Silvercorp Metals granted three new exploration permits at Ying project covering areas where 'extensive mineralization' has been hit

Silvercorp Metals Inc (TSE:SVM) (NYSEAMERICAN:SVM) (FRA:S9Y) said it has increased the mining potential at its flagship Ying project, revealing that it has been granted three new exploration permits.

The China-focused metals producer said the new permits cover 48.8 square kilometers (sq km) and cover the depth extensions of three mining permits, namely SGX, HPG, and TLP-LME-LMW.

Silvercorp started commercial production at Ying in 2006. The asset consists of six separate mines – the SGX, HZG, HPG, TLP, LME, and LMW properties - which feed two mills with 3,200 tonnes per day (tpd).

READ: Silvercorp Metals sees production levels increase throughout fiscal 2021, meeting or exceeding guidance

Previous drilling in the area covered by the new exploration permits has hit extensive mineralization, noted the miner. One hole at the HPG mine, for example, intercepted 1.42 metres (m) from a depth of 784.85m to 786.27m at a grade of 263 grams per tonne (g/t) gold and 335 g/t silver.

Exploration previously undertaken under the new mining permits was covered by a joint venture between Silvercorp and the Department of Natural Resources of Henan Province.

It is worth noting that the three new exploration permits now granted have no depth limitation, the company said.

Silvercorp also announced that its two-year contracts with eight mining contractors at the Ying Mining District expired at the end of March 2021, and the parties have reached a temporary two-month extension to renew the contracts for another two years.

In case an agreement cannot be reached with certain contractors, Silvercorp said it may replace them with new ones, which may cause temporary mining delays.

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