Silvercorp Metals Inc (NSYEAMERICAN:SVM) (TSX:SVM) has unveiled an encouraging drill assay from its DCG mine in the Ying Mining District in China, a project which the miner decided to bring into production in late 2018.
Silvercorp's underground drill program at the DCG mine comprises 8,000m in 22 holes. Three holes have been so far completed and assays have been received for one hole, said the firm
Previously, only select intervals with obvious lead-zinc mineralization alteration were sampled for drill holes from the Ying Mining District. But recently, as potential gold mineralization was identified at the nearby LMW, LME and TLP mines, Silvercorp decided to sample the full length of the drill core.
READ: Silvercorp Metals on track to meet fiscal 2021 output guidance as it reports solid first quarter numbers
As a result, one hole intercepted a 1.02 metre (m) interval from between 259.01m and 260.03m depth grading 1.5 grams per ton (g/t) gold and a 1.90m interval from 406.86m to 408.76m grading 15 g/t of the yellow metal, the company said in a statement.
The extension of this gold discovery will now be the focus of the 2020 drilling program, the firm added.
The firm is developing a mine at the DCG permit area and so far, 1,670m of an access ramp has been developed and the remaining 95m should be completed by mid-August this year, which will allow for mining to commence later this year.
In addition, 447m of a transportation ramp from the TLP mining camp area, north of DCG, has been completed, with the remaining 1,309m expected to be completed by the end of April next year to transport ore.
The DCG permit covers an area of 19.77 square kilometres. A series of drill programs between 2006 and 2011 of 25 holes, comprised of 9,026m, focused on obvious lead-zinc veins.
A maiden resource estimate that complies with Chinese government requirements, but not NI 43-101, was completed in 2014, and Silvercorp successfully converted the exploration permit to a mining permit in 2015.
Shares in New York added around 6% to US$7.04.
---Updates for share price---
Contact the author at firstname.lastname@example.org