VANCOUVER, BC, July 13, 2021 /CNW/ - Silvercorp Metals
Inc. ("Silvercorp" or the "Company") (TSX:
SVM) (NYSE American: SVM) reports production and sales figures
for the first quarter of fiscal year 2022 ended June 30, 2021 ("Q1 Fiscal 2022"). The Company
expects to release its Q1 Fiscal 2022 unaudited financial results
on Thursday, August 5, 2021 after
market close.
In Q1 Fiscal 2022, the Company produced approximately 1.5
million ounces of silver, 1,000 ounces of gold, 15.9 million pounds
of lead, and 7.2 million pounds of zinc, and sold approximately 1.6
million ounces of silver, 1,000 ounces of gold, 16.8 million pounds
of lead, and 7.3 million pounds of zinc, representing decreases of
12%, 9%, and 20%, respectively, in silver, gold and lead sold, and
an increase of 4% in zinc sold over the first quarter of fiscal
2021 ("Q1 Fiscal 2021").
The production decline in the current quarter resulted mainly
from the Company's mining contracts renewal negotiations at the
Ying Mining District. As reported in the Company's news release
dated April 28, 2021,
the Company's two-year mining contracts with the eight mining
contractors at the Ying Mining District expired on March 31, 2021 and the parties reached a
temporary two-month extension. During negotiations, some contract
workers took breaks or left due to the uncertainty which caused
some disruption to mining activities. When the contracts were
renewed for an additional two year term in mid May 2021, it took some time for the contractors
to bring back all their workers and ramp the operations back up to
full capacity. Notwithstanding the production decline in Q1 Fiscal
2022, the Company expects to increase production in the remaining
three quarters and meet its annual guidance to produce between 6.3
- 6.6 million ounces of silver, 65.7 – 68.9 million pounds of lead,
and 26.9 – 28.5 million pounds of zinc in Fiscal 2022.
Q1 FISCAL 2022 OPERATING HIGHLIGHTS
- At the Ying Mining District, ore mined was 142,907 tonnes, down
18% compared to Q1 Fiscal 2021, and ore milled was 155,407 tonnes,
down 13% over Q1 Fiscal 2021. Approximately 1.3 million ounces of
silver, 1,000 ounces of gold, 13.3 million pounds of lead, and 1.5
million pounds of zinc were produced, representing production
decreases of 17% in silver, 9% in gold, 22% in lead, and 21% in
zinc over Q1 Fiscal 2021.
- At the GC Mine, ore mined was 88,328 tonnes, up 10% over Q1
Fiscal 2021, and ore milled was 87,670 tonnes, up 4% over Q1 Fiscal
2021. Approximately 190 thousand ounces of silver, 2.6 million
pounds of lead, and 5.7 million pounds of zinc were produced,
representing an increase of 1% in zinc production, and decreases of
9% and 17% in silver and lead production over Q1 Fiscal 2021.
- On a consolidated basis, ore mined was 231,235 tonnes, down 9%
over Q1 Fiscal 2021, and ore milled was 243,077 tonnes, down 7%
over Q1 Fiscal 2021. Approximately 1.5 million ounces of silver,
1,000 ounces of gold, 15.9 million pounds of lead, and 7.2 million
pounds of zinc were produced, down 16%, 9%, 21%, and 4%,
respectively, over Q1 Fiscal 2021.
- On a consolidated basis, the Company sold approximately 1.6
million ounces of silver, 1,000 ounces of gold, 16.8 million pounds
of lead, and 7.3 million pounds of zinc, representing decreases of
12%, 9%, and 20%, respectively, in silver, gold and lead sold, and
an increase of 4% in zinc sold over Q1 Fiscal 2021.
The operational results for Q1 Fiscal 2022 are summarized as
follows:
|
|
|
Three months
ended June 30, 2021
|
|
Three months
ended June 30, 2020
|
|
|
|
Ying
Mining
District
|
GC
|
Consolidated
|
|
Ying Mining
District
|
GC
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
Data
|
|
|
|
|
|
|
|
|
Ore Mined
(tonne)
|
142,907
|
88,328
|
231,235
|
|
174,176
|
80,379
|
254,555
|
|
|
Ore Milled
(tonne)
|
155,407
|
87,670
|
243,077
|
|
177,689
|
84,637
|
262,326
|
|
|
|
|
|
|
|
|
|
|
|
|
Head
Grades
|
|
|
|
|
|
|
|
|
|
Silver
(gram/tonne)
|
279
|
80
|
207
|
|
293
|
93
|
228
|
|
|
Lead
(%)
|
4.2
|
1.5
|
3.2
|
|
4.6
|
1.9
|
3.7
|
|
|
Zinc
(%)
|
0.8
|
3.3
|
1.7
|
|
0.8
|
3.4
|
1.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Recovery
Rates
|
|
|
|
|
|
|
|
|
|
Silver
(%)
|
94.7
|
84.1
|
93.2
|
|
94.7
|
82.8
|
93.1
|
|
|
Lead
(%)
|
95.7
|
89.3
|
94.6
|
|
96.2
|
89.8
|
95.1
|
|
|
Zinc
(%)
|
59.7
|
89.3
|
80.7
|
|
63.8
|
87.3
|
79.5
|
|
|
|
|
|
|
|
|
|
|
Metal
production
|
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,283
|
190
|
1,474
|
|
1,543
|
209
|
1,752
|
|
Gold (in thousands
of ounces)
|
1.0
|
-
|
1.0
|
|
1.1
|
-
|
1.1
|
|
Lead (in thousands
of pounds)
|
13,278
|
2,600
|
15,878
|
|
16,941
|
3,136
|
20,077
|
|
Zinc (in thousands
of pounds)
|
1,519
|
5,679
|
7,198
|
|
1,920
|
5,613
|
7,533
|
|
|
|
|
|
|
|
|
|
|
Metal
sold
|
|
|
|
|
|
|
|
|
Silver (in
thousands of ounces)
|
1,447
|
195
|
1,642
|
|
1,672
|
200
|
1,872
|
|
Gold (in thousands
of ounces)
|
1.0
|
-
|
1.0
|
|
1.1
|
-
|
1.1
|
|
Lead (in thousands
of pounds)
|
14,175
|
2,635
|
16,810
|
|
17,779
|
3,106
|
20,885
|
|
Zinc (in thousands
of pounds)
|
1,521
|
5,734
|
7,255
|
|
2,037
|
4,921
|
6,958
|
Ying Mining District
In Q1 Fiscal 2022, ore mined at the Ying Mining District was
142,907 tonnes, a decrease of 18%, compared to 174,176 tonnes in Q1
Fiscal 2021. Ore milled was 155,407 tonnes, with average head
grades of 279 grams per tonne ("g/t") for silver, 4.2% for lead,
and 0.8% for zinc, compared to 177,689 tonnes of ore milled with
average head grades of 293 g/t for silver, 4.6% for lead, and 0.8%
for zinc in Q1 Fiscal 2021. Metals production was approximately 1.3
million ounces of silver, 1,000 ounces of gold, 13.3 million pounds
of lead, and 1.5 million pounds of zinc, compared to approximately
1.5 million ounces of silver, 1,100 ounces of gold, 16.9 million
pounds of lead, and 1.9 million pounds of zinc in Q1 Fiscal 2021.
The decrease was mainly due to the mining disruptions arising from
the mining contracts renewal negotiations as discussed above.
GC Mine
In Q1 Fiscal 2022, ore mined at the GC Mine was 88,328 tonnes,
an increase of 10% compared to 80,379 tonnes in Q1 Fiscal 2021. Ore
milled was 87,670 tonnes, with average head grades of 80 g/t for
silver, 1.5% for lead, and 3.3% for zinc, compared to 84,637 tonnes
of ore milled with average head grades of 93 g/t for silver, 1.9%
for lead and 3.4% for zinc in Q1 Fiscal 2021. Metals production was
approximately 190 thousand ounces of silver, 2.6 million pounds of
lead, and 5.7 million pounds of zinc, compared to approximately 209
thousand ounces of silver, 3.1 million pounds of lead, and 5.6
million pounds of zinc in Q1 Fiscal 2021.
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