Silvercorp Reports
Resources Estimate On The Silvertip Silver-Lead-Zinc Property In British
Columbia, Canada
VANCOUVER, British
Columbia � July, 6 2011 � Silvercorp Metals Inc. (the "Company") is pleased to report the results of a
Technical Report updating the resources at its Silvertip silver-lead-zinc
project in British Columbia, Canada. The National Instrument
("NI") 43-101 Technical Report dated June 15, 2011 (the "Resource
Report") was prepared by Randal Cullen, P. Geo. (Qualified Person). The
Resource Report is available for review on the SEDAR system and on the
Company's website at www.silvercorp.ca.
Resource Estimate
Result
This 2011 resource update is based on a total of 10,913 meters (m) in 36
diamond drill holes completed by the Company in fall 2010 (see News Release
of December 15, 2010).
The base case resource for 2011 is estimated for resources greater than 200
grams per tonne (g/t) silver (Ag) equivalent.
The update estimates an Indicated resource of 4.17 million tonnes grading 261 g/t Ag, 4.87% lead (Pb), and 8.50% zinc (Zn), containing in situ 35 million
ounces of silver, 203,050 tonnes of lead, and
354,327 tonnes of zinc. In addition, the mineral
resource in the Inferred category includes 0.91 million tonnes
grading 278 g/t Ag, 4.80% Pb, and 9.60% Zn with in situ metal resources
of 8.1 million ounces of silver, 43,358 tonnes of
lead, and 87,406 tonnes of zinc.
At 200 g/t Ag equivalent cut-off grades, the Indicated in situ metal resource
estimates from the 2011 resource update increased by almost 32% for silver,
28% for lead, and 60% for zinc, compared to last resource estimates released
in the 2010 technical report, while the Inferred in situ metal resource estimates increased
by almost 60% for silver, 53% for lead, and 94% for zinc.
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Table 1: Resource Estimate for the Silvertip project
Ag Eq.
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Class
|
Tonnage
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Ag (g/t)
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Ag Oz
|
Pb (%)
|
Pb Tonnes
|
Zn (%)
|
Zn Tonnes
|
Au (g/t)
|
Au Oz
|
>200
|
indicated
|
4,168,557
|
261.3
|
35,013,681
|
4.87
|
203,050
|
8.50
|
354,327
|
0.38
|
50,666.06
|
inferred
|
907,830
|
278.2
|
8,121,216
|
4.80
|
43,358
|
9.60
|
87,406
|
0.23
|
6,801.43
|
>400
|
indicated
|
2,557,395
|
385.2
|
31,668,334
|
7.30
|
186,562
|
11.01
|
281,595
|
0.56
|
45,638.40
|
inferred
|
567,095
|
407.1
|
7,423,058
|
7.06
|
40,037
|
12.66
|
71,777
|
0.32
|
5,798.59
|
>1000
|
indicated
|
1,108,794
|
567.0
|
20,212,307
|
10.75
|
119,207
|
14.56
|
161,452
|
0.65
|
23,102.85
|
inferred
|
260,877
|
597.1
|
5,008,032
|
10.38
|
27,087
|
17.51
|
45,672
|
0.47
|
3,942.51
|
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1.
The silver equivalent (AgEq.) equation is based on long term US$ metal prices of
$0.39/g Ag, $0.75/lb for Pb
and Zn as well as metal recoveries of 84.9% Ag, 92.4% Pb
and 81.7% for Zn, achieved during metallurgical tests at SGS Labs in
Vancouver between November 2010 and March 2011. The silver equivalent
calculation formula is shown as below.
AgEq. = (Au * 0.5 * 60 + Ag * 0.849) + (Pb * 0.75 * 0.924 * 22.0462
+ Zn * 0.75 * 0.817 * 22.0462) / 0.39
2. The estimate was completed using Surpac�
software. The estimation for exhalite resources and
manto resources were done separately using variography to determine dimensions of search ellipses
and Inverse Distane Squared estimation to create a
resource.
2011 Exploration Program
In
2011, Silvercorp began an analysis of the silver,
lead, and zinc rich exhalite mineralization (SedEx style deposit) hosted in the overlying sedimentary
layers. The deposit occurs as a series of overlapping pods of silver, lead,
and zinc rich mineralization. These pods vary from 4.5 to 23.8 mat their thickest points. Average thickness is 10.5 m.
Depth below surface varies from outcropping to more than 200 m moving
eastward from the existing mine portal. Distribution of exhalite
layers is open to the east, south and north, with holes located up to 1.5 km
south of the portal still encountering exhalite and
holes 400 m north of the portal, collared within Earn Group sediments
encountering exhalite. Drillhole
97-4 completed in 1997, which intercepted 11.06 m grading 211.46 g/t Ag,
4.02% Pb, 9.63% Zn (670.83 g/t Ag Eq.), was made at
a depth of only 17.9m below surface adjacent to the portal.
A
5,000m drill program has been initiated to further test the exhalite distribution and grade, and explore for
satellite mineralization around the known deposit based on strong geophysical
anomalies. Drilling of the exhalite layer is
focused on the vicinity of drill hole 97-4 to
further explore the extension of the high grade exhalite
layer.
In
addition, Silvercorp is exploring a new zone
(termed the DM Zone) of a silver-lead-zinc mineralization approximately 8 km
to the south. This new zone was mapped out to occur along the same
lithological contact between the limestones and shales that hosts the Silvertip deposit. The
semi-oxidized mineralization along the shale/limestone contact has been
traced over 500m along strike and one of the best results is a
1.5mchipping sample grading 175 g/t Ag, 5.77% Pb
and 1.0% Zn. Drilling at the DM zone will test down dip extent of this
mineralization and along the strike extension. Two surface drill rigs
have been employed to complete the drill program.
Qualified Persons
Randal
Cullen P.Geo., Qualified Person as defined by NI
43-101, has reviewed and consented to this press release and confirms that it
fairly and accurately represents the information in the Technical Report that
supports the disclosure.
Myles
Gao, P.Geo., President
and Chief Operating Officer of Silvercorp, is the
Qualified Person for Silvercorp under NI 43-101 and
has reviewed and given consent to this press release.
About Silvercorp
Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition,
exploration, 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, Henan Province, China. Silvercorp is currently building the GC silver-lead-zinc
project in Guangdong Province as its second China production base, and is
developing the third production foothold in China at the recently acquired
BYP gold-lead-zinc project in Hunan Province. In Canada, Silvercorp is working to apply for a Small Mine Permit
for the high grade Silvertip silver-lead-zinc project in northern British
Columbia, which will 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, 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.
CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING
ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
This press releases uses the terms
"Measured", "Indicated" and Inferred" Resources.
U.S. investors are advised that while such terms are recognized and required
by Canadian regulations, the Securities and Exchange Commission does not
recognize them. "Inferred Resources" have a great amount of uncertainty
as to their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
resource will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Resources may not form the basis of feasibility or
other economic studies. U.S. investors are cautioned not to assume that all
or any part of Measured or Indicated Resources will ever be converted into
reserves. U.S. investors are also cautioned not to assume that all or any part
of an Inferred Mineral Resource exists, or is economically or legally of an
Inferred Mineral Resource existence, or is economically or legally mineable.
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