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Silvercorp Metals finds more mineralization at flagship SGX mine project in China after drilling and exploration

The firm's Ying project, also known as the SGX mine, was acquired in 2004 and started commercial production on April 1, 2006

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Concentrates from the SGX mine are shipped to smelters in China

China-focused Silvercorp Metals Inc (NSYEAMERICAN:SVM) (TSX:SVM) has unveiled encouraging results from exploration and drilling at its flagship SGX mine, which lies in the Ying mining province of Henan province. 

The firm's Ying project, also known as the SGX mine, was acquired in 2004 and started commercial production on April 1, 2006.

It consists of six separate mines which feed a central mill. Concentrates are shipped to smelters in China. The mine life is until 2036.

READ: Silvercorp Metals posts upbeat results from 2018-2019 exploration programs at Ying Mining District in China

Between April 1 last year and September 30 this year, Silvercorp completed over 41,000 metres of diamond drilling with seven underground rigs and also carried out 30,748 metres of exploration tunneling between elevation levels 110 m and 710 m.

Notably, exploration drilling is still ongoing at the SGX mine and all other mines at the Ying district, said the Vancouver-headquartered firm. The work has resulted in many intersections, showing silver, zinc and lead.

Drilling is mainly conducted from the mine's current production levels to delineate the downdip and along-strike extensions of known mineralized vein structures in the production area and test for new veins in previously less-explored areas.

"Results from underground drilling extended the major mineralized vein structures along strike and downdip, and exploration tunneling exposed high grade mineralized zones within major production vein structures," the company said in a statement.

Significantly, Silvercorp revealed that mineralization has been expanded to the northwest of the SGX mine, while results from the drilling and tunneling programs confirmed that the mineralized vein S32 at the SGX mine is the same vein structure as vein HZ20 at the HZG mine to the south of the SGX mine.

"The combined strike length of this vein structure is approximately 2,800m, with tunneling and infill drilling still ongoing at the connecting area of this vein structure," said the miner.

Highlight drill hole results included 1,102 g/t silver, 16.39% lead, and 1.55% zinc over an intersection of 1.20 m.

Meanwhile, in drift tunnel exploration, the firm exposed mineralization 145 m long and 0.91 m wide (true width) grading 699 g/t silver, 21.66% lead and 3.31% zinc within vein structure S2W2 on the 140 m level, the firm added. Also exposed was mineralization 35 m long and 0.92 m wide (true width) grading 779 g/t silver, 14.65% lead and 4.28% zinc within vein structure S29 on the 210 m level.

Silvercorp Mteals shares eased 2.5% to C$5.39 in Toronto.

Contact the author at [email protected]

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Price: 6.54 CAD

Market: TSX
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