Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Canadian-based Silvercorp Metals recently informed of improved lead and zinc reserves and resources at its Gaocheng (GC) mine project in Guangdong Province, southern China.


The mining company’s updated technical report found that the GC mine has extracted 1.85mn mt since operations commenced in 2014 through Dec 31, 2020, with average head grades of 1.6pc lead and 2.9pc zinc.


Production at the mine lessened in relation to contract renewals, however, combined tons of proven and probable reserves have risen 8pc, with proven reserves up 39pc while probable reserves fell 21pc, against prior report estimates on Jun 30, 2019. 


The GC’s projected life of mine is 13 years through 2034, with an average yearly production rate of about 310,000mt. The mine may extend past 2034, based on transferring existing mineral resources to reserves, along with additional developments.


The mineral reserves stand at 4.13mn mt in both proven and probable groupings, grading 1.5pc lead and 3.2pc zinc, containing roughly 61,235mt of lead, and 132,903mt of zinc. Measured tons grew by 57pc versus the mineral resources valuation from 2019’s report as new deposits have been discovered.


Lead and zinc mineral reserve grades are 124pc and 115pc, respectively, of the related measured plus indicated mineral resource grades. Metal content conversions for lead and zinc from measured plus indicated mineral resources to proven plus probable mineral reserves are 51pc and 47pc, respectively.

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