Ongoing infill and step-out drilling has led to the discovery of several new mineralized veins, including an intersection of 33.29 metres @ 151 grams/tonne silver, 0.68% lead, 1.51% zinc and 0.3% tin at Silvercorp Metals’ GC project in Guandong province. Other highlights include 3.5 metres @ 460 grams/tonne silver, 1.2% lead, 2.95% zinc and 0.86% tin, and 3.76 metres @ 609 grams/tonne silver, 0.41% lead, 0.56% zinc and 0.03% tin.
Two drill rigs have been working on the GC drill program aimed at upgrading the classification of the known resource blocks and further defining the known vein structures in preparation for the commencement of mining at the site in 2013.
Drilling has further defined six existing and three new vein groups, with the final group of assay results pending. Silvercorp plans to continue with its infill and step-out drilling program at GC and has five underground drill rigs and two surface drill rigs on site. This follows the discovery of five new high-grade silver zones at the HZG mine in the Ying district in February, during an underground tunnelling and diamond drilling campaign.
The HZG mine is 1.4km south of the SGX Mine in Henan province. A total of 4681 metres of underground tunnelling and 14,394 metres of diamond drilling in 41 holes resulted in identification of five new vein structures that contain high-grade silver mineralization. A diamond drilling program at the LM mine, which is also in the Ying district, intersected 18.8 metres @ 368 grams/tonne silver and 1.78% lead.
Meantime, the company has announced its outlook for the 2014 fiscal year ending March 31, 2014, with total ore production set at 1.5 million tonnes for 6.7 million ounces of silver, 20,800 ounces of gold, 104.7 million pounds of lead and zinc, 300,000 pounds of tin and 20.5 million pounds of sulphur.
Output from the Ying district mines will make up 900,000 tonnes, the GC mine is scheduled to produce 300,000 tonnes, the BYP mine has a target of 220,000 tonnes and the X mines, which include the XHP and XBG mines, will process 80,000 tonnes.
Silvercorp has outlined its $86.9 million program of capital expenditure at the mines which will see new shafts and tailings facilities constructed at the Ying and GC mines, a mill expansion and infill drilling at BYP and mine development and equipment at the X mines. “The planned drilling program will test lateral and down-dip extension of high grade mineralization zones that were delineated in the 2012 program,” says president Myles Gao.