Silvercorp Metals has achieved record silver production and record sales from its Chinese operations for the first quarter of the 2012 financial year. The company recorded 1.6 million ounces of silver production, up 15% from the same period a year ago. Revenue was US$69.7 million which was 90% more than the same quarter last year.
Silvercorp’s gold production in the period was 1390 ounces, a 30% increase compared to the same period in 2010.
The silver figures were achieved from the four mines at the Ying Mining Camp in Henan Province. The company is well on track for the fiscal year 2012 production guidance of 5.6 million ounces. In addition, about 800 ounces of gold, 20.6 million pounds of lead and 4.1 million pounds of zinc were produced from the Ying camp.
The company acquired the BYP Mine in Hunan Province in February 2011 and production started in May with about 8000 tonnes of ore from existing development tunnels being processed to yield 590 ounces of gold.
Mill operation was temporarily halted in June while the company installed a liner in the tailing pond to prevent potential leakage. At present, almost one third of the tailing pond has been lined.
Mill production has been resumed and a further 7000 tonnes of low grade stockpiled ore from development tunnels plus newly mined ore will be processed.
Silvercorp Metals is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. It is the largest primary silver producer in China through the operation of four silver-lead-zinc mines at the Ying Mining Camp, has established a second production base and regional foothold at its BYP gold-lead-zinc project and is building the GC silver-lead-zinc project in Guangdong Province as its third production base in China.
In Canada, Silvercorp is preparing to apply for a small mine permit for the Silvertip high grade silver-lead-zinc project in northern British Columbia.