Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) announced significant resource growth at its Gaocheng silver-lead-zinc mine in Guangdong Province, China, according to an updated NI 43-101 technical report. The report highlights a 59% increase in measured and indicated mineral resource tonnage to 18.3 million tonnes, containing 38.3 million ounces of silver, 167,000 tonnes of lead and 408,000 tonnes of zinc. This represents increases of 23%, 24% and 25%, respectively, in contained metals compared with the 2024 technical report.
The company also reported proven and probable mineral reserves of 6.2 million tonnes containing 12.5 million ounces of silver, 56,000 tonnes of lead and 138,000 tonnes of zinc, a 25% increase in reserve tonnage from the prior estimate. Based on current reserves, Silvercorp plans to increase annual mine throughput to approximately 370,000 tonnes from 2029 through 2041, with the updated life-of-mine plan generating an estimated post-tax net present value (NPV) of $101.4 million at an 8% discount rate. The report concluded that the Gaocheng Mine remains strongly viable with additional potential for resource expansion through future exploration and development.
These results underscore Silvercorp's strategy of creating shareholder value through organic growth and extensive drilling. The company focuses on generating free cash flow from long-life mines, with the Gaocheng expansion expected to extend operations and enhance profitability. Silvercorp produces silver, gold, lead and zinc and has a history of profitability and growth potential.
For more details, the full press release is available at https://ibn.fm/Mg5NC. Additional information about Silvercorp can be found in its newsroom at https://ibn.fm/SVM.
This announcement is important for investors as it confirms the company's ability to expand resources and reserves through exploration, supporting long-term production growth and financial returns. The increased resource base and positive NPV indicate that Gaocheng will remain a key asset for Silvercorp, potentially driving future stock performance.
