Silvercorp Metals reports GC Project net present value of $120M
Silvercorp Metals reported the results of an updated National Instrument 43-101 Technical Report. Measured and Indicated tonnes have decreased by 16%, which is due to a combination of mining depletion and change in classification method. Inferred Mineral tonnes have decreased by 6%. In the Measured plus Indicated category, grades have decreased for silver by 21% and for zinc by 6%. The lead grade remains unchanged. In the Inferred category, grades have decreased for silver, lead, and zinc by 13%, 16% and 2% respectively. Mineral Reserves of 3.56M tons in the Proven and Probable categories grading 96 g/t silver, 1.4% lead, and 3.1% zinc, containing 11M oz. silver, 112M pounds lead, and 240M pounds zinc. Based on Proven and Probable Reserves only, the GC mine is a viable operation with a projected Life of Mine of 12 years through to 2030, with an average annual production rate of approximately 300,000 tons, and with average silver equivalent grades of the order of 335 g/t for the first eight years and then 240 g/t for the remainder of the mine life. GC also has the potential to extend the LOM beyond 2030, via conversion of existing Mineral Resources to Mineral Reserves, and further exploration and development. A base case pre-tax NPV at 8% discount rate of $160M is projected - $120M post-tax -. Over the LOM, 45% of the net revenue is projected to come from zinc, 35% from silver and 20% from lead. 49% of the net revenue is projected to come from zinc, 29% from silver and 22% from lead. In comparison with the previous 2012 Technical Report, there is a 264% increase in Proven Mineral Reserve tonnes and a 56% decrease in Probable Mineral Reserve tonnes, with a decrease in Mineral Reserve total tonnes of 25%. Mineral Resources at December 31, 2017 total 6.4M tons in the Measured and Indicated categories grading 96 g/t Ag, 1.3% Pb, and 2.9% Zn, containing approximately 20M ounces silver, 181 million pounds lead, and 412 million pounds zinc.