Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has reported a substantial increase in mineral reserves at its Ying Mining District in China, according to an updated NI 43-101 technical report. The report highlights a 55% increase in probable reserve tonnes and a 45% increase in proven reserve tonnes compared to the 2024 technical report, extending the projected mine life through 2042.
The updated report outlines total proven and probable mineral reserves of 19 million tonnes, containing 106 million ounces of silver, 107,000 ounces of gold, 472,000 tonnes of lead, and 150,000 tonnes of zinc. Contained silver, gold, lead, and zinc increased by 20%, 52%, 16%, and 22%, respectively, over the previous report. Measured and indicated mineral resources are estimated at 42.18 million tonnes, containing 198 million ounces of silver, 231,000 ounces of gold, 944,000 tonnes of lead, and 284,000 tonnes of zinc.
Silvercorp said annual ore production is expected to increase from approximately 1.2 million tonnes in fiscal 2026 to more than 1.6 million tonnes by fiscal 2029, with that level maintained through fiscal 2031. Using long-term metal price assumptions and a 5% discount rate, the life-of-mine plan generates projected pre-tax and post-tax net present values of $1.28 billion and $1.03 billion, respectively.
The announcement is significant for investors and the mining industry as it underscores the Ying Mining District's potential for long-term production growth and value creation. The updated reserves extend the mine life beyond two decades, providing a stable outlook for Silvercorp's operations. The increase in reserves was driven by successful drilling programs and resource conversion, demonstrating the company's ability to replace and expand its mineral inventory.
For more details, the full press release is available at https://ibn.fm/QhB54.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc, with a strategy focused on generating free cash flow from long-life mines, organic growth through drilling, mergers and acquisitions, and responsible mining practices.
This development is particularly important as it positions Silvercorp to meet growing demand for silver and other base metals, which are essential for various industrial applications, including renewable energy technologies and electronics. The extended mine life and increased production capacity could positively impact the company's financial performance and shareholder value.
