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SILVERCORP
RECEIVES MINING PERMIT FOR GC SILVER-LEAD-ZINC PROJECT, GUANGDONG PROVINCE,
CHINA
VANCOUVER, British Columbia � December 16, 2010 � Silvercorp Metals Inc. (�Silvercorp� or
the �Company�) is pleased to report that its GC silver-lead-zinc project in
the Guangdong Province has received a mining permit issued by the Ministry of
Land and Resources of China. The GC mining permit has a term of 30
years and covers the entire 5.52 square kilometer area of the GC Project. The
permit was issued on the terms applied for, and allows for the operation of
an underground mine to produce silver, lead and zinc ores.
A qualified Chinese
engineering firm is close to finalizing the design of a 1,500 tonne per day mechanized underground mine, a flotation
mill, and a dry stack tailing facility. The estimated capital cost is
about US$30 million. Following its completion, Silvercorp
expects to convert the design report into a NI 43-101 qualified report.
With the strong support of the local County government, Silvercorp
has completed the acquisition of surface rights required for the construction
of the mine and mill and is preparing the site and hiring contractors for the
construction. Initial production of 700 tonnes
per day mining capacity is expected to be achieved in 12 months with full
capacity of 1,500 tonnes per day to be achieved in
18 months. The GC Project is held though a 95% owned Chinese
subsidiary.
Receiving the GC Mining
Permit represents an important step in Silvercorp�s
China expansion strategy beyond the Ying Mining camp in Henan Province:
- creating production footholds
in new areas,
- establishing Silvercorp�s reputation for production expertise and
efficiency in the new camp; and
- build
through production increases and potential consolidation of other nearby
mining assets.
Silvercorp intends to rapidly establish the
GC Project in Guangdong Province as its second production base and foothold,
to be followed by a third production foothold at the recently acquired BYP
Gold-lead-Zinc Project in Hunan Province.
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 the
four silver-lead-zinc mines at the Ying Mining Camp in the Henan Province of
China. The Company has applied for a mining permit for its GC
silver-lead-zinc mine in the Guangdong Province and recently announced the
acquisition of a 70% interest in the BYP gold-lead-zinc mine in Hunan
province. In Canada, Silvercorp is in preparation
of applying for a Small Mine Permit for the Silvertip high grade
silver-lead-zinc mine 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 licences;
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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