Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) (FRA:S9Y) has reported encouraging exploration drill results from its SGX mine in China, which encountered high-grade veins in and above current production areas.
The SGX mine is one of six underground mines at the metal miner's flagship Ying complex. Exploration drilling and tunneling are currently ongoing at all mines.
From October 1 last year to June 30 this year, 298 diamond drill holes were sunk at SGX for 48,867 metres (m). That included 242 underground holes and 56 surface holes and assays for 254 holes have been received, with 166 hitting mineralization. Currently, 20 rigs are drilling at the mine.
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Highlight assays from the SGX mine production area, included a 1.25m interval (1.25m true width) of vein S16W grading 141 grams per ton (g/t) silver, 1.86% lead, 0.63% zinc, 24.28 g/t gold and 0.02% copper at the 321m elevation.
Surface drilling at the north and northeast sides of the resource area included results of a 1.10m interval from 107.51m depth (0.69m true width) of vein S75 grading 8 g/t silver, 0.22% lead, 0.33% zinc, 4.97 g/t gold, and 0.01% copper at the 699 m elevation.
In addition to drilling, 11,958m of exploration drift tunneling were developed at the SGX mine during the period.
Highlights included one tunnel, which exposed mineralization 30m long and 1.02m wide (true width) grading 961 g/t silver, 19.71% lead and 5.13% zinc within vein S37W at the 520m level.
"Detailed drilling of blocks of known silver-lead-zinc and gold veins in and above the SGX mine production areas intersected high-grade veins," said Silvercorp in the statement.
"These mineralized occurrences were previously missed due to limited drilling and tunneling, changes in the strikes and dips, and/or pinch-swelling of the pay-zones in the veins. The company expects that these discoveries can be converted quickly into reserves and mined with existing underground workings."
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