Name: SGX mine.

Location: The SGX mine is situated in the Ying gold/silver/lead/zinc property in Henan province, China.

Mine Owner/s: The SGX mine is 100%-owned by Henan Found Mining, a sino-foreign cooperative joint venture company that is 77.5%-owned by Silvercorp (through a wholly owned Chinese subsidiary) and 22.5%-owned by the Henan Non-Ferrous Geological & Mineral Resources Co.

Brief Description: The SGX mine is the largest of Silvercorp’s six significant producing underground mining operations.

Brief History: Silvercorp acquired its flagship SGX silver/lead/zinc in March 2004. Following two years of exploration and development, Silvercorp received its mining permit on March 31, 2006, and started commercial production the next day on April 1, 2006.

Primary Metals/Minerals: Silver.

Secondary Metals/Minerals: Lead, zinc and gold.

Geology/Mineralisation: The SGX mine, situated in the Ying mining district, has countless known mineralised veins. The veins are generally similar to those found throughout the district, occurring as sets of veins of similar orientation enclosed by steeply dipping fault-fissure zones, which extend for hundreds to a few thousand meters along strike.

In the SGX mine, about 27% of the material filling the veins is strongly mineralised, with the richest mineralisation often occurring in pockets, or "ore shoots", having vertical and horizontal lengths measured in several metres or more and widths ranging from 0.4 m to 3.0 m. The mineralisation comprises mainly galena (lead sulphide) and sphalerite (zinc sulphide), with small amounts of pyrite (iron sulphide) and other metallic minerals. These minerals occur as disseminations or massive accumulations in a gangue of quartz and carbonate minerals. Silver is present mostly as microscopic inclusions in the galena.

Reserves: Total proven and probable reserves as at June 30, 2016, were estimated at 5.5-million tonnes grading 258 g/t silver, 5.02% lead and 2.35% zinc.

Resources: Total mineral resources as at June 30, 2016, were estimated at 6.54-million tonnes grading 281 g/t silver, 5.33% lead and 2.64% zinc. Inferred resources were 3.66-million tonnes grading 268 g/t silver, 5.14% lead and 2.33% zinc.

Mining Method: Shrinkage and re-suing mining methods. All mining and development are completed by a mining contractor.

Major Infrastructure and Equipment: Underground access to the SGX mine is generally through adits at various elevations, inclined haulage ways and internal shafts.

Ore transport to surface is accomplished using skip/cage hoisting, rail cars and small tricycle trucks, or 20 t trucks on ramps. Some hand picking of high-grade ore and waste is conducted on surface either at the ore pile or sorting belt, with 30 t and 45 t trucks or a barge and truck combination used to transport the material to the centralised processing plants.

Silvercorp runs two processing plants, with a total design capacity of 2 600 t/d.

Power supply for the mine is supplied by major power grids and hydropower generating stations located adjacent to the property. 

The high-grade ore and waste are removed from the facility with a front-end loader; the high-grade ore is hand-sorted and directly shipped to smelters. Low-grade ore is stockpiled and taken to Silvercorp's central milling facility 15 km away to be turned into silver-lead and zinc concentrates. 

Prospects: None stated.

Contact Details:
Silvercorp Metals
Tel +1 604 669 9397
Email investor@silvercorp.ca
Website http://silvercorpmetals.com