Silvercorp Reports Significant Gain In Measured And Indicated Mineral Resources And Proven And Probable Mineral Reserves At The Ying Silver-Lead-Zinc Mining District, Henan Province, China
VANCOUVER, British Columbia � June 5, 2012 � Silvercorp Metals Inc. (�Silvercorp� or the �Company�) is pleased to report the results of an updated National Instrument (�NI�) 43-101 Technical Report with an effective date of May 1, 2012, prepared by AMC Mining Consultants (Canada) Ltd. (�AMC�) covering the SGX (/HZG), HPG, and TLP / LM underground mines on the Ying silver-lead-zinc property in Henan Province, China (the �Ying 2012 Technical Report�). The previous May 20, 2011 NI 43-101 Technical Reports were prepared by other parties, and covered the SGX, HPG and TLP / LM mines in three separate reports (the �Ying 2011 Technical Reports�).
The five authors of the Ying 2012 Technical Report all qualify as independent Qualified Persons. Four of the authors visited the Ying Property in February 2012 with one additional visit made by one of the authors in April 2012. AMC examined all aspects of the project, including drill core, exploration sites, underground workings, processing plant and surface infrastructure. The Ying 2012 Technical Report will be made available for review on the SEDAR system and on the Company�s website at www.silvercorp.ca in due course.
Highlights of the Ying 2012 Technical Report
- Reported mineral resources of 9.21 million tonnes (inclusive of mineral reserves) in the Measured and Indicated categories grading 324 grams per tonne (g/t) silver (Ag), 0.16 g/t gold (Au), 5.14% lead (Pb), and 1.83% zinc (Zn), containing 95.89 million ounces (oz) silver, 46,300 oz gold, 473,200 tonnes lead, and 168,800 tonnes zinc, representing a 28% increase in contained silver in Measured and Indicated Resources compared to the 2011 Technical Reports whereas the silver grade is reduced by 19%;
- Defined mineral reserves of 9.79 million tonnes in the Proven and Probable categories grading 251 g/t Ag, 0.06 g/t Au, 4.05% Pb, and 1.40% Zn, containing 78.89 million oz silver, 18,900 oz gold, 396,300 tonnes lead, and 137,200 tonnes zinc. In comparison with the 2011 Technical Reports, contained silver in Proven and Probable Reserves is up 36% whereas the silver grade is reduced by 8%;
- Based on Proven and Probable reserves, the Ying mine complex is a viable operation with a projected Life of Mine (LOM) through to 2023 assuming an annual average production rate of approximately 6 million ounces of silver. It also has the potential for an extended LOM via further exploration and development, particularly in areas of inferred resources.
- The results of the 2011 underground drilling program at the SGX mine show that most of the major mineralized vein structures at the SGX area are still open at depth.
- Under plausible price and cost scenarios, Net Present Values (�NPVs�) range from US$760 million to US$1,132 million at an 8% discount rate, with a base case NPV of US$896.6 million.
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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.
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