Silvercorp Announces Positive Pre-Feasibility Study for the GC Silver-Lead-Zinc Project in Guangdong Province, China

Marketwire - Mining and Metals | January 31, 2012 | 1:00 pm Base Metals Precious Metals China Europe Lead Silver Zinc 

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 31, 2012) – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX:SVM)(NYSE:SVM) is pleased to announce it has received a positive Pre-Feasibility Study (“PFS”) for its 95%-owned GC Project in Guangdong Province, China. The PFS was prepared by independent consulting firm AMC Mining Consultants (Canada) Ltd. (“AMC”).

“The Company has already commenced construction at the GC Project and initial production is expected to commence in the 3rd quarter of calendar year 2012,” said Rui Feng, Silvercorp’s Chairman & CEO. “We are pleased that Proven and Probable Reserves at the GC Project have been established for the first time, and the PFS also reconfirms the project’s robust economics.”

Highlights of the Pre-Feasibility Study

  • Defined mineral reserves of 4.8 million tonnes in the Proven and Probable categories grading 121 grams per tonne (g/t) silver (Ag), 1.31% lead (Pb), and 2.95% zinc (Zn), containing approximately 18.5 million ounces (oz) silver, 62,100 tonnes of lead, and 140,200 tonnes of zinc, supporting a project life of 12 years.
  • Net Present Value (“NPV”) was estimated to be $73.7 million (at an 8% discount rate) with an IRR of 33% and payback in 2.4 years; and,
  • An initial capital cost of $67.4 million and total operating cost of $40.60/ per tonne milled.

In preparation for production, a 1,500 tonne per day (tpd) (rising to 1,570 tpd after five years) mining capacity and 1,600 tpd flotation milling capacity facilities are under construction. The flotation mill is designed to generate silver-lead, zinc, and pyrite concentrates. The optional gravity tin recovery circuit can be appended to the main circuit to recover tin from tailings.

Read the full news release


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