Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

July 05, 2005 09:00 ET

Silvercorp Metals Inc.: Tunneling Intercepts 0.9 Metres of 9,278 Grams per Tonne Silver, 33.50% Lead, and 4.91% Zinc in S16W Vein, Ying Silver Project, Henan Province, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 5, 2005) - Silvercorp Metals Inc. ("Silvercorp") (TSX VENTURE:SVM) is pleased to report that tunnel and underground drill work to extend the S16W and S16E veins along strike and down dip since mid-March, 2005, has continued to encounter extremely high grade massive galena sheets with some sections of the sheets showing greater widths than any previously encountered. Significant results from the work completed are as follows:

- New tunneling on S16W at 570 metre (m) elevation exposed much wider (1.02m width) massive galena sheets over 77m long (open to north), averaging 2,022 grams per tonne (g/t), or 65.01 ounces per tonne (oz/t) Ag, 29.80% Lead (Pb), and 6.39% Zinc (Zn). Two significant intervals within this wider sheet were 9,278 g/t (298.29 oz/t) Ag, 33.50% Pb, and 4.91% Zn over 0.9m width and 742 g/t (23.86 oz/t) Ag, 14.59% Pb, and 4.06% Zn over 3.65m width.

- Underground Drill Holes ZK5401 and ZK5402, drilled 52m and 108m below the 570m elevation tunnel on S16W, respectively, also intercepted the massive galena sheet with ZK5401 intersecting an interval of 5m grading 764 g/t (24.55 oz/t) Ag, 9.09% Pb, and 2.21% Zn, and ZK5402 returning 2,076 g/t (66.75 oz/t) Ag, 5.66% Pb, and 17.93% Zn over a 0.44m interval.

- Tunneling on S16E at 534m elevation exposed a relatively wide (0.71m in width) massive galena sheet over 45m along strike (open at both ends) grading 1,145 g/t (36.81 oz/t) Ag, 36.64% Pb, and 9.11% Zn. The zone was previously intersected in tunnels above the 534m elevation completed by a prior operator at 570m and 555m elevations (partly mined out) with the best interval containing 2,070 g/t (66.55 oz/t) Ag, 79.85% Pb, and 1.43% Zn over 1.0m.

- Underground Drill Hole ZK5402 intercepted the S16E vein 61m below the 570m elevation tunnel and returned 1,246 g/t (40.06 oz/t) Ag, 20.57% Pb and 2.79% Zn over a 0.31m interval.

During the period, exploration work on the S16W and S16E veins included: new tunnels on the 640m elevation through newly developed horizontal access tunnels CM101 at the south and PD640 to the north; continuous drifting at 570m elevation through main access tunnels CM102 and CM103; and drifting on the 534m elevation through two declines over 1,200m length of the veins along strike. The entire lengths for both of the veins are mapped out at about 2,000m. Underground drilling was completed from the 570m elevation to deepest depth of 454m elevation. This work is designed to convert the high grade massive galena sheets resource within a 1,200m long by 250m down dip depth area to mineable reserve category and to expand the resource along strike and vertically above the 640m elevation.

Underground Tunneling

To date, a total of 1,269.7m of tunnel drifting has been completed along the S16W on the 570m and 534m elevations. Of this 1,269.7m, about 656m comprises sections of massive galena sheets exceeding a 1,250 g/t Ag-equivalent grade cut-off, yielding a 52% rate of mineralization. On the S16E vein, a total of 643.1m drifting was completed on the two elevations and assaying confirms a 57% rate of mineralization based on a total of 368.86m of massive galena sheets encountered which exceed the cut off grade. Assay results for these new tunnels are listed in the Table below:



-----------------------------------------------------------------------
Dist-
ance
Mine- South
ral- Eleva- of Equiv. Equiv.
ized tion CM103 Width Ag Ag Pb Zn (g/t) (oz/t)
Veins (m) (m) (m) (g/t) (oz/t) (%) (%) (i) (i)
-----------------------------------------------------------------------
S16E 570 699.0 1.00 3089 99.31 0.45 0.37 3126 100.49
700.0 1.00 1671 53.72 12.96 12.04 2789 89.68
704.3 0.90 2225 71.54 6.73 4.87 2740 88.11
706.2 0.20 2239 71.98 47.01 14.40 4906 157.73
709.9 1.25 1567 50.39 10.95 7.65 2393 76.92
720.0 0.90 1890 60.76 21.35 4.91 3024 97.21
724.2 0.70 656 21.10 2.27 10.26 1239 39.85
730.0 0.50 1457 46.84 15.81 14.60 2817 90.58
735.0 0.65 3158 101.53 16.75 16.53 4650 149.49
740.0 0.80 1525 49.03 12.54 17.64 2892 92.97
745.0 0.40 339 10.89 10.14 22.50 1835 58.98
749.6 0.45 1192 38.32 3.28 30.31 2769 89.04
755.0 0.40 534 17.17 3.34 14.22 1350 43.40
810.3 0.30 333 10.69 4.66 18.21 1394 44.82
----------------------------------------------------------------
534 555.0 1.20 444 14.28 19.18 12 1807 58.09
560.5 0.60 417 13.41 29.33 10 2106 67.71
565.0 0.20 1168 37.55 65.12 3.62 4088 131.42
571.0 0.35 502 16.14 14.25 38.59 2935 94.37
574.0 0.90 1226 39.42 40.88 7.15 3290 105.79
581.0 1.40 1320 42.44 19.78 4.29 2358 75.82
597.6 1.60 1005 32.31 26.73 3.64 2306 74.13
601.0 1.00 2070 66.55 79.85 1.43 5507 177.07
619.0 0.45 1450 46.62 74.46 2.88 4729 152.03
565.0 0.20 1168 37.55 65.12 3.62 4088 131.42
570.5 0.10 1930 62.07 59.07 1.30 4485 144.19
580.0 0.55 1111 35.72 25.95 18.47 3083 99.12
585.0 0.70 2119 68.13 57.76 26.20 5800 186.49
585.5 0.67 424 13.62 11.11 9.45 1341 43.11
590.0 0.70 1247 40.08 43.75 13.25 3722 119.65
595.0 0.70 949 30.50 40.95 4.88 2908 93.50
600.0 0.80 1325 42.61 30.65 8.98 3045 97.90
609.3 0.45 1029 33.08 43.75 11.04 3399 109.29
615.0 0.35 1137 36.56 32.65 7.22 2857 91.87
620.0 0.40 660 21.20 54.05 10.66 3446 110.80
624.8 0.40 343 11.03 1.03 34.54 2026 65.14
635.0 0.20 1768 56.83 21.29 0.71 2700 86.81
----------------------------------------------------------------
S16W 570 272.6 0.45 1271 40.85 45.93 4.97 3445 110.76
282.5 0.80 1258 40.44 45.33 2.77 3302 106.17
303.2 0.30 596 19.17 25.58 5.83 1953 62.78
320.0 3.65 742 23.87 14.59 4.06 1551 49.87
325.0 1.30 1497 48.12 38.67 4.81 3357 107.93
330.0 0.80 829 26.65 31.30 13.12 2773 89.14
335.2 1.30 1195 38.43 26.15 14.52 2988 96.07
340.0 0.30 1268 40.77 8.25 3.32 1774 57.03
344.6 1.30 2320 74.59 32.87 7.59 4067 130.76
345.0 0.90 9278 298.29 33.50 4.91 10924 351.23
350.0 0.90 3928 126.28 45.28 10.98 6359 204.46
355.0 1.00 1159 37.27 19.90 8.06 2382 76.58
360.0 1.55 1683 54.11 19.95 5.91 2805 90.20
780.0 1.40 2532 81.41 56.54 10.29 5406 173.82
785.0 1.80 2337 75.14 58.92 6.30 5122 164.69
790.0 0.40 958 30.80 10.40 18.24 2263 72.75
846.9 0.15 77 2.48 0.65 32.42 1643 52.84
864.2 0.15 844 27.14 42.34 7.92 3007 96.67
940.4 0.40 513 16.50 5.61 18.16 1612 51.83
950.0 0.60 687 22.10 8.23 13.89 1694 54.46
----------------------------------------------------------------
534 542.5 0.20 498 16.03 1.05 37.69 2332 74.74
548.0 0.50 1057 33.97 39.71 11.66 3286 105.30
577.5 0.30 1477 47.50 7.79 4.51 2020 64.74
584.0 0.10 1142 36.70 43.95 10.95 3516 112.68
568.0 0.20 184 5.91 5.26 32.39 1943 62.28
535.5 0.13 113 3.63 0.49 26.48 1391 44.57
602.5 0.20 116 3.73 0.88 35.19 1824 58.45
612.1 0.37 617 19.84 17.68 5.60 1629 52.20
607.5 0.15 747 24.02 1.31 46.48 3009 96.43
-----------------------------------------------------------------------
(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.


Underground Drilling

One electric drill rig completed seven holes totaling 923.83m on the S16E and S16W veins from 570m elevation on 40 to 50 m spacing to test the down dip extension of the massive galena sheets in the veins. Assay results are listed in the following table.



-------------------------------------------------------------------
Dist-
ance
South
Drill Inter- of Eleva-
Hole Mineralized From To val CM103 tion
No. Veins (m) (m) (m) (m) (m)
-------------------------------------------------------------------
ZK1601 S16E 48.65 48.98 0.33 25.0 558.0
------------------------------------------------------------
S16W 24.64 24.75 0.11 73.0 556.5
-------------------------------------------------------------------
ZK1404 S16W 75.01 77.76 2.75 178.5 454.4
-------------------------------------------------------------------
ZK5402 S16E 100.68 100.98 0.31 335.3 508.8
------------------------------------------------------------
S16W 174.49 174.93 0.44 335.3 462.2
-------------------------------------------------------------------
ZK5202 S16E 122.26 122.36 0.10 394.8 473.2
-------------------------------------------------------------------
ZK5401 S16E 130.43 131.29 0.86 461.0 526.7
------------------------------------------------------------
S16W 154.24 160.39 5.00 490.0 518.0
-------------------------------------------------------------------
ZK5201 S16W 107.93 108.41 0.48 546.0 518.1
-------------------------------------------------------------------
ZK5001 S16W 99.46 99.69 0.22 596.0 511.0
-------------------------------------------------------------------


-------------------------------------------------------------------
Ag Ag
Drill Equiv. Equiv.
Hole Mineralized Ag Ag Pb Zn (g/t) (oz/t)
No. Veins (g/t) (oz/t) (%) (%) (i) (i)
-------------------------------------------------------------------
ZK1601 S16E 35 1.13 0.47 2.11 155 4.98
------------------------------------------------------------
S16W 196 6.30 6.32 2.32 573 18.42
-------------------------------------------------------------------
ZK1404 S16W 128 4.11 0.28 1.20 197 6.32
-------------------------------------------------------------------
ZK5402 S16E 1246 40.06 20.57 2.79 2246 6.01
------------------------------------------------------------
S16W 2076 66.75 5.66 17.93 3166 40.26
-------------------------------------------------------------------
ZK5202 S16E 880 28.29 10.56 10.66 1832 58.89
-------------------------------------------------------------------
ZK5401 S16E 49 1.58 0.05 2.86 187 72.23
------------------------------------------------------------
S16W 764 24.55 9.09 2.21 1252 101.79
-------------------------------------------------------------------
ZK5201 S16W 1696 54.53 40.5 5.49 3666 117.85
-------------------------------------------------------------------
ZK5001 S16W 49 1.58 0.52 5.97 354 11.39
-------------------------------------------------------------------
(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.


Tunnelling and underground drilling programs on other veins are progressing well and mine development, including sinking three shafts, is on schedule. Tunnel maps are available on the Company's website: www.silvercorp.ca.

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 intervals depending on the thickness of mineralization. The drill cores are in 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.

Myles Gao, P.Geo, President of Silvercorp and General Manager of the Ying Project, is the Qualified Person on the Project.

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@sknresources.com
    www.silvercorp.ca