Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

October 12, 2005 22:00 ET

Silvercorp Acquires Additional Silver-Gold Permit Adjacent to the Ying Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) - Silvercorp Metals Inc. ("Silvercorp") (TSX VENTURE:SVM) is pleased to announce the first acquisition in Silvercorp's plan to increase and consolidate its land holdings in the Ying Silver Project area. Silvercorp's 77.5% owned joint venture company, Henan Found Mining Co. Ltd, has signed an agreement to acquire 100% of the RHW Silver-Gold permit, which covers 6.39 square kilometres (km) adjacent to the northeast boundary of the Ying Project, about 10 km northeast of the main SGX camp. The purchase price is approximately US$220,000. The agreement is subject to approval by Chinese government agencies.

Surface mapping and trenching and limited tunneling carried out by Henan Non-ferrous Metals Geological Bureau ("HNMGB") has defined five northeast and one north-south trending mineralized veins. The veins range from 460 to 3,600 meters (m) in length and 0.3 to 2.0m in width with the best intercept obtained on vein C8 grading 1,161 grams/tonne (g/t) silver (Ag), 1.15 g/t gold (Au), and 6.06% lead (Pb) over 1.5m width.

Most of the assay results are from samples taken at or near the surface. Ongoing work on the veins in the SGX area has shown vein sample assays from surface to be significantly lower than those from underground tunnels exposing the same vein. The NI 43-101 report on the Ying project by Chris Broili, C.P. Geo, L.P. Geo., commented on this phenomena, attributing it in part to surface leaching. Silvercorp considers these assay results to be a very promising indication of silver-gold-lead mineralization that warrants further exploration by tunneling at depth.

Reported assays results of trenching and tunneling of the selected veins are as follows.



-------------------------------------------------------------
Length Trench/ Width Ag Au Pb
Vein # (m) Tunnel (m) (g/t) (g/t) (%)
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C4 3,600 TC12 0.9 68 0.18 2.73
K12 0.7 113 0.38 2.72
K15 1.0 728 0.35 7.11
K16 0.8 211 1.39 3.75
TC11 2.0 164 12.05 1.63
-------------------------------------------------------------
C8 1,200 CPD202 1.5 1161 1.15 6.06
-------------------------------------------------------------
C9 650 CTC15 0.3 29 1.95 0.11
CPD201 0.5 50 5.95 0.35
D1008 0.6 15 7.16 0.08
-------------------------------------------------------------


All of trench and tunnel samples were collected by the HNMGB's geologists. All of these sample results were obtained from work programs previously carried out by HNMGB and are believed to be reliable.

The 2005 exploration and development program is ahead of schedule with about 2,500 metres (m) of tunnels and 1,500m of underground drilling completed each month. The work is designed to expand and upgrade silver resources while preparing for production once the mining permit is obtained. At the current pace we expect to exceed the 2005 program of 17,000m of underground tunneling and 10,000m of underground drilling. Twenty-eight professional geologists, engineers and surveyors are on site, overseeing 400+ miners working on over 40 development and exploration tunnel faces and 4 underground drill rigs on a day-to-day basis.

SILVERCORP METALS INC.

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 statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy or this release.

Contact Information

  • Silvercorp Metals Inc.
    Rui Feng
    Chairman & CEO
    (604) 669-9397
    or
    Silvercorp Metals Inc.
    Cathy Fong
    VP Corporate Development
    (604) 669-9397
    (604) 669-9387 (FAX)
    info@silvercorp.ca
    www.silvercorp.ca