The mineralization extends over 200 meters, with a gold grade of 1.68 grams per ton, and drilling results exceeded expectations! Silvercorp Metals Inc. (SVM.US) is accelerating the revaluation of its Central Asia gold mine with a production capacity in the hundred-ton range.

The ongoing scarcity of new large gold mine discoveries worldwide, combined with high gold prices and sustained demand for gold purchases by central banks, has led to unprecedented attention on quality gold mining assets with clear development paths and potential for ongoing resource expansion from the capital markets. On August 18, Canadian mining company Silvercorp Metals Inc. (SVM.US) announced the results of the first 29 drill holes from its Chaarat Kyzyl-Tas gold mine in Kyrgyzstan. The overall results from the batch of drilling are impressive, with outstanding performance in key indicators. Among them, a single hole showed continuous mineralization over 212.5 meters with an average gold grade of 1.68 grams per ton, and a high-grade mineralization segment of 29.5 meters with a grade of 3.26 grams per ton. Another drill hole revealed a 6-meter segment with an exceptionally high-grade of 22.23 grams per ton. The presence of thick, continuous main ore bodies and scarce localized high-grade segments highlights the project's rare quality resource potential. Since acquiring 70% of Chaarat ZAAV in early 2026, and successfully extending the mining license until 2062, Silvercorp Metals Inc. has achieved significant breakthroughs in exploration, leveraging solid exploration results and a clear development blueprint, resulting in a dual effect of valuation recovery and profit release, gradually completing a leap into a diversified, high-quality precious metals producer. The discovery of thick, high-grade mineral bodies has significantly raised the resource ceiling. According to the announcement, the first 29 drill holes reported are all located within the 7 square kilometer mining rights area of the Chaarat gold mine. The drilling program exceeded 50,000 meters and included both infill and exploration drilling. This effort not only enhances the resource classification but also verifies peripheral target areas and extends deep mineralization, further expanding the resource scale. This exploration spans from section lines 1480 to 5120, achieving 3640 meters of ultra-long continuous mineralization, revealing multiple thick gold mineralization zones. The mineral bodies remain open in all directions and at depth, indicating a broad potential for resource expansion. This showcases large-scale, high-quality mineralization characteristics, providing strong support for resource expansion. From the specific data, key drill hole DH26M687 encountered continuous mineralization of 212.5 meters, with an average gold grade of 1.68 grams per ton, including a high-grade segment of 29.5 meters at a grade of 3.26 grams per ton. This hole reveals a series of parallel gold mineralization structures, confirming the development of a multi-layered mineralization structure in the area, with good continuity of mineral bodies and stability in mineralization, showcasing significant resource scalability. Within such extensive mineralization, ultra-high-grade segments frequently appear, demonstrating remarkable resource quality. Drill hole DH26M686 revealed a 6-meter ultra-high-grade segment with a gold grade of 22.23 grams per ton, showcasing the areas strong mineralization enrichment capacity. Additionally, drill hole DH26M818 reported a high-grade segment of 47 meters at a gold grade of 3.95 grams per ton; drill hole DH26M703 confirmed a core high-grade segment of 4.5 meters with a grade of 18.77 grams per ton. Multiple drill holes consistently found mineralization, with thick main ore bodies coexisting with localized ultra-high-grade segments, indicating a very high-quality mineralization structure that not only significantly increases resource quantity but also greatly enhances the overall mining economics of the project, laying a solid foundation for subsequent large-scale and efficient development. According to the announcement, the company has adjusted its exploration strategy, shifting from a primarily extension-focused approach to a main emphasis on infill drilling, supported by extension efforts, with the core goal transitioning from "finding resources" to "upgrading resources," providing essential data support for the project's pre-feasibility study and subsequent development rollout. Currently, 10 drilling rigs are continuously operating in the mining area, and additional batch assay results are still to be released, maintaining positive outlook for resource increment. The continuous solidification of resource quantity leads to the full realization of the value of a hundred-ton gold mine. Silvercorp Metals Inc.'s Chaarat gold mine is located in a world-class mineralization belt the Western Tien Shan gold metallogenic belt, known for housing massive gold deposits. It includes a mining license area of about 7 square kilometers for Turquoise Bash/Kyzyl-Tas and an exploration license area of 27.42 square kilometers surrounding it, covering the Karator and Ishakuld gold mining zones. Turquoise Bash/Kyzyl-Tas is currently one of the largest undeveloped gold deposits in this metallogenic belt, possessing exceptional resource endowment. According to a resource estimation report based on the NI43-101 standard, Turquoise Bash/Kyzyl-Tas contains a total of 186 tons of gold and 644 tons of silver. Among these, the gold content in Turquoise Bash oxide ore is about 15 tons with an average gold grade of 1.67 grams per ton and silver content of 12 tons at an average silver grade of 1.39 grams per ton; the estimated gold content for the Kyzyl-Tas sulfide ore is 172 tons with a gold grade of 2.44 grams per ton and silver content of 632 tons at a silver grade of 8.89 grams per ton. In the surrounding mining area, the Karator mineralization zone completed 14 drill holes in 2021 and 2023, with the resource estimation results for the oxide zone in 2024 expected to be 6 tons of gold at a grade of 0.96 grams per ton, indicating sufficient medium to long-term resource expansion potential. The latest drilling results further solidify and break through the project's original resource valuation framework. On one hand, the ultra-long continuous mineralization of 3640 meters, combined with multiple new parallel mineralization structures, fully demonstrates that the existing resource boundaries of the area have not yet reached a ceiling, and there is significant potential for follow-up resource expansion; on the other hand, the frequent appearance of thick, continuous high-quality mineral segments across multiple drill holes has thoroughly validated the feasibility of large-scale mining of the mineral bodies. The characteristics of "thick, continuous, and ultra-high-grade" have made the project incredibly competitive among newly discovered gold mine projects worldwide, further highlighting its investment value. With a clear growth path, the long-term valuation center is expected to continue to rise. According to the company's previously published development plan, the Turquoise Bash/Kyzyl-Tas project adopts a development rhythm of "oxides first, sulfides follow." The first phase of the Turquoise Bash oxide ore project is progressing steadily, planning to process 4 million tons of ore annually and generate over 3 tons of gold per year, which will bring stable incremental cash flow to the company post-first phase production; the second phase for Kyzyl-Tas sulfide ore represents a core incremental resource, with plans to process 3-4 million tons of ore annually and produce 5-7 tons of gold, expected to become a pillar of the company's gold production capacity in the future. The impressive drilling results from the Kyzyl-Tas gold mine are not just a one-time positive announcement; they represent a critical turning point in the company's steadily rising fundamentals. In the short term, the continuation of high-quality exploration data and steady advancement in resource upgrades will directly drive the companys valuation recovery; in the medium term, successful production of oxide ore and the ongoing release of sulfide mine capacity will provide the company with determined incremental performance; in the long term, the company will complete a remarkable transformation from a traditional cyclical silver enterprise to a dual-focused business in both gold and silver, fully unlocking long-term growth potential. The market's valuation logic will also switch, transitioning from being merely based on expectations of resource quantities to being increasingly anchored in the economic benefits and cash flow forecasts revealed by pre-feasibility studies. In a macro environment where gold prices remain high, high-grade, large-scale mineral assets with clear geological models often receive higher valuation premiums. In summary, Silvercorp Metals Inc., leveraging the significant resource scale of over a hundred tons at the Turquoise Bash/Kyzyl-Tas gold mine and a clear development path, is undergoing a dual resonance of fundamental improvement and valuation reshaping. With mature overseas mining operation experience and stable cash flow profitability, along with this major breakthrough in exploration, the company is well-positioned for substantial organic growth and possesses ample potential for continuous external mergers and acquisitions to expand its asset scale, making its medium to long-term growth prospects markedly superior to its peers in the industry.