Trading Symbol: TSX/NYSE American: SVM
VANCOUVER, BC, Sept. 21, 2022 /CNW/ - Silvercorp Metals Inc.
("Silvercorp" or the "Company") (TSX: SVM) (NYSE American:
SVM) is pleased to report the results of an updated National
Instrument ("NI") 43-101 Technical Report on Mineral Resources and
Mineral Reserves for the Ying Property ("The Ying 2022 Technical
Report") (Mineral Resources and Mineral Reserves effective
December 31, 2021), prepared by AMC
Mining Consultants (Canada) Ltd.
("AMC"). The Ying 2022 Technical Report covers all the mines in the
Ying Property (also referenced as the "Ying Mining District") in
Henan Province, China, namely the SGX, HZG, HPG, TLP, LME, LMW
and DCG underground mines.

Six of the seven authors of the Ying 2022 Technical Report
qualify as independent Qualified Persons ("QPs"). Three of the
independent authors have visited the Ying Mining District (latest
visit in July 2016), with a more
recent planned visit postponed because of the COVID-19 pandemic.
The non-independent author, Mr. Guoliang
Ma of Silvercorp, has visited the Ying Mining District on
numerous occasions, the most recent being June 24 to July 22, 2021. The QPs have examined
all aspects of the project, including drill core, underground
workings, processing plant and surface infrastructure. The Ying
2022 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.
Based on Proven and Probable Mineral Reserves, annual production
of silver is projected to average approximately 7.0 million ounces
between fiscal 2023 and 2025, 8.0 million ounces between 2026 and
2029, 7.1 million ounces between 2030 and 2032, and 4.0 million
ounces between 2033 and 2037, to have a life of mine (LOM) at 15
years. There is also the potential to extend the LOM beyond 2037
via further exploration and development, particularly in areas with
identified Inferred Resources.
Summary of the Ying 2022 Technical
Report
- Estimated Mineral Resources of 18.7 million tonnes (inclusive
of Mineral Reserves) in the Measured and Indicated categories
grading 242 grams per tonne (g/t) silver (Ag), 0.27 g/t gold (Au),
3.51% lead (Pb), and 1.03% zinc (Zn), containing 146 million ounces
(oz) silver, 161 thousand oz gold, 657 thousand tonnes lead, and
193 thousand tonnes zinc.
- In comparison with the 2020 Technical Report (Mineral Resources
as of December 31, 2019), Measured
and Indicated Resource tonnes have decreased by 7%, and contained
metal has increased by 64% for gold and decreased by 3% for silver,
10% for lead and 16% for zinc.
- Estimated Mineral Reserves of 12.3 million tonnes in the Proven
and Probable categories grading 241 g/t silver, 0.26 g/t gold,
3.36% lead, and 1.03% zinc, containing 96 million oz silver, 105
thousand oz gold, 414 thousand tonnes lead, and 127 thousand tonnes
zinc.
- In comparison with the 2020 Technical Report (Mineral Reserves
as of December 31, 2019), there has
been a 3% increase in total Proven and Probable Mineral Reserves.
The changes in total contained metal for silver, gold, lead, and
zinc are -3%, +110%, -9% and -24% respectively. These Mineral
Reserves are on top of approximately 11 million ounces of silver
produced between January 2020 and
December 2021.
- In comparison with the 2020 Technical Report, Inferred Resource
tonnes have decreased by 30%, and contained metal has decreased by
20% for gold, 23% for silver, 27% for lead and 20% for zinc.
- The Ying Mining District is reporting Mineral Reserves at the
DCG mine for the first time. Also for the first time, the Ying
Mining District as a whole is reporting over 100,000 ounces of gold
Mineral Reserves.
- The results of the 2020-2021 underground drilling program at
the Ying Mining District show that most of the major mineralized
vein structures are still open at depth and laterally.
- Based on Proven and Probable Mineral Reserves only, an annual
production rate increase is planned from the current level of
around 650,000 tonnes per annum (tpa) to approximately 950,000 tpa
by 2026, with that level being sustained through to 2032 and a full
LOM to 2037. Annual production of silver is projected to be
approximately 7.0 million ounces between fiscal 2023 and 2025, 8.0
million ounces between 2026 and 2029, 7.1 million ounces between
2030 and 2032, and 4.0 million ounces between 2033 and 2037. There
is also the potential to extend the LOM beyond 2037 via further
exploration and development, particularly in areas with identified
Inferred Resources.
Mineral Resources:
The Mineral Resource estimates for the SGX, HPG, HZG, LMW, and
DCG mines were carried out by Silvercorp and reviewed by
independent Qualified Person, Rod
Webster, MAIG of AMC, who takes responsibility for these
estimates.
The Mineral Resource estimates for the TLP mine were carried out
by Silvercorp and reviewed by independent Qualified Person,
Simeon Robinson, P.Geo., MAIG of
AMC, who takes responsibility for these estimates.
The Mineral Resource estimates for the LME mine were carried out
by Silvercorp and reviewed by independent Qualified Person, Dr.
Genoa Vartell, P.Geo. of AMC, who takes responsibility for these
estimates.
The December 2021 Mineral
Resources were estimated using a block modelling approach in
Micromine. All grade estimation was completed using inverse
distance squared.
Resource estimates were made for a total of 356 mineralized vein
structures for the seven active mines in the Ying Mining
District.
Additional geological sections in the Ying 2022 Technical Report
were prepared by independent Qualified Persons Dr. Genoa Vartell,
P.Geo. and Simeon Robinson, P.Geo.,
MAIG, both of AMC, who take responsibility for those sections.
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 (AgEq) 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. AgEq 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 December 31,
2021 are detailed in Table 1 below.
Table 1. Ying Mining District – Mineral Resources
and metal content for silver, lead, zinc, and gold as of December
31, 2021 (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
|
3.51
|
0.05
|
290
|
5.56
|
2.75
|
5.48
|
32.81
|
195.38
|
96.62
|
SGX
|
Indicated
|
3.13
|
0.01
|
247
|
4.67
|
2.17
|
0.57
|
24.86
|
146.14
|
68.04
|
SGX
|
Measured +
Indicated
|
6.64
|
0.03
|
270
|
5.14
|
2.48
|
6.05
|
57.66
|
341.52
|
164.66
|
SGX
|
Inferred
|
3.98
|
0.01
|
232
|
4.63
|
1.93
|
0.70
|
29.75
|
184.30
|
76.79
|
HZG
|
Measured
|
0.51
|
-
|
372
|
1.20
|
-
|
-
|
6.15
|
6.18
|
-
|
HZG
|
Indicated
|
0.51
|
-
|
358
|
0.91
|
-
|
-
|
5.91
|
4.68
|
-
|
HZG
|
Measured +
Indicated
|
1.03
|
-
|
365
|
1.06
|
-
|
-
|
12.06
|
10.86
|
-
|
HZG
|
Inferred
|
0.55
|
-
|
326
|
0.83
|
-
|
-
|
5.75
|
4.55
|
-
|
HPG
|
Measured
|
0.77
|
1.37
|
94
|
3.87
|
1.40
|
33.91
|
2.31
|
29.73
|
10.72
|
HPG
|
Indicated
|
0.92
|
1.60
|
68
|
3.17
|
1.22
|
47.36
|
2.01
|
29.22
|
11.26
|
HPG
|
Measured +
Indicated
|
1.69
|
1.50
|
80
|
3.49
|
1.30
|
81.27
|
4.32
|
58.95
|
21.98
|
HPG
|
Inferred
|
1.45
|
2.61
|
91
|
3.43
|
1.20
|
121.87
|
4.26
|
49.78
|
17.43
|
TLP
|
Measured
|
2.45
|
-
|
221
|
3.43
|
-
|
-
|
17.41
|
83.93
|
-
|
TLP
|
Indicated
|
2.01
|
-
|
189
|
3.08
|
-
|
-
|
12.16
|
61.84
|
-
|
TLP
|
Measured +
Indicated
|
4.46
|
-
|
206
|
3.27
|
-
|
-
|
29.58
|
145.77
|
-
|
TLP
|
Inferred
|
3.76
|
-
|
180
|
2.86
|
-
|
-
|
21.78
|
107.46
|
-
|
LME
|
Measured
|
0.45
|
0.10
|
357
|
1.73
|
0.35
|
1.45
|
5.11
|
7.71
|
1.54
|
LME
|
Indicated
|
1.02
|
0.22
|
315
|
1.67
|
0.42
|
7.17
|
10.35
|
17.06
|
4.30
|
LME
|
Measured +
Indicated
|
1.47
|
0.18
|
327
|
1.69
|
0.40
|
8.62
|
15.46
|
24.77
|
5.85
|
LME
|
Inferred
|
1.49
|
0.65
|
221
|
1.45
|
0.41
|
30.86
|
10.55
|
21.58
|
6.03
|
LMW
|
Measured
|
0.94
|
0.21
|
325
|
2.63
|
-
|
6.45
|
9.78
|
24.65
|
-
|
LMW
|
Indicated
|
2.16
|
0.36
|
232
|
2.04
|
-
|
24.84
|
16.12
|
43.91
|
-
|
LMW
|
Measured +
Indicated
|
3.09
|
0.31
|
260
|
2.22
|
-
|
31.28
|
25.90
|
68.56
|
-
|
LMW
|
Inferred
|
1.51
|
0.07
|
235
|
2.36
|
-
|
3.63
|
11.39
|
35.52
|
-
|
DCG
|
Measured
|
0.15
|
2.57
|
75
|
1.19
|
0.30
|
12.67
|
0.37
|
1.82
|
0.46
|
DCG
|
Indicated
|
0.20
|
3.33
|
101
|
2.26
|
0.20
|
21.50
|
0.65
|
4.54
|
0.39
|
DCG
|
Measured +
Indicated
|
0.35
|
3.00
|
90
|
1.80
|
0.24
|
34.17
|
1.02
|
6.36
|
0.85
|
DCG
|
Inferred
|
0.32
|
1.44
|
98
|
2.70
|
0.21
|
14.77
|
1.00
|
8.58
|
0.67
|
All Mines
|
Measured
|
8.78
|
0.21
|
262
|
3.98
|
1.25
|
59.96
|
73.94
|
349.40
|
109.34
|
All Mines
|
Indicated
|
9.95
|
0.32
|
225
|
3.09
|
0.84
|
101.44
|
72.06
|
307.39
|
83.99
|
All Mines
|
Measured +
Indicated
|
18.73
|
0.27
|
242
|
3.51
|
1.03
|
161.40
|
146.01
|
656.79
|
193.34
|
All Mines
|
Inferred
|
13.05
|
0.41
|
201
|
3.15
|
0.77
|
171.83
|
84.46
|
411.77
|
100.92
|
Notes:
|
•
|
Measured and Indicated
Mineral Resources are inclusive of Mineral Resources from which
Mineral Reserves are estimated.
|
•
|
Metal prices: gold
US$1450/troy oz, silver US$18.60/troy oz, lead US$0.95/lb, zinc
US$1.10/lb.
|
•
|
Exchange rate: RMB 6.50
: US$1.00.
|
•
|
Mineral Resource
reported 5 m below surface.
|
•
|
Veins factored to
minimum extraction width of 0.4 m after estimation.
|
•
|
Cut-off grades: SGX 170
g/t AgEq; HZG 170 g/t AgEq; HPG 180 g/t AgEq; TLP 155 g/t
AgEq; LME 180 g/t AgEq; LMW 160 g/t AgEq; DCG 155 g/t
AgEq.
|
•
|
AgEq equivalent
formulas by mine:
|
|
-
|
SGX = Ag
g/t+37.79*Pb%+20.76*Zn%
|
|
-
|
HZG = Ag
g/t+36.31*Pb%
|
|
-
|
HPG = Ag g/t+69.41*Au
g/t+36.84*Pb%+24.73*Zn%
|
|
-
|
TLP = Ag
g/t+36.65*Pb%
|
|
-
|
LME = Ag
g/t+35.84*Pb%+10.44*Zn%
|
|
-
|
LMW = Ag
g/t+36.88*Pb%
|
|
-
|
DCG = Ag
g/t+36.84*Pb%+24.73*Zn%
|
•
|
AgEq formulas used for
significant gold bearing veins:
|
|
-
|
SGX (Veins S16W_Au,
S18E and S74) = Ag g/t+66.25*Au g/t+37.79*Pb%+20.76*Zn%
|
|
-
|
LME (Vein LM4E2) = Ag
g/t+66.70*Au g/t+35.84*Pb%+10.44*Zn%
|
|
-
|
LMW (Veins LM22, LM26,
LM50 and LM51) = Ag g/t+65.78*Au g/t+36.88*Pb%
|
|
-
|
DCG (Veins C9, C76) =
Ag g/t+69.41*Au g/t+36.84*Pb%+24.73*Zn%
|
•
|
Exclusive of mine
production to December 31, 2021.
|
•
|
Rounding of some
figures may lead to minor discrepancies in totals.
|
The previous Mineral Resource estimates for the Ying Mining
District only reported gold values for the HPG mine. Recently,
Silvercorp has identified and targeted gold rich veins at SGX, LME,
LMW and DCG. Table 2 is a Mineral Resource subset for the silver
lead zinc veins and exclusive of HPG. Table 3 is a Mineral Resource
subset for the significant gold-bearing veins, and inclusive of
HPG.
Table 2. Ying Mining District – Mineral Resources
subset - silver, lead, zinc veins
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
|
3.40
|
-
|
297
|
5.69
|
2.80
|
-
|
32.41
|
193.40
|
94.95
|
SGX
|
Indicated
|
3.10
|
-
|
249
|
4.69
|
2.17
|
-
|
24.80
|
145.48
|
67.32
|
SGX
|
Measured +
Indicated
|
6.50
|
-
|
274
|
5.22
|
2.50
|
-
|
57.21
|
338.89
|
162.28
|
SGX
|
Inferred
|
3.97
|
-
|
233
|
4.64
|
1.93
|
-
|
29.72
|
184.22
|
76.69
|
HZG
|
Measured
|
0.51
|
-
|
372
|
1.20
|
-
|
-
|
6.15
|
6.18
|
-
|
HZG
|
Indicated
|
0.51
|
-
|
358
|
0.91
|
-
|
-
|
5.91
|
4.68
|
-
|
HZG
|
Measured +
Indicated
|
1.03
|
-
|
365
|
1.06
|
-
|
-
|
12.06
|
10.86
|
-
|
HZG
|
Inferred
|
0.55
|
-
|
326
|
0.83
|
-
|
-
|
5.75
|
4.55
|
-
|
TLP
|
Measured
|
2.45
|
-
|
221
|
3.43
|
-
|
-
|
17.41
|
83.93
|
-
|
TLP
|
Indicated
|
2.01
|
-
|
189
|
3.08
|
-
|
-
|
12.16
|
61.84
|
-
|
TLP
|
Measured +
Indicated
|
4.46
|
-
|
206
|
3.27
|
-
|
-
|
29.58
|
145.77
|
-
|
TLP
|
Inferred
|
3.76
|
-
|
180
|
2.86
|
-
|
-
|
21.78
|
107.46
|
-
|
LME
|
Measured
|
0.43
|
-
|
360
|
1.75
|
0.35
|
-
|
4.98
|
7.52
|
1.48
|
LME
|
Indicated
|
0.93
|
-
|
327
|
1.73
|
0.43
|
-
|
9.77
|
16.09
|
3.98
|
LME
|
Measured +
Indicated
|
1.36
|
-
|
337
|
1.74
|
0.40
|
-
|
14.75
|
23.61
|
5.47
|
LME
|
Inferred
|
1.10
|
-
|
275
|
1.79
|
0.41
|
-
|
9.73
|
19.70
|
4.54
|
LMW
|
Measured
|
0.90
|
-
|
335
|
2.72
|
-
|
-
|
9.70
|
24.55
|
-
|
LMW
|
Indicated
|
1.95
|
-
|
247
|
2.19
|
-
|
-
|
15.49
|
42.80
|
-
|
LMW
|
Measured +
Indicated
|
2.85
|
-
|
275
|
2.36
|
-
|
-
|
25.20
|
67.34
|
-
|
LMW
|
Inferred
|
1.49
|
-
|
237
|
2.38
|
-
|
-
|
11.32
|
35.41
|
-
|
DCG
|
Measured
|
0.02
|
-
|
50
|
6.56
|
0.19
|
-
|
0.03
|
1.28
|
0.04
|
DCG
|
Indicated
|
0.07
|
-
|
76
|
5.14
|
0.15
|
-
|
0.18
|
3.82
|
0.11
|
DCG
|
Measured +
Indicated
|
0.09
|
-
|
71
|
5.44
|
0.16
|
-
|
0.21
|
5.09
|
0.15
|
DCG
|
Inferred
|
0.21
|
-
|
87
|
3.74
|
0.18
|
-
|
0.59
|
7.91
|
0.38
|
ALL MINES
|
Measured
|
7.71
|
-
|
285
|
4.11
|
1.25
|
-
|
70.69
|
316.86
|
96.47
|
ALL MINES
|
Indicated
|
8.57
|
-
|
248
|
3.20
|
0.83
|
-
|
68.32
|
274.71
|
71.41
|
ALL MINES
|
Measured +
Indicated
|
16.29
|
-
|
265
|
3.63
|
1.03
|
-
|
139.01
|
591.57
|
167.89
|
ALL MINES
|
Inferred
|
11.08
|
-
|
222
|
3.24
|
0.74
|
-
|
78.89
|
359.25
|
81.61
|
Notes:
|
•
|
Measured and Indicated
Mineral Resources are inclusive of Mineral Resources from which
Mineral Reserves are estimated.
|
•
|
Metal prices: silver
US$18.60/troy oz, lead US$0.95/lb, zinc US$1.10/lb.
|
•
|
Exchange rate: RMB 6.50
: US$1.00.
|
•
|
Mineral Resource
reported 5 m below surface.
|
•
|
Veins factored to
minimum extraction width of 0.4 m after estimation.
|
•
|
Cut-off grades: SGX 170
g/t AgEq; HZG 170 g/t AgEq; TLP 155 g/t AgEq; LME 180 g/t
AgEq; LMW 160 g/t AgEq; DCG 155 g/t AgEq.
|
•
|
Silver equivalent
formulas by mine:
|
|
|
-
|
SGX = Ag
g/t+37.79*Pb%+20.76*Zn%
|
|
|
-
|
HZG = Ag
g/t+36.31*Pb%
|
|
|
-
|
TLP = Ag
g/t+36.65*Pb%
|
|
|
-
|
LME = Ag
g/t+35.84*Pb%+10.44*Zn%
|
|
|
-
|
LMW = Ag
g/t+36.88*Pb%
|
|
|
-
|
DCG = Ag
g/t+36.84*Pb%+24.73*Zn%
|
•
|
Exclusive of mine
production to December 31, 2021.
|
•
|
Rounding of some
figures may lead to minor discrepancies in totals.
|
|
|
|
|
Table 3. Ying Mining District – Mineral Resources
subset - significant gold-bearing veins
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
|
0.12
|
1.47
|
106
|
1.70
|
1.43
|
5.48
|
0.40
|
1.98
|
1.67
|
SGX
|
Indicated
|
0.03
|
0.57
|
61
|
2.13
|
2.32
|
0.57
|
0.06
|
0.66
|
0.71
|
SGX
|
Measured +
Indicated
|
0.15
|
1.28
|
97
|
1.79
|
1.62
|
6.05
|
0.46
|
2.63
|
2.38
|
SGX
|
Inferred
|
0.01
|
1.94
|
73
|
0.70
|
0.89
|
0.70
|
0.03
|
0.08
|
0.10
|
HPG
|
Measured
|
0.77
|
1.37
|
94
|
3.87
|
1.40
|
33.91
|
2.31
|
29.73
|
10.72
|
HPG
|
Indicated
|
0.92
|
1.60
|
68
|
3.17
|
1.22
|
47.36
|
2.01
|
29.22
|
11.26
|
HPG
|
Measured +
Indicated
|
1.69
|
1.50
|
80
|
3.49
|
1.30
|
81.27
|
4.32
|
58.95
|
21.98
|
HPG
|
Inferred
|
1.45
|
2.61
|
91
|
3.43
|
1.20
|
121.87
|
4.26
|
49.78
|
17.43
|
LME
|
Measured
|
0.02
|
2.97
|
255
|
1.26
|
0.39
|
1.45
|
0.12
|
0.19
|
0.06
|
LME
|
Indicated
|
0.09
|
2.38
|
195
|
1.03
|
0.34
|
7.17
|
0.59
|
0.97
|
0.32
|
LME
|
Measured +
Indicated
|
0.11
|
2.47
|
204
|
1.06
|
0.35
|
8.62
|
0.71
|
1.16
|
0.38
|
LME
|
Inferred
|
0.39
|
2.47
|
65
|
0.48
|
0.38
|
30.86
|
0.81
|
1.87
|
1.49
|
LMW
|
Measured
|
0.04
|
5.48
|
69
|
0.29
|
-
|
6.45
|
0.08
|
0.11
|
-
|
LMW
|
Indicated
|
0.21
|
3.74
|
94
|
0.54
|
-
|
24.84
|
0.62
|
1.11
|
-
|
LMW
|
Measured +
Indicated
|
0.24
|
4.00
|
90
|
0.50
|
-
|
31.28
|
0.70
|
1.22
|
-
|
LMW
|
Inferred
|
0.02
|
5.77
|
108
|
0.56
|
-
|
3.63
|
0.07
|
0.11
|
-
|
DCG
|
Measured
|
0.13
|
2.95
|
79
|
0.41
|
0.31
|
12.67
|
0.34
|
0.54
|
0.42
|
DCG
|
Indicated
|
0.13
|
5.29
|
115
|
0.57
|
0.23
|
21.50
|
0.47
|
0.72
|
0.28
|
DCG
|
Measured +
Indicated
|
0.26
|
4.09
|
97
|
0.49
|
0.27
|
34.17
|
0.81
|
1.26
|
0.70
|
DCG
|
Inferred
|
0.11
|
4.31
|
120
|
0.63
|
0.27
|
14.77
|
0.41
|
0.67
|
0.29
|
ALL MINES
|
Measured
|
1.07
|
1.74
|
95
|
3.04
|
1.20
|
59.96
|
3.25
|
32.54
|
12.87
|
ALL MINES
|
Indicated
|
1.38
|
2.29
|
84
|
2.37
|
0.91
|
101.44
|
3.75
|
32.68
|
12.58
|
ALL MINES
|
Measured +
Indicated
|
2.45
|
2.05
|
89
|
2.66
|
1.04
|
161.40
|
7.00
|
65.22
|
25.45
|
ALL MINES
|
Inferred
|
1.98
|
2.70
|
88
|
2.65
|
0.98
|
171.83
|
5.57
|
52.52
|
19.31
|
Notes:
|
•
|
Measured and Indicated
Mineral Resources are inclusive of Mineral Resources from which
Mineral Reserves are estimated.
|
•
|
Metal prices: gold
US$1450/troy oz, silver US$18.60/troy oz, lead US$0.95/lb, zinc
US$1.10/lb.
|
•
|
Exchange rate: RMB 6.50
: US$1.00.
|
•
|
Mineral Resource
reported 5 m below surface.
|
•
|
Veins factored to
minimum extraction width of 0.4 m after estimation.
|
•
|
Cut-off grades: SGX 170
g/t AgEq; HPG 180 g/t AgEq; LME 180 g/t AgEq; LMW 160 g/t AgEq; DCG
155 g/t AgEq.
|
•
|
AgEq formulas used for
significant gold bearing veins:
|
|
-
|
SGX (Veins S16W_Au,
S18E and S74) = Ag g/t+66.25*Au g/t+37.79*Pb%+20.76*Zn%
|
|
-
|
HPG = Ag g/t+69.41*Au
g/t+36.84*Pb%+24.73*Zn%
|
|
-
|
LME (Vein LM4E2) = Ag
g/t+66.70*Au g/t+35.84*Pb%+10.44*Zn%
|
|
-
|
LMW (Veins LM22, LM26,
LM50 and LM51) = Ag g/t+65.78*Au g/t+36.88*Pb%
|
|
-
|
DCG (Veins C9, C76) =
Ag g/t+69.41*Au g/t+36.84*Pb%+24.73*Zn%
|
•
|
Exclusive of mine
production to December 31, 2021.
|
•
|
Rounding of some
figures may lead to minor discrepancies in totals.
|
|
|
A comparison of Mineral Resource estimates between December 31, 2019 and December 31, 2021 for payable metals indicates
the following:
- Measured and Indicated tonnes have decreased by 7% overall. The
Inferred tonnes have decreased by 30%.
- Measured and Indicated grades have increased for gold and
silver by 79% and 4% respectively. Measured and Indicated grades
have decreased for lead by 4% and zinc by 10%.
- Inferred grades increased for all metals: gold by 14%, silver
by 9%, lead by 4% and zinc by 13%.
- The net result in the Measured and Indicated categories has
been an increase in the contained gold of 64% and decreases in the
contained silver, lead and zinc of 3%, 10% and 16%
respectively.
- The net result in the Inferred category has been a decrease in
the contained gold, silver, lead and zinc of 20%, 23%, 27% and 20%
respectively.
Reasons for the differences in grade, tonnes, and contained
metal include conversion to higher categories arising from drilling
and level development, generally higher cut-off grades due to
inflation, and depletion due to mining.
Mineral Reserves
The Mineral Reserve estimation is based on the assumption that
current stoping practices will continue to be predominant at the
Ying Mining District, namely cut and fill resuing and shrinkage
stoping, using hand-held drills and hand-mucking within stopes, and
loading to mine cars by rocker-shovel or by hand. The largely
sub-vertical veins, generally competent ground, reasonably regular
vein width, and hand-mining techniques using short rounds, allows 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. Minimum dilution assumptions are 0.10 m of total
overbreak for a resuing cut and 0.2 m of total overbreak for a
shrinkage stope.
Mining dilution and recovery factors vary somewhat from mine to
mine and with mining method. Average dilution factors have been
estimated as 15.5% for resuing and 19.5% for shrinkage, while
assumed mining recovery factors are 95% for resuing stopes and 92%
for shrinkage stopes.
For the total tonnage estimated as Ying Mineral Reserves and
included in the life of mine plan, approximately 62% is associated
with resuing-type methods and approximately 38% with shrinkage.
The estimated Mineral Reserves and metal content for the Ying
Mining District as of December 31,
2021 are detailed in Table 4 below.
Table 4. Ying Mining District Mineral Reserve estimates and
metal content at December 31, 2021
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
|
2.62
|
0.05
|
267
|
5.12
|
2.46
|
4.0
|
22.53
|
134.1
|
64.5
|
Probable
|
2.61
|
0.00
|
230
|
4.41
|
1.90
|
0.3
|
19.33
|
115.2
|
49.7
|
Total Proven &
Probable
|
5.23
|
0.03
|
249
|
4.76
|
2.18
|
4.2
|
41.86
|
249.3
|
114.2
|
HZG
|
Proven
|
0.37
|
|
350
|
1.08
|
|
|
4.17
|
4.0
|
|
Probable
|
0.36
|
|
347
|
0.77
|
|
|
4.06
|
2.8
|
|
Total Proven &
Probable
|
0.73
|
|
348
|
0.93
|
|
|
8.23
|
6.8
|
|
HPG
|
Proven
|
0.35
|
1.41
|
89
|
3.38
|
1.39
|
15.8
|
1.00
|
11.7
|
4.8
|
Probable
|
0.44
|
1.80
|
59
|
2.76
|
1.04
|
25.7
|
0.85
|
12.2
|
4.6
|
Total Proven &
Probable
|
0.79
|
1.63
|
73
|
3.03
|
1.19
|
41.5
|
1.85
|
24.0
|
9.4
|
TLP
|
Proven
|
1.55
|
|
219
|
3.15
|
|
|
10.94
|
49.0
|
|
Probable
|
1.02
|
|
204
|
2.91
|
|
|
6.70
|
29.7
|
|
Total Proven &
Probable
|
2.58
|
|
213
|
3.05
|
|
|
17.64
|
78.7
|
|
LME
|
Proven
|
0.23
|
0.16
|
349
|
1.59
|
0.32
|
1.2
|
2.62
|
3.7
|
0.7
|
Probable
|
0.68
|
0.30
|
316
|
1.62
|
0.40
|
6.6
|
6.91
|
11.0
|
2.7
|
Total Proven &
Probable
|
0.91
|
0.27
|
325
|
1.61
|
0.38
|
7.9
|
9.53
|
14.7
|
3.4
|
LMW
|
Proven
|
0.57
|
0.33
|
321
|
2.27
|
|
6.0
|
5.86
|
12.9
|
|
Probable
|
1.29
|
0.55
|
242
|
1.87
|
|
23.0
|
10.06
|
24.1
|
|
Total Proven &
Probable
|
1.86
|
0.48
|
266
|
1.99
|
|
28.9
|
15.92
|
37.0
|
|
DCG
|
Proven
|
0.09
|
2.41
|
73
|
1.38
|
0.28
|
6.8
|
0.20
|
1.2
|
0.2
|
Probable
|
0.13
|
3.84
|
104
|
1.87
|
0.15
|
15.4
|
0.42
|
2.3
|
0.2
|
Total Proven &
Probable
|
0.21
|
3.25
|
91
|
1.67
|
0.20
|
22.2
|
0.62
|
3.5
|
0.4
|
Ying Mines
|
Proven
|
5.78
|
0.18
|
255
|
3.75
|
1.22
|
33.8
|
47.32
|
216.6
|
70.3
|
Probable
|
6.54
|
0.34
|
230
|
3.02
|
0.87
|
70.9
|
48.32
|
197.5
|
57.2
|
Total Proven &
Probable
|
12.32
|
0.26
|
241
|
3.36
|
1.03
|
104.7
|
95.65
|
414.1
|
127.5
|
Notes to Mineral
Reserve Statement:
|
•
|
Cut-off grades (AgEq
g/t): SGX – 235 Resuing, 195 Shrinkage; HZG – 245 Resuing, 195
Shrinkage; HPG – 260 Resuing, 200 Shrinkage; TLP – 225 Resuing, 190
Shrinkage; LME – 265 Resuing, 225 Shrinkage; LMW – 245 Resuing, 200
Shrinkage; DCG – 225 Resuing, 190 Shrinkage.
|
•
|
Stope Marginal cut-off
grades (AgEq g/t): SGX – 210 Resuing, 170 Shrinkage; HZG – 210
Resuing, 160 Shrinkage; HPG – 235 Resuing, 175 Shrinkage; TLP – 205
Resuing, 170 Shrinkage; LME – 210 Resuing, 170 Shrinkage; LMW – 205
Resuing, 160 Shrinkage; DCG – 205 Resuing, 170
Shrinkage.
|
•
|
Development Ore cut-off
grades (AgEq g/t): SGX – 130; HZG – 125; HPG – 150; TLP – 125; LME
– 125; LMW – 125; DCG – 125.
|
•
|
Unplanned dilution
(zero grade) assumed as 0.05m on each wall of a resuing stope and
0.10m on each wall of a shrinkage stope.
|
•
|
Mining recovery factors
assumed as 95% for resuing and 92% for shrinkage.
|
•
|
Metal prices: gold
US$1,450/troy oz, silver US$18.60/troy oz, lead US$0.95/lb, zinc
US$1.10/lb.
|
•
|
Processing recovery
factors: SGX – 91.5% Au, 95.9% Ag, 97.6% Pb, 60.0% Zn; HZG – 96.8%
Ag, 94.7% Pb; HPG – 91.5% Au, 91.5% Ag, 90.8% Pb, 68.3% Zn; TLP –
92.9% Ag, 91.7% Pb; LME – 91.5% Au, 95.2% Ag, 92.0% Pb, 30.0% Zn;
LMW – 91.5% Au, 96.5% Ag, 95.9% Pb; DCG – 91.5% Au, 91.5% Ag, 90.8%
Pb, 68.3% Zn.
|
•
|
Payables: Au – 81%; Ag
– 91.0%; Pb – 96.4%; Zn – 74.4%.
|
•
|
Exclusive of mine
production to December 31, 2021.
|
•
|
Exchange rate assumed
is RMB 6.50 : US$1.00.
|
•
|
Rounding of some
figures may lead to minor discrepancies in totals.
|
|
|
The sensitivity of the Ying Mineral Reserves to variation in
cut-off grade (COG) has been tested by applying a 20% increase in
COG to Mineral Reserves at each of the Ying mines. The lowest
sensitivities are seen at SGX and DCG with, for the entire Ying
Mining District, an approximate 10% reduction in AgEq ounces for a
20% COG increase, demonstrating relatively low overall COG
sensitivity.
Total Ying Mineral Reserve tonnes are approximately 66% of
Mineral Resource (Measured plus Indicated) tonnes. Gold, silver,
lead, and zinc Mineral Reserve grades are 99%, 100%, 96% and 100%
respectively of the corresponding Measured plus Indicated Mineral
Resource grades. Metal conversion percentages for gold, silver,
lead, and zinc are 65%, 66%, 63%, and 66% respectively.
Some significant aspects of a comparison of Mineral Reserve
estimates between December 31, 2019
(previous Technical Report) and December 31,
2021 (Ying 2022 Technical Report) are the following:
- 3% increase in total (Proven + Probable) Ying Mineral Reserve
tonnes.
- Increase in total Ying Mineral Reserve gold grade of 104% and
decrease in silver, lead, and zinc grades of 6%, 12% and 26%
respectively.
- Increase in total Ying Mineral Reserve metal content for gold
of 110%, and decrease in silver, lead, and zinc metals of 3%, 9%,
and 24% respectively.
- SGX continues to be the leading contributor to the total Ying
Mineral Reserves, accounting for 42% of tonnes, 44% of silver, 60%
of lead, and 90% of zinc, compared to respective values of 43%,
47%, 62%, and 79% in the previous Technical Report.
- Increases in Mineral Reserve tonnes at SGX, HZG, TLP, and LMW
of 1%, 19%, 10% and 38% respectively, with DCG also reporting
Mineral Reserves for the first time.
- Decreases in Mineral Reserve tonnes at HPG and LME of 36% and
27% respectively.
The projected production profile for the Ying mines using
current Mineral Reserves is shown in Table 5.
Table 5. Ying Mining District LOM production profile
Ying
Mines
|
FY2022
|
FY2023
|
FY2024
|
FY2025
|
FY2026
|
FY2027
|
FY2028
|
FY2029
|
FY2030
|
FY2031
|
FY2032
|
FY2033
|
FY2034
|
FY2035
|
FY2036
|
FY2037
|
LOM
|
Production
(kt)
|
178
|
785
|
806
|
832
|
938
|
965
|
976
|
957
|
959
|
941
|
954
|
886
|
731
|
573
|
499
|
343
|
12,322
|
Au (g/t)
|
0.08
|
0.27
|
0.40
|
0.46
|
0.31
|
0.25
|
0.25
|
0.19
|
0.22
|
0.23
|
0.27
|
0.13
|
0.18
|
0.35
|
0.28
|
0.22
|
0.26
|
Ag
(g/t)
|
270
|
276
|
268
|
262
|
268
|
267
|
263
|
245
|
239
|
230
|
227
|
217
|
208
|
199
|
186
|
186
|
241
|
Pb (%)
|
3.58
|
3.72
|
3.57
|
3.44
|
3.30
|
3.12
|
3.20
|
3.47
|
3.31
|
3.23
|
3.03
|
3.46
|
3.32
|
3.25
|
3.48
|
4.00
|
3.36
|
Zn (%)
|
0.72
|
0.97
|
0.89
|
0.90
|
1.05
|
0.92
|
1.04
|
0.94
|
1.05
|
0.96
|
0.88
|
1.02
|
1.07
|
1.53
|
1.5
|
1.50
|
1.03
|
AgEq (g/t)
|
424
|
454
|
447
|
441
|
434
|
420
|
421
|
406
|
399
|
385
|
375
|
375
|
365
|
375
|
368
|
379
|
406
|
|
|
|
Notes:
|
|
Rounding of some
figures may lead to minor discrepancies in totals.
|
|
FY2022 Production shown
is only for final three months of financial year (January through
March, 2022).
|
|
|
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
H. Smith, P.Eng., G. Vartell, P.Geo. and S. Robinson, P.Geo.,
MAIG of AMC Mining Consultants (Canada) Ltd.; R. Webster, MAIG and R. Chesher,
FAusIMM of AMC Consultants Pty Ltd.; A. Riles, MAIG of Riles
Integrated Resource Management Pty Ltd., and Guoliang Ma,
P.Geo. of Silvercorp Metals Inc. 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
Vice 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; 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: global economic and social impact of COVID-19;
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; permits and licences; 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; environmental risks; foreign exchange
rate fluctuations; insurance; risks and hazards of mining
operations; key personnel; conflicts of interest; dependence on
management; 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, which differs 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.
Additional information relating to the Company, including
Silvercorp's Annual Information Form, can be obtained under the
Company's profile on SEDAR at www.sedar.com, on EDGAR at
www.sec.gov, and on the Company's website at
www.silvercorpmetals.com
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SOURCE Silvercorp Metals Inc