Silvercorp Reports 4.34 metre
interception (true width)
of 642 gram per tonne of Silver and 1.0 gram per
tonne gold for vein LM5W at
the LM Mine, Ying Mining District, Henan Province,
China
VANCOUVER, BRITISH COLUMBIA, CANADA � February 13, 2012 � Silvercorp Metals
Inc. ("Silvercorp�) is pleased to report the results of its successful 2011 underground diamond
drilling program at the
LM Mine, Ying Mining District, Henan, China. The
drill program has substantially extended
the mineralized veins to depth and along striking directions. The 2011 drilling
program at the LM mine was
a follow up on the successful
12,255 meters (m) 2010 drilling
campaign that discovered twelve additional high-grade veins as reported in the Company�s Press Release of January 10,
2011, which contributed
to the increase in resource
announced on July 7, 2011. It is expected that
the success of the 2011 drilling
program may contribute additional mineral resources.
2011
Drill Results
The 2011 drill program at
the LM mine completed a
total of 12,655 m of diamond core
drilling in 35 holes utilizing two underground drill rigs.
Twenty five out of 35 completed
drill holes encountered
high-grade silver-lead-zinc mineralization
while the remaining holes intersected vein structures with weak mineralization.
The drilling has significantly
extended veins LM5, LM5W,
and LM6 over 600 m in depth to below
400m elevation.
The drilling has also revealed a possible trend
of increasing gold grades with
depth. Four out of 5 holes
that intersected the veins below 400m elevation contained greater than 1 g/t gold (Au) with the deepest interception at 332m elevation (Vein LM6 in Hole ZKL5206) yielding 314 g/t silver (Ag) and
7.95 g/t Au over a 0.66 m interval.
Table 1 lists
assay results for 25 holes that intercepted
significant mineralization.
Highlights of selected intercepts are follows.
- Hole ZKL5006 intercepted 4.34m true width of LM5W grading 642 g/t Ag, 1.15% lead (Pb), 1% zinc (Zn)
and 1.00 g/t Au at
the 348m elevation, including
a 0.55m interval grading
3,720 g/t Ag, 7.13% Pb, 5.19% Zn and 1.77g/t Au;
- Hole ZKL5402 intercepted 0.40m
of vein LM5 grading
1,273 g/t Ag, 3.22% Pb and 2.22% Zn at the
716m elevation;
- Hole ZKL5801 intercepted 0.86m
of vein LM5 grading
525 g/t Ag, 1.35% Pb and 2.23% Zn at the 781m elevation;
- Hole ZKL6201 intercepted 1.64m
of vein LM5 grading
661 g/t Ag and 5.2% Pb at the 692m elevation, including a
0.35m interval grading
2,016 g/t Ag, 16.87% Pb and 1.86% Zn;
- Hole ZKL5802 intercepted 0.40m true width of vein LM5E grading 771 g/t
Ag and 7.77% Pb at the 683m elevation;
- Hole ZKL5206 intercepted 0.66m
of vein LM6 grading
314 g/t Ag, 0.53% Pb, 0.61% Zn, and 7.95 g/t Au at 332 m elevation,
and 0.70 m of LM5W grading 702 g/t Ag, 0.96%
Pb and 1.35% Zn at the 289m elevation.
Mine
Development Update and Production Plan at LM Mine
To date, LM Mine has been accessed
by two-stage declines.
The first stage decline, developed
in Main Access Tunnel PD838, started at the 845m elevation and bottomed at the 790m elevation while the second
stage decline is from the 790m elevation to 700m
elevation. The mine production at
levels above the 800m elevation and some ore
production at levels above the 700m elevation have
been carried out from the
decline access.
Based on the successful
2010 underground diamond drilling
programs at the LM Mine, the Company
has developed a new shaft,
Shaft 900, to expand its production. Shaft 900
is 3.5 m in diameter and was sunk from
the 910m elevation to the 500m elevation,
for a total depth of 410 m. The Shaft is now
operational with a single
deck cage. With the
shaft now operational, semi-mechanized electrical loaders can now be used
in underground mucking. Tunnel development has been completed at four underground levels
(800mL, 750mL, 700mL, and 650mL) which will allow a gradual increase of mining capacity.
Once all the mining levels are completed down to
the 500 m elevation, it is expected that
the ore production from the LM Mine will increase from 18,000 tonnes in 2011 to approximately 80,000 tonnes starting
early 2014, resulting in
a combined annual mine
production capacity of 200,000 tonnes for the LM
Mine and LM Mine West.
Table
1: Selected Drill Hole Assay Results:
Drill Hole
|
Intersection
|
Interval (m)
|
Elevation (m)
|
Ag (g/t)
|
Pb (%)
|
Zn (%)
|
Au (g/t)
|
Cu (%)
|
Mineralized Veins
|
From (m)
|
To (m)
|
ZKL5601
|
118.73
|
119.08
|
0.35
|
745
|
429
|
0.42
|
0.04
|
<0.10
|
0.02
|
LM6
|
ZKL5003
|
256.32
|
256.48
|
0.16
|
622
|
136
|
1.86
|
0.11
|
<0.10
|
0.02
|
LM4
|
|
305.47
|
305.72
|
0.25
|
579
|
315
|
1.40
|
1.16
|
<0.10
|
0.03
|
LM6
|
|
352.21
|
353.64
|
1.43
|
537
|
217
|
0.74
|
0.53
|
0.00
|
0.21
|
LM6E
|
Including
|
352.79
|
353.12
|
0.33
|
537
|
794
|
2.26
|
1.65
|
<0.10
|
0.71
|
|
|
381.82
|
381.97
|
0.15
|
511
|
133
|
0.13
|
1.36
|
<0.10
|
0.05
|
LM5W3
|
|
384.63
|
384.87
|
0.24
|
508
|
191
|
0.51
|
0.29
|
0.12
|
0.03
|
LM5W2
|
|
430.47
|
430.97
|
0.50
|
468
|
102
|
0.50
|
0.15
|
<0.10
|
0.66
|
LM5W
|
|
452.30
|
453.43
|
1.13
|
448
|
454
|
1.45
|
0.58
|
0.85
|
0.11
|
LM5
|
Including
|
452.30
|
452.99
|
0.69
|
449
|
696
|
1.59
|
0.81
|
1.24
|
0.17
|
|
ZKL5507
|
292.59
|
293.66
|
1.07
|
570
|
208
|
3.14
|
1.64
|
1.26
|
0.04
|
LM6
|
|
431.83
|
433.30
|
1.47
|
441
|
325
|
4.27
|
1.24
|
0.04
|
0.05
|
LM5
|
Including
|
432.35
|
432.55
|
0.20
|
441
|
1,131
|
30.97
|
8.94
|
0.33
|
0.22
|
|
ZKL5401
|
101.22
|
101.40
|
0.18
|
793
|
132
|
1.35
|
0.44
|
0.00
|
0.02
|
LM6
|
|
111.48
|
111.68
|
0.20
|
788
|
165
|
0.40
|
0.31
|
0.01
|
0.28
|
LM6E2
|
|
164.40
|
166.00
|
1.60
|
763
|
277
|
1.90
|
0.33
|
0.00
|
0.14
|
LM5
|
Including
|
165.50
|
166.00
|
0.50
|
762
|
560
|
3.84
|
0.37
|
0.00
|
0.36
|
|
ZKL5004
|
497.88
|
500.47
|
2.59
|
384
|
312
|
1.31
|
0.24
|
0.42
|
0.02
|
LM5
|
Including
|
499.19
|
499.53
|
0.34
|
384
|
525
|
3.08
|
0.42
|
1.20
|
0.03
|
|
ZKL5402
|
189.05
|
189.45
|
0.40
|
716
|
1,273
|
3.22
|
2.22
|
0.07
|
0.62
|
LM5
|
|
205.16
|
205.42
|
0.26
|
706
|
1,008
|
4.67
|
2.19
|
0.03
|
0.29
|
LM5E2
|
ZKL004
|
139.43
|
140.03
|
0.60
|
758
|
114
|
0.15
|
0.07
|
<0.10
|
0.02
|
LM2
|
ZKL005
|
149.31
|
149.72
|
0.41
|
727
|
107
|
0.58
|
0.09
|
<0.10
|
0.02
|
LM2
|
ZKL5203
|
412.15
|
412.48
|
0.33
|
518
|
329
|
4.67
|
1.26
|
<0.10
|
0.12
|
LM6
|
|
524.17
|
524.62
|
0.45
|
430
|
207
|
2.74
|
0.43
|
<0.10
|
0.05
|
LM5
|
ZKL008
|
196.14
|
196.76
|
0.62
|
636
|
68
|
1.50
|
0.19
|
<0.10
|
0.08
|
LM2-2
|
|
236.36
|
236.68
|
0.32
|
596
|
246
|
3.47
|
0.15
|
<0.10
|
0.15
|
LM2-2W
|
ZKL6001
|
83.69
|
83.87
|
0.18
|
788
|
458
|
2.47
|
0.58
|
<0.10
|
0.04
|
LM6
|
|
164.78
|
165.16
|
0.38
|
745
|
70
|
1.30
|
0.67
|
<0.10
|
0.06
|
LM5
|
ZKL6002
|
210.67
|
211.17
|
0.50
|
664
|
927
|
7.73
|
1.00
|
0.15
|
0.50
|
LM5
|
ZKL5204
|
271.73
|
272.99
|
1.26
|
613
|
197
|
0.25
|
0.23
|
0.10
|
0.11
|
LM4W2
|
|
278.25
|
278.45
|
0.20
|
608
|
2,454
|
8.23
|
4.49
|
0.30
|
0.33
|
LM4w
|
|
363.36
|
363.60
|
0.24
|
534
|
3,086
|
7.23
|
3.01
|
0.46
|
0.23
|
LM4E
|
ZKL5005
|
118.58
|
119.50
|
0.92
|
762
|
194
|
0.75
|
0.29
|
0.09
|
0.08
|
LM3
|
|
326.39
|
327.24
|
0.85
|
612
|
120
|
1.09
|
0.13
|
0.06
|
0.03
|
LM4E
|
ZKL5801
|
95.02
|
95.24
|
0.22
|
801
|
408
|
1.18
|
0.50
|
0.20
|
0.07
|
LM6
|
|
158.23
|
159.09
|
0.86
|
781
|
525
|
1.35
|
2.23
|
0.07
|
0.07
|
LM5
|
ZKL5802
|
109.90
|
110.40
|
0.50
|
756
|
748
|
0.89
|
0.26
|
0.08
|
0.06
|
LM6E
|
|
216.51
|
216.91
|
0.40
|
683
|
771
|
7.77
|
0.29
|
0.26
|
0.58
|
LM5E
|
ZKL6201
|
198.18
|
199.82
|
1.64
|
693
|
661
|
5.20
|
0.55
|
0.03
|
0.13
|
LM5
|
Including
|
198.18
|
198.53
|
0.35
|
693
|
2,016
|
16.87
|
1.86
|
0.16
|
0.23
|
|
Including
|
199.22
|
199.82
|
0.60
|
692
|
503
|
3.70
|
0.27
|
<0.10
|
0.16
|
|
ZKL5006
|
534.62
|
535.45
|
0.83
|
361
|
405
|
1.48
|
0.15
|
2.32
|
0.03
|
LM5W2
|
|
545.30
|
549.64
|
4.34
|
350
|
642
|
2.24
|
1.15
|
1.00
|
0.05
|
LM5W
|
Including
|
546.89
|
547.44
|
0.55
|
350
|
3,720
|
7.13
|
5.19
|
1.77
|
0.23
|
|
Including
|
548.66
|
549.33
|
0.67
|
348
|
609
|
2.66
|
1.40
|
4.51
|
0.04
|
|
ZKL6202
|
60.68
|
61.48
|
0.80
|
779
|
269
|
0.73
|
0.15
|
<0.10
|
0.11
|
not named
|
|
170.98
|
171.58
|
0.60
|
684
|
151
|
0.54
|
0.18
|
<0.10
|
0.02
|
LM6
|
ZKL5803
|
173.48
|
174.73
|
1.25
|
673
|
448
|
2.49
|
0.45
|
0.08
|
0.04
|
LM5W
|
Including
|
173.48
|
173.66
|
0.18
|
674
|
2,603
|
13.04
|
1.01
|
0.19
|
0.18
|
|
ZKL5803
|
195.07
|
195.42
|
0.35
|
654
|
179
|
0.39
|
0.14
|
0.00
|
0.02
|
LM5
|
|
341.93
|
342.21
|
0.28
|
521
|
588
|
1.96
|
0.15
|
0.56
|
0.05
|
LM5E
|
ZKL5205
|
112.31
|
113.26
|
0.95
|
746
|
142
|
0.28
|
0.21
|
<0.10
|
0.03
|
LM1
|
|
521.97
|
522.09
|
0.12
|
372
|
131
|
0.37
|
0.48
|
<0.10
|
0.04
|
LM6E
|
ZKL6204
|
71.65
|
71.93
|
0.28
|
807
|
999
|
7.82
|
19.50
|
0.01
|
0.54
|
LM6W
|
ZKL5206
|
547.39
|
548.05
|
0.66
|
332
|
314
|
0.53
|
0.61
|
7.95
|
0.04
|
LM6
|
Including
|
547.77
|
548.05
|
0.28
|
332
|
611
|
0.40
|
0.94
|
13.05
|
0.07
|
|
|
593.38
|
594.08
|
0.70
|
289
|
702
|
0.96
|
1.35
|
0.02
|
0.32
|
LM5W
|
Including
|
593.88
|
594.08
|
0.20
|
289
|
1,600
|
3.01
|
3.78
|
0.06
|
0.73
|
|
ZKL5207
|
239.31
|
240.18
|
0.87
|
682
|
153
|
1.10
|
0.27
|
0.01
|
0.01
|
not named
|
Quality Control
Drill cores are in NQ
size. Drill core samples,
limited by apparent mineralization
contact or shear/alteration
contact, were split into halves by saw cutting. The half cores are stored in company's core shacks for future reference and
checking, and the other half core samples
are shipped in security sealed bags to four labs: the Analytical Lab of Henan Non-Ferrous Metals Geological and
Exploitation Institute in Zhengzhou (Zhengzhou Lab),
the Analytical Lab of the
6th Nonferrous Geo-exploration
Team in Luoyang (Luoyang Lab), Henan province, the
ALS-Chemex Lab in
Guangzhou, Guangdong Province, and the SGS lab in
Tianjin. All labs are officially
accredited labs in China.
Adopted analytical methods in the four labs are as
follows:
Zhengzhou Lab and
Luoyang Lab
The sample preparation consists of drying, crushing and splitting of the sample to 250 grams, and which is then pulverized
to minus-200 mesh. Two-acid
digestion and AAS finish are utilized on a 0.5-gram
sample for lead and zinc. Titration is utilized as a modified process for higher grade materials. Silver is also
analyzed using a two-acid digestion on a
0.5-gram sample and AA finish.
ALS Chemex
Sample is dried, crushed
and split to a 250-gram subsample which is further
pulverized to 85 per cent passing 200 mesh. Four-acid digestion and
ICP-AES finish are utilized on a one-gram sample for analyzing silver, lead, zinc and copper.
For samples containing
more than 1,500 g/t silver,
fire assay and gravimetric finish is utilized. Titration method is utilized as a modified process for samples with more than 10%Pb.
SGS Lab
Sample is dried, crushed
and split to a 250-gram subsample which is further
pulverized to 85 per cent passing 200 mesh. Fire assay
and AAS finish are utilized for gold assay. Four-acid digestion and
ICP-AES finish are used in analyzing
silver, lead, zinc and copper.
A routine quality
assurance/quality control procedure
is adopted at each lab
to monitor the analytical quality
at the lab. Certified reference materials (CRM), pulp duplicates and blanks are inserted into each lab batch of samples. QA/QC data at the lab are attached to the assay certificates for each batch of samples.
The Company maintains a comprehensive quality assurance and quality
control program to ensure best practice in sample preparation and analysis of the drill core samples. Project geologists regularly insert reference material samples (RMS) and blanks to each batch of core samples to monitor the sample preparation and analysis procedures at the labs. The analytical quality of the labs is further
evaluated with external checks by sending about 3 per cent of the pulp
samples to higher level labs to check for lab bias.
Data from both the company's and the labs' QA/QC programs are timely
reviewed and evaluated by
project geologists.
Rujin Jiang, P.Geo. Vice President of
Exploration for the Company, is
the Qualified Person on the project
as defined under National
Instrument 43-101. He has verified the
information and has reviewed and approved the contents of 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 the four silver-lead-zinc
mines at the Ying Mining
District in the Henan Province of China. Silvercorp
recently acquired the XBG
and XHP silver-gold-lead-zinc mines nearby the Ying Mining District
in Henan Province, further consolidating
the region. Silvercorp
has commenced production at
its second production foothold
in China, the BYP gold-lead-zinc project in Hunan
Province, and is currently
constructing the mill and
related facilities in preparation for mining at the GC silver-lead-zinc project in Guangdong Province. In Canada, Silvercorp is preparing an application for a Small Mine Permit for the Silvertip high grade silver-lead-zinc
project in northern
British Columbia. The Company�s shares
are traded on the New York Stock Exchange (symbol: SVM) and Toronto Stock Exchange (symbol: SVM) 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, 2011 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.
|