Silvercorp Metals (TSE:SVM) (OTCMKTS:SVMLF), a low-cost silver-producing Canadian miner with multiple mines in China, declared itself pleased with its drilling program at the HPG mine.
It reported "significant" strike extension of major production veins defined by its on-going drilling program at the HPG mine, in the Ying Mining District, Henan Province, China, over the past three quarters.
The 2015 exploration program at the HPG mine was designed to upgrade the drill-defined mineral resources with exploration tunneling and to explore for new mineralization at the unexplored down-dip and strike extensions of major production veins H17, H15 and H5W using underground diamond drilling.
Drill targets on the strike extensions of H17 and H15 are distributed from 50 metres (m) to 300m northeastwards from the previously known mineralization within these vein structures, the Vancouver, British Columbia-based company said in a statement on Monday.
The company said results of the on-going exploration drilling program "far demonstrate" that mineralization of the major production veins H17, H15 and H15W have been extended for about 300m along the northeast strike direction between the 450m and the 100m elevations.
The extended mineralization is well defined by mineralized intersections from seven diamond holes between exploration lines 34 and 42.
Exploration tunneling for resource upgrade has continuously exposed high-grade mineralization within production veins between levels 680m and 251m.
Shares closed up 1.4% at C$0.75 in Toronto on Friday. The stock has slumped 51% this year.