver, and zinc metal prices used
for the economic analysis are slightly higher than those used in
the Ying COG calculations. The QP also notes that current spot
metal prices at the time of writing of the Technical Report are:
gold - $2,430/oz; silver -
$30.89/oz; lead - $0.97/lb; zinc - $1.34/lb – with all but the lead price
significantly higher than the prices used for the economic
analysis.
Using the LOM production profile based on the 30 June 2024 Mineral Reserves, and the metal
price and other assumptions shown above, pre-tax and post-tax
cashflow projections have been generated. At a 5% discount rate,
pre-tax and post-tax NPVs of $896M
and $699M, respectively, are
projected. Over the LOM, 61.5% of the net revenue is projected to
come from silver, 29.9% from lead, 5.0% from zinc, and 3.6% from
gold.
The Ying Property continues to be a strongly viable operation
based on current Mineral Reserves, with potential to extend its
Mineral Resources via further exploration and development,
particularly in areas with identified Inferred material.
Qualified Persons
All eight authors
of the Ying 2024 Technical Report qualify as independent Qualified
Persons ("QPs"). Five of the independent authors have visited
the Ying Mining District (latest visits
in February 2024). The QPs have examined all aspects of
the project, including drill core, underground workings, processing
plant, site laboratory and surface infrastructure. Assay data
supporting the Mineral Resource estimate was verified by a QP
by comparing a subset of assay results stored within the Mineral
Resource database against assay certificates issued by the relevant
reporting laboratory. The Ying 2024 Technical Report will be
made available for review on the SEDAR+ system and on the Company's
website at www.silvercorpmetals.com within 45 days of this
news release.
H. Smith, P.Eng., G. Vartell, P.Geo.,
S. Robinson, P.Geo., MAIG, C. Stewart,
P.Geo., of AMC Mining Consultants (Canada) Ltd.; R. Carlson, FAIG,
RPGeo. and R. Chesher, FAusIMM,
of AMC Consultants Pty Ltd; J. Glanvill,
PrSciNat. of AMC Consultants (UK) Limited, and D.
Claffey, CPEng. of Hillerton Consulting Ltd. are
Qualified Persons as defined by National Instrument 43‐101. The
Qualified Persons have reviewed and consented to this press release
and believe it fairly and accurately represents the information in
the Technical Report that supports the disclosure.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold,
lead, and zinc with a long history of profitability and growth
potential. The Company's strategy is to create shareholder value by
1) focusing on generating free cashflow from long life mines;
2) organic growth through extensive drilling for discovery; 3)
ongoing merger and acquisition efforts to unlock value; and 4) long
term commitment to responsible mining and ESG. For more
information, please visit our website at
www.silvercorpmetals.com.
For further information Silvercorp Metals Inc.
Lon Shaver, President
Phone: (604) 669‐9397
Toll Free 1(888) 224‐1881
Email: investor@silvercorp.ca
Website: www.silvercorpmetals.com
CAUTIONARY DISCLAIMER ‐
FORWARD‐LOOKING STATEMENTS
Certain of the statements and information in this news
release constitute "forward‐looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and "forward‐looking information" within the meaning of
applicable Canadian provincial securities laws (collectively,
"forward‐looking statements"). Any statements or information that
express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects", "is expected", "anticipates",
"believes", "plans", "projects", "estimates", "assumes", "intends",
"strategies", "targets", "goals", "forecasts", "objectives",
"budgets", "schedules", "potential" or variations thereof or
stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved, or the
negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward‐ looking
statements. Forward‐looking statements relate to, among other
things: the price of silver and other metals; foreign exchange
rates; the accuracy of mineral resource and mineral reserve
estimates at the Company's material properties; estimated mine life
and any anticipated changes related thereto; the sufficiency of the
Company's capital to finance the Company's operations; estimates of
revenues, operation costs, capital expenditures, mine plan, and
estimated production from the Company's mines in the Ying
Mining District; timing of receipt of permits and regulatory
approvals; availability of funds from production to finance the
Company's operations; and access to and availability of funding for
future construction, use of proceeds from any financing and
development of the Company's properties.
Forward‐looking statements are subject to a variety of known
and unknown risks, uncertainties and other factors that could cause
actual events or results to differ from those reflected in the
forward‐looking statements, including, without limitation, risks
relating to: fluctuating commodity prices; calculation of
resources, reserves and mineralization and precious and base metal
recovery; interpretations and assumptions of mineral resource and
mineral reserve estimates; exploration and development programs;
feasibility and engineering reports; all necessary permits,
licenses and regulatory approvals for our operations are received
in a timely manner;; title to properties; property interests; joint
venture partners; acquisition of commercially mineable mineral
rights; financing; recent market events and conditions; economic
factors affecting the Company; timing, estimated amount, capital
and operating expenditures and economic returns of future
production; integration of future acquisitions into the Company's
existing operations; competition; operations and political
conditions; regulatory environment in China and Canada; our ability to comply with
environmental, health and safety laws; environmental risks;
foreign exchange rate fluctuations; insurance; risks and hazards of
mining operations; key personnel; conflicts of interest; dependence
on management; global economic and social impact of COVID‐19;
internal control over financial reporting; and bringing actions and
enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect
any of the Company's forward‐looking statements. Forward‐ looking
statements are statements about the future and are inherently
uncertain, and actual achievements of the Company or other future
events or conditions may differ materially from those reflected in
the forward‐looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation,
those referred to in the Company's Annual Information Form under
the heading "Risk Factors". Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described or intended.
Accordingly, readers should not place undue reliance on
forward‐looking statements.
The Company's forward‐looking statements are based on the
assumptions, beliefs, expectations and opinions of management as of
the date of this news release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward‐looking statements if circumstances or
management's assumptions, beliefs, expectations or opinions should
change, or changes in any other events affecting such statements.
For the reasons set forth above, investors should not place undue
reliance on forward‐looking statements.
CAUTIONARY NOTE TO US INVESTORS
The technical and scientific information contained herein has been prepared in accordance with NI 43‐101 and
the Canadian Institute of Mining, Metallurgy and Petroleum
classification system, which differs significantly from the
standards adopted by the
U.S. Securities and Exchange Commission (the "SEC"). Accordingly, the technical and
scientific information contained herein, including
any estimates of mineral reserves
and mineral resources, may not be comparable to similar
information disclosed by U.S. companies subject to the disclosure
requirements of the SEC. In particular, and
without limiting the generality of the foregoing, this news release
uses the terms "measured resources," "indicated resources" and
"inferred resources" as defined in accordance with NI 43-101 and
the CIM Standards.
Further to recent amendments, mineral property disclosure
requirements in the United States
(the "U.S. Rules") are governed by subpart 1300 of Regulation S-K
of the U.S. Securities Act of 1933, as amended (the "U.S.
Securities Act") which differ from the CIM Standards. As a foreign
private issuer that is eligible to file reports with the SEC
pursuant to the multi-jurisdictional disclosure system (the
"MJDS"), the Company is not required to provide disclosure on its
mineral properties under the U.S. Rules and will continue to
provide disclosure under NI 43-101 and the CIM Standards. If the
Company ceases to be a foreign private issuer or loses its
eligibility to file its annual report on Form 40-F pursuant to the
MJDS, then the Company will be subject to the U.S. Rules, which
differ from the requirements of NI 43-101 and the CIM
Standards.
Pursuant to the new U.S. Rules, the SEC recognizes estimates
of "measured mineral resources", "indicated mineral resources" and
"inferred mineral resources." In addition, the definitions of
"proven mineral reserves" and "probable mineral reserves" under the
U.S. Rules are now "substantially similar" to the corresponding
standards under NI 43-101. Mineralization described using these
terms has a greater amount of uncertainty as to its existence and
feasibility than mineralization that has been characterized as
reserves. Accordingly, U.S. investors are cautioned not to assume
that any measured mineral resources, indicated mineral resources,
or inferred mineral resources that the Company reports are or will
be economically or legally mineable. Further, "inferred mineral
resources" have a greater amount of uncertainty as to their
existence and as to whether they can be mined legally or
economically. Under Canadian securities laws, estimates of
"inferred mineral resources" may not form the basis of feasibility
or pre-feasibility studies, except in rare cases. While the above
terms under the U.S. Rules are "substantially similar" to the
standards under NI 43-101 and CIM Standards, there are differences
in the definitions under the U.S. Rules and CIM Standards.
Accordingly, there is no assurance any mineral reserves or mineral
resources that Pan American may report as "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources" under NI 43-101 would be the same had the Company
prepared the reserve or resource estimates under the standards
adopted under the U.S. Rules.
Additional information relating to the Company, including
Silvercorp's Annual Information Form, can be obtained
under the Company's profile on SEDAR+
at www.sedarplus.ca on EDGAR at
www.sec.gov, and on the Company's website at
www.silvercorpmetals.com
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SOURCE Silvercorp Metals Inc