Silvercorp Metals Inc.
TSX : SVM

Silvercorp Metals Inc.

January 23, 2006 09:00 ET

Silvercorp Metals Inc.: Two Additional High Grade Silver-Lead-Zinc Veins and One Gold Vein Discovered at the Ying Project, Henan, China

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 23, 2006) - Silvercorp Metals Inc. ("Silvercorp") (TSX:SVM) announces that the tunneling program has discovered two additional high grade silver (Ag), lead (Pb), and zinc (Zn) veins (S16W1 and S7-1) and one gold (Au) vein (S7-2). To date, a total of 13 veins (S2, S2E, S4, S6, S7, S7-1, S7-2, S7, S16W, S16W1, S16E, S21, S22) have been intercepted and traced by tunneling in the SGX area of the Ying project. Discovery of the three new veins together with the recently announced S21 vein indicates great potential to substantially increase the mineral resources on the Ying project and also demonstrates that through further exploration tunneling, there is potential to discover additional new veins which were not previously noted or mapped out in the SGX and other areas of the Ying Project.

The discovery of the S7-2 gold vein, which is the first vein found to carry high gold values, may also represent a different mineralization event and a possible new type of exploration target on the Ying Project.

The highlights of assayed tunnel intercepts on the three newly discovered veins include:



- On the S16W1 Vein: 3,529 grams per tonne (g/t) (113.46 oz/t)
Ag, 40.05% Pb, and 6.07% Zn over
0.4 meter (m) true width;

- On the S7-2 Vein: 556 g/t (17.89 oz/t) Ag, 2.26% Pb, and
27.68% Zn over 0.2m true width and,

- On the S7-2 gold vein: 29.1 g/t (0.94 oz/t) Au over 0.20m
true width.


S16W1 Vein

The S16W1 runs nearly parallel to and between 1m - 8m to the west of, the S16W vein, with the two veins occasionally merging. Previous tunneling work on the S16W has focused on tracing the vein by drift directly along it. A series of cross-cut tunnels intended to test the branches of S16W vein resulted in the discovery of the S16W1. The vein has been intercepted on three different elevations (640m, 558-570m, and 534m elevations) by cross-cut and drift tunnels over a minimum length of 750m. A series of underground and surface drill holes have also intercepted the S16W1 vein (assays pending). Currently the S16W1 is being explored by drifting along the vein and by crosscut tunnels on all three levels.

Tunnel assay results of the S16W1 vein are listed in Table below.



--------------------------------------------------------------------
Ag Ag
Eleva- Distance Equiv. Equiv.
tion to CM103 Width Ag Ag Pb Zn (g/t) (oz/t)
Vein (m) (m) (m) (g/t) (oz/t) (%) (%) (i) (i)
--------------------------------------------------------------------
640 368.5 0.70 501.4 16.1 15.92 4.50 1387 44.6
--------------------------------------------------------------
640 340 0.60 1566.1 50.4 51.95 2.02 3854 123.9
--------------------------------------------------------------
558 -79 0.70 224.5 7.2 0.81 27.28 1554 50.0
--------------------------------------------------------------
S16W1 558 -74 0.65 257.9 8.3 0.67 29.32 1678 53.9
--------------------------------------------------------------
558 -67 0.20 102.0 3.3 3.74 14.11 930 29.9
--------------------------------------------------------------
558 -63 0.20 277.2 8.9 26.33 10.55 1889 60.7
--------------------------------------------------------------
558 -59 0.40 284.1 9.1 7.15 32.60 2133 68.6
--------------------------------------------------------------
558 -46 1.30 106.7 3.4 1.42 26.20 1410 45.4
--------------------------------------------------------------
558 -41.8 0.20 113.7 3.7 0.35 18.85 1023 32.9
--------------------------------------------------------------
570 343.4 0.2 1062.7 34.2 17.33 13.02 2412 77.6
--------------------------------------------------------------
570 346.6 0.2 1258.1 40.5 17.66 9.7 2464 79.2
--------------------------------------------------------------
570 397.9 0.4 3529 113.5 40.05 6.07 5507 177.1
--------------------------------------------------------------
570 564 0.20 1554.8 50.0 4.82 10.38 2251 72.4
--------------------------------------------------------------
570 569 0.50 211.7 6.8 1.38 9.77 734 23.6
--------------------------------------------------------------
570 574 0.15 1950.1 62.7 27.25 14.56 3791 121.9
--------------------------------------------------------------
570 580 0.22 372.5 12.0 38.12 30.24 3417 109.9
--------------------------------------------------------------
570 585 0.40 341.4 11.0 4.88 12.09 1121 36.1
--------------------------------------------------------------
570 588.9 0.30 264.1 8.5 3.05 26.21 1637 52.6
--------------------------------------------------------------
570 595.7 0.25 720 23.2 18.89 8.87 1938 62.3
--------------------------------------------------------------
570 602 0.20 921.2 29.6 45.82 10.95 3375 108.5
--------------------------------------------------------------
534 532.5 0.08 473.2 15.2 2.1 13.76 1215 39.1
--------------------------------------------------------------
534 570.6 0.08 143.1 4.6 0.77 45.39 2331 74.9
--------------------------------------------------------------
534 582.5 0.2 890.9 28.6 16.17 26.2 2817 90.6
--------------------------------------------------------------
534 588.1 0.2 173.9 5.6 15.41 13.67 1473 47.4
--------------------------------------------------------------
534 637.5 0.2 954.7 30.7 6.14 25.71 2434 78.3
--------------------------------------------------------------
534 642.5 0.2 1265.6 40.7 52 13.85 4117 132.4
--------------------------------------------------------------------
S7-1 620 0 0.2 556 17.89 2.26 27.68 1966 63.2
--------------------------------------------------------------
534 700 0.25 376 12.07 30.19 2.7 1778 57.16
--------------------------------------------------------------------
(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.


S7-1 Vein

The S7-1 vein is located about 18 to 20m to the west of and nearly parallel to the S7 vein, and has never been documented previously. The vein was intercepted by all three main access tunnels CM101 (640m elevation), CM102 (570m elevation), and CM103 (560m elevation) and one crosscut tunnel from CM102 on the 534m elevation. To date, a total of 58m of drifting has been completed along the S7-1 vein with 27m being mapped as massive galena/sphelarite sheeting. Most assays are pending. Based on these tunnel intercepts, S7-1 vein should be over 700m in length and more than 100m deep. Exploration on the vein continues by extension of the existing drifts on the two elevations (534m and 560m) through main access tunnels CM102 and CM103. Two Assay results received from the S7-1 vein are listed in the Table above.

S7-2 Gold Vein

The S7-2 vein was intercepted in the YLG camp area (1.5 km north of the SGX camp) and is located between, and linking the S7 and S8 veins on a northeast diagonal, joining the S8 vein at its northeast end and the S7 vein at its southwest end. The S7-2 vein was traced on the surface and first intercepted by tunnel YPD02 while exploring the S7 vein on the 565m elevation. In access tunnel YM01, a crosscut also intercepted the vein on the 585m elevation.

Using a 1 g/t Au cut-off, three gold zones have been defined along strike. The south zone is 84.7m in length, grading an average 9.65 g/t Au, 19.7 g/t Ag, 1.22% Pb, and 0.48% Zn over true widths averaging 0.25m. The center zone is 80.3m long, grading on average 4.48 g/t Au, 11.46 g/t Ag, 0.66% Pb, and 0.47% Zn over true widths averaging 0.41m. The north zone, defined in YM01 on the 585m elevation, has been traced for over 18m, is open at both ends and grades on average 4.44 g/t Au, 12.93 g/t Ag, 0.59% Pb, and 0.52% Zn over true widths averaging 0.75m. The immediate program on the S7-2 includes continuing drifting along the vein at the 585m elevation through YM01, and using a decline in YPD02 to explore the vein on the 510m elevation.

The S7-2 is the only vein found to date which carries high gold values, and may represent a different mineralization event and possible new type of exploration target.

Assay results for the S7-2 veins are listed in the Table below:



------------------------------------------------------------------
Distance TRUE
Elevation South of Width Au Ag Pb Zn
Gold Zones (m) CM103 (m) (m) (g/t) (g/t) (%) (%)
------------------------------------------------------------------
North Zone 585 -1295.1 0.70 5.15 8 0.27 0.32
585 -1279.9 0.80 3.81 18 0.87 0.69
------------------------------------------------------------------
Center Zone 565 -1197.3 0.25 11.10 11 0.55 0.82
565 -1190.0 0.50 1.10 3 0.28 0.28
565 -1177.0 0.25 14.70 18 1.14 1.89
565 -1159.0 0.30 1.10 4 0.06 0.00
565 -1140.0 1.00 2.20 9 0.68 0.05
565 -1134.0 0.25 3.40 12 0.53 0.67
565 -1122.6 0.35 7.90 23 1.16 1.10
565 -1122.0 0.35 5.60 42 2.44 1.45
565 -1117.0 0.40 3.70 9 0.60 0.30
565 -1105.3 0.30 1.20 3 0.08 0.22
------------------------------------------------------------------
South Zone 565 -1025.7 0.35 6.50 17 0.86 0.41
565 -1011.0 0.15 2.20 6 0.17 0.24
565 -985.0 0.20 29.10 7 0.32 0.12
565 -983.0 0.20 10.30 48 4.82 0.36
565 -979.5 0.30 4.60 9 0.44 0.33
565 -945.0 0.30 8.61 30 1.13 1.15
------------------------------------------------------------------
Weighted Average 0.39 5.47 14 0.81 0.52
-------------------------------------------------------------------


Tunnel plan and longitudinal maps of the vein, and photos are available on the Company's website: www.silvercorp.ca.

Exploration on the Ying Project is carried out through Silvercorp's 77.5% subsidiary, Henan Found Mining Co. Ltd., a Sino-foreign joint venture company which holds 100% of the Ying Project and operates under a 30-year business license. Myles Gao, P.Geo, is the Company's Qualified Person on the project under NI 43-101.

Quality Control

The Company's Quality Control/Quality Assurance Program is disclosed in the January 4, 2006 Press Release.

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
    or
    Silvercorp Metals Inc.
    Cathy Fong
    VP Corporate Development
    (604) 669-9397
    (604) 669-9387 (FAX)
    info@silvercorp.ca
    www.silvercorp.ca