The mine is over 200 meters deep with a gold grade of 1.68g/ton; drilling results exceed expectations! Silvercorp Metals (SVM.US) accelerates value re-rating of its Central Asia hundred-ton gold mine

The global discovery of large-scale gold deposits continues to be scarce, and with gold prices remaining at high levels and central bank gold purchasing demand persisting over the long term, high-quality gold mining assets with clear development paths and continuous potential for resource expansion are receiving unprecedented attention from capital markets.

On August 18, Canadian mining company Silvercorp Metals Inc. (SVM.US) announced assay results from the first 29 drill holes at the Chaarat Kyzyl-Tash gold deposit in Kyrgyzstan. The batch drilling data was impressive overall, with outstanding core indicators. Notably, one single hole intercepted continuous mineralization for 212.5 meters, with an average gold grade of 1.68 g/t, and included a high-grade interval of 29.5 meters at 3.26 g/t. Another drill hole found a 6-meter interval of ultra-high-grade mineralization, with a gold grade reaching 22.23 g/t. The thick, extensive main ore body and rare local high-grade zones fully demonstrate the exceptional quality and scarcity of the project's resource potential.

From the completion of the acquisition of a 70% stake in Chaarat ZAAV at the beginning of 2026, to the successful extension of the mining license validity until 2062, and now to this major exploratory breakthrough, Silvercorp is realizing a dual boost from valuation recovery to profit release, relying on solid exploration results and a clear development blueprint. This is facilitating its leap towards becoming a diversified, high-quality precious metals producer.

Large-Scale High-Grade Ore Body Confirmed, Significant Increase in Resource Ceiling

According to the announcement, all 29 drill holes reported this time are located within the 7-square-kilometer mining license area of the Chaarat gold deposit, with over 50,000 meters of drilling, including infill and exploration holes. While upgrading the resource category, the program also conducted peripheral target testing and deep mineralization extensions, further expanding the resource scale.

This exploration campaign spanned lines 1480 to 5120, realizing a super-long mineralized strike of 3,640 meters and discovering multiple thick gold mineralized zones. The ore body remains open in all directions and at depth, maintaining vast potential for further resource expansion. The deposit demonstrates large-scale, high-quality mineralization features that powerfully support future resource growth.

In detail, key drill hole DH26M687 intercepted continuous mineralization for 212.5 meters, with an average gold grade of 1.68 g/t, including a 29.5-meter high-grade interval grading 3.26 g/t. This hole revealed multiple sets of parallel gold-mineralized structures, confirming the presence of multiple mineralized layers in the deposit, good ore body continuity, and stable mineralization, showcasing the large-scale resource characteristics.

Such an extraordinarily long mineralization zone also frequently features ultra-high-grade intervals of striking quality. For instance, drill hole DH26M686 intersected a 6-meter ultra-high-grade zone with gold grades up to 22.23 g/t, reflecting exceptionally strong mineralization enrichment potential. Additionally, DH26M818 cut 47 meters of high-grade mineralization averaging 3.95 g/t, and DH26M703 identified a 4.5-meter core high-grade section at 18.77 g/t. Multiple holes consistently report mineralization; the large main ore bodies coexist with localized ultra-high-grade zones in a layered pattern, with outstanding mineralization structure. This significantly increases the resource base while greatly enhancing the overall project’s mining economics, laying a solid foundation for future large-scale and efficient development.

According to the announcement, the company has shifted its exploration strategy—from initially focusing on resource extension to primarily conducting infill drilling, with peripheral expansion as a supplement. The main goal has changed from “finding resources” to “upgrading resources,” providing core data support for pre-feasibility studies and subsequent project development. There are currently 10 drill rigs operating continuously in the mining area, with more batch assay results to be released, so incremental benefits may be expected to continue.

Resource Base Continues to Strengthen; Hundred-Ton Gold Mine Value Fully Realized

Silvercorp’s Chaarat gold project is located in the world-class metallogenic belt—the Western Tianshan gold metallogenic belt—known for hosting super-large gold deposits. It includes Turku-Bash/Kyzyl-Tash, about 7 square kilometers under mining licenses, and a surrounding 27.42-square-kilometer exploration license area that covers the Karator and Ishakuld gold belts. Turku-Bash/Kyzyl-Tash is currently one of the largest undeveloped gold deposits within this metallogenic belt, with outstanding resource endowments.

According to the NI43-101 resource estimate report, Turku-Bash/Kyzyl-Tash contains a total of 186 tons of gold and 644 tons of silver. Turku-Bash oxide ore contains about 15 tons of gold (average gold grade 1.67 g/t) and 12 tons of silver (average silver grade 1.39 g/t); Sulfide ore at Kyzyl-Tash is estimated to contain 172 tons of gold (gold grade 2.44 g/t) and 632 tons of silver (silver grade 8.89 g/t).

In the peripheral mining area, the Karator mineralized belt underwent 14 drill holes in 2021 and 2023, with the 2024 oxide zone resource estimate reaching 6 tons of gold at a grade of 0.96 g/t, securing ample potential for long-term resource growth.

The latest exploration results have further cemented—and exceeded—the project's previous resource estimate framework. On one hand, the 3,640-meter-long continuous mineralized zone combined with multiple new parallel mineralization structures strongly verify that current resource boundaries are far from their limit, leaving massive room for future expansion. On the other, the recurrent discovery of thick, high-quality intervals by multiple drill holes validates the feasibility of large-scale mining. The project's "large, continuous ore bodies with ultra-high grades" features make it one of the most competitive assets among newly discovered global gold projects, further highlighting its investment value.

Clear Growth Path, Long-Term Valuation Expected to Keep Rising

According to previously publicized development plans, Turku-Bash/Kyzyl-Tash will follow a development pace of “oxide ores first, followed by sulfide ores.” Phase one (Turku-Bash oxide ore) is progressing steadily, designed to process 4 million tons of ore per year and produce over 3 tons of gold annually. After initial production, it is expected to provide the company with steady new cash flow; phase two (Kyzyl-Tash sulfide ore), as the core incremental expansion, is planned to process 3–4 million tons per year and produce 5–7 tons of gold annually, becoming the main pillar for future company gold production.

The outstanding exploration results at Kyzyl-Tash are not a one-off, short-term benefit, but rather a key turning point for the company's fundamentals to take a steady leap forward. In the short term, the continuous delivery of high-quality exploration data and ongoing resource upgrades will directly drive a valuation recovery; in the medium term, the smooth commissioning of oxide ore production and continuous release of sulfide ore capacity will bring steady incremental performance; in the long term, the company will fully complete its transformation from a traditional cyclical silver company to a robust dual gold-silver producer, unlocking a higher ceiling for long-term growth. Accordingly, market valuation logic will shift from mere expectations of resource base expansion towards focusing on the economic performance and cash flow forecasts revealed in pre-feasibility studies. In the context of persistently high gold prices, large-scale, high-grade mines with clear geological models often command higher valuation premiums.

In summary, Silvercorp is experiencing a dual resonance of fundamental improvement and valuation reshaping, leveraging the hundred-ton scale resource and clear development path of the Turku-Bash/Kyzyl-Tash gold project. With mature overseas mining operation experience and robust cash flow and profitability, combined with this major exploration breakthrough, the company enjoys strong internal growth momentum and ample potential for continued external M&A and asset base expansion. Its medium- to long-term growth prospects are significantly better than comparable industry peers.