Silvercorp Metals Inc (TSX:SVM, AMEX:SVM) unveiled a new technical report on its Gaocheng (GC) operation that increases the resources and reserves on the silver-zinc-lead project.
The report outlines mineral reserves of 4.131 million tonnes in the combined proven and probable categories at a grade of 94 grams per ton (g/t) silver, 1.5% lead, and 3.2% zinc, containing about 12.5 million ounces of silver, 135 million pounds of lead, and 293 million pounds of zinc.
As for the resources, the report reveals 10 million tons inclusive of mineral reserves, grading 82 g/t silver, 1.2% lead and 2.8% zinc, for about 26.4 million ounces of silver, 265 million pounds of lead and 619 million pounds of zinc.
READ: Silvercorp releases high-grade intercepts from its GC mine; continues extensive drill program
All told, proven and probable reserves have increased by 8% compared to the previous technical report released in 2019.
Measured tonnes increased by 57%, thanks to the discovery of new veins, new vein interpretations and the conversion of indicated tonnes into the higher-confidence measured category. Inferred tonnes have also increased by 17%.
The updated technical report will go a long way towards extending the life of the GC operation, which has been in production since 2014.
Silvercorp had mined 1,853,662 tonnes at average head grades of 94 g/t silver, 1.6% lead and 2.9% zinc by the end of 2020.
The company told shareholders that based on only proven and probable reserves, the GC Mine has a projected life of mine of 13 years through to 2034, at an average annual production rate of around 310,000 tonnes, and with average silver equivalent grades of about 309 g/t.
Now, the GC Mine has the potential to extend its life of mine beyond 2034, thanks to the conversion of existing mineral resources to mineral reserves, and further exploration and development.
Vancouver-based Silvercorp produces silver, lead and zinc metals in concentrates from mines in China.
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