Silvercorp Reports Intercept of
10.87 Meters Grading 715
Grams per Tonne Silver, 6.85% Lead and 1.52% Zinc at the SGX mine, Ying Mining
District, Henan Province, China
VANCOUVER, British Columbia � August 1, 2012 � Silvercorp Metals
Inc. ("Silvercorp� or the �Company�) (TSX:SVM) (NYSE:SVM) is
pleased to report the results
of its on-going
underground diamond drilling
program for the first six months of 2012 at the SGX (Ying) mine (�SGX�), Ying Mining
District, Henan Province, China.
The underground drilling
in the first half of 2012 at
SGX has been focused on expanding
the known resource of
major production veins S2, S7, S7-1 and S8. Limited
drilling was also conducted on veins S14, S14-1, S16W and their
branch veins. The drill
program has significantly extended
the mineralized zones to depth
and along strike and it is expected
that these results will expand the mineral resource reported in the recently completed NI 43 101 Technical Report for the Ying Mining
District.
As of June 30, 2012,
the Company had completed 22,121 meters (�m�) in 62 holes using
six underground drill rigs. Assay
results for 66 holes, 18
of which were drilled in December 2011, were received while assays for 14 holes drilled in the first half of 2012 are pending. Of
the 66 holes the Company received assay results for, 31 of the holes had high-grade silver-lead-zinc
zones while the remaining
holes intersected vein structures.
Drilling on the major
production vein S2 was conducted primarily as infill drilling to upgrade the previously delineated resource blocks and has further
defined the mineralized
zones between the 100m and the 0m elevations of the vein.
Drilling on the other major production veins
S7, S7-1 and S8 was intended
to test the downdip extension under
the current production sections to expand the known resource of these veins. Six of the eight holes drilled on S7 intersected significant mineralization and have extended
the mineralization zone to the -50m elevation between exploration lines 22 and 32 in the north
section of the vein. Six of the eight
holes drilled on S8 defined the downdip extension
of the mineralization which
is now extended to the -50m elevation
in the north portion of the vein.
Five of the nine holes drilled on the vein S7-1 intersected high-grade mineralization
and successfully extended
the previously delineated
high grade and wide mineralization
zone from the 300m elevation
to the 100m elevation between
exploration lines 0 and 5 over 300 m along strike. All the newly defined high grade mineralization zones of the veins
S2, S7, S7-1 and S8 will be
easily accessible via the ramp
currently under
construction at the SGX mine and the existing shafts.
Limited drilling on veins S6, S14, S14-1, and S16W also
showed that the mineralization of those veins further extends to depth.
Highlights of selected intercepts are as follows:
- Hole ZK0026 intercepted 2.20m
of Vein S2 grading at 411 grams per tonne
(�g/t�) silver (�Ag�), 1.28% lead (�Pb�) and
6.02% zinc (�Zn�) at the 76.81m elevation, including a
1.36m interval grading
639 g/t Ag, 1.91% Pb and 7.69% Zn;
- Hole ZK1438 intercepted 1.28m
of Vein S6 grading
423 g/t Ag, 1.11% Pb and 9.07% Zn at the
78.47m elevation, including
a 0.5m interval grading
1,014 g/t Ag, 2.47% Pb and 20.81% Zn;
- Hole ZK8303 intercepted 5.61m
of Vein S28 grading
121 g/t Ag, 2.03% Pb and 2.36% Zn at the
418.96m elevation, including
a 0.67m interval grading
927 g/t Ag, 12.45% Pb and 13.90% Zn;
- Hole ZK1036 intercepted 3.70m
of Vein S6 grading
234 g/t Ag, 2.37% Pb and 1.25% Zn at the
137.33m elevation, including
a 0.56m interval grading
1,387 g/t Ag, 13.91% Pb and 6.23% Zn;
- Hole ZKY22A04 intercepted 2.29m
of Vein S7 grading
1,043 g/t Ag, 3.35% Pb and 0.10% Zn at the
46.81m elevation, including
a 1.25m interval grading
1,551 g/t Ag, 5.27% Pb and 0.11% Zn;
- Hole ZK0508 intercepted 10.87m
of Vein S7-1 grading
715 g/t Ag, 6.85% Pb and 1.52% Zn at the
209.58m elevation, including
a 2.84m interval grading
1,347 g/t Ag, 13.52% Pb and 2.16% Zn and a 1.84m interval
grading 1,121 g/t Ag, 13.59% Pb and 2.16% Zn;
- Hole ZK0108 intercepted 4.21m
of Vein S7-1 grading
250 g/t Ag, 6.76% Pb and 1.77% Zn.
Table 1: Selected
drill hole results from the SGX mine
Drill Hole
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Elevation
(m)
|
Ag
(g/t)
|
Pb
(%)
|
Zn
(%)
|
Au
(g/t)
|
Cu
(%)
|
Mineralized
Veins
|
ZK1437
|
168.86
|
169.00
|
0.15
|
156
|
73
|
5.08
|
1.14
|
<0.10
|
0.02
|
S6
|
|
191.02
|
191.45
|
0.43
|
142
|
169
|
0.33
|
1.35
|
0.31
|
0.02
|
S4
|
|
297.96
|
299.31
|
1.35
|
74
|
279
|
0.97
|
0.18
|
0.14
|
0.08
|
S2
|
|
306.34
|
308.24
|
1.91
|
69
|
186
|
5.24
|
0.72
|
0.29
|
0.04
|
S2W
|
ZK04A12
|
303.26
|
303.53
|
0.27
|
80
|
585
|
1.37
|
4.34
|
0.17
|
0.30
|
S2
|
|
309.20
|
309.72
|
0.51
|
76
|
169
|
5.69
|
3.10
|
0.20
|
0.05
|
S2W
|
ZK06A20
|
29.08
|
29.68
|
0.59
|
238
|
243
|
1.89
|
1.53
|
0.92
|
0.03
|
S14 Branch
|
|
70.92
|
71.20
|
0.28
|
204
|
224
|
0.86
|
0.96
|
0.96
|
0.12
|
S14-1
|
ZK0026
|
357.80
|
360.00
|
2.20
|
77
|
411
|
1.28
|
6.02
|
0.09
|
0.04
|
S2
|
including
|
358.64
|
360.00
|
1.36
|
77
|
639
|
1.91
|
7.69
|
0.11
|
0.05
|
|
ZK1438
|
213.54
|
214.82
|
1.28
|
78
|
423
|
1.11
|
9.07
|
0.64
|
0.30
|
S6
|
Including
|
213.67
|
214.37
|
0.50
|
79
|
1,014
|
2.47
|
20.81
|
1.56
|
0.99
|
|
ZKY26A03
|
367.19
|
368.92
|
1.73
|
129
|
168
|
1.67
|
0.34
|
1.10
|
0.04
|
S7
|
ZKY2814
|
335.46
|
335.87
|
0.41
|
218
|
213
|
8.71
|
0.99
|
0.07
|
0.07
|
S8
|
ZKY2818
|
438.65
|
440.17
|
1.52
|
51
|
283
|
25.30
|
0.35
|
0.09
|
0.04
|
S8
|
ZK06A21
|
15.23
|
15.55
|
0.32
|
248
|
200
|
0.54
|
0.37
|
0.04
|
0.08
|
S14 Branch
|
|
86.97
|
87.83
|
0.86
|
182
|
408
|
9.66
|
2.70
|
0.54
|
0.07
|
S14-1
|
ZK2029
|
32.82
|
32.95
|
0.13
|
281
|
46
|
0.17
|
7.09
|
0.02
|
0.05
|
S14-1
|
ZK8303
|
287.65
|
293.26
|
5.61
|
419
|
121
|
2.03
|
2.36
|
0.01
|
0.03
|
S28
|
Including
|
289.83
|
290.50
|
0.67
|
421
|
927
|
12.45
|
13.90
|
0.06
|
0.17
|
|
ZK0310
|
273.03
|
273.65
|
0.62
|
|
35
|
2.07
|
5.74
|
0.02
|
0.01
|
S7-1
|
ZK1036
|
33.67
|
34.69
|
1.02
|
|
128
|
1.26
|
4.82
|
0.09
|
0.05
|
S14
|
|
120.28
|
121.20
|
0.92
|
|
511
|
3.22
|
1.48
|
0.11
|
0.08
|
S14-1
|
|
239.53
|
243.22
|
3.70
|
137
|
234
|
2.73
|
1.25
|
0.05
|
0.02
|
S6
|
Including
|
239.53
|
240.08
|
0.56
|
139
|
1,387
|
13.91
|
6.23
|
0.15
|
0.08
|
|
|
309.92
|
310.52
|
0.60
|
|
904
|
4.92
|
0.28
|
0.06
|
0.07
|
S2
|
ZK5116
|
226.89
|
228.60
|
1.71
|
|
118
|
0.95
|
0.57
|
0.01
|
0.03
|
S16W1
|
ZK0504
|
117.67
|
118.60
|
0.93
|
374
|
238
|
0.15
|
0.32
|
0.00
|
0.01
|
S7-1
|
ZK1850
|
234.37
|
234.78
|
0.41
|
165
|
80
|
2.79
|
3.54
|
0.17
|
0.03
|
S19
|
ZKY2616
|
353.64
|
354.41
|
0.77
|
100
|
109
|
1.80
|
1.04
|
0.22
|
0.06
|
S8
|
ZKY2618
|
424.37
|
424.37
|
1.59
|
15
|
297
|
15.96
|
0.97
|
0.15
|
0.07
|
S8
|
ZKY2212
|
350.59
|
351.45
|
0.87
|
91
|
754
|
15.30
|
1.81
|
0.26
|
0.22
|
S8
|
ZKY2214
|
435.92
|
436.52
|
0.60
|
-10
|
757
|
11.66
|
0.44
|
0.41
|
0.21
|
S8
|
ZKY22A04
|
464.73
|
467.02
|
2.29
|
47
|
1,043
|
3.35
|
0.10
|
0.75
|
0.27
|
S7
|
Including
|
465.77
|
467.02
|
1.25
|
47
|
1,551
|
5.27
|
0.11
|
0.99
|
0.33
|
|
|
446.80
|
447.87
|
1.07
|
|
137
|
1.90
|
5.56
|
0.43
|
0.16
|
S7
|
Including
|
447.43
|
447.87
|
0.44
|
32
|
139
|
3.29
|
13.43
|
0.45
|
0.33
|
|
ZKY28A03
|
65.95
|
66.10
|
0.15
|
344
|
135
|
0.62
|
0.11
|
0.35
|
0.13
|
S8 Branch
|
|
452.69
|
454.60
|
1.91
|
13
|
165
|
2.28
|
0.44
|
0.26
|
0.09
|
S7
|
Including
|
453.06
|
453.40
|
0.34
|
14
|
741
|
7.46
|
2.01
|
1.00
|
0.37
|
|
ZKY30A03
|
385.31
|
386.41
|
1.10
|
199
|
174
|
1.55
|
0.08
|
0.12
|
0.04
|
S7
|
ZKY30A04
|
439.38
|
444.55
|
5.07
|
|
123
|
2.79
|
0.05
|
0.19
|
0.04
|
S7
|
ZK04A14
|
28.94
|
29.27
|
0.33
|
242
|
2,460
|
12.43
|
9.42
|
3.04
|
0.18
|
S14W-branch
|
|
59.51
|
60.08
|
0.58
|
222
|
1,876
|
12.97
|
1.23
|
0.30
|
0.28
|
S14-1
|
ZK0506
|
207.33
|
208.84
|
1.51
|
273
|
347
|
2.20
|
1.75
|
0.02
|
0.08
|
S7-1
|
Including
|
207.65
|
208.24
|
0.59
|
|
660
|
5.31
|
4.01
|
0.04
|
0.20
|
|
ZK0508
|
248.88
|
259.75
|
10.87
|
210
|
715
|
6.85
|
1.52
|
0.06
|
0.14
|
S7-1
|
Including
|
250.82
|
253.66
|
2.84
|
215
|
1,347
|
13.52
|
1.05
|
0.03
|
0.17
|
|
|
257.91
|
259.75
|
1.84
|
210
|
1,121
|
13.59
|
2.16
|
0.13
|
0.26
|
|
ZK20A03
|
192.58
|
194.09
|
1.51
|
384
|
152
|
0.32
|
0.27
|
0.07
|
0.01
|
S2 branch
|
|
303.83
|
304.08
|
0.25
|
277
|
40
|
9.52
|
0.73
|
0.15
|
0.00
|
S2
|
ZK0108
|
180.72
|
184.93
|
4.21
|
182
|
250
|
6.76
|
1.77
|
0.02
|
0.04
|
S7-1
|
|
237.16
|
239.18
|
1.30
|
239
|
338
|
0.16
|
0.31
|
0.02
|
0.09
|
S7-1E1
|
|
258.85
|
261.83
|
2.98
|
259
|
210
|
0.68
|
0.82
|
0.02
|
0.10
|
S7-1E2
|
ZK7412
|
290.48
|
291.83
|
1.35
|
22
|
32
|
2.00
|
5.86
|
0.52
|
0.04
|
S16W
|
ZK08A55
|
4.83
|
5.15
|
0.32
|
5
|
229
|
3.47
|
0.37
|
0.05
|
0.72
|
S14
|
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 the 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 Nonferrous
Lab), the Henan Rock Minerals
Testing Center in Zhengzhou (Henan Testing Center), and the SGS lab
in Tianjin. All labs are officially
accredited labs in China.
Adopted analytical methods in the three labs are as follows:
Zhengzhou
Nonferrous Lab
The sample preparation consists of drying, crushing and splitting of a 250-gram subsample
which is then pulverized to minus-200 mesh. Two-acid digestion and
AAS finish are utilized on a 0.5-gram sample for silver, lead and
zinc analysis. Titration is
utilized as a modified process for higher grade materials.
Henan
Testing Center
Sample is dried and crushed to minus 1mm and then
split to a 200-300g subsample which
is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized sample. One is digested with
aqua regia for gold analysis
with AAS, and the other is digested with
two-acids for analysis of
silver, lead, zinc and copper.
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 certified reference materials (CRM), field duplicates 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% 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., 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
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 (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
Jonathan Hackshaw, Investor
Relations Director , Phone: (604) 669-9397, Fax: (604) 669-9387, Toll Free 1(888) 224-1881, Email: info@silvercorp.ca, Website:
www.silvercorp.ca.
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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.
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