06:15 AM EDT, 08/20/2024 (MT Newswires) -- Silvercorp Metals ( SVM ) late on Monday reported the results of an updated technical report on its Ying Mining District, which showed about 89 million ounces of silver projected to be mined at the property in the currently planned 14-year life of mine.

Silvercorp's share price at last look gained 1.1% to US$3.84 in U.S. pre-market trading on Tuesday.

The report showed estimated measured and indicated mineral resources of 22.15 million tonnes grading 203 grams per tonne (g/t) silver, 0.20 g/t gold, 3.06% lead and 0.87% zinc, containing 144 million ounces of silver, 143,000 ounces of gold, 677,000 tonnes of lead and 192,000 tonnes of zinc.

Compared with the 2022 technical report, measured and indicated resource tonnes have increased by 18%, and contained metal has increased by 3% for lead and decreased by 1% for silver, 12% for gold and 1% for zinc.

Estimated proven and probable mineral reserves were 12.76 million tonnes grading 216 g/t silver, 0.17 g/t gold, 3.20% lead and 0.96% zinc, containing 89 million ounces of silver, 71,000 ounces of gold, 408,000 tonnes of lead and 123,000 ounces of zinc.

Compared with the 2022 technical report, total proven mineral reserve tonnes increased by 24% and total proven and probable mineral reserve tonnes rose by 4%. Contained metal for silver, gold, lead and zinc all fell 7%, 33%, 1% and 4%, respectively.

A production rate increase is planned from the 2024 level of 0.83 million tonnes per year (Mtpa) to about 1.0 Mtpa in 2025, 1.1 Mtpa in 2026 and close to 1.2 Mtpa for the next two fiscal years.

The project remains above or close to 1.0 Mtpa from 2029 through 2031, with the rate slowly declining to around 900,000 tonnes per year by 2035, and a more rapid decline to around 240,000 tonnes per year in the final year of currently planned mining.

Using the life-of-mine production profile based on the June 30, 2024, mineral reserves, with $22/ounce silver, $1,900/ounce gold, $1/pound lead and $1.15/pound zinc and a 5% discount rate, pre-tax and post-tax net present values of $896 million and $699 million, respectively, are projected.

There is potential to extend the life of mine beyond 2038 via further exploration and development, particularly in areas with identified inferred resources.

The technical report covers all seven mines in the Ying Mining District in Henan Province, China, composed of the SGX, HZG, HPG, TLP, LME, LMW and DCG underground mines.