Silvercorp Metals Inc. (TSX: SVM) (NYSE American: SVM) reported results from an updated NI 43-101 technical report for its Gaocheng silver-lead-zinc mine in Guangdong Province, China, highlighting a 59% increase in measured and indicated mineral resource tonnage to 18.3 million tonnes. The updated estimate includes 38.3 million ounces of contained silver, 167,000 tonnes of lead and 408,000 tonnes of zinc, representing 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 NPV of $101.4 million at an 8% discount rate. The report concluded that the Gaocheng Mine remains a strongly viable operation with additional potential for resource expansion through future exploration and development.
This announcement underscores the growing resource base at Gaocheng, which enhances the company's long-term production outlook. The significant increase in measured and indicated resources, along with the rise in proven and probable reserves, positions Silvercorp to extend mine life and improve cash flow generation. The planned throughput increase from 2029 aligns with the company's strategy of focusing on generating free cash flow from long-life mines, as outlined in its corporate approach. The updated technical report provides a robust foundation for future development, with the post-tax NPV indicating strong economic viability at current metal prices.
Silvercorp's ongoing exploration efforts have consistently added to the resource base, and the company has a history of profitability and growth potential. The Gaocheng mine is a key asset in its portfolio, contributing to its production of silver, gold, lead, and zinc. The updated resource estimate reflects successful drilling programs that have expanded the known mineralization. Investors can find the full press release at https://ibn.fm/Mg5NC. For more information about Silvercorp, visit the company's newsroom at https://ibn.fm/SVM.
The implications of this resource upgrade are significant for Silvercorp's shareholders. The increase in reserves supports the company's production plans and enhances its ability to generate free cash flow over the long term. The updated life-of-mine plan, with an NPV of over $100 million, demonstrates the project's profitability even at a conservative discount rate. Additionally, the potential for further resource expansion through future exploration suggests that the Gaocheng mine could continue to deliver value beyond the current plan. This news reinforces Silvercorp's position as a mid-tier silver producer with a strong growth trajectory.
