SILVERCORP
REPORTS: RECORD SILVER PRODUCTION OF 1.6 MILLION OUNCES AND RECORD SALES OF
$69.7 MILLION FOR 1ST QUARTER OF FISCAL 2012
VANCOUVER, British Columbia �
July 14, 2011 � Silvercorp Metals Inc. ("Silvercorp"
or the "Company") is pleased to report today it has achieved record
silver production and record sales for the first quarter of fiscal 2012.
HIGHLIGHTS
- Record
revenues of US$69.7 million, representing a 90% increase compared to the
same quarter of fiscal 2011;
- Record
silver production of 1.6 million ounces, up 15% from the same period a
year ago; and
- Gold
production of 1,390 ounces, a 30% increase compared to the same period
last year.
PRODUCTION FOR FIRST QUARTER OF
FISCAL 2012
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YING
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HPG&LM
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TLP
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BYP
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Total
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Production Data:
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|
|
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Ore Mined (tonne)
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81,338
|
28,116
|
60,752
|
8,913
|
179,119
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|
Ore Milled (tonne)
|
83,036
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28,408
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63,482
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7,964
|
182,890
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Recovery Rate
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|
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Silver (%)
|
92.1
|
91.7
|
88.4
|
-
|
91.3
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|
|
Gold (%)
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|
|
|
90.5
|
|
|
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Lead (%)
|
96.1
|
93.4
|
90.8
|
-
|
94.7
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|
|
Zinc (%)
|
74.9
|
52.6
|
69.5
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-
|
72.8
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Head Grades
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|
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|
|
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Silver (gram/tonne)
|
444
|
231
|
152
|
-
|
303
|
|
|
Gold
(gram/tonne)
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|
|
|
2.54
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|
|
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Lead (%)
|
8.6
|
3.2
|
2.5
|
-
|
5.5
|
|
|
Zinc (%)
|
2.5
|
0.4
|
0.8
|
-
|
1.5
|
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Sales Data:
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Metal Sales
|
|
|
|
|
|
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Silver (in thousands of ounce)
|
1,146
|
190
|
256
|
-
|
1,592
|
|
|
Gold (in thousands of ounce)
|
0.5
|
0.3
|
-
|
0.6
|
1.4
|
|
|
Lead (in thousands of pound)
|
15,419
|
1,845
|
3,357
|
-
|
20,621
|
|
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Zinc (in thousands of pound)
|
3,594
|
150
|
358
|
-
|
4,102
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Metal Sales
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|
|
|
|
|
|
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Silver (in thousands of $)
|
34,487
|
5,571
|
7,698
|
-
|
47,756
|
|
|
Gold (in thousands of $)
|
539
|
303
|
-
|
689
|
1,531
|
|
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Lead (in thousands of $)
|
13,462
|
1,560
|
2,915
|
-
|
17,937
|
|
|
Zinc (in thousands of $)
|
1,902
|
88
|
505
|
-
|
2,495
|
|
|
|
50,390
|
7,522
|
11,118
|
689
|
69,719
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Average Selling Price, Net
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|
|
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|
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Silver ($ per ounce)
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30.09
|
29.34
|
30.04
|
-
|
29.99
|
|
|
Gold ($ per ounce)
|
1,035
|
1,085
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-
|
1,168
|
1,102
|
|
|
Lead ($ per pound)
|
0.87
|
0.85
|
0.87
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-
|
0.87
|
|
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Zinc ($ per pound)
|
0.53
|
0.59
|
1.41
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-
|
0.61
|
|
Ying Mining Camp, Henan
Province, China
From
the four mines at the Ying Mining Camp, a record 1.6 million ounces of silver
were produced and sold in this quarter, well on track for the fiscal year
2012 Production Guidance of 5.6 million ounces. In addition, about 800 ounces
of gold, 20.6 million pounds of lead, and 4.1 million pounds of zinc were
produced.
BYP Mine, Hunan Province, China
The
Company acquired the BYP Mine in February 2011. Production was started in
May, with about 8,000 tonnes of ore from existing
development tunnels being processed to yield 590 ounces of gold. Mill
operation was temporarily halted in June while the Company installed a liner
in the tailing pond to prevent potential leakage. At present, almost one
third of the tailing pond has been lined. Mill production has been resumed
and a further 7,000 tonnes of low grade stockpiled
ore from development tunnels plus newly mined ore will be processed.
Myles
Gao, P.Geo, the President
and Chief Operating Office for Silvercorp, is the
qualified person who reviewed this news release.
About Silvercorp
Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition,
exploration, development and mining of high-grade silver-related mineral
properties in China and Canada. Silvercorp is the
largest primary silver producer in China through the operation of four
silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of China.
Silvercorp has established a second production base
and regional foothold at its BYP gold-lead-zinc project in Hunan Province,
and is currently building the GC silver-lead-zinc project in Guangdong
Province as its third production base in China. In Canada, Silvercorp is preparing to apply for a Small Mine Permit
for the Silvertip high grade silver-lead-zinc project in northern British
Columbia to provide a further platform for growth and geographic
diversification. The Company's shares are traded on the New York Stock
Exchange and Toronto Stock Exchange and are included as a component of the
S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
For further information: SILVERCORP METALS INC., Rui Feng, Chairman & CEO
and Lorne Waldman, Corporate Secretary, Phone: (604) 669-9397, Fax: (604)
669-9387, Toll Free 1(888) 224-1881, Email: info@silvercorp.ca, Website: www.silvercorp.ca.
CAUTIONARY DISCLAIMER --
FORWARD LOOKING STATEMENTS
Certain of the statements and information in this
press release constitute "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995
and "forward-looking information" within the meaning of applicable
Canadian provincial securities laws. Any statements or information that
express or involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions or future events or
performance (often, but not always, using words or phrases such as
"expects", "is expected", "anticipates",
"believes", "plans", "projects",
"estimates", "assumes", "intends", "strategies",
"targets", "goals", "forecasts",
"objectives", "budgets", "schedules",
"potential" or variations thereof or stating that certain actions,
events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved, or the
negative of any of these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements or information.
Forward-looking statements or information relate to, among other things: the
price of silver and other metals; the accuracy of mineral resource and
mineral reserve estimates at the Company's material properties; the
sufficiency of the Company's capital to finance the Company's operations;
estimates of the Company's revenues and capital expenditures; estimated
production from the Company's mines in the Ying Mining Camp; timing of
receipt of permits and regulatory approvals; availability of funds from
production to finance the Company's operations; and access to and
availability of funding for future construction, use of proceeds from any
financing and development of the Company's properties.
Forward-looking statements or information are
subject to a variety of known and unknown risks, uncertainties and other
factors that could cause actual events or results to differ from those
reflected in the forward-looking statements or information, including,
without limitation, risks relating to: fluctuating commodity prices;
calculation of resources, reserves and mineralization and precious and base
metal recovery; interpretations and assumptions of mineral resource and
mineral reserve estimates; exploration and development programs; feasibility
and engineering reports; permits and licenses; title to properties; First
Nations title claims and rights; property interests; joint venture partners;
acquisition of commercially mineable mineral rights; financing; recent market
events and conditions; economic factors affecting the Company; timing,
estimated amount, capital and operating expenditures and economic returns of
future production; integration of future acquisitions into the Company's
existing operations; competition; operations and political conditions;
regulatory environment in China and Canada; environmental risks; foreign
exchange rate fluctuations; insurance; risks and hazards of mining
operations; key personnel; conflicts of interest; dependence on management;
internal control over financial reporting as per the requirements of the
Sarbanes-Oxley Act; and bringing actions and enforcing judgments under U.S.
securities laws.
This list is not exhaustive of the factors that may
affect any of the Company's forward-looking statements or information.
Forward-looking statements or information are statements about the future and
are inherently uncertain, and actual achievements of the Company or other
future events or conditions may differ materially from those reflected in the
forward-looking statements or information due to a variety of risks,
uncertainties and other factors, including, without limitation, those
referred to in the Company's Annual Information Form for the year ended March
31, 2010 under the heading "Risk Factors". Although the Company has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as
anticipated, estimated, described or intended. Accordingly, readers should not
place undue reliance on forward-looking statements or information.
The Company's forward-looking statements and
information are based on the assumptions, beliefs, expectations and opinions
of management as of the date of this press release, and other than as
required by applicable securities laws, the Company does not assume any
obligation to update forward-looking statements and information if
circumstances or management's assumptions, beliefs, expectations or opinions
should change, or changes in any other events affecting such statements or
information. For the reasons set forth above, investors should not place
undue reliance on forward-looking statements and information.
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