Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) reported an updated technical report for the mining company’s Baiyunpu project in China that outlines a meaningful gold resource.
At the Baiyunpu (BYP) property in Hunan province, the report highlighted a mineral resource of 4.3 million tons grading 3.1 grams per ton (g/t) in the Measured and Indicated categories, containing nearly 418,000 ounces of gold.
The previous mining operation between 2011 and 2014 produced 221,000 tons of gold at an average grade of 3.6 g/t, or approximately 25,000 ounces of recovered gold.
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On the base metals side, Silvercorp reported around 10.1 million tons grading an average of 1.1 percent lead and 2.7 percent zinc in the Measured and Indicated categories.
The current report is based on an additional 22 diamond drill holes and nearly 1,100 metres of channel samples from tunnels, according to Silvercorp.
Based in Vancouver, Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China.
The company is aiming to bring BYP back online after ceasing production in 2014, targeting around 30,000 ounces of annual gold production.
Shares of Silvercorp slipped 1.7% in Toronto to close at C$2.96 on Wednesday, and eased around 1.4% in aftermarket trading in New York to sit at US$2.16.
Contact Angela at angela@proactiveinvestors.com
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