Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has released results from an updated NI 43-101 technical report for its Gaocheng silver-lead-zinc mine in Guangdong Province, China, revealing a 59% increase in measured and indicated mineral resource tonnage to 18.3 million tonnes. The updated estimate includes 38.3 million ounces of contained silver, 167,000 tonnes of lead, and 408,000 tonnes of zinc, representing increases of 23%, 24%, and 25%, respectively, in contained metals compared with the 2024 technical report.
The company also reported proven and probable mineral reserves of 6.2 million tonnes containing 12.5 million ounces of silver, 56,000 tonnes of lead, and 138,000 tonnes of zinc, a 25% increase in reserve tonnage from the prior estimate. Based on current reserves, Silvercorp plans to increase annual mine throughput to approximately 370,000 tonnes from 2029 through 2041, with the updated life-of-mine plan generating an estimated post-tax net present value (NPV) of $101.4 million at an 8% discount rate. The report concluded that the Gaocheng Mine remains a strongly viable operation with additional potential for resource expansion through future exploration and development.
These results underscore Silvercorp's strategy of organic growth through extensive drilling and discovery. The company has a long history of profitability and focuses on generating free cash flow from long-life mines, ongoing merger and acquisition efforts, and a commitment to responsible mining and ESG. The updated resource estimate not only extends the mine's life but also enhances its economic outlook, providing a solid foundation for future production increases. The full press release is available at https://ibn.fm/Mg5NC.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc. The updated technical report highlights the company's ability to add value through exploration, with the Gaocheng mine showing substantial upside. The increase in resources and reserves is expected to support higher production levels and improved financial performance. Investors can find more information about Silvercorp in the company's newsroom at https://ibn.fm/SVM.
