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Thursday, 7 February 2013
Silvercorp shares gain on discovery of five new "high grade" silver zones at HZG mine
Silvercorp Metals (TSE:SVM)(NYSE:SVM) says it has uncovered five new high grade silver zones and extended the already known zones at its HZG mine in the Ying mining district in China.
Shares of the silver producer added more than 2%, to trade at $4.36 this morning.
The drill results announced Thursday are from last year's underground tunneling and diamond drilling campaign at the mine.
The HZG mine sits just 1.4 kilometres south of the SGX mine in the same district.
A drift from underground tunneling on one of the five new vein structures found revealed a zone of 45 metres in length and 1.25 metres in true width, grading 1,409 grams per tonne (g/t) silver, 0.3% lead and 0.85% zinc.
Meanwhile, a drill hole on another new vein structure intercepted a 1.14 metre interval, or 1.13 metres true width grading 542 g/t silver, 1.02% lead and 0.11% zinc, and 0.76 metres of true width of yet another new vein grading 449 g/t silver, 0.51% lead and 0.32% zinc.
The company also expanded existing zones of mineralization, with an example of hole ZK43B02, which returned a 1.12 metre interval grading 637 g/t silver, 1.25% lead and 0.13% zinc.
Silvercorp said a total of 4,681 metres of underground tunneling and almost 14,400 metres of diamond drilling was completed last year at the mine. The program was designed to test the lateral and downdip extension of the major mineralized vein structures between the 750 and 400 metre elevations.
This year, the company will be undertaking over 2,000 metres of underground tunneling and almost 30,000 metres of underground diamond drilling, it said.
The silver‐producing Canadian mining company has multiple mines in China.
Last week, Silvercorp reported results from underground diamond drilling last year at its LM Mine West in the Ying mining district, with more drilling planned for 2013. Notable results included an 18.8 metre interval in hole ZKX03S31, which intercepted 368 grams per tonne (g/t) silver and 1.78% lead, including 7.95 metres grading 788 g/t silver and 3.6% lead.
Also in late January, Silvercorp said that a normal course issuer bid to buy back up to 8.5 million of its common shares had been approved by the Toronto Stock Exchange.
The news came a day after the Vancouver-based company said it had added two to its management team in China to support its growth efforts.
Silvercorp is currently developing its GC project in southern China, which it expects will become its next operating mine early this year. In December 2010, it received a mining permit on the GC project, with the construction of a 1,600 tonne per day mine and mill currently underway.
The property is located about 200 kilometres west of Guangzhou City, Guangdong Province, southern China.