Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

January 22, 2007 09:00 ET

Silvercorp Metals Inc.: Additional High Grade Silver, Lead and Zinc Interceptions on the S21 Vein at the Ying Mine, Henan, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 22, 2007) - Silvercorp Metals Inc. ("Silvercorp") (TSX:SVM) is pleased to announce that drilling and tunneling on the S21 vein have defined additional high grade massive galena sheets that may add to the mineral resources at Ying Silver Mine, Henan, China. The S21 vein was first discovered through limited surface drilling and underground tunneling, as reported on January 4, 2006. Since then, a total of 26 new surface and underground drill holes (4,662 metres) and 1,852 meters of exploration drift tunnels and raises have been completed on the S21 vein, leading to confirmation and expansion of the previous discovery.

The S21 vein has been mapped out over 1500 metres in length on surface. The current tunneling and drilling program has been focusing on a section of the S21 vein, approximately 1100 m along the strike by a vertical depth of about 500 metres down dip. Tunnels completed at the 680-metre, 640-metre, 580-metre, and 560-metre elevations through the main access tunnels CM101, CM102, CM103, and PD680 (SGX camp) and YPD01 (YLG camp) Access Tunnels include total 1,434 metre of drift tunnel along the vein, 332 metres of cross-cuts, and 86 metres of raises. Four massive galena sheets defined by the tunneling and drilling range from 0.20 to 1.43 metres in true thickness, from 25 to 256 metres in length, and from 170 to 450 metres in width along the dipping direction.

The assay results received from the new tunnels and 15 drill holes completed from August through December 2006 are listed in the Tables below. The significant results from the new tunnels and drill holes are:

- Tunneling a raise at 699-metre elevation intercepted 0.70 metre true width grading 6,823 grams per tonne (g/t) or 219.35 ounces per tonne (oz/t) silver (Ag), 36.58% lead (Pb), 19.94% zinc (Zn).

- Drill hole ZK6006 intersected 0.35 m massive galena sheet (core length) grading 993 g/t (31.92 oz/t) Ag, 71.19% Pb, and 3.20% Zn at 299-metre elevation, and drill hole ZK7406 hits 0.55 m massive galena sheet (core length) containing 1,585 g/t (50.96 oz/t) Ag, 47.51% Pb, and 10.8% Zn at 543-metre elevation.



Underground Tunnel Assay Results

--------------------------------------------------------------------------
Dist-
ance
to Ag Ag
South Equiva- Equiva-
Eleva- of True lent lent
tion CM103 Width Ag Ag Pb Zn (g/t) (oz/t)
(metre) (metre) (metre) (g/t) (oz/t) (%) (%) (i) (i)
--------------------------------------------------------------------------
728 76 0.35 2960 95.15 35.74 8.25 4860 156.24
723 74 0.50 2132 68.55 67.74 2.36 5103 164.05
718 73 0.50 2399 77.13 74.95 1.88 5651 181.68
714 71 0.50 5740 184.55 20.30 29.08 7977 256.48
709 69 0.50 829 26.64 9.90 10.61 1750 56.27
704 67 0.40 1277 41.07 47.72 19.78 4230 136.00
699 66 0.70 6823 219.35 36.58 19.94 9313 299.41
695 64 0.40 1519 48.84 43.59 7.95 3736 120.11
690 62 1.20 1646 52.91 22.84 6.19 2903 93.34
680 34 0.15 457 14.69 0.50 37.97 2280 73.32
680 39 0.55 247 7.94 0.94 28.66 1647 52.97
680 42 0.30 474 15.25 2.66 19.28 1501 48.27
680 64 0.45 1151 36.99 14.03 12.13 2318 74.54
680 69 0.50 514 16.51 7.55 4.50 1046 33.63
680 74 0.80 2359 75.84 49.20 6.65 4751 152.75
680 79 0.90 3164 101.71 14.04 4.05 3948 126.93
680 84 0.40 2013 64.72 15.61 9.91 3142 101.02
680 93 0.60 645 20.74 9.70 2.30 1164 37.41
680 109 0.95 1179 37.90 14.14 4.37 1983 63.74
640 105 1.40 1901 61.12 52.70 6.51 4434 142.56
640 110 0.70 504 16.20 50.23 6.76 2944 94.66
640 125 0.40 1713 55.07 58.73 1.92 4282 137.68
640 130 0.90 513 16.48 7.72 8.39 1237 39.76
560 143 0.55 1430 45.97 40.28 1.53 3202 102.95
560 148 0.20 1812 58.27 36.64 4.28 3562 114.52
560 156 0.10 645 20.74 32.36 3.07 2156 69.33
560 163 0.20 2512 80.76 7.88 13.85 3502 112.58
560 168 0.80 1242 39.93 21.55 3.78 2330 74.93
560 188 0.10 999 32.12 53.97 9.44 3725 119.77
560 198 0.35 1126 36.20 30.74 5.57 2688 86.42
550 -573 0.80 674 21.66 12.94 12.57 1816 58.40
550 -568 0.72 580 18.66 8.83 16.06 1716 55.16
550 -563 1.40 1173 37.73 19.11 27.82 3301 106.12
550 -558 0.70 369 11.85 7.49 23.57 1804 57.99
550 -553 0.60 202 6.49 4.73 19.59 1332 42.81
550 -549 0.58 1286 41.35 6.23 12.52 2143 68.91
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(i) Silver equivalent grade is calculated on the basis of US$6.5/oz Ag,
US$0.40/lb for Pb, and US$0.45/lb for Zn.


Drill Hole Assay Results

--------------------------------------------------------------------------
Dist-
ance
to Intersec- Ag Ag
South Ele- tion Core Equi- Equi-
of vat- (m) Inte- Ag val- val-
Drill CM103 ion ------------ rval Ag (oz/ Pb Zn ent ent
Hole (m) (m) From To (m) (g/t) t) (%) (%) (g/t) (oz/t)
--------------------------------------------------------------------------
ZKY4-2 -585 518 65.94 67.59 1.65 66 2.13 1.87 4.92 379 12.18
--------------------------------------------------------------------------
ZKY4-1 -574 545 41.40 42.82 1.42 377 12.10 4.70 16.44 1355 43.57
--------------------------------------------------------------------------
ZKY3-2 -508 541 65.62 66.35 0.73 94 3.03 4.79 9.98 770 24.76
--------------------------------------------------------------------------
ZKY3-3 -479 471 115.68 116.21 0.53 16 0.51 0.07 2.35 131 4.20
--------------------------------------------------------------------------
ZKY3-1 -479 530 65.93 66.53 0.6 662 21.28 3.54 8.47 1213 39.01
--------------------------------------------------------------------------
ZKY6-5 -334 551 68.73 69.10 0.37 1741 55.98 10.01 24.66 3334 107.20
--------------------------------------------------------------------------
ZKY6-1 -304 562 46.48 47.33 0.85 0.74 shear zone only
--------------------------------------------------------------------------
ZKY6-3 -267 554 59.72 60.67 0.95 212 6.81 6.15 7.50 828 26.61
--------------------------------------------------------------------------
ZK7406 -3 543 29.05 29.60 0.55 1585 50.96 47.51 10.80 4103 131.90
--------------------------------------------------------------------------
ZK7408 4 491 73.70 74.50 0.80 60.60 1.95 0.23 0.58 97.84 3.15
--------------------------------------------------------------------------
ZK6006 133 300 296.16 296.78 0.62 607 19.51 40.65 2.06 2420 77.80
-------------------------------------------------------------------
including 296.16 296.51 0.35 993 31.92 71.19 3.20 4149 133.39
--------------------------------------------------------------------------
ZK6005 147 356 259.70 260.26 0.56 418 13.44 10.28 0.99 899 28.91
--------------------------------------------------------------------------
ZK5805 188 334 281.90 282.30 0.40 193 6.21 4.72 6.15 684 22.01
--------------------------------------------------------------------------
ZK5605 237 357 275.20 275.46 0.26 32 1.02 2.71 0.27 159 5.11
--------------------------------------------------------------------------
ZK5405 296 403 284.20 286.10 1.90 1.25 shear zone only
--------------------------------------------------------------------------
(i) Silver equivalent grade is calculated on the basis of US$6.5/oz Ag,
US$0.40/lb for Pb, and US$0.45/lb for Zn.


The high grade massive galena sheets remain opens in all directions. The ongoing exploration program includes developing 1,800 metre of tunnels along the vein at 680-metre, 640-metre, 560-metre elevations, developing an 80 metre long decline from the surface at about 800-metre elevation to explore the vein at 760-metre elevation, and 5,000 metres of drilling.

Tunnel and drill hole plans are available on the Company's website: www.silvercorp.ca.

Mine Development and Mill Construction Update

Two shafts have been sunk to the designed depth of 260-metre elevation and installation of equipment for the two shafts is underway. The two shafts are expected to be operational by March 2007. The third shaft is within 10 metre to the 260-metre elevation and is expected to be operational by May 2007.

The construction of the 600 tonne per day floatation mill is nearly completed and a test run of the new mill is scheduled for late February 2007 after the Chinese New Year. The new mill is expected to be in full production by March 2007. A barge with a 300 tonne loading capacity has also been built and is capable of transporting four 25 tonne trucks to ship ores from the Ying mine to the new mill.

Quality Control

Rock samples were collected by channel sampling the face of the undercut drifts. The channels were usually cut 10 cm in width and 5 cm in depth producing a sample weighing approximately 2 kg to 10 kg for each 0.10 to 1.00 m interval depending on the thickness of mineralization. Drill cores are NQ size and drill core samples were taken from sawn half core limited by apparent massive galena sheet contact or shear/alteration contact.

The Company maintains a quality control program to ensure best practice in sampling and analysis of the tunnel samples. The samples are shipped directly in security sealed bags to two labs: Analytical Lab of No. 6 Team of Henan Non-Ferrous Metals Geological and Mineral Resources Bureau in Luoyang located 125km by road northeast of the Ying Project Area and the Langfang Institute of Geochemical and Geophysical Exploration (Certification ISO 9001), a well-regarded analytical laboratory in Langfang, Hebei Province near Beijing.

The sample preparation consists of drying, crushing and splitting of the sample to 150 grams, then the sample is pulverized to 200 mesh. Ag, Pb and Zn were analyzed by a 3 hour hot aqua regia digestion on 30 gram samples with an AA finish. Check samples including field duplicates and pulps are routinely sent to ACME Laboratories in Vancouver, Canada for assay accuracy and sample contamination.

Myles Gao, P.Geo, is the Qualified Person on the project under NI 43-101. Exploration and mining at the Ying mine is being carried out through Silvercorp's 77.5% subsidiary, Henan Found Mining Co. Ltd., a Sino-foreign joint venture company which holds 100% of the Ying Project and operates under a 30-year business license.

Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statement.

Contact Information

  • Silvercorp Metals Inc.
    Rui Feng
    Chairman & CEO
    (604) 669-9397
    or
    Silvercorp Metals Inc.
    Cathy Fong
    President
    (604) 669-9397
    (604) 669-9387 (FAX)
    Email: info@silvercorp.ca
    Website: www.silvercorp.ca