Silvercorp Metals Inc.

TSX : SVM
NYSE : SVM


Silvercorp Metals Inc.

March 17, 2014 08:30 ET

Silvercorp Extends High Grade Mineralization Zones at the LM and LMW Mines, Ying Mining District, China

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 17, 2014) - Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) ("Silvercorp" or the "Company") is pleased to report the results of its 2013 underground diamond drilling program at the LM and LMW mines, Ying Mining District, Henan Province, China (the "2013 Drill Program"), that indicate a significant extension of the existing high grade mineralization zones, both down dip and along strike, as well as delineating new mineralization zones in known major vein structures.

Highlights of selected intercepts of drill holes include:

LM Mine:

  • Hole ZKL52S06 intercepted a 4.87 metre (m) interval from 136.57m to 141.44m, (3.85m true width), of vein LM5 grading 759 grams per tonne ("g/t") silver ("Ag"), 7.24% lead ("Pb") and 0.93% zinc ("Zn") at the 493m elevation, including a 0.91m interval, 0.72m true width grading 2,784g/t Ag, 32.45% Pb and 4.14% Zn;
  • Hole ZKL54S34 intercepted a 5.06m interval from 171.34m to 176.40m, (4.45m true width), of vein LM5 grading 440g/t Ag, 0.54% Pb and 0.27% Zn at the 761m elevation, including a 2.00m interval, 1.76m true width grading 1,064g/t Ag, 1.29% Pb and 0.63% Zn;
  • Hole ZKL50S05 intercepted a 4.44m interval from 89.51m to 93.95m, (4.41m true width), of vein LM5W grading 364g/t Ag, 0.66% Pb and 0.38% Zn at the 578m elevation, including a 1.55m interval, 1.54m true width grading 931g/t Ag, 1.51% Pb and 0.83% Zn; and
  • Hole ZKL51S34 intercepted a 9.10m interval from 117.66m to 126.76m, (5.08m true width), of LM5 grading 282g/t Ag, 1.45% Pb and 0.33% Zn at the 633m elevation, including a 1.90m interval, 1.06m true width grading 851g/t Ag, 4.63% Pb and 0.92% Zn.

LMW Mine

  • Hole ZKX03S03 intercepted a 1.06m interval from 170.79m to 171.85m, (1.05m true width), of vein LM12 grading 2,404g/t Ag, 1.94% Pb and 2.20% Zn at the 881m elevation;
  • Hole ZKX05S44 intercepted a 4.16m interval from 342.33m to 346.49m, (3.18m true width), of vein LM12-2 grading 525g/t Ag, 8.51% Pb and 0.36% Zn at the 532m elevation, including a 2.08m interval, (1.59m true width), grading 1,036g/t Ag, 16.17% Pb and 0.63% Zn; and
  • Hole ZKX4003 intercepted a 6.61m interval from 293.68m to 300.29m, (3.22m true width), of vein LM17 grading 585g/t Ag, 2.49% Pb and 0.32% Zn at the 706m elevation, including a 1.55m interval, (0.75m true width), grading 1,129g/t Ag, 3.66% Pb and 0.80% Zn.

The LM and LMW (LM west) mines are two of the six silver-lead zinc mines the Company operates within its Ying Silver camp. The LMW mine is located adjacent to the west of the LM mine.

The 2013 Drill Program was successful in expanding the Indicated and Measured Resources and in delineating new resources at, or above, the current mining elevations close to the available mining facilities within the major production veins. Step-out and infill drilling on known mineralization zones and test drilling on unexplored sections was conducted on the major vein structures LM5 and LM6 at the LM mine and the LM7, LM8, LM11, LM12, LM13, LM16, and LM17 veins at the LMW mine. The diamond drilling program was implemented from underground tunnels to test for the mineralized structures between the 400m and 950m elevations. Most of the underground holes were designed as inclined holes to penetrate multiple vein structures. 2013 Drill Program results have further extended the known high-grade mineralization zones down dip and along strike and delineated new mineralization zones in the previously unexplored sections of major vein structures.

In 2013, a total of 56,151 metres were drilled in 238 holes, including 17,629 m in 82 holes at LM and 38,522 m in 156 holes at LMW. 6,512 core samples were collected from altered and mineralized vein structures with nine underground drill rigs. As of February 28, 2014, the Company received assay results for 216 of the 238 completed holes with results for 22 holes currently pending. Among the results received, 105 holes intercepted one or multiple mineralized zones and the other holes intercepted the target vein structures.

In the planned 2014 diamond drilling program for the LM and LMW mines, the Company will continue with infill and step-out drilling on known mineralized zones to expand and upgrade the current resources and conduct test drilling on unexplored sections to delineate new resources within the major vein structures. In response to the current depressed metal price environment the 2014 underground drilling program will be reduced (in comparison to the 2013 Drill Program) to 13,910m using four underground rigs as a means to reduce exploration expenses.

Tables 1 and 2 below list the assay results of some selected mineralized intersections in drill holes.

Table 1: Selected drilling results from the LM Mine

Hole ID From
(m)
To
(m)
Interval
(m)
Elevation
(m)
True Width
(m)
Ag(g/t) Pb(%) Zn(%) Mineralized Vein
ZKL58S02 190.59 192.32 1.73 726 0.95 339 0.26 0.03 LM5
ZKL60S33 171.48 172.75 1.27 734 1.42 410 0.97 0.98 LM5W
ZKL54S31 109.90 111.44 1.54 809 1.13 201 0.39 0.08 LM6
ZKL62S33 170.28 171.28 1.00 732 0.67 253 0.66 0.16 LM5
ZKL55S31 132.35 133.36 1.01 744 0.32 255 0.65 0.52 LM5W
ZKL60S02 18.71 19.64 0.93 825 0.61 229 0.60 0.25 New Zone
ZKL54S02 97.23 99.12 1.89 780 0.74 138 1.48 1.10 LM6
168.00 169.61 1.61 737 1.18 273 0.22 0.06 LM5
ZKL56S32 97.46 100.23 2.77 776 1.50 448 0.61 0.14 LM6
ZKL50S34 90.54 92.08 1.54 679 1.26 181 1.46 0.29 LM5
ZKL51S03 28.86 29.89 1.03 692 0.86 323 0.39 0.30 LM6E
ZKL62S34 203.86 205.69 1.83 679 1.45 133 1.15 0.16 LM5
ZKL50S35 99.61 102.40 2.79 631 2.25 114 0.56 0.09 LM5
ZKL54S34 171.34 176.40 5.06 761 4.45 440 0.54 0.27 LM5
Including 171.34 173.34 2.00 761 1.76 1064 1.29 0.63
ZKL51S34 117.66 126.76 9.10 633 5.08 282 1.45 0.33 LM5
Including 122.96 124.86 1.90 630 1.06 851 4.63 0.92 LM5
ZKL60S04 201.82 203.79 1.97 682 1.57 202 0.44 0.33 LM5
ZKL56S33 169.98 171.09 1.11 703 0.87 121 1.25 0.25 LM5 Branch
ZKL60S31 158.97 160.49 1.52 797 1.52 201 0.57 0.47 LM5
ZKL64S02 195.83 197.64 1.81 762 1.49 984 0.23 0.06 LM5
ZKL64S34 233.66 235.09 1.43 733 1.41 101 0.87 0.40 LM6
ZKL66S32 95.55 96.55 1.00 800 0.78 591 1.36 0.77 LM6
ZKL53S03 19.20 20.84 1.64 688 1.19 494 0.94 0.35 LM6
ZKL56S34 231.51 232.82 1.31 634 0.91 342 2.90 0.28 LM5
ZKL68S31 247.27 248.34 1.07 759 1.04 245 0.23 0.09 LM6W
ZKL53S33 95.69 96.73 1.04 627 0.81 180 2.00 0.90 LM5
ZKL56S03 108.75 109.45 0.70 743 0.56 1101 0.51 0.05 LM6W
ZKL53S04 98.63 102.18 3.55 611 1.93 473 2.81 1.82 LM6E Branch
ZKL51S06 15.55 20.02 4.47 591 3.98 717 0.61 0.32 LM6
Including 19.32 20.02 0.70 589 0.62 2297 0.74 0.96
94.86 95.46 0.60 543 0.54 130 1.91 0.12 LM5W
97.95 99.19 1.24 541 1.11 200 0.38 0.08 LM5W Branch
ZKL51S07 18.53 20.51 1.98 583 1.20 621 2.55 0.25 LM6
ZKL50S05 6.03 7.08 1.05 599 1.03 588 1.81 0.45 LM6
89.51 93.95 4.44 578 4.41 364 0.66 0.38 LM5W
Including 90.64 92.19 1.55 577 1.54 931 1.51 0.83 LM5W
ZKL52S06 15.12 16.43 1.31 588 1.05 425 0.60 0.19 LM6
106.92 109.42 2.50 516 1.96 309 0.73 0.37 LM5W
136.57 141.44 4.87 493 3.85 759 7.24 0.93 LM5
Including 139.62 140.53 0.91 491 0.72 2784 32.45 4.14 LM5
ZKL58S04 79.67 80.91 1.24 624 0.73 331 3.63 1.85 LM5W

Table 2: Selected drilling results from the LMW Mine

Hole ID From
(m)
To
(m)
Interval
(m)
Elevation
(m)
True Width
(m)
Ag(g/t) Pb(%) Zn(%) Mineralized Vein
ZKX03S03 170.79 171.85 1.06 881 1.05 2404 1.94 2.2 LM12
ZKX05S34 134.54 135.78 1.24 825 1.01 628 3.26 0.19 LM11
ZKX07S04 201.81 204.1 2.29 824 1.93 81 3.68 0.09 LM7
240.44 241.64 1.2 804 1.06 128 0.24 0.05 LM7E
ZKX30S03 127.29 128.24 0.95 871 0.72 133 1.64 0.03 LM17-branch
ZKX07S03 229.89 233.04 3.15 729 2.75 281 1.22 0.19 LM7
ZKX10618 98.93 100.12 1.19 929 1.16 160 0.57 0.07 LM8_3
ZKX28S04 196.99 198.29 1.3 800 0.77 974 1.98 1.51 LM17
ZKX05S12 132.61 133.91 1.3 803 0.96 754 1.01 0.06 LM7W
160.15 167.57 7.42 776 5.47 139 2.49 0.08 LM7
Including 160.15 161.76 1.61 1.19 346 7.51 0.11
ZKX07S05 123.9 128.33 4.43 855 1.8 415 0.19 0.03 LM8
ZKX07S51 87.67 89.14 1.47 898 1.27 182 0.34 0.25 LM13
ZKX07S53 291.8 295.38 3.58 724 2.87 255 0.2 0.03 LM12E-branch
ZKX104S22 84.48 87.04 2.56 859 1.61 270 1.3 0.13 LM20
205.91 206.94 1.03 759 0.65 121 1.38 0.05 LM19
ZKX102S22 169.87 171.09 1.23 812 0.87 260 10.35 0.81 LM19
177.54 178.64 1.6 807 0.78 108 0.82 0.17 LM19-branch
ZKX111S01 244.57 246.4 1.83 830 1.16 145 0.29 0.06 LM14
ZKX01S21 49.72 51.42 1.7 898 1.55 203 2 0.31 LM13
ZKX102S23 9.84 12.04 2.2 926 1.98 137 1.75 0.09 LM20E1
ZKX10619 263.22 265.26 2.04 825 1.91 216 1.54 0.19 LM8
ZKX104S23 102.86 104.26 1.4 855 0.92 130 3.23 0.1 LM20W
187.44 188.64 1.2 795 0.79 295 3.35 0.18 LM19
ZKX102S21 30.81 31.74 0.93 917 0.85 341 0.81 0.07 LM20
98.77 99.92 1.15 890 1.05 183 0.84 0.16 LM19E
ZKX05S03 86.43 87.48 1.05 867 0.88 114 0.1 0.21 LM13
ZKX0911 173.25 174.87 1.62 834 0.11 208 0.45 0.07 LM8_1
ZKX07S52 78.31 79.69 1.38 881 1.12 174 0.74 0.11 LM13
ZKX10616 257.93 259 1.07 897 1.05 100 1.15 0.77 LM8W
ZKX01S03 70.04 71.56 1.52 853 0.82 173 10.28 0.07 LM11
ZKX05S32 78.55 80.48 1.93 824 1.07 279 0.46 0.12 LM11
ZKX100S21 18.69 19.65 0.96 923 0.85 134 1.76 0.02 LM20
55.69 57.03 1.34 909 1.19 316 0.33 0.06 LM19-branch
ZKX104S02 108.09 110.05 1.96 840 1.27 352 0.34 0.06 LM8_1
ZKX101S21 66.28 69.27 2.99 910 2.07 323 0.28 0.02 LM19E
86.03 87.46 1.43 904 0.99 157 0.29 0.01 LM19
ZKX01S11 14.08 15.08 1 929 0.33 228 0.3 0.09 LM20
48.89 50.14 1.25 922 1.19 270 0.54 0.08 LM20E
ZKX0913 128.23 129.83 1.6 893 1.47 102 0.38 0.02 LM7
ZKX32S05 108.48 109.63 1.15 969 0.98 901 0.9 0.08 LM17-branch
ZKX01S14 15.54 16.64 1.1 915 0.86 173 0.37 0.04 New Zone
ZKX00S11 54.22 55.12 0.9 901 0.85 246 0.66 0.03 LM7W
ZKX00S12 92.11 94.66 2.55 917 2.15 83 0.98 0.03 LM7
ZKX113S21 230.68 235.65 4.97 793 3.11 216 0.22 0.07 LM16_1
Including 234.05 235.65 1.60 790 1.00 631 0.45 0.20
ZKX113S21 270.28 272.28 2 758 1.26 493 2.23 0.06 LM16
ZKX14202 220.99 221.99 1 802 0.9 245 1.47 0.39 W6E
ZKX05S42 236.19 238.78 2.59 712 2.5 196 0.8 0.08 LM12_2
267.19 268.66 1.47 696 1.46 250 1.72 0.08 LM12_1
374.86 376.08 1.22 641 1.18 718 14.52 0.13 LM7
ZKX00S13 78.23 80.38 2.15 866 1.76 106 0.58 0.04 LM7
ZKX14203 184.83 186.68 1.85 784 1.25 82 19.09 0.71 W1
279.63 281.58 1.95 707 1.33 149 0.72 0.06 W6
ZKX111S21 242.38 243.88 1.5 792 1.11 237 0.56 0.29 LM16
ZKX28S06 134.05 135.28 1.23 859 0.54 140 0.44 0.09 New Zone
223.84 227.22 3.38 770 1.51 265 0.58 0.25 LM17
ZKX05S43 202.7 203.95 1.25 677 1.11 135 0.39 0.09 LM13
286.91 288.61 1.7 611 1.39 212 0.38 0.26 LM12_2
ZKX05S44 52.39 53.89 1.5 791 0.93 43 8.64 0.06 LM11
104.97 105.88 0.91 743 0.64 837 2.98 0.68 LM11E
342.33 346.49 4.16 532 3.18 525 8.51 0.36 LM12_2
ZKX11202 223.26 225.89 2.63 754 1.94 254 6.89 0.18 LM8_2
ZKX14603 136.08 137.83 1.75 819 1.23 228 0.29 0.41 W6W1
ZKX05S41 119.61 120.76 1.15 797 1.08 499 0.71 0.71 LM13W2
245.75 246.97 1.22 754 1.22 78 0.94 0.39 LM12_2
298.08 299.53 1.45 736 1.45 375 16.83 0.18 LM12E
ZKXG0108 186.99 189.22 2.23 779 2 119 0.16 0.02 LM13W2
218.78 219.75 0.97 760 0.89 317 9.15 0.17 lM13W
272.96 274.93 1.97 728 1.73 362 2.1 0.32 LM12_2
ZKX14204 138.41 139.26 0.85 807 0.63 239 5.75 1.02 W1-branch
181.77 182.96 1.19 766 0.88 187 0.38 0.4 W1
ZKX09S04 316.67 317.67 1 611 0.82 152 0.46 0.31 LM12
ZKX0208 264.74 266.79 2.05 780 1.98 177 0.59 0.24 LM12_2
ZKX4001 221.55 223.2 1.65 792 1.12 281 0.44 0.08 LM17
ZKX07S34 323.77 324.97 1.2 531 0.7 239 0.45 0.18 LM13
ZKX0209 266.46 267.88 1.42 740 1.36 264 1.39 0.07 LM12_2
ZKX3602 178.15 178.84 0.69 830 0.45 230 1.13 0.34 LM16W
ZKX04S07 266.41 267.41 1 780 0.99 522 0.75 0.21 LM12_2
ZKX36S01 152.79 154.45 1.66 869 0.67 79 1.48 0.1 LM16
ZKX03S23 140.64 141.64 1 705 0.58 927 0.9 0.07 LM11E
242.26 243.46 1.2 610 0.7 196 0.45 0.33 LM13W
423.14 424.86 1.72 441 1.46 43 1.74 0.37 LM7
ZKX04S08 175.07 179.06 4.53 792 4.37 141 1.9 0.1 LM13
285.97 286.82 0.85 733 0.83 110 0.49 0.22 LM12_2
ZKX07S32 289.7 290.6 0.9 631 0.84 473 0.84 0.13 LM12_2-branch
383.73 390.48 6.75 564 6.26 127 1.28 0.21 LM7
ZKX4003 293.68 300.29 6.61 706 3.22 585 2.49 0.32 LM17
Including 295.28 296.83 1.55 704 0.75 1129 3.66 0.80
ZKX4202 194.47 195.4 0.93 822 0.49 143 0.08 0.04 LM17-branch

Longitudinal sections for the veins showing the location of the drilling results in this news release are available at the following Company link: http://www.silvercorpmetals.com/English/projects/ying-mining-district/lm-mine/Long-Sections.

Quality Control

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contact or shear/alteration contact, were split into halves by diamond saw cutting. One half of the cores are stored in the Company's core shacks for future reference and checking, and the other half core samples are shipped in security sealed bags to the Chengde Huakan 514 Geology and Minerals Testing and Research Institute in Chengde, Hebei Province, and the Analytical Lab of the Inner Mongolia Geological Exploration Bureau in Hohhot, Inner Mongolia, and both are ISO9000 certified analytical labs. For analysis the sample is dried and crushed to minus one mm and then split to a 200-300g subsample, which is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized sample. One is digested with aqua regia for gold analysis with AAS, and the other is digested with two-acids for analysis of silver, lead, zinc and copper.

Channel samples are collected along sample lines perpendicular to the mineralized vein structure in exploration tunnels. Spacing between sampling lines is typically 5m along strike. Both the mineralized vein and the altered wall rocks are cut with continuous chisel chipping. Sample length ranges from 0.4m to more than 1m, depending on the width of the mineralized vein and the mineralization type.

A routine quality assurance/quality control procedure is adopted at each lab to monitor the analytical quality at the lab. Certified reference materials ("CRM"), pulp duplicates and blanks are inserted into each lab batch of samples. QA/QC data at the lab are attached to the assay certificates for each batch of samples.

The Company maintains its own comprehensive quality assurance and quality control program to ensure best practice in sample preparation and analysis of the drill core samples. Project geologists regularly insert CRM, field duplicates and blanks into each batch of core samples to monitor the sample preparation and analysis procedures at the labs. The analytical quality of the labs is further evaluated with external checks by sending about 3% of the pulp samples to higher level labs to check for lab bias.

Data from both the Company's and the labs' QA/QC programs are reviewed on a timely basis by project geologists.

Rujin Jiang, P.Geo., is the Qualified Person on the project as defined under National Instrument 43-101. He has verified the information and has reviewed and approved the contents of this news release.

About Silvercorp

Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China, which has paid a cash dividend since 2007. The Company is currently developing the GC project in southern China, which it expects will become its next operating mine. The Company's vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. For more information, please visit our website at www.silvercorp.ca.

CAUTIONARY DISCLAIMER -- FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this press release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information. Forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company's material properties; the sufficiency of the Company's capital to finance the Company's operations; estimates of the Company's revenues and capital expenditures; estimated production from the Company's mines in the Ying Mining Camp; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company's operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company's properties.

Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licenses; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company's existing operations; competition; operations and political conditions; regulatory environment in China and Canada; environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; and bringing actions and enforcing judgments under U.S. securities laws.

This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company's Annual Information Form for the year ended March 31, 2013 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information.

The Company's forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management's assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.

Contact Information