Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

June 23, 2008 09:00 ET

Silvercorp Metals Inc.: Drilling Intercepts 1.62 m Interval of Eruptive Breccia

Grading 5.4 Grams Per Tonne Gold and 5,474 Grams Per Tonne Silver at the HPG Mine of Ying Silver Mining Camp, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 23, 2008) - Silvercorp Metals Inc. (TSX:SVM) ("Silvercorp") is pleased to provide an update on the exploration program at the HPG mine in the Ying Silver Mining Camp for the period from June 2007 to May 2008. The program is aimed at exploring the veins and mineralization along strike and dip, converting inferred resources to indicated and measured resources categories, expanding inferred resources at depth and along strike, and discovering and defining additional mineralized veins in the area.

During the period, 12,353 metres ("m") of exploration tunnels and 16,997m drilling in 74 diamond drill holes (55 surface and 19 underground drill holes) have been completed. Out of the 74 drill holes, 45 holes intercepted significant mineralization, representing a 61% drilling success rate.

The HPG Mine, acquired one year ago by Silvercorp, has shown steady profitable production. The production profit has financed this extensive exploration work and the acquisition of LM Mining permit. This has again demonstrated Silvercorp's successful strategy of getting into production early, even before the project's full potential is explored, and then using the production profit to finance the exploration, resource growth and mine expansion.

The tunneling and drilling work have been carried out on 19 different veins and a new type of gold-silver mineralization, the eruptive breccias. The veins include H5, H6, H10, H10-1, H11, H12, H12-1, H13, H15, H15-1, H15-2, H16, H17, H17-1, H17-2, H18, H29, H32, and H39-1, however, most of exploration work was concentrated on the H15, H17, H29, H32 veins and newly discovered eruptive breccia type mineralization in which significant ore shoots were defined. The mineralization associated with the newly discovered eruptive breccia is high in gold and silver but low in lead and zinc.

The assay results from the drill holes are listed in the tables below. The results of the tunnels are listed on Silvercorp's web site: www.silvercorp.ca. Significant results are:

- Drill hole ZK1510 intersected 1.62 m interval (core length) of the eruptive breccia grading 5.41 g/t (gram per tonne) gold (Au), 5,474 g/t silver (Ag) at 560m elevation;

- Drill hole ZK1511 intersected 3.52 m interval of the eruptive breccia grading 2.58 g/t Au, 186.17 g/t Ag and 1.25% lead (Pb) at the 573 elevation and a second internal of 9.7m grading 1.98 g/t Au, 45.33 g/t Ag and 0.16% Pb at 557m elevation;

- Drill hole ZK0703 intersected 0.34m (core length) in H10-1 Vein containing 2.59 g/t Au, 265 g/t Ag, and 12.37% Pb;

- Underground drill hole ZK0302 intersected 2.24m core interval of the H13 vein at 536m elevation, grading 838 g/t Ag, 14.13% Pb, and 0.19% Zn;

- Tunneling intercepted 0.55m true width grading 14.89 g/t Au, 246 g/t Ag, 5.63% Pb, and 0.19% Zn on 637m elevation on the H5 Vein;

- Tunneling intercepted 0.70m true width grading 1.51 g/t Au, 2,493 g/t Ag, 3.47% Pb, and 12.92% Zn at 543m elevation on the H13 Vein;

- Tunneling intercepted 0.20m true width of H6 Vein grading 12.56 g/t Au and 132 g/t Ag, at 693m elevation;

- Tunneling intercepted 0.25m true width containing 1.42 g/t Au, 4,425 g/t Ag, 3.88% Pb, and 1.12% Zn at 653m elevation on the H11 vein;

- Tunneling intercepted 0.15 m true width grading 102 g/t Ag, 29.64% Pb, and 1.12% Zn at 647m elevation on the H12 vein;

- Tunneling intercepted 2.00 m true width grading 5.22 g/t Au, 102 g/t Ag, 7.62% Pb, and 0.23% Zn at 600m elevation on the H12-1 vein; Drill hole ZK23A-03 also hit the H12-1 vein at 970m elevation that contains 104 g/t Ag, 35.06% Pb, and 0.32% Zn over 0.10m core length;

- Tunneling intercepted drifting exposed 0.40m true width grading 0.82 g/t Au, 507 g/t Ag, 29.14% Pb at 624m elevation on the H15 vein;

- Tunneling intercepted H15-1 vein at 746m elevation containing 2.64 g/t Au, 961 g/t Ag, and 7.65% Pb over 0.30m true width;

- Tunneling exposed 0.45m true width of H15-2 Vein at 694m elevation grading 2.40 g/t Au, 670 g/t Ag, 15.70% Pb; Drill hole intersected the H15-2 vein at 450m elevation grading 1.05 g/t Au, 130 g/t Ag, 10.11% Pb over 0.50 m core length;

- Tunneling intercepted 0.40m true width containing 3.04 g/t Au, 3,729 g/t Ag, 8.33% Pb and 2.44% Zn at 625m elevation on the H17 vein; underground drill hole ZK1612 intersected the H17 vein at 217m elevation that grades 5.65 g/t Au, 53 g/t Ag, 7.57% Pb, and 7.26% Zn;

- Tunneling intercepted 0.60m true width of H17-1 vein at 341m elevation containing 325 g/t Ag and 20.34% Pb, and 1.36% Zn.

- Tunneling intercepted 2.70 m true width grading 324 g/t Ag, 29.53% Pb at 364m elevation on the H17-2 vein;

- Tunneling exposed 0.40 m true width grading 4.03 g/t Au, 2,081 g/t Ag, 5.19% Pb, and 0.53% Zn at the 740m elevation on the H18 vein;

- Tunneling on the 749m elevation H29 vein intersected 0.30m true width grading 134 g/t Ag, 25.54% Pb, and 4.67% Zn;

- Tunneling on the 650m elevation H39-1 vein intersected 0.30m true width grading 2.92 g/t Au, 1,011 g/t Ag, 1.33% Pb, and 1.21% Zn;

H5 Vein

The vein is over 600 m and dips to south steeply (84 degree). Over 205 m of drift and 95 m of bypass tunnel was completed on the 460 m elevation, and a 25 m long ore shoot is defined that contains 35 to 145 g/t Ag, and 0.52 to 10.48% Pb over 0.30 to 1.80 m true width.

H6 Vein

The vein was traced over 150 m so far by tunnel with 50 to 80 degree dipping angle at 652m elevation.

H10 Vein

On the surface, the H10 vein extends over 200 m with a dipping angle of 75 degree at southeast direction. Over 88 m drifting and 57 m crosscutting were completed on the vein through PD640, which defined 30 m long, 0.15 m wide gold ore shoot at 640m elevation.

H10-1 Vein

The vein is a branch of H10 Vein and is located southeast of H10 vein. Three drill holes intercepted the vein at 615 to 619m elevation. The drill hole intercepts contain 0.29 to 2.59 g/t Au, 21 to 414 g/t Ag, and 1.49 to 52.70% Pb over 0.15 to 0.34 m core intervals.

H11 Vein

The vein is located 45 m southeast of H10 Vein and extends over 270m in length. It dips to southeast with a dipping angle of 75 degrees. Exploration work includes 137 m drifting along the vein at 652m elevation through PD640 and 6 drill holes at 500 to 530 m elevation.

H12 Vein

The vein is north-south striking and dips to east at a dipping angle of 78 degree. It has been drifted over 339 m through PD640. A 33 m long ore shoot in the vein was defined at 640m elevation which ranges 0.15 to 1.20 m in width.

H12-1 Vein

H12-1 is located 60 m east of H12 and is parallel to H12 and was tunneled over 289 m at 600m and 640m elevation through PD640. Eight diamond drill holes intercepted the vein at an elevation ranging from 571 to 640 m.

H13 Vein

A newly discovered vein, it is traced on surface over a length of 350 m. Exploration work includes 335 m drifting along the vein at 530 m elevation through PD2 and interception by 8 diamond drill holes.

H15 Vein

The vein was explored through five access tunnels - PD3 at 380m, 460m, 500m levels, PD630 at 630m level, PD700 at 700m level, PD710 at 710m level, and PD720 at 720m level. A total of 1,622 m of tunneling was completed and 30 drill holes intersected on the vein. Tunneling includes 676 m drift and 206 m raise along the vein, and 649 m of crosscut. The most significant ore shoot was about 120 m in length and 0.20 to 1.80 m in width at 380m level, grading as high as 5.38 g/t Au, 183 g/t Ag, 13.28% Pb, and 13.57% Zn.

H15-1 and H15-2 Veins

H15-1 Vein is located at 80 to 100 m west of the H15 vein. The H15-2 vein is branching out from H15 Vein at approximately 740m elevation, dipping to northwesterly with 80 degree dipping angle. H15-1 Vein was mapped on the surface about 350m in striking length while H15-2 Vein was only intercepted by diamond drilling and tunneling. The both veins are explored at 720m, 700m, and 630m elevations through the main access tunnel PD720, PD700, and PD730. A total of 413 m and 126 m drifting were completed for the H15-1 and H15-2 veins. Five drill holes intercepted the H15-2 Vein and three of them hit significant mineralization.

H16 Vein

The vein extends over 600 m in length. A total of 248 m of tunneling (217 m drifting and 31 m crosscutting) and 10 drill holes were completed on the vein. The drifting was done at 660 m level through main access tunnel PD670. Five of 10 drill holes intercepted the significant mineralization from 420m to 678m elevation.

H17 Vein

A total of 3,021 m of tunneling were completed for the vein at 10 different levels from 340m to 720m elevation through 6 main access tunnels PD2, PD3, PD630, PD670, PD700, and PD720. In PD3, tunneling was carried out on the 500m, 460m, 420m, 380m, and 340m elevation and drifted 1,364 m. 287 m drifting in PD2 was done at 530m elevation. At 630m elevation through PD630, a 425 m drift was completed. In PD670, about 284 m drift was done along the vein. In PD700 and PD720, 166 m and 495 m drifting was done at 700m and 720m elevation, respectively. Six diamond drill holes have intercepted the H17 vein with significant mineralization.

Tunneling and drilling have defined 6 high grade ore shoots. The largest shoot is 40 to 120m in length and extends from 420m to 50m elevation (350m in down dip direction) grading as high as 6.50 g/t Au, 1,256 g/t Ag, 23.06% Pb, and 14.97% Zn.

H17-1 and H17-2 Veins

H17-1 Vein is located at 35 m west of the H17 vein. H17-2 Vein, located between H17 and H15 Veins, is branching out from H15 Vein approximately at the 410m elevation and merged to H17 Vein around the 365m elevation. Both veins were not shown on the surface and were only intersected by tunneling.

H18 Vein

The vein extends northeasterly for approximately 300 m on the surface. It dips to northwest with a dipping angle of 64 to 72 degrees. A total of 626 m of drifting was completed on the vein at 720 m and 700 m elevation through PD700 and PD720.

H32 Vein

Exploration work on the vein includes 245 m of drift and 60 m of raise along the vein and 26 m of crosscut. The work defined an ore shoot about 35 m long at 620 m elevation and 50 m long at 660m elevation.

H39-1 Vein

The vein was mapped over 600 m on the surface along northeast striking direction. H39-1 Vein steeply dips to southeast. Over 422 m of tunneling was developed on the vein. The work includes 224 m of drift and 48 m of raise along the vein, and 151 m of crosscut to access the vein from main access tunnel PD640.

Eruptive Breccia

Eruptive breccia, irregularly shaped, strikes northwesterly. On the surface, the breccia is over 700m on strike and 120m in width, dipping nearly vertically and extending at least over 450m.

Drill Hole Assay Results



----------------------------------------------------------------------------
Dist-
ance
to
South
Mine- Intersec- of
eral- tion Sect- Ele-
ized Inter- ion vat-
Vei- Drill From To val Line ion Au Ag Ag Pb Zn
ns Holes (m) (m) (m) 16 (m) (g/t) (g/t) (oz/t) (%) (%)
---------------------------------------------------------------------
Brec- ZK-
cia 1501 126.32 128.2 1.88 794 576 0.289 160 5.14 0.33 0.02
Brec- ZK-
cia 1507 177.08 177.26 0.18 780 625 1.338 38 1.21 1.34 0.88
Brec- ZK-
cia 1509 191.15 192.64 1.49 780 583 1.191 6 0.20 0.01 0.01
Brec- ZK-
cia 1509 51.36 53.41 2.05 780 709 0.062 15 0.47 3.35 0.30
Brec- ZK-
cia 1509 37.5 41.17 3.67 780 720 0.015 4 0.12 0.57 1.32
Brec- ZK-
cia 1510 205.3 206.97 1.62 780 560 5.405 5747 184.76 0.20 0.03
Brec- ZK-
cia 1510 42.09 45.79 3.70 780 715 0.041 17 0.56 2.30 1.71
Brec- ZK-
cia 1511 186.38 190.00 3.52 800 572 2.58 186.17 5.98 1.25 Na
Brec- ZK-
cia 1511 197.10 209.00 9.7 800 557 1.98 45.53 1.46 0.16 Na
Brec- ZK-
cia 6606 33.6 35.42 1.82 900 532 0.343 32 1.02 1.15 0.10
Brec- ZK-
cia 8408 219.64 221.44 1.80 776 610 0.150 227 7.31 0.35 0.32
Brec- ZK-
cia 8408 164.58 166.38 1.80 776 649 0.124 19 0.60 2.23 0.10
Brec- ZK-
cia 8408 159.22 161.35 2.13 776 652 1.282 190 6.09 0.93 0.07
----------------------------------------------------------------------------
H10-1 ZK-
0701 4.28 4.60 0.32 610 619 0.288 21 0.67 1.49 0.03
H10-1 ZK-
0702 4.95 5.10 0.15 610 618 0.727 414 13.32 52.70 0.10
H10-1 ZK-
0703 7.48 7.82 0.34 610 615 2.592 265 8.53 12.37 0.08
----------------------------------------------------------------------------
H11 ZK-
0703 96.12 98.8 2.68 610 532 0.792 91 2.93 9.80 0.04
H11 ZK-
0706 139.9 140.7 0.80 610 506 0.932 29 0.94 0.31 1.14
----------------------------------------------------------------------------
H12 ZK-
23A02 61.36 61.51 0.15 970 589 0.622 70 2.26 18.92 1.59
H12 ZK-
23B01 92.92 93.02 0.10 970 583 5.190 67 2.17 0.28 0.04
----------------------------------------------------------------------------
H12-1 ZK-
23A01 10.53 12.50 1.97 970 639 2.758 6 0.18 1.18 0.10
H12-1 ZK-
23A02 46.59 47.09 0.50 970 603 0.019 10 0.32 2.29 0.09
H12-1 ZK-
23A03 17.47 17.57 0.10 970 633 0.140 104 3.34 35.06 0.32
H12-1 ZK-
23B01 11.19 13.25 2.06 970 639 2.489 18 0.59 0.31 0.09
H12-1 ZK-
23B02 14.16 16.27 2.11 970 635 0.640 66 2.11 5.06 0.15
H12-1 ZK-
23C01 11.06 11.97 0.97 970 640 0.213 22 0.71 1.05 0.07
H12-1 ZK-
23C02 13.00 13.66 0.66 970 637 0.262 31 1.00 1.98 0.10
H12-1 ZK-
2503 116.31 117.58 1.27 990 562 0.649 135 4.34 0.35 0.08
H12-1 ZK-
2503 105.39 105.49 0.10 990 571 0.391 70 2.26 21.97 2.42
----------------------------------------------------------------------------
H13 ZK-
0301 75.51 77.61 2.10 506 571 0.104 139 4.47 1.55 0.65
H13 ZK-
0302 105.17 107.41 2.24 506 536 0.511 838 26.94 14.13 0.19
H13 ZK-
0303 188.01 188.61 0.60 506 453 0.223 238 7.64 21.36 0.30
H13 ZK-
0701 174.05 174.10 0.05 600 504 0.030 23 0.74 3.51 1.82
H13 ZK-
0702 219.1 221.6 2.50 602 449 0.397 25 0.80 1.89 0.14
H13 ZK-
0703 287.1 288.47 1.37 602 359 0.971 252 8.12 0.68 0.74
H15 ZK-
1609 167.33 168.23 0.84 -8 323 1.576 73 2.36 2.74 1.50
H15 ZK-
1609 160.20 162.26 2.06 -8 328 2.160 192 6.18 11.05 0.59
H15 ZK-
1612 248.41 249.16 0.75 6 237 0.046 8 0.24 0.44 1.19
H15 ZK-
20A01 178.72 180.17 1.45 -116 321 1.219 4 0.14 0.11 0.01
H15 ZK-
3601 56.03 58.05 2.02 -500 843 1.681 11 0.34 0.09 0.05
H15 ZK-
3602 81.05 82.25 1.16 -503 809 1.090 42 1.35 1.52 0.05
H15 ZK-
4404 68.17 69.05 0.88 -686 806 1.030 3 0.10 0.04 0.01
H15 ZK-
4408 181.79 182.09 0.30 -686 676 1.403 9 0.29 0.09 0.03
H15 ZK-
4806 67.73 67.91 0.18 -800 807 8.606 18 0.59 0.22 0.03
H15-2 ZK-
1609 14.28 14.78 0.50 -8 450 1.053 130 4.17 10.11 0.20
H15-2 ZK-
1610 25.03 26.18 1.15 6 438 0.180 130 4.19 1.38 0.22
H15-2 ZK-
16B01 41.02 42.03 1.01 -40 421 0.176 128 4.11 5.16 0.28
----------------------------------------------------------------------------
H16 ZK-
0701 247.5 47.7 0.20 604 455 0.142 43 1.40 2.33 0.36
H16 ZK-
1509 302.38 304.48 2.10 780 482 0.043 249 7.99 1.45 0.12
H16 ZK-
1510 356.02 356.53 0.51 780 420 1.584 9 0.28 0.15 0.03
H16 ZK-
1701 114.65 114.9 0.25 850 678 1.551 67 2.15 9.90 2.52
H16 ZK-
1702 184.64 184.94 0.30 850 588 0.445 45 1.43 2.62 0.65
H17 ZK-
0701 280.34 281.06 0.72 635 432 0.475 14 0.46 1.17 0.52
----------------------------------------------------------------------------
H17 ZK-
1101 204.2 205.35 1.15 766 548 0.313 31 1.00 4.20 0.20
H17 ZK-
1609 185.04 185.04 1.13 -3 308 0.049 117 3.76 11.65 1.19
H17 ZK-
1612 269.81 271.11 1.30 6 217 5.648 53 1.70 7.57 7.26
H17 ZK-
16B01 306.99 309.80 2.81 -40 160 0.371 23 0.73 0.77 2.31
H17 ZK-
3601 178.78 179.23 0.45 -537 758 9.902 64 2.07 0.31 0.06
H17 ZK-
3602 243.24 243.55 0.31 -536 656 6.260 10 0.31 0.15 0.09
----------------------------------------------------------------------------
H17-1 ZK-
1609 201.82 202.44 0.62 -3 295 0.937 69 2.20 9.47 1.33
----------------------------------------------------------------------------
H17-2 ZK-
1609 212.60 213.09 0.49 -3 286 2.758 6 0.18 1.18 0.10
----------------------------------------------------------------------------
H29 ZK-
004 117.41 117.71 0.30 1210 795 0.015 5 0.16 1.38 0.03
----------------------------------------------------------------------------
H29 ZK-
008 134.03 136.09 2.06 1230 774 0.083 12 0.40 2.02 0.08
----------------------------------------------------------------------------


Quality Control

Rock samples were collected by channel sampling the face of the undercut drifts. The channels were usually cut 10cm in width and 5cm in depth producing a sample weighing approximately 2kg to 10kg for each 0.10 to 1.00m interval depending on the thickness of mineralization. Drill cores are NQ/HQ 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: and the Langfang Institute of Geochemical and Geophysical Exploration (Certification ISO 9001), a well-regarded analytical laboratory in Langfang, Hebei Province near Beijing and 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 LM Mine.

The sample preparation consists of drying, crushing, and splitting of the sample to 250 grams, then the sample is pulverized to 200 mesh.

No. 6 Lab utilizes two acid digestion and AA finish on a 0.5 gram sample for lead and zinc. Titration is utilized as a modified process for higher grade materials. Silver is also analyzed using a two acid digestion on a 0.5 gram sample and AA finish.

Langfang Lab uses the ICP-OES process to analyze for lead, zinc and silver a 0.1 gram sample is digested with hot HCL, Hot HNO3, HF and HClO4 (200 degrees centigrade) the pregnant solution is analyzed utilizing mass spectrometry.

Both labs utilize a QA/QC system of duplicates replicates and Standards.

Michael Hibbitts, P.Geo, is the Qualified Person on the project under NI 43-101.

About Silvercorp Metals Inc.

Silvercorp Metals Inc. is engaged in the acquisition, exploration, and development of silver related mineral properties focusing in the People's Republic of China ("China"). Currently, the Company is operating and developing four Silver-Lead-Zinc mines at the Ying Mining Camp, Henan Province, owned through its 77.5% and 70% Chinese subsidiary companies. In Guangdong Province, it is applying for a mining permit for the newly acquired GC/SMT property, owned through a 95% Chinese subsidiary. Silvercorp is also exploring the Na-Bao Polymetallic Project in Qinghai Province, China owned through its 82% Chinese subsidiary.

The Company's common shares are included as a component of the S&P/TSX Composite, the S&P/TSX Global Gold, and the S&P/TSX Global Mining Indexes.

CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS

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, development, and mining. Production and revenue projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. As a result, actual results may vary materially from those described in the forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.

Contact Information

  • Silvercorp Metals Inc.
    Rui Feng
    Chairman & CEO
    (604) 669-9397
    or
    Silvercorp Metals Inc.
    Lorne Waldman
    Corporate Secretary
    (604) 669-9397
    (604) 669-9387 (FAX)
    Email: info@silvercorp.ca
    Website: www.silvercorp.ca