Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

September 19, 2005 09:00 ET

Silvercorp Metals Inc.: Silver Grade of 28,148 Grams Per Tonne and Lead Grade of 58.56% Over 0.25 Metre Interval Intercepted at the Ying Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 19, 2005) - Silvercorp Metals Inc. ("Silvercorp") (TSX VENTURE:SVM) is pleased to provide a progress report on its high grade Ying silver project in Henan, China. During the months of July and August 2005, a total of 5,061 meters (m) of drifting, raises, and declines and 1,506m of underground drilling was completed, bringing the total completed in the last year to 17,005m of tunnels and 5,020m of underground drilling.

The tunneling work on S2, S6, S14, S16W and S16E veins is mainly designed to upgrade existing resources to the mineral reserve category and to prepare for mining through the 518m and 480m level tunnels for the S2, S6, S14 Veins and through the 570m and 534m level tunnels for the S16E and S16W Veins. The table below lists the new tunnel results for S14, S16E and S16W veins. Results from ongoing drifting of other veins at the SGX and other areas, and the underground drilling program will be reported as soon as they become available. The most significant intervals are as follows:

- 0.25m grading 28,148 grams per tonne (g/t) or 905 ounces per tonne (oz/t) or 2.81% silver, 58.56% lead and 1.92% zinc from a mining raise developed from the 518m level on the S14 Vein;

- 0.40m grading 3,886 g/t or 124.92 oz/t silver, 4.22% lead and 10.78% zinc from a drift along S16E vein on the 570m level

- 1.7m grading 1,651 g/t or 53.07 oz/t silver, 8.55% lead and 9.62% zinc from a drift along S16W vein on the 534m level.

S14 Vein

Accessed through main tunnels CM102 and CM103, the tunneling program on the S14 vein during this period included 277.6m of drifting on the 480m level and 194m of undercut and 53m of raises developed for mining above the 518m level.

The massive galena sheets in S14 continue to show excellent continuity. A total of 1297m out of 1975m of tunnels exposed massive galena sheets exceeding the 1,250 g/t Ag-equivalent cut-off, representing a 66% of rate of mineralization. We were also interested to encounter an ancient stope when drifting along the vein to the south at 518m elevation. The stope, being 0.5 to 1.0m wide, was cut down from about the 580m elevation. The only sample collected from the entrance of the stope, 572m south of CM103, returned 6,836 g/t (219.80 oz/t) Ag, 42.63% Pb, and 0.61% Zn over 0.2m width.

S16E and S16W Veins

Exploration work on S16E and S16W during the period was carried out on three levels. On the 640m level, 197m of drifting was completed along S16W from CM101, and 113m of drifting was completed along S16E from PD640, however no significant mineralization was encountered. Tunneling on the 570m level included 54m and 62m along the S16E and S16W respectively, through CM102. Main access tunnels CM102 and CM103 have now been connected through drifts along the S16W vein on the 570m level. Through two declines to the 534m level a total of 263m of drifting was completed along the S16E and 479m of drifting was completed along the S16W. A 45m length of mining raise from the 534m to 570m level was also completed along the S16E.

Overall, tunneling work along the S16E and S16W veins continues to show excellent continuity for massive galena sheets. To date, 1,052m drifting along the S16E has exposed 570m of massive galena sheets exceeding the 1,250 g/t Ag-equivalent grade cut-off, yielding a 54% rate of mineralization. On the S16W vein, several sections totaling 975m over 2,060m of drifting are confirmed to be above 1,250 Ag-equivalent grade, giving a 47% rate of mineralization.

Assay results from channel sampling completed on the S14, S16W and S16E veins during the period are listed in the Table below.



--------------------------------------------------------------------
Dist-
ance
South Ag Ag
Miner- Eleva- of Equiv. Equiv.
alized tion CM103 Width Ag Ag Pb Zn (g/t) (oz/t)
Vein (m) (m) (m) (g/t) (oz/t) (%) (%) (i) (i)
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S14 524 10 0.40 471 15.14 19.75 1.83 1391 44.73
524 20 0.25 28148 904.98 59.56 1.92 30752 988.71
524 25 0.55 1029 33.08 10.77 9.3 1925 61.88
524 29 0.60 1992 64.04 39.38 1.68 3733 120.03
524 33 0.30 4125 132.64 43.29 4.87 6183 198.79
524 39 0.40 874 28.11 20.25 4.33 1934 62.19
524 45 0.50 833 26.77 20.41 1.14 1748 56.20
524 50 0.70 2447 78.69 53.62 2.06 4808 154.58
524 53 0.40 983 31.61 31.20 5.12 2543 81.75
524 55 0.80 355 11.41 8.83 16.02 1488 47.84
524 61 0.40 3338 107.30 48.80 6.74 5717 183.80
524 68 0.40 1595 51.27 37.84 4.73 3416 109.83
524 85 0.40 1192 38.33 56.30 2.32 3678 118.25
524 102 0.30 1780 57.22 58.10 0.07 4235 136.15
566 140 0.60 1249 40.17 48.65 2.89 3440 110.58
563 140 0.70 73 2.35 39.80 9.61 2209 71.01
561 140 0.50 343 11.03 23.60 0.16 1347 43.30
551 140 0.60 216 6.95 10.43 22.65 1732 55.68
527 162 0.25 518 16.65 53.36 1.67 2849 91.60
520 200 0.40 1456 46.81 66.07 1.05 4294 138.04
520 205 0.40 1688 54.27 45.79 0.93 3664 117.81
520 210 0.80 137 4.40 44.40 3.99 2200 70.73
520 215 0.20 1062 34.15 43.90 2.79 3047 97.96
520 219 0.30 952 30.61 36.30 1.63 2561 82.35
520 224 0.30 1241 39.89 41.60 2.44 3112 100.05
520 225 0.15 828 26.63 39.50 2.59 2618 84.18
520 229 0.50 1458 46.89 45.08 1.29 3422 110.02
520 233 0.30 1464 47.07 57.08 1.08 3924 126.16
557 237 0.35 624 20.06 15.8 0.67 1323 42.52
554 237 0.30 689 22.15 27.51 2.43 1965 63.19
520 239 0.20 1330 42.76 31.53 1.39 2727 87.66
520 246 0.20 3695 118.81 28.38 2.09 4992 160.50
520 251 0.20 5465 175.69 52.60 4.54 7900 253.98
520 257 0.20 3893 125.15 73.70 0.29 7016 225.58
520 267 0.40 3908 125.65 52.15 1.60 6185 198.84
520 274 0.20 1531 49.21 19.85 1.21 2426 77.98
520 282 0.15 1620 52.10 20.45 0.72 2518 80.94
520 289 0.25 1001 32.19 7.75 3.54 1496 48.11
520 294 0.25 546 17.55 29.90 0.32 1823 58.60
526 358 0.20 1186 38.11 36.89 0.68 2774 89.20
522 359 0.30 1653 53.16 29.75 0.40 2928 94.13
540 375 0.13 1953 62.79 65.1 5.19 4946 159.03
539 395 0.18 3281 105.49 39.7 2.86 5092 163.71
539 415 0.20 5241 168.50 76.1 0.36 8469 272.30
529 425 0.20 2972 95.54 49.78 0.92 5116 164.49
518 451 0.50 1798 57.81 27.83 1.67 3052 98.11
518 471 0.40 3673 118.10 15.92 0.24 4356 140.06
518 488 0.30 1859 59.76 74.19 0.55 5015 161.25
518 493 0.20 1085 34.87 9.79 1.14 1552 49.90
518 570 0.20 1883 60.55 50.82 2.99 4170 134.06
518 572 0.20 6836 219.80 42.63 0.61 8664 278.56
--------------------------------------------------------------------
480 90 0.20 663 21.32 45.60 2.48 2705 86.97
480 141 0.60 2227 71.60 45.3 2.9 4276 137.49
480 145 1.00 1737 55.84 58.25 5.14 4439 142.71
480 150 0.30 1592 51.17 32.55 6.22 3260 104.82
480 229 0.40 345 11.08 27.50 9.52 1957 62.92
480 416 0.30 848 27.25 13.40 0.69 1446 46.48
480 426 0.20 2866 92.14 38.46 0.73 4524 145.44
480 426 0.20 1445 46.45 38.42 0.46 3088 99.28
480 431 0.20 1414 45.47 34.30 1.10 2914 93.68
480 436 0.20 1114 35.81 5.30 1.31 1400 45.00
480 447 0.15 369 11.87 19.00 3.86 1354 43.54
480 452 0.25 511 16.44 19.31 4.6 1544 49.65
480 456 0.15 719 23.12 11.05 4.90 1418 45.59
480 457 0.20 3968 127.56 57.10 2.60 6500 208.99
480 467 0.20 1052 33.81 45.64 0.43 2998 96.39
480 471 0.20 2710 87.13 51.68 1.82 4977 160.02
480 481 0.70 762 56.65 48.33 0.31 3816 122.69
480 486 0.40 826 26.56 29.21 4.36 2266 72.85
--------------------------------------------------------------------
S16E 570 856.0 0.60 1502 48.29 1.27 5.55 1819 58.48
570 865.0 0.27 896 28.80 32.95 8.81 2704 86.95
570 891.0 0.40 3886 124.92 4.22 10.78 4575 147.10
570 895.5 0.40 1373 44.15 0.46 0.85 1433 46.07
570 900.0 0.25 1196 38.44 0.84 1.77 1315 42.28
570 904.2 0.40 1724 55.42 1.63 3.79 1972 63.41
570 925.0 0.15 1141 36.69 5.20 3.3 1517 48.79
570 930.0 0.18 1421 45.68 3.96 2.02 1684 54.13
570 935.0 0.30 519 16.67 10.60 18.15 1828 58.76
-----------------------------------------------------------
534 530.1 0.65 453 14.56 29.35 5.27 1942 62.42
534 660 0.22 227 7.29 0.40 23.08 1339 43.06
534 670 0.70 850 27.33 3.60 13.33 1635 52.56
534 690 0.32 521 16.74 6.41 11.89 1356 43.58
534 695 0.25 1041 33.48 43.89 3.24 3047 97.97
534 700 0.20 1144 36.78 33.75 5.51 2830 90.98
534 700 0.20 691 22.21 8.36 4.74 1268 40.78
534 720.8 0.78 551 17.72 11.25 7.02 1359 43.70
534 725 0.40 1247 40.09 48.92 9.90 3781 121.57
534 730 0.80 990 31.82 17.00 11.66 2261 72.68
534 735 0.80 721 23.20 15.90 12.10 1967 63.23
534 485 0.55 524 16.83 18.95 12.39 1911 61.45
--------------------------------------------------------------------
S16W 570 1072 0.10 137 4.42 26.79 3.68 1443 46.38
-----------------------------------------------------------
534 180 0.30 208 6.70 3.46 20.06 1307 42.01
534 478 0.16 570 18.31 8.23 10.22 1402 45.08
534 483 0.85 406 13.05 11.90 18.91 1806 58.06
534 493 0.85 1315 42.29 37.57 2.00 2995 96.30
534 498 0.40 282 9.08 33.94 7.112 2052 65.98
534 498 0.20 1166 37.48 53.75 9.38 3879 124.71
534 508 0.17 1372 44.09 5.25 4.02 1784 57.35
534 523 0.20 1266 40.69 52.00 13.85 4117 132.38
534 528 0.20 955 30.69 6.14 25.71 2434 78.27
534 536 0.13 113 3.63 0.49 26.48 1391 44.71
534 612 0.37 617 19.85 17.68 5.60 1629 52.39
534 618 1.00 1828 58.76 7.04 1.59 2200 70.74
534 621 0.18 1028 33.04 10.23 3.49 1625 52.25
534 623 0.30 1012 32.53 40.15 3.54 2874 92.40
534 628 0.35 784 25.21 16.65 6.71 1805 58.04
534 633 0.85 677 21.77 11.40 6.06 1446 46.49
534 693 1.10 851 27.37 23.30 25.55 3047 97.98
534 698 0.25 755 24.27 37.19 20.95 3319 106.70
534 100 0.30 176 5.65 1.02 34.20 1842 59.23
534 105 0.60 275 8.84 20.20 9.94 1599 51.41
534 120 1.70 1651 53.07 8.55 9.62 2468 79.35
534 125 0.70 538 17.29 6.51 13.86 1471 47.28
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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


Tunnel maps and vein locations are available on the Company's website: www.silvercorp.ca.

The Company is well on track in carrying out the US$5 million exploration and development program for 2005 - consisting of 17,000m of underground tunneling, sinking three 330m deep shafts, and 10,000m of underground drilling.

Quality Control

The Company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel samples. 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. The samples are shipped directly in security sealed bags to the Langfang Institute of Geochemical and Geophysical Exploration (Certification ISO 9001), a well-regarded analytical laboratory in Langfang, Hebei Province, approximately 60 km from Beijing.

The sample preparation consists of drying, crushing, 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 ALS Chemex Laboratories in Vancouver, Canada.

Exploration on the Ying Project is carried out through Silvercorp's Sino-foreign joint venture company, Henan Found Mining Co. Ltd. ("Found"), which holds 100% of the Ying Project and in which Silvercorp is earning a 77.5% interest. Myles Gao, P.Geo, President of Silvercorp, is the General Manager of Found. Mr. Gao is also 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.

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