Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has released results from an updated NI 43-101 technical report for its Ying Mining District in China, revealing substantial growth in mineral reserves and resources and extending the operation's projected mine life through 2042. The report details Proven and Probable Mineral Reserves of 19 million tonnes containing 106 million ounces of silver, 107,000 ounces of gold, 472,000 tonnes of lead, and 150,000 tonnes of zinc. Compared with the 2024 technical report, Proven Reserve tonnes increased 45% and Probable Reserve tonnes rose 55%, while contained silver, gold, lead, and zinc increased 20%, 52%, 16%, and 22%, respectively.
The updated report also estimates Measured and Indicated Mineral Resources of 42.18 million tonnes containing 198 million ounces of silver, 231,000 ounces of gold, 944,000 tonnes of lead, and 284,000 tonnes of zinc. Silvercorp said annual ore production is expected to increase from approximately 1.2 million tonnes in fiscal 2026 to more than 1.6 million tonnes by fiscal 2029, with that level maintained through fiscal 2031. Using long-term metal price assumptions and a 5% discount rate, the life-of-mine plan generates projected pre-tax and post-tax net present values of $1.28 billion and $1.03 billion, respectively. For more details, the full press release is available at https://ibn.fm/QhB54.
This reserve growth is significant for Silvercorp as it underscores the long-term viability and expansion potential of the Ying Mining District. The increase in probable reserves by 55% and the extension of mine life to 2042 provide a solid foundation for future production and cash flow generation. The projected increase in ore production from 1.2 million tonnes to over 1.6 million tonnes annually reflects the company's confidence in its operational capabilities and the quality of the resource. Investors can monitor the latest news and updates regarding SVM in the company's newsroom at https://ibn.fm/SVM.
The updated technical report highlights Silvercorp's strategy of creating shareholder value through focusing on free cash flow from long-life mines, organic growth via extensive drilling, and ongoing merger and acquisition efforts. The company's commitment to responsible mining and ESG principles also positions it favorably in the current market environment. With the Ying Mining District's enhanced resource base, Silvercorp is well-positioned to meet its production targets and deliver value to shareholders over the coming decades.
