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Underground drilling Intercepts 4.13 meters of 671 Grams per Tonne Silver and 2.29 percent Lead in the LM Mine, Ying
Mining District, Henan Province, China
VANCOUVER, BRITISH COLUMBIA, CANADA � January 10,
2011 � Silvercorp Metals Inc. ("Silvercorp�) is pleased to report the results for its
2010 underground diamond drilling program at the LM Mine, within the LM Mining
Permit area, Ying Mining District, Henan, China. The drill program has
successfully extended the existing veins further to down dip and striking
directions, and has discovered twelve new high grade silver-lead veins,
increasing the total number of mineralized veins at the LM Mine to 19 veins.
The diamond drilling
program and the underground tunneling program aimed to upgrade inferred
mineral resources to the indicated and measured categories, and to explore
and define new mineralized veins at the LM Mine. During 2010 a total of
12,255 meters (m) of drilling comprising of 44 underground holes were
completed by 2 underground drill rigs at the LM Mine. Table 1 only lists
assay results for 36 holes which intercepted Silver (Ag) - Lead (Pb) mineralization veins while the remaining 8 holes that
intersected vein structures without significant assay results are not listed.
At the LM Mine, the
mineralized veins can be grouped into two vein systems � north-south and
northeast striking. The north-south striking veins steeply dip to east
while northeasterly extending veins dip to northwest. Most of
veins are closely spaced, either being parallel or intersecting each other as
�X� pattern, and a drill hole or cross-cut tunnel often intercepts multiple veins.
With these successful drilling results, additional tunneling and drill holes
are on going to further define the striking and dipping extensions of these
veins.
At the LM Mine, mining
and exploration activities are conducted through main access tunnel PD838 and
PD900 and two declines. The decline LM838-LM-810 is down to 810m elevation
while the decline LM838-LM-790 is bottomed at 790m elevation. Since the
beginning of 2010 the Company has been developing a 400m deep shaft from 903m
elevation down to 500m elevation and it is expected to be fully operational
by mid 2011. Once operational, this shaft will provide access to mine
these veins and provide access for drilling at depth. A re-suing mining
method, which has been successfully used by the Company at the LM Mine with a
30% dilution, will be applied to mine these veins.
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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 Camp in the Henan Province of
China. Silvercorp is currently building the
GC silver-lead-zinc Project in Guangdong Province as its second China
production base and foothold, and this will be followed by the third
production foothold at the recently acquired BYP gold-lead-zinc Project in
Hunan Province. In
Canada, Silvercorp is
preparing to apply 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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