Silvercorp’s Ying richer than thought

Vancouver — Silvercorp Metals (SVM-V), previously known as SKN Resources, has boosted the estimated amount of silver, zinc and lead contained in the Ying deposit in China’s Henan province.

The estimate includes five veins with an average width of 0.42 metre. The veins host a measured and indicated resource of 420,453 tonnes averaging 1,393 grams silver per tonne, 32.76% lead and 9.99% zinc, equivalent to 18.8 million oz. silver, 137,730 tonnes lead and 42,004 tonnes zinc.

These veins also carry 495,205 tonnes in the inferred category grading 1,539 grams silver, 35.01% lead and 9.56% zinc, equivalent to 24.5 million oz. silver, 173,394 tonnes lead and 47,323 tonnes zinc.

The estimates are based on a cutoff of 1,250 grams silver-equivalent over at least 0.1 metre of thickness.

The cost of mining the veins is pegged at US$9.70 per tonne, not including milling and shipping.

Silvercorp will seek a permit to mine and process the deposit at the annual rate of 100,000 tonnes.

The company is also exploring 33 additional veins on the project.

Exploration work is being carried out by the company’s Chinese partner, Henan Found Mining, from which Silvercorp is earning a 77.5% interest.

Henan Found has completed 3,550 metres of drifting, declines, and raises and 1,500 metres of underground drilling.