Silvercorp Metals Inc.

Silvercorp Metals Inc.

November 07, 2005 09:00 ET

Silvercorp Metals Inc.: Deep Drilling Program Commenced from Surface at the Ying Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 7, 2005) - Silvercorp Metals Inc. ("Silvercorp") (TSX VENTURE:SVM) is pleased to announce that two drill rigs capable of 45 degree angle drilling to 1,000 metres (m) have been mobilized to the Ying Silver Property. Drilling will test the continuation of mineralization and vein structure below 350m from surface in the first phase of a 10,000m deep drilling program.

Deep drill testing was originally planned for the 2006 season, however the 2005 program is ahead of schedule and the 2006 program has been advanced accordingly. Under the current exploration and development program, each month about 2,500 metres (m) of tunnelling is completed and the 5 drills already on site complete about 1,500m of underground drilling. The current program is designed to expand resources laterally and upgrade the categorization of existing silver resources while preparing for production once the mining permit is obtained.

The initial new drilling targets will be depth extensions of the S14, S16W, S16E, S7 and S8 veins, in a bid to substantially increase indicated and inferred resources in the next formal resource estimate. In the last NI 43-101 resource estimate reported on May 2, 2005, only parts of five veins to depths of 350 m from surface were considered. The Measured and Indicated Resource reported was 420,453 tonnes averaging 1,393 grams per tonne ("g/t") silver ("Ag"), 32.76% lead ("Pb"), 9.99% zinc ("Zn"), for contained metals of 18.8 million ounces of silver, 137,730 tonnes of lead, and 42,004 tonnes of zinc, or 43,923,882 ounces Silver equivalent, calculated using US$6.5/oz Ag, US$0.40/lb Pb, and US$0.45/lb Zn. The reported Inferred Resource was 495,205 tonnes averaging 1,539 g/t Ag, 35.01% Pb, 9.56% Zn, containing 24.5 million ounces of silver, 173,394 tonnes of lead, and 47,323 tonnes of zinc, or 55,242,321 ounces silver equivalent.

Data compilation for the mining permit application is proceeding on schedule with all required reports completed except the Environmental Assessment Report which is under preparation.

Myles Gao, P.Geo, President of Silvercorp and General Manager of the Ying Project is the Qualified Person on the Project under NI 43-101.

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.

Contact Information

  • Silvercorp Metals Inc.
    Rui Feng
    Chairman & CEO
    (604) 669-9397
    Silvercorp Metals Inc.
    Cathy Fong
    VP Corporate Development
    (604) 669-9397
    (604) 669-9387 (FAX)