Silvercorp Metals Inc. (hereinafter referred to as "Silvercorp") announced the results of the first 29 borehole tests at its Chatat Kyzyltash gold mine in Kyrgyzstan. The data shows that the deposit has good continuity of the main ore body and high grades in some areas, demonstrating significant resource potential. Currently, the company is accelerating its transformation into a diversified precious metals producer, leveraging solid exploration results and a clear development path.
Silvercorp completed the acquisition of a 70% stake in Chatat ZAAV in early 2026 and obtained the mining license for the Chatat gold mine, extending its validity to 2062. The mine is located in the western Tianshan gold metallogenic belt, with excellent mineralization conditions. The mining rights are divided into two parts: the core mining rights area of approximately 7 square kilometers, the Turkubash/Kyzyltash section, is one of the largest undeveloped gold deposits in this metallogenic belt, with excellent resource endowment; the outer 27.42 square kilometer exploration license area covers the Karator and Ishakuld gold mineralization zones, currently in the early exploration stage, with the aim of increasing reserves in the medium to long term. According to the NI43-101 standard resource estimation report, the Turkubash/Kiziltash section contains a total of 186 tons of gold and 644 tons of silver. Among them, the Kyziltash sulfide deposit contains approximately 172 tons of gold resources, with an average grade of 2.44 g/t.
The total drilling distance exceeded 50,000 meters, encompassing infill and exploration drilling, spanning from line 1480 to line 5120, controlling the mineralization trend for 3640 meters. Results show that the ore body is not closed in any direction or at any depth, indicating significant potential for further resource increases. The main borehole DH26M687 continuously encountered ore for 212.5 meters, with an average gold grade of 1.68 g/t. Among the findings are a 29.5-meter high-grade ore section with a gold grade of 3.26 g/t; a 6-meter ultra-high-grade ore section with a gold grade of 22.23 g/t in borehole DH26M686; a 47-meter ore section with a gold grade of 3.95 g/t in borehole DH26M818; and a 4.5-meter-thick ore section with a gold grade of 18.77 g/t in borehole DH26M703. Multiple parallel mineralization structures have been revealed layer by layer, exhibiting high-quality mineralization and providing reliable geological evidence for subsequent large-scale development.
Silver Group stated that its exploration strategy has shifted from initial extensive prospecting to primarily infill drilling supplemented by peripheral verification, focusing on providing data support for pre-feasibility studies and subsequent development. Ten drilling rigs are currently operating continuously in the mining area, and subsequent batch testing results will be released gradually.
According to the company's development plan, the Chaarat gold mine will adopt a phased development model of "oxidized minerals first, followed by sulfide minerals." The first phase of the Turkubash oxide mine project is planned to process 4 million tons of ore annually, with an estimated annual gold production of over 3 tons. Once operational, it will contribute stable cash flow to the company. The second phase, the Kyzyltash sulfide mine, is planned to process 3-4 million tons of ore annually, with an estimated annual gold production of 5-7 tons, becoming the core incremental source of the company's gold production capacity.
The exploration results further solidify the mine's resource base. A 3640-meter-long continuous mineralization zone and multiple newly discovered mineralization structures indicate that there is still significant room for expansion of the mining area's resource boundaries. Simultaneously, the combination of thick ore sections and localized ultra-high-grade ore bodies significantly enhances the economic viability of mining.
Silver Mine possesses mature overseas mining operation experience and a robust cash flow. This exploration breakthrough further strengthens the company's internal growth momentum and creates conditions for subsequent external mergers and acquisitions and asset expansion. Silver Mine stated that it will accelerate the pre-feasibility study and subsequent development work of the Chalat gold mine project, driving the company's transformation into a high-quality precious metals producer with both gold and silver as its core businesses.
Reprinted from China Nonferrous Metals News