Trading Symbol
TSX: SVM
NYSE AMERICAN: SVM
VANCOUVER, BC, Nov. 16, 2021 /CNW/ - Silvercorp Metals Inc.
("Silvercorp" or the "Company") (TSX: SVM) (NYSE American: SVM)
reports that the Company, through its 77.5% owned
subsidiary, Henan Found Mining Co. Ltd., has initiated a
process to construct a new 3,000 tonne per day flotation mill and
tailings storage facility ("TSF") adjacent to the existing No. 2
mill, currently operating at the Ying Mining District, Henan Province, China.
According to regulations, the approval process requires: i) a
construction proposal and plan for new development projects to be
filed with the Development and Reform Commission of Luoyang City
(filed by the Company); ii) a completed Environmental Assessment
Report to be filed with the Environmental Protection Authority of
Luoyang City; and iii) a completed Safety Assessment report to be
filed with the Work Safety Authority of Luoyang City.
The Company has also applied for the re-zoning of the land usage
with the County government and has begun negotiations for a
long-term lease or acquisition of land. An engineering firm
has been engaged to complete approximately 100 foundation
engineering drill holes for the area covering the TSF. The
Company has signed design contracts with Changchun Gold Design
Institute Co. Ltd., a recognized Chinese engineering firm, to
design the mill and the TSF. The firm was founded in 1958 and has
designed well over 1,400 gold and base metals mines, mills, and
TSFs over its history.
The preliminary construction budget, including the land usage
rights, is estimated to be approximately US$25 million for the mill and US$38 million for the TSF. The new
mill will be equipped with a gold gravity separation circuit and
designed to produce silver-lead, zinc, and copper concentrates. The
TSF may be constructed in two phases, with approximately 10.2
million cubic metres of storage capacity in Phase 1, and
approximately 8.9 million cubic metres of capacity in Phase 2, for
a total storage capacity of 19.1 million cubic metres. The Company
expects that construction of the mill will be completed by the end
of 2023, and Phase 1 of the TSF by mid-2024.
The rationale for building the new mill and TSF is to
provide the Company with additional capacity to continue growing
its existing mining operations at the Ying Mining District in
light of recent successful drilling programs that have discovered
new resources, to process ore from its recent
acquisitions, and for potential consolidation of other nearby
projects. Once the new mill is completed, the Company will
decommission its No. 1 mill to have approximately 5,000 tonnes per
day of milling capacity. A new facility comprising a training
and R&D centre has been planned at the site of the No. 1
mill.
About Silvercorp
Silvercorp is a profitable Canadian mining company producing
silver, lead, and zinc metals in concentrates from mines in
China. The Company's goal is to
continuously create healthy returns to shareholders through
efficient management, organic growth, and the acquisition of
profitable projects. Silvercorp balances profitability, social and
environmental relationships, employees' wellbeing, and sustainable
development. For more information, please visit our website at
www.silvercorp.ca.
CAUTIONARY DISCLAIMER - FORWARD-LOOKING
STATEMENTS
Certain of the statements and information in this news
release constitute "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of
1995 and "forward-looking information" within the meaning of
applicable Canadian provincial securities laws (collectively,
"forward-looking statements"). Any statements or information that
express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "expects", "is expected", "anticipates",
"believes", "plans", "projects", "estimates", "assumes", "intends",
"strategies", "targets", "goals", "forecasts", "objectives",
"budgets", "schedules", "potential" or variations thereof or
stating that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved, or the
negative of any of these terms and similar expressions) are not
statements of historical fact and may be forward-looking
statements. Forward-looking statements relate to, among other
things: the price of silver and other metals; the accuracy of
mineral resource and mineral reserve estimates at the Company's
material properties; the sufficiency of the Company's capital to
finance the Company's operations; estimates of the Company's
revenues and capital expenditures; estimated production from the
Company's mines in the Ying Mining District and the GC Mine; timing
of receipt of permits and regulatory approvals; availability of
funds from production to finance the Company's operations; and
access to and availability of funding for future construction, use
of proceeds from any financing and development of the Company's
properties.
Forward-looking statements are subject to a variety of known
and unknown risks, uncertainties and other factors that could cause
actual events or results to differ from those reflected in the
forward-looking statements, including, without limitation, risks
relating to: social and economic impacts of COVID-19; fluctuating
commodity prices; calculation of resources, reserves and
mineralization and precious and base metal recovery;
interpretations and assumptions of mineral resource and mineral
reserve estimates; exploration and development programs;
feasibility and engineering reports; permits and licences; title to
properties; property interests; joint venture partners; acquisition
of commercially mineable mineral rights; financing; recent market
events and conditions; economic factors affecting the Company;
timing, estimated amount, capital and operating expenditures and
economic returns of future production; integration of future
acquisitions into the Company's existing operations; competition;
operations and political conditions; regulatory environment in
China and Canada; environmental risks; foreign exchange
rate fluctuations; insurance; risks and hazards of mining
operations; key personnel; conflicts of interest; dependence on
management; internal control over financial reporting; and bringing
actions and enforcing judgments under U.S. securities laws.
This list is not exhaustive of the factors that may affect
any of the Company's forward-looking statements. Forward-looking
statements are statements about the future and are inherently
uncertain, and actual achievements of the Company or other future
events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks,
uncertainties and other factors, including, without limitation,
those referred to in the Company's Annual Information Form under
the heading "Risk Factors". Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described or
intended. Accordingly, readers should not place undue
reliance on forward-looking statements.
The Company's forward-looking statements are based on the
assumptions, beliefs, expectations and opinions of management as of
the date of this news release, and other than as required by
applicable securities laws, the Company does not assume any
obligation to update forward-looking statements if circumstances or
management's assumptions, beliefs, expectations or opinions should
change, or changes in any other events affecting such statements.
For the reasons set forth above, investors should not place undue
reliance on forward-looking statements.
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SOURCE Silvercorp Metals Inc