Big Picture – A Deep Dive Examination of Silvercorp Metals Inc
Silvercorp Metals Inc Snapshot
Ying Mining District Overview
In March 2004, Silvercorp acquired its flagship Ying silver-lead-zinc project, and has subsequently acquired three other adjacent projects (the HPG, TLP and LM mines) in 2007, consolidating its hold on the district. Silvercorp's Ying Mining District now includes eight exploration permits totaling 59.7 km2 and mining permits covering 16.9 km2. The district is located near the county of Luoning approximately 240 km southwest of Zhenzhou, the capital city of Henan Province.Located in the central province of Henan in China, the Ying Mining District has been intermittently mined over the last several hundred years by small-scale local miners. Since 1956, extensive geological mapping, airborne magnetic surveys, stream sediment geochemical surveys, local IP surveys and trenching were conducted in the area by provincial geological bureau teams, culminating in the establishment of resource estimates in late 2003.
Silvercorp acquired its flagship Ying silver-lead-zinc property in March 2004. Following two years of exploration and development, Silvercorp received its mining permit on March 31, 2006, and commenced commercial production the next day on April 1, 2006. The Ying (SGX) mine is the largest of three significant producing underground mining operations of Silvercorp's in the Ying Ag-Pb-Zn district. The Ying district is located 240 km southwest of Zhenzhou, the capital city of Henan Province in central China.
The SGX area, which includes a smaller satellite deposit, the HZG mine, is in the western part of the Ying district and is covered by one mining permit and three exploration permits, together totaling 58.26 sq. km. in size.
Silvercorp acquired the Haopinggou ("HPG") silver-gold-lead property in January 2007. Located directly adjacent to the Ying Project, the property includes an exploration permit covering 5.86 km2 and two mining permits covering 0.54 km2. After just four months of preparation, Silvercorp commenced mining and milling operations on May 1, 2007.
Silvercorp acquired the TLP silver-lead mine in December 2007. Located directly east of the Ying mine (240 km southwest of Zhenzhou, the capital city of Henan Province in central China), the TLP mine operates under a mining permit covering an area of 3.3 km2 from surface at 1,140 m elevation to a depth of 700 m with an overlapping exploration permit that covers the area below 700 m elevation. Commercial production commenced March 2008.
Silvercorp acquired the LM silver-lead mine in November 2007. Located directly southeast of the Ying mine (240 km southwest of Zhenzhou, the capital city of Henan Province in central China), the LM mine operates under a mining permit covering an area of 3.07 km2. Silvercorp commenced production at the mine in the March 2008.
XBG + XHP Projects
In August 2011, Silvercorp acquired control of the XBG silver-gold-lead-zinc (Ag-Au-Pb-Zn) mine in the Henan Province of China. In November 2011, Silvercorp acquired control of the XHP Ag-Au-Pb-Zn mine, located just 6 kilometers northwest of the XBG mine. Both mines are located about 120 km southeast of Silvercorp’s flagship Ying mine and approximately a 3 hour drive from Luoyang City.
The acquisition of the XBG & XHP projects furthers Silvercorp's intention to consolidate mines and prospective projects in the high-grade silver, gold and base metal belt in the Southwest Luoyang City district. Silvercorp has established itself in the region as an effective explorer and developer, with a good brand name and has become the largest non-state-controlled company and one of the top tax payers in Luoyang City. This has been instrumental in gaining and building the full support of city, county and provincial governments.
Silvercorp acquired control of the BYP Gold-Lead-Zinc (Au-Pb-Zn) mine in January 2011. The mine is located in Hunan Province, China and is 220 km southwest, or a 3 hour drive, from Changsha, Hunan's capital city. The BYP mine has a mining permit covering 3.67 km2, a safety production permit and a 500 tonne per day (t/d) floatation mill.
Silvercorp acquired the Gaocheng ("GC") silver-lead-zinc exploration permit in April 2008. Located about 200 kilometres west of Guangzhou City, Guangdong Province, southern China, the permit covers an area of 5.5 km2. Since 2001, the GC permit has been explored for gold, silver, lead, zinc, and sulphur. In December 2010, Silvercorp received a mining permit on the GC project and construction of a 1,600 tpd mine and mill is currently underway.
Silvercorp acquired the Silvertip silver-lead-zinc project, located in northern British Columbia, Canada, just south of the Yukon/BC border, in February 2010. The project, which is accessible by a 25 km road from the Alaska Highway, has undergone a number of surface and underground drill programs and geophysical surveys since 1955 and is in the advanced exploration stage. Upon acquisition, the project covered approximately 216 km2 in 63 contiguous claims and 26 fractional claims. Silvercorp has since staked further land around the project, growing its size to over 200 claims covering over 800 km2.
Rui Feng, Ph.D., Geology. Director, Chairman & CEO
Dr. Feng, a Canadian citizen residing in Vancouver, has worked as both a geologist and an executive in the mineral resource industry for over 18 years. He is an entrepreneur with an extensive track record in successfully acquiring and exploring mineral properties and ultimately turning them into profitable mining operations. Dr. Feng was the founder of several successful publicly listed companies in Canada which have made significant discoveries of mineral resources in China, including Jinshan Gold Mines Inc., formerly, Pacific Minerals Inc. Dr. Feng is well-versed in China's legal framework related to the mining industry and has an extensive network in China's mining and exploration industry.
Dr. Rui Feng obtained his B.Sc. and M.Sc. degrees in Geology in China and his Ph.D. in Geological Sciences from the University of Saskatchewan in Canada in 1992. He was awarded a Post-Doctoral Fellowship from the National Engineering and Science Council of Canada from April 1992 to April 1993 to work as a Research Scientist at the University of Montreal. From 1993 to 1994, Dr. Feng worked for the Institute of Sedimentary and Petroleum Geology of the Geological Survey of Canada in Calgary as research scientist. He is currently a Director of the Canada China Business Council - BC Chapter Board.
Myles J. Gao, P.Geo. Director & President
Mr. Myles Gao obtained his B.Sc. in geology from Lanzhou University, China, in 1982. Moving to Canada in 1989, he received his M.Sc. Degree in geology in 1993 from Laurentian University. Mr. Gao has worked for numerous Canadian mining and exploration companies in both Canada and China, focusing on gold and copper mining and exploration. A Canadian citizen, Mr Gao is based part-time in China, where he is also active in sourcing, assessing and acquiring mineral projects for the company.
Maria Tang, C.A, C.P.A. Chief Financial Officer
Ms. Maria Tang earned a Bachelor of Science degree from the Nankai University, China, holds both a CA and US CPA designation, and has five years audit experience, most recently with Ernst & Young LLP where she focused on public company audits with China operations and was in charge of SOX 404 audits for U.S. public companies. Ms Tang immigrated to Canada in 1997 and is a Canadian citizen.
Shaoyang Shen, MBA, MMPA, CMA. Chief Operating Officer
Mr. Shaoyang Shen holds a Bachelor of Economics degree from Xiamen University (China), a Master of Business Administration from the National University of Singapore and a Master of Management & Professional Accounting from the University of Toronto. He is a member of The Society of Management Accountants of Ontario since 2004 and has over 18 years of experience working in Canada and China. Based primarily in China, Mr. Shen is responsible for corporate management, production planning and internal controls for the China Operations. Mr Shen is a Canadian citizen.
Peter Torn, LLB, MBA. Corporate Secretary & General Counsel
Mr. Torn has 20 years’ experience with various companies in Europe, Asia and the US. He is a securities and corporate commercial lawyer and a current member of the British Columbia Law Society. Mr. Torn has been involved in a wide range of corporate and securities matters, including mergers and acquisitions, takeovers, corporate reorganizations, joint ventures, cross-border transactions, stock exchange listings, initial public offerings, public and private financings, and securities regulatory issues. He has a MBA and LLB from the University of British Columbia and is a Canadian Citizen.
Jonathan Hackshaw, B.Sc. (Hons.), M.Sc.,MBA. Director & Investor Relations
Mr. Hackshaw joined Silvercorp in July 2012 as Director, Investor Relations and leads the Company’s investor relations and corporate communications functions. He was most recently Director of Corporate Communications for Minefinders Corporation Ltd. (“Minefinders”) up to the acquisition of Minefinders by Pan American Silver Corp. earlier this year. Prior to joining Minefinders Mr. Hackshaw held management positions with companies in the advertising and corporate communications service sector and provided consultancy and support services to a number of mining companies as well as companies in various other industries. He began his career in the financial services sector and has a B.Sc. (Hons.) in Accounting, Economics and Finance from Oxford Brookes University, a M.Sc. in Management from the University of Bath and a MBA from the University of Surrey. Mr. Hackshaw is a permanent resident of Canada.
(As of September 30, 2012)
Shares Outstanding: 170,725,058
Options/Warrants Outstanding: 4,100,669
Shares Fully Diluted: 174,825,727
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