Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Business

Silvercorp Provides Outlook for Fiscal 2014


Print article Print article
© Marketwire 2013
2013-02-13 23:11:01 -

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/13/13 -- Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") today announced its outlook for the fiscal year ending March 31, 2014 ("Fiscal 2014").


Production Guidance


In Fiscal 2014, the Company expects to increase ore production to 1.5 million tonnes, and will produce 6.7 million ounces of silver, 20,800 ounces of gold, 104.7 million pounds of lead and zinc, 300,000 pounds of tin and 20.5 million pounds of sulphur.


Table 1 - Production guidance for Fiscal 2014:

---------------------------------------------------------------------------
                               Ying                                        
                             Mining          GC      BYP       X      Grand
PROJECT                    District        Mine     Mine   Mines      Total
---------------------------------------------------------------------------
Ore processed (tonnes)      900,000     300,000  220,000  80,000  1,500,000
---------------------------------------------------------------------------
                                Head Grades                                
---------------------------------------------------------------------------
Silver (gram per tonne)         220         100        -      37           
Gold (gram per tonne)          0.33           -     2.39    0.24           
Lead (%)                        3.4         0.8        -     2.7           
Zinc (%)                        1.3         2.2        -     2.6           
Tin (%)                           -         0.1        -       -           
Sulphur (%)                       -         6.0        -       -           
---------------------------------------------------------------------------
                              Metal Production                             
---------------------------------------------------------------------------
Silver ('000 ounces)          5,900         740        -      60      6,700
Gold ('000 ounces)              4.7           -     15.8     0.3       20.8
Lead (million pounds)          63.6         4.8        -     3.9       72.3
Zinc (million pounds)          16.7        13.4        -     2.3       32.4
Tin (million pounds)              -         0.3        -       -        0.3
Sulphur (million pounds)          -        20.5        -       -       20.5
---------------------------------------------------------------------------



At the Ying Mining District, production is expected to increase to 900,000 tonnes of ore with grades of 220 gram per tonne ("g/t") silver, 0.33 g/t gold, 3.4% lead and 1.3% zinc, with expected metal production of 5.9 million ounces of silver, 4,700 ounces of gold, and 80.3 million pounds of lead and zinc. The cash and total production costs are expected to be approximately $65 and $80 per tonne of ore, respectively.



With the newly constructed 110KV power substation now in operation, the GC mine in Guangdong Province expects to commence initial trial production in late February 2013. In Fiscal 2014, the Company expects to produce 300,000 tonnes of ore with grades of 100 g/t silver, 0.8% lead and 2.2% zinc, 0.1% tin and 6% sulphur, with expected metal production of 0.74 million ounces of silver, 18.2 million pounds of lead and zinc, 300,000 pounds of tin, and 20.5 million pounds of sulphur. The cash and total production costs are expected to be approximately $45 and $70 per tonne of ore, respectively.


The BYP mine in Hunan Province is expected to produce 220,000 tonnes of ore, yielding approximately 15,800 ounces of gold. The cash and production costs are expected to be approximately $40 and $75 per tonne of ore, respectively.


At the X mines (the XHP and XBG mines), the Company will continue to focus on exploration and mine development, with limited development ore being produced and processed.


Capital Expenditure Budget


The total capital expenditures for Fiscal 2014 are estimated at $86.9 million. Capital investments of $51.9 million, which includes the mine development of shafts and ramps of $19.5 million; land, tailings and reporting and permitting of $7.8 million; office and dormitories of $10.0 million; back-fill facility of $2.0 million; and equipment procurement of $12.6 million. Sustaining capital totaling $35.0 million includes development of tunnels, raises and declines of $24.9 million and exploration programs of $10.1 million. The budget estimate is based on contracts in hand, designs by qualified engineering firms, and the Company's prior experiences.


Table 2 - Summary of the Company's Fiscal 2014 capital expenditure budget:


---------------------------------------------------------------------------
                  Ying Mining                                              
                     District     GC Mine  BYP Mine    X Mines  Grand Total
                 ------------ ----------- --------- ---------- ------------
                    Quan-       Quan-      Quan-  C-  Quan-  C-   Quan-
                    tity        tity       tity ost   tity ost    tity     
                   (m or Cost  (m or Cost (m or  ($  (m or  ($   (m or Cost
PROJECT               m2)($mm)    m2)($mm)   m2) mm)    m2) mm)     m2)($mm)
---------------------------------------------------------------------------
Mine    Shafts                                                             
Devel-   and                                                               
opment   Ramps     4,600  9.7  3,020  9.5     - 0.3              7,620 19.5
        Horizon-                                                          
         tal                                                               
         Tunnels,                                                          
         Raises &                                                          
         Declines 78,600 14.6  9,850  6.4 8,400 2.7  6,500 1.2 103,350 24.9
        Back-fill                                                          
         facility                     2.0                               2.0
        -------------------------------------------------------------------
        Sub total 83,200 24.3 12,870 17.9 8,400 3.0  6,500 1.2 110,970 46.4
---------------------------------------------------------------------------
Explor- Surface                                                            
ation    drilling  5,700  0.6  2,400  0.2   500 0.1  7,000 0.7  15,600  1.6
        Under-                                                          
         ground                                                            
         drill-
         ing     164,300  6.4 45,600  1.4 4,100 0.2 13,000 0.5 227,000  8.5
        -------------------------------------------------------------------
        Sub
         total   170,000  7.0 48,000  1.6 4,600 0.3 20,000 1.2 242,600 10.1
---------------------------------------------------------------------------
Facili- Office                                                             
ties     and
and      Dormit-                                                           
Permi-   ories    18,000  8.3  3,000  1.5       0.1        0.1         10.0
tting   Land,                                                              
         Tailings                                                          
         & Others         1.3         5.8       0.6        0.1          7.8
        -------------------------------------------------------------------
        Sub total         9.6         7.3       0.7        0.2         17.8
---------------------------------------------------------------------------
Equip-
ment                      6.7         1.8       3.8        0.3         12.6
---------------------------------------------------------------------------
Total Capital                                                              
Expenditure                                                               
Budget                   47.6        28.6       7.8        2.9         86.9
---------------------------------------------------------------------------



1. The Ying Mining District, Henan Province, China


The capital expenditures for four mines at the Ying Mining District are expected to be $47.6 million and include:

###PRECONTENT2###

2. GC Mine, Guangdong Province, China


At the GC mine, the capital expenditures for Fiscal 2014 are expected to be $28.6 million and include:

###PRECONTENT3###

3. BYP Mine, Hunan Province, China


At the BYP mine, the capital expenditures for Fiscal 2014 are expected to be $7.8 million which includes mill expansion from 500 to 1,000 tonnes per day, 8,400m of tunnels for mine development, a tailings back-fill facility and concentrate thickeners, and 4,600m of underground in-fill drilling program.


4. X Mines (XHP and XBG Mines), Henan Province, China


Capital expenditures at the X mines is budgeted at $2.9 million for Fiscal 2014, which includes $1.2 million for mine development, $1.2 million for surface and underground drilling, and $0.5 million for equipment procurement and surface facilities.


The planned drilling program will test lateral and down-dip extension of high grade mineralization zones that were delineated in the 2012 program.


Myles Gao, P.Geo., President of Silvercorp, is a Qualified Person for Silvercorp under NI 43-101 and have reviewed and given consent to the technical information contained in this press release.


About Silvercorp


Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China which has paid a cash dividend since 2007. The Company is currently developing the GC project in southern China which it expects will become its next operating mine in 2013. The Company's vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. For more information, please visit our website at www.silvercorp.ca.


CAUTIONARY DISCLAIMER -- FORWARD-LOOKING STATEMENTS


Certain of the statements and information in this press 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. 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 or information. Forward-looking statements or information 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 Camp; 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 or information 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 or information, including, without limitation, risks relating to: 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 licenses; title to properties; First Nations title claims and rights; 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 as per the requirements of the Sarbanes-Oxley Act; 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 or information. Forward-looking statements or information 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 or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form for the year ended


March 31, 2012 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 or information.


The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.



Contacts:

Silvercorp Metals Inc.

Jonathan Hackshaw

Director, Investor Relations

604-669-9397 or Toll Free: 1-888-224-1881

604-669-9387 (FAX)
investor@silvercorp.ca :

www.silvercorp.ca

at.marketwire.com/accesstracking/AccessTrackingLogServlet?docid= .. width="1" height="1" alt=" " border="0" />



Press Information:




Contact Person:


Disclaimer: (c) 2014 Market Wire. All of the press releases contained herein are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Market Wire's, who warrant that they are solely responsible for the content, accuracy and originality of the information contained therein. All reproduction, other than for an individual user's personal reference, is prohibited without prior written permission.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com