QUALITY NOT QUANTITY
“ The Ying Technical Report has further confirmed our ability to define higher grades and prioritise those grades during the mine life ”
— Lon Shaver , Vice President , Silvercorp
QUALITY NOT QUANTITY
Silvercorp currently operates six mines across three of its four licences in the Ying mining district - SGX , HZG , HPG , LME , LMW , TLP . The Ying Technical Report confirmed that Ying is proving to be a prolific producer . “ Over the years , we ’ ve established the ability to define higher grades and prioritise those grades during the mine ’ s life ,” adds Shaver . “ This of course brings the production to a higher level in the earlier years , which contributes more when calculating our net present value . Recent drilling appears to have identified zones of traditional mineralization , with high grades and close to existing infrastructure , but also potentially a different type of mineralization that was the source of anomalous gold results from drilling that occurred in the past .”
Silvercorp ’ s recent technical report also introduced the potential for a seventh mining unit and the current Ying operations have excess mill capacity . “ Right now , the existing six mines are operating at sustainable production rates ,” explains Shaver . “ We don ’ t really want to push them for much higher tonnage , if anything we ’ re looking at creating opportunities for higher quality tonnage out of those mines , and pursuing the development of a seventh mining area , the DCG Project ( which would be the first mine on the fourth licence ). When that does come online it may contribute to production growth and flexibility in terms of the overall operating plan .”
It ’ s early days , but Shaver explains there was work done historically on the Ying property ’ s fourth mining licence , which shows the potential of the veins that Silvercorp is looking to develop into new production zones . “ We ’ ve been driving a tunnel towards that fourth licence and with recent drilling efforts we ’ ve hit some interesting zones ,” he confirms . “ If it all proves to be positive , the next steps
195 businesschief . asia