Like all today’s responsible mining companies Silvercorp Metals is committed to contributing to the growth and prosperity of communities in which it is active. As part of this commitment, Silvercorp’s 77.5%-owned subsidiary, Henan Found Mining has donated RMB¥1.25 million (some $159,000) towards the construction of the Henan Found Youth Recreation and Activity Center, in Luoning county of Henan province, China. Located in the middle of a large and newly-constructed central square and park for the county, the center will provide educational support and recreational activities for children in Luoning, the administrative seat for the county in which Silvercorp’s Ying silver and HPG Gold-Silver-Lead projects are located.
A county of approximately 445,000 inhabitants and 2,306 km2 in size, Luoning is situated in the highly populated and developing central Chinese province of Henan (population: about 100 million). One of the largest employers and contributors to the local tax base in the county, Silvercorp is committed not only to responsible mining practices but also to making a positive contribution in the communities in which it is active. Silvercorp says it looks forward to making additional contributions in support of the development of Luoning County as it continues to grow and build on the success of its operations in the area.
At Ying, using the Measured plus Indicated resources reported in the last resource estimate, a 100% dilution factor and a 95% recovery rate for the high-grade resources, a potentially mineable Measured plus Indicated resource is calculated to be 1,542,078 t grading 767 g/t Ag, 13.24% Pb and 4.31% Zn. Assuming a mining rate of 140,000 t for the 2006/2007 fiscal year and 300,000 t/y thereafter, the resources at Ying could sustain mine production for about six years.
A 600 t/d mill, currently being constructed 17 km from the Ying property, is expected to be completed by the end of March 2007. Currently custom mills are used to process ore. Starting April 2007, Henan Found’s own 600 t/d flotation mill is expected to start producing Pb-Ag and Zn concentrates.