Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has released 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 these reserves, Silvercorp plans to increase annual mine throughput to approximately 370,000 tonnes from 2029 through 2041. The updated life-of-mine plan generates 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. This news is significant for investors as it underscores the company's ability to grow its resource base, which directly supports future production and cash flow generation. The increase in reserves and resources enhances the mine's long-term viability and could lead to higher shareholder value.
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc, with a history of profitability and growth. The company's strategy focuses on generating free cash flow from long-life mines, organic growth through drilling, merger and acquisition efforts, and a commitment to responsible mining and ESG practices. The updated technical report reinforces the company's position in the silver and base metals market, providing a clearer picture of its asset base and future potential.
For more details, the full press release is available at https://ibn.fm/Mg5NC. Additional information about Silvercorp can be found at their newsroom at https://ibn.fm/SVM.
