Silvercorp Metals Inc (TSX:SVM, AMEX:SVM) announced plans to construct a new 3,000 tonnes per day mill and tailings storage facility in the Ying Mining District of China.
In a statement, the silver miner said that the project will give the company additional capacity to grow its existing mining operations at Ying after recent drilling programs have uncovered new resources.
The new mill will also allow Silvercorp to process ore from its recent acquisitions, and potentially consolidate other nearby projects.
READ: Silvercorp Metals reports increased revenue and cashflow in its fiscal second quarter
Designed to produce silver-lead, zin, and copper concentrates, the new mill will feature a gold gravity separation circuit. The preliminary construction budget is set around US$63 million, with $25 million earmarked for the mill and the remaining $38 million for the tailings storage facility.
The tailings facility will have a total storage capacity of 19.1 million cubic metres once fully constructed, according to a statement.
Chinese engineering firm Changchun Gold Design Institute Co Ltd will lead the design of the mill and the tailings storage facility.
The existing No 1 mill will be turned into a training and research centre, the statement said.
Silvercorp expects that construction of the mill will be completed by the end of 2023, and Phase 1 of the tailings storage facility by mid-2024.
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