Trading Symbol: TSX/NYSE American: SVM
VANCOUVER, BC, Aug. 27,
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 Mineral
Resources and Mineral Reserves for the Gaocheng Mine dated
effective June 30, 2024 ("The GC 2024
Technical Report"), prepared by SRK Consulting China Ltd ("SRK").
The Gaocheng underground mine ("GC Mine") is located in
Guangdong Province, China.
Summary of the GC 2024 Technical
Report
- Estimated Measured and Indicated Mineral Resources of 11.5
million tonnes (t) (inclusive of Mineral Reserves) grading 84 grams
per tonne (g/t) silver (Ag), 1.18% lead (Pb), and 2.85% zinc (Zn),
containing 31 million ounces (oz) silver, 136 thousand tonnes lead,
and 327 thousand tonnes zinc.
- In comparison with the 2021 Technical Report (Mineral Resources
as of December 31, 2020), Measured
and Indicated Resource tonnes have increased by 15%, and contained
metal has increased by 18% for silver, 13% for lead and 16% for
zinc.
- Estimated Proven and Probable Mineral Reserves of 5.0 million
tonnes grading 81 g/t silver, 1.21% lead, and 2.84% zinc,
containing 13 million oz silver, 60 thousand tonnes lead, and 141
thousand tonnes zinc.
- In comparison with the 2021 Technical Report (Minera Reserves
as of December 31, 2020), there has
been a 20% increase in total Proven and Probable Mineral Reserves.
The changes in total contained metal for silver, lead, and zinc are
+4%, -2%, and +6% respectively.
- In comparison with the 2021 Technical Report, Inferred Resource
tonnes have increased by 13%, and contained metal has increased by
11% for silver, 33% for lead and 16% for zinc.
- Based on Proven and Probable Mineral Reserves only, an annual
production rate increase is planned from the current level of
around 326,000 tonnes per annum (tpa) in FY2025 to between
approximately 362,000 and 363,000 tpa from FY2026 to FY2037, and
then 359,000 tpa in final FY2038. Annual production of silver is
projected to be approximately 0.8 million ounces. There is also the
potential to extend the Life of Mine ("LOM") beyond 2037 via
further exploration and development, particularly in areas with
identified Inferred Resources.
- Using the LOM production profile based on the June 30, 2024 Mineral Reserves, at an 8% discount
rate, the projected post-tax NPVs is $63.1M, with post-tax NPVs attributable to
Silvercorp of $62.5 M (99%
interest).
Mineral Resources
The June 30, 2024 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
256 mineralized vein structures for the GC Mine.
The Mineral Resources are reported above cut-offs after applying
a minimum practical extraction width of 0.4
m. Cut-off grades are based on in situ values in silver
equivalent (AgEq) terms in grams per tonne (g/t) and incorporate
mining, trucking and processing costs, with metallurgical
recoveries and payable values provided by Silvercorp and reviewed
by the Qualified Person (QP) for the Mineral Resource estimate.
AgEq formulas are shown in the footnotes of the table
below.
The estimated Mineral Resources and metal content for the GC
Mine as of June 30, 2024 are detailed in Table 1
below.
Table 1. GC Mine Mineral Resources and metal
content for silver, lead, and zinc as of June 30, 2024 (Inclusive of Mineral
Reserves)
Resource
Classification
|
Tonnes
|
Ag
(g/t)
|
Pb
(%)
|
Zn
(%)
|
Contained
Metal
|
(Mt)
|
Ag
(koz)
|
Pb
(kt)
|
Zn
(kt)
|
Measured
|
5.87
|
88
|
1.3
|
3.11
|
16,542
|
76
|
183
|
Indicated
|
5.62
|
80
|
1.05
|
2.57
|
14,507
|
59
|
144
|
Measured+Indicated
|
11.49
|
84
|
1.18
|
2.85
|
31,049
|
136
|
327
|
Inferred
|
9.57
|
85
|
1.23
|
2.44
|
26,194
|
117
|
234
|
Notes:
|
1
|
Mineral Resource
Statement as of June 30, 2024.
|
2
|
The cut-off grade
estimates are based on the forecast prices 28.5 USD/oz silver,
2,600 USD/t lead, and 3,300 USD/t zinc.
|
3
|
AgEq =
Ag+44.83*Pb+40.02*Zn.
|
4
|
Mineral Resource are
reported at a cut-off grade of 120 g/t AgEq.
|
5
|
The veins within the
depth less than 5m below surface are not included in the
Mineral Resource.
|
6
|
The totals may not
compute exactly due to rounding.
|
7
|
The Mineral Resource
estimates for the GC Mine were carried out by Silvercorp and
reviewed and approved by independent Qualified Person, Mark
Wanless, Pr.Sci,Nat, FGSSA of SRK Consulting (South Africa)
Ltd., who takes responsibility for these estimates.
|
A comparison of Mineral Resource estimates between December 31, 2020 and June 30, 2024 for
payable metals indicates the following:
- Measured and Indicated tonnes have increased by 15% overall.
The Inferred tonnes have increased by 13%.
- Measured and Indicated grades have increased for silver and
zinc by 2% both. Measured and Indicated grade has decreased for
lead by 2%.
- Inferred grades increased for lead and zinc by 23% and 2%
respectively. Inferred grade has decreased for silver by 2%.
- The net result in the Measured and Indicated categories has
been an increase in the contained silver, lead and zinc of 18%, 13%
and 16% respectively.
- The net result in the Inferred category has been an increase in
the contained silver, lead and zinc of 11%, 33%, and 16%
respectively.
Reasons for the differences in grade, tonnes, and contained
metal include updated interpretation of the mineralization,
conversion to higher categories arising from drilling and level
development, application of different cut-off grades (COGs),
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 GC
Mine, namely cut and fill resuing and shrinkage stoping, using
hand-held drills and hand-mucking or wheelbarrow within
stopes, and loading to mine cars or truck by
rocker-shovel or by load-haul-dump machine (LHD). 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 for the Mineral Reserve estimate has observed the mining methods
at the GC Mine 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
stope to stope and with mining method. Average dilution
factors have been estimated as 17% for resuing and 25% for
shrinkage, while assumed mining recovery factors are 95% for
resuing stopes and 92% for shrinkage stopes.
For the total tonnage estimated as GC Mine Reserves and included
in the life of mine plan, approximately 33% is associated with
resuing-type methods and approximately 67% with shrinkage.
The estimated Mineral Reserves and metal content for the GC
Mine as of June 30,
2024 are detailed in Table 2 below.
Table 2. GC Mine Mineral Reserve estimates and metal
content at June 30, 2024
Category
|
Tonnes
|
Ag
|
Pb
|
Zn
|
Contained
metal
|
Unit
|
(Mt)
|
(g/t)
|
( %)
|
( %)
|
Ag (koz)
|
Pb (kt)
|
Zn (kt)
|
Proven
|
2.73
|
81
|
1.26
|
2.95
|
7,142
|
34
|
81
|
Probable
|
2.23
|
81
|
1.15
|
2.71
|
5,791
|
26
|
61
|
Proven +
Probable
|
4.97
|
81
|
1.21
|
2.84
|
12,933
|
60
|
141
|
Notes:
|
1
|
Mineral Resource
Statement as of June 30, 2024.
|
2
|
The cut-off grade
estimates are based on the forecast prices 22 USD/oz silver,
2,050 USD/t lead, and 2,650 USD/t zinc.
|
3
|
AgEq =
Ag+44.83*Pb+40.02*Zn.
|
4
|
150 g/t AgEq and 200
g/t AgEq COG was applied to shrinkage and
resuing type stopes, respectively.
|
5
|
The
Mineral Reserves are reported on a metric dry tonne
basis.
|
6
|
The
Mineral Reserves are reported at the reference point of ROM
stockpile before crushing or directly crushing.
|
7
|
The totals may not
compute exactly due to rounding.
|
8
|
The Mineral Reserve
estimates for the GC Mine were carried out by Silvercorp and
reviewed and approved by independent Qualified Person, Falong
Hu, FAusIMM of SRK Consulting (China) Ltd., who
takes responsibility for these estimates.
|
Total GC Mine Mineral Reserve tonnes are approximately 44%
of Mineral Resource (Measured plus Indicated) tonnes. Silver, lead,
and zinc Mineral Reserve grades are 96%, 103%, and 100%
respectively of the corresponding Measured plus Indicated Mineral
Resource grades. Metal conversion percentages for silver, lead, and
zinc are 42%, 44%, and 43% respectively.
Some significant aspects of a comparison of Mineral Reserve
estimates between December 31, 2020
(drilling cut off date of the previous Technical
Report1) and June 30, 2024
(the GC 2024 Technical Report) are the following:
- 20% increase in total (Proven + Probable) GC Mine Mineral
Reserve tonnes.
- Decrease in total GC Mineral Reserve silver, lead and zinc
grades of 14%, 18% and 11% respectively.
- Increase in total GC Mineral Reserve metal content for silver
and zinc of 4% and 6% respectively and decrease in lead metal of
2%.
___________________________
|
1 NI 43-101
Technical Report Update on the Gaocheng Ag-Zn-Pb Project in
Guangdong Province, People's Republic of China, Report Date October
6, 2021
|
The projected production profile for the GC Mine using current
Mineral Reserves is shown in Table 3.
Table 3. GC Mine LOM production
profile
GC
Mine
|
FY2025
Q2-Q4
|
FY2026
|
FY2027
|
FY2028
|
FY2029
|
FY2030
|
FY2031
|
FY2032
|
FY2033
|
FY2034
|
FY2035
|
FY2036
|
FY2037
|
FY2038
|
Total
|
|
|
|
|
Ore
Production
|
257
|
363
|
362
|
362
|
362
|
362
|
363
|
362
|
362
|
363
|
363
|
363
|
362
|
359
|
4,965
|
|
|
(kt)
|
|
|
Grade
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ag (g/t)
|
71
|
77
|
83
|
85
|
90
|
81
|
87
|
81
|
77
|
89
|
81
|
82
|
81
|
65
|
81
|
|
|
Pb (%)
|
1.12
|
1.23
|
1.35
|
1.10
|
1.10
|
1.08
|
1.16
|
1.27
|
1.17
|
1.13
|
1.39
|
1.42
|
1.19
|
1.15
|
1.21
|
|
|
Zn (%)
|
3.02
|
3.08
|
2.69
|
2.91
|
2.84
|
3.06
|
2.72
|
2.77
|
2.94
|
2.68
|
2.62
|
2.52
|
2.86
|
2.99
|
2.83
|
|
|
Metal
production1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ag (koz)
|
483
|
742
|
798
|
817
|
865
|
778
|
838
|
778
|
740
|
857
|
779
|
789
|
778
|
620
|
10,663
|
|
|
Pb (kt)
|
2582.5
|
4011.7
|
4396.0
|
3579.0
|
3580.2
|
3514.6
|
3783.4
|
4132.5
|
3806.8
|
3684.4
|
4527.7
|
4628.6
|
3871.9
|
3713.3
|
53812.4
|
|
|
Zn (kt)
|
6962.7
|
10044.4
|
8758.4
|
9467.1
|
9242.4
|
9957.0
|
8870.3
|
9012.3
|
9564.7
|
8737.2
|
8533.2
|
8213.3
|
9304.4
|
9653.5
|
126321.0
|
|
|
Notes:
|
1.
|
GC LOM average
recoveries: Ag – 82.53%, Pb – 89.86%, Zn - 89.85%.
|
2.
|
FY2025 Production shown
is only for the three final quarters of financial year (July 2024
through to March 2025).
|
3.
|
Numbers may not compute
exactly due to rounding.
|
The GC Mine 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 lead authors of the GC Technical Report qualify as
independent Qualified Persons ("QPs"). Four of the independent
authors have visited the GC Mine from April
23 to April 26, 2024. The QPs have examined all aspects of
the project, including drill core, underground workings, processing
plant 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 GC 2024 Technical Report will be made
available for review on www.sedarplus.ca and on the Company's
website at www.silvercorpmetals.com within 45 days of this news
release.
Mark Wanless, Pr.Sci, Nat,
FGSSA of SRK Consulting (South
Africa) Ltd.; Falong Hu, FAusIMM of SRK Consulting
(China) Ltd.; and
Guoliang Ma, P.Geo. of Silvercorp Metals Inc. are Qualified
Persons as defined by NI 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; 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; future viability of
operations and potential to extend Mineral Resources via further
exploration and development; 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; the continuation of existing mining practices, methods,
and equipment; 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