Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) has reported results from an updated NI 43-101 technical report for its Ying Mining District in China, highlighting substantial growth in mineral reserves and resources. The report extends the operation's projected mine life through 2042 and 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% and Probable Reserve tonnes rose 55%, while contained silver, gold, lead, and zinc increased 20%, 52%, 16%, and 22%, respectively.
The updated 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. 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. 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.
This announcement is significant for investors as it demonstrates the company's ability to expand its resource base and extend mine life, which are key drivers of long-term value. The substantial increase in reserves, particularly the 55% rise in probable reserves, indicates successful exploration and development efforts at the Ying Mining District. The projected increase in ore production from 1.2 million tonnes to over 1.6 million tonnes annually by fiscal 2029 suggests a strong growth trajectory, which could lead to higher free cash flow generation. The positive net present values, even after tax, underscore the economic viability of the project under conservative metal price assumptions.
For more details, the full press release is available at https://ibn.fm/QhB54. Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc, with a strategy focused on generating free cash flow from long-life mines, organic growth through drilling, and merger and acquisition efforts. The latest news and updates relating to SVM can be found in the company's newsroom at https://ibn.fm/SVM.
