Silvercorp Metals Reports 55% Jump in Probable Reserves, Extending Ying Mine Life to 2042
Silvercorp Metals announced a 55% increase in probable mineral reserves at its Ying Mining District in China, extending the mine life to 2042 and boosting projected net present values to over $1 billion.
Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has released an updated NI 43-101 technical report for its Ying Mining District in China, revealing a substantial increase in mineral reserves and resources that extends the operation's projected mine life through 2042. The report underscores the company's growth trajectory and long-term value creation for shareholders.
The updated report outlines 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%, while Probable Reserve tonnes rose 55%. Contained silver, gold, lead, and zinc increased by 20%, 52%, 16%, and 22%, respectively. This significant growth in reserves highlights the success of Silvercorp's ongoing exploration and drilling programs.
The 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. These figures demonstrate the district's substantial resource base and potential for further expansion.
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. This ramp-up in production is a key driver of the project's enhanced economics. 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. These robust financial metrics underscore the Ying Mining District's importance to Silvercorp's portfolio.
The implications of this announcement are significant for Silvercorp and its investors. The extended mine life to 2042 provides long-term operational visibility and cash flow generation potential. The increase in reserves and resources supports the company's strategy of focusing on generating free cash flow from long-life mines, as outlined in its corporate strategy. Additionally, the production ramp-up positions Silvercorp to capitalize on favorable metal prices and meet growing demand for silver, gold, lead, and zinc.
For more details on the technical report, the full press release is available at https://ibn.fm/QhB54. The latest news and updates relating to Silvercorp are available in the company's newsroom at https://ibn.fm/SVM.