Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) Monday reported that it has discovered new gold zones from recent drilling at the LMW mine in the Ying Mining District of China’s Henan Province.
Results included a 1.9 metre interval grading 37.1 grams per tonne (g/t) gold and 4 g/t silver, as well as a 6.1 m interval grading 5.2 g/t and 30 g/t silver.
The results are part of the 2020 exploration program at the LMW mine, which was completed on October 30, and used in-fill drilling to target areas of known sub-vertical silver-lead-zinc veins that were previously believed to be uneconomic. Silvercorp said these gold zones were previously undiscovered and appear to have been over-printed by the sub-vertical silver-lead-zinc veins, which are the focus of current mining operations.
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The company noted that 10 rigs are currently operating at the LMW mine with a total of 37,869 metres of drilling having been completed. Assay results for 125 holes have been received with 72 holes intercepting “many zones of higher-grade silver-lead mineralization,” the company said in a statement.
Silvercorp believes most of these higher-grade silver-lead discoveries can be mined through existing tunnels, which is expected to substantially reduce tunnel development costs at the LMW mine going forward.
The company added that extensive exploration drilling and tunnelling are ongoing at the LMW mine, and all other mines at the Ying Mining District.
On November 6, 2020, Silvercorp Metals reported 2Q profit of US$15.5 million, or $0.09 per share, a 27% increase compared to US$12.2 million, or $0.07 per share, during the same period last year. The company attributed these results to higher selling prices for silver, gold and zinc.
Silvercorp Metals has been mining silver, lead and zinc in China since 2006. Silvercorp also owns a 29% interest in New Pacific Metals Corp (CVE:NUAG) (OTCMKTS:NUPMF) (FRA:3N7), which is advancing the Silver Sand project in Bolivia.
Contact Sean at sean@proactiveinvestors.com
