Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) (FRA:S9Y) has reported encouraging exploration drill results from its LME mine in China, which show the potential for finding high-grade silver-lead mineralization outside the already defined resource.
The LME mine is one of six underground mines at the metal miner's flagship Ying complex. Exploration drilling and tunneling is currently ongoing at all mines.
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Between October 1, 2020, and May 3, 2021, the company said 113 diamond drill holes (98 underground) were completed at the LME mine, and assays for 102 have been received, with 52 holes hitting mineralization. Highlight assays include, from one hole, a 0.76 metre (m) interval at a grade of 1,538 grams per ton (g/t) silver, 5.65% lead, 1.89% zinc, 0.73 g/t gold, and 0.38% copper at the 573m elevation at the mine.
Another hole hit a 0.92 m interval, grading 6,455 g/t silver, 5.28% lead, 1.19% zinc, 10 g/t gold and 0.29% copper at the 498m elevation.
Silvercorp noted that drilling at LME had targeted blocks of known silver-lead-zinc veins in resource areas previously missed. Significantly, it said that because access tunnels are already in place, any discovered high-grade blocks can quickly be converted to reserves and mined.
High-grade results are associated with parallel veins LM5, LM5E, LM5E1, LM5E2, M5W, and LM5W2, it noted.
Step-out drilling at LME also hit high-grade silver-lead-zinc mineralization, including veins LM61 and LM66 to the south and vein ML18E to the north, the company said, while another hole confirmed that the north-south striking vein T17E at the TLP mine extended southward to the area between the TLP and LME mines.
Silvercorp describes itself as a profitable Canadian mining company, which produces silver, lead and zinc metals in concentrates from mines in China.
Contact the author at giles@proactiveinvestors.com