Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) announced results from an updated NI 43-101 technical report for its Gaocheng silver-lead-zinc mine in Guangdong Province, China, revealing a 59% increase in measured and indicated mineral resource tonnage to 18.3 million tonnes. The updated estimate includes 38.3 million ounces of contained silver, 167,000 tonnes of lead and 408,000 tonnes of zinc, representing increases of 23%, 24% and 25%, respectively, in contained metals compared with the 2024 technical report.
The company also reported proven and probable mineral reserves of 6.2 million tonnes containing 12.5 million ounces of silver, 56,000 tonnes of lead and 138,000 tonnes of zinc, a 25% increase in reserve tonnage from the prior estimate. Based on current reserves, Silvercorp plans to increase annual mine throughput to approximately 370,000 tonnes from 2029 through 2041, with the updated life-of-mine plan generating an estimated post-tax net present value of $101.4 million at an 8% discount rate. The report concluded that the Gaocheng Mine remains a strongly viable operation with additional potential for resource expansion through future exploration and development.
This resource upgrade is significant for Silvercorp as it underscores the company's ability to expand its resource base through ongoing exploration. The Gaocheng mine has been a key asset for the Canadian mining company, which produces silver, gold, lead, and zinc. The updated technical report, filed on SEDAR+, provides a comprehensive view of the mine's potential, with measured and indicated resources now totaling 18.3 million tonnes, up from 11.5 million tonnes in the previous estimate. The contained silver increased to 38.3 million ounces from 31.2 million ounces, while lead and zinc saw respective increases to 167,000 tonnes and 408,000 tonnes.
The increase in reserves is equally notable, with proven and probable reserves rising 25% to 6.2 million tonnes. This supports an extended mine life, with Silvercorp planning to boost annual throughput to around 370,000 tonnes from 2029 through 2041. The economic implications are substantial: the updated life-of-mine plan yields a post-tax NPV of $101.4 million at an 8% discount rate, indicating strong profitability potential. The report also highlights the potential for further resource expansion through continued exploration and development, suggesting that Gaocheng could remain a long-term contributor to Silvercorp's production.
For investors, the news is a positive indicator of Silvercorp's growth trajectory. The company's strategy focuses on generating free cash flow from long-life mines, organic growth through drilling, and merger and acquisition efforts. This resource upgrade aligns with those goals, potentially enhancing shareholder value. The full press release is available at https://ibn.fm/Mg5NC, and more information about Silvercorp can be found in its newsroom at https://ibn.fm/SVM.
The announcement comes as Silvercorp continues to demonstrate its commitment to responsible mining and ESG principles. With a long history of profitability, the company is well-positioned to capitalize on the increased resources and reserves at Gaocheng. Investors and industry observers will be watching to see how Silvercorp executes its plans to expand throughput and realize the full economic potential of this key asset.
