APRIL 3, 2008
VANCOUVER, BRITISH COLUMBIA, CANADA – April 3, 2008 – Silvercorp Metals Inc. (“Silvercorp” – SVM.T) is pleased to provide an update on its LM Silver (Ag)-Lead (Pb) Mine. The LM Mine was acquired in November 2007 through a 70% owned subsidiary, Henan Huawei Mining Co. Ltd. (“Huawei”) which also holds the HPG Property. The acquisition of the LM mine has been approved by relevant Chinese Government authorities and the application for transfer of the LM mine permit was accepted by the Department of Land and Resources of Henan Province.
Since acquiring the LM mine in November 2007, work completed up to March 25, 2008 includes ; a total of 2,740 metres (m) of tunneling, and 3,037m of drilling 2 surface and 10 underground drill holes. To date, the exploration program has discovered 6 additional veins, increasing the total number of mineralized veins for the LM Mine to 14. These veins are LM-1 to LM-8, LM-10 to LM-12, LM-14, and LM-14-1. Exploration has been focused on the LM2, LM3, LM-5, LM-8, LM-12, and LM-14 veins, which are better defined and show significant Ag-Pb mineralization and several large high grade pockets. Of the drill holes with received assays, 7 holes intercepted high grade Ag-Pb mineralization, representing an outstanding 78% exploration drilling success rate. The latest two holes drilled show significant mineralization with assay results being pending. Exploration success was also achieved from new underground tunneling where assayed channel samples have shown significant exploration results.
Selected significant intercepts are as follows:
> Tunneling on the 900m elevation LM-2 Vein intersected 0.50m true width grading 1,285 g/t Ag and 11.78% Pb.
> Tunneling on the 838m elevation LM-3 Vein has intersected 0.50m true width grading 1,169 g/t Ag and 13.87% Pb.
> Tunneling on the 915m elevation LM-4 Vein intersected 0.20m true width grading 2,231 g/t Ag and 4.40% Pb, and 2.09% Zn.
> Tunneling on the 838m elevation LM-5 Vein intersected 0.20m true width grading 3,310 g/t Ag and 4.70% Pb.
> Tunneling on the 838m elevation LM-6 Vein intersected 0.30m true width grading 1,217 g/t Ag, 10.31% Pb, and 2.06% Zn.
> Tunneling on the 900m elevation LM-8 has intersected 0.70m true width grading 2,288 g/t Ag.
> Diamond drill hole ZK10201 on section 102 LM-8 Vein has intersected 0.50m grading 1,595 g/t Ag and 2.98% Pb at the 780m elevation.
> Diamond drill hole ZKA001, section 0 LM11 Vein has intersected 0.35m grading 1,837 g/t Ag, 7.77% Pb, and 1.73% Zn at the 825m elevation.
> Tunneling on the 924m elevation LM-12 Vein intersected 0.60m true width grading 1,896 g/t Ag, 4.19 Pb, and 0.88% Zn.
>Tunneling on the 916m elevation LM-14 Vein has intersected 0.60m true width grading 1,568 g/t Ag, 3.36% Pb, and 1.93% Zn.
> Diamond drill hole ZK10202, section 102 LM-20 Vein intersected 0.47m, grading 1,509 g/t Ag, 5.93% Pb at the 860m elevation.
LM-1 Vein is north-south striking, exposed over about 250m, 0.2 to 0.8m in width, and dips to the west at 70-80 degree dipping angle. The vein was discovered by tunneling and was exposed in drift along the veins on three levels (915m, 875m, and 855m elevations). A total of 62.1m drifting was completed through access tunnel PD855 by Silvercorp at 855m elevation and exposed a 0.35m wide high grade pocket containing 199 to 747 g/t Ag and 0.32 to 12.58% Pb.
LM2 is one of the largest veins discovered in the property. It extends north-southerly over 1,100m, dips to east with a 45 to 80 degree dipping angle. The vein shows on surface (above 1,100m elevation) and extends down to 764m elevation where it was intersected by a drill hole (ZK402). Its true thickness ranges from 0.1 to 1.7m. Exploration work on the vein includes 741m drifting along the vein on 4 levels (838m, 830m, 915m, and 968m) through two main access tunnel PD838 and PD900, 137m crosscutting, and 4 drill holes. Three high grade pockets have been defined, which ranges 50 to 70m in strike length, 0.10 to 1.05m in true thickness, and extends at least 160m at dipping direction. The pockets contain up to 1,709 g/t Ag and up to 28% Pb.
The vein extends northeasterly over 500m and steeply dips to the northwest. LM3 exposes on the surface above 1,150m elevation and was intersected at 748m elevation by a drill hole. The true width of the vein varies from 0.2 to 0.70 m. Silvercorp completed 4 drill holes on the vein and three of them hit significant Ag mineralization grading 92 to 559 g/t Ag. Tunneling includes 773m drifting along the vein at 830m, 842m, 862m, 780m, 900m, and 914m elevation, which were completed by the previous operator through main access tunnels PD838, PD855, PD900.
The vein, parallel to LM3, is about 400m in strike length, with a 65 to 75 dip to the northwest. The vein is 0.2 to 0.4m in true thickness with high grade pocket being over 20m in length and containing 128 to 2,231 g/t Ag and 0.43 to 11.28% Pb. A 136m long drift was developed at 915m elevation along the vein by previous operator through main access tunnel PD900.
The vein extends over 1,500m northeasterly and dips to northwest with 60 to 75 degree dipping angle. Exploration was focused on 838m elevation, including 114m drifting and 147m crosscutting through main access tunnel PD900. True width of the vein ranges from 0.15 to 1.0m. Grades range from 3310 Ag to 23 gt Ag and 14.48%Pb to 0.91% Pb.
The vein is located at 30m west of LM-5 Vein, and is parallel to LM-5 Vein and also steeply dips to the northwest. The vein extends over 550m along strike. Tunneling work was carried out at the 838m elevation, which exposed true width of the vein ranges from 0.2 to 0.55m and contains 50 to 1,217 g/t Ag, 1.03 to 10.43% Pb, and 0.28 to 2.49% Zn.
LM7 is a silver rich vein with little Lead identified. It strikes northeasterly over 500m and dips to northwest at 45 to 50 degree dipping angle. The width of the vein is up to 10m. Tunneling includes 25m drift at 924m elevation and 8m drifting at 870m elevation along the vein through main access tunnel PD924. A sample was recently collected from 870m elevation containing 653 g/t Ag.
The vein features high grade silver, a moderate amount of lead and minor zinc. LM8 extends over 500m and steeply dips to southwest, being cut off by LM7 at its southeast end. Width of the vein varies from 0.1 to 1.7m. The vein was exposed on 3 levels – 930m, 890m, and 869m elevation. Silvercorp completed a 49m drift along the vein and 3 drill holes. One hole (ZK10202) LM-8-3 intersected mineralization grading 903 g/t Ag and 2.05% Pb over 0.31m true width (0.38m core interval) at 763m elevation. The 2nd hole only hit vein structure and assay results for the 3rd hole is pending.
LM-8, LM-8-1, and LM-8-2 Veins
At 8m and 22m east and 36m west of vein LM 8, drill hole ZK10201 intersected three high grade silver veins: LM8, LM8-1, and LM8-2, respectively. The LM-8 is 031m true width, grading 1595 g/t Ag and 2.98% Pb. The LM8-1 contains 374 g/t Ag and 1.48% Pb over 1.12m true width, while LM-8-2 vein grades 454 g/t Ag and 0.43% Pb over 0.68m true width. These three veins were not shown on the surface and their dimensions are yet to be determined. Additional tunneling and extra drill holes have been designed and work is underway to define their striking and dipping extensions.
The vein was only revealed by tunneling at 924m elevation through main access tunnel PD924. It extends northeasterly and dips to the northwest with 65 degree dipping angle. A 457m long drift was developed along the strike of the vein, in which 3 high grade high grade pockets totaling 112m in length was defined and averaging 0.37m in true width. The vein features high value of silver with moderate amount of lead and zinc.
LM14 is shown on surface for about 320m in northwesterly striking length and dips southwest at 70 degree dipping angle. A total of 171m drifting was completed along the vein on 3 levels – 975m, 960m, and 916m elevation through access tunnel PD7 and PD8. Tunneling has defined a significant high grade Ag-Pb pocket that extends 70m in length on the 970m level and 30m in length on the 916m level. The true width of the vein varies from 0.25 to 0.70m.
The vein, being parallel to LM3 vein, was only discovered by tunneling on 968m level and 915m level through and access tunnels PD968 and PD900, respectively. It strikes to the northeast and dips to the northwest at 60 to 75 degree dipping angle. Silvercorp has completed 83m drifting on the 968m level and 238m crosscutting on the 915m level. Significant Ag-Pb mineralization was intercepted on both levels ranging from 849gt Ag to 173gt Ag and 7.77% Pb to 0.91% Pb.
This is a newly discovered vein which was intercepted by drill hole ZK10202 at 860m elevation. The drill core interval is 0.47m wide, grading 1,509 g/t Ag and 5.93% Pb. Additional drill hole and tunneling have been planned to define the veins.
Detailed Tunnel Assay Results:
As reported, the Company has planned and budgeted for 10,000m of tunnelling and an 11,000m of drilling program for the LM mine. This program is underway.
Rock samples were collected by channel sampling the face of the undercut drifts. The channels were usually cut 10cm in width and 5cm in depth producing a sample weighing approximately 2kg to 10kg for each 0.10 to 1.00m interval depending on the thickness of mineralization. Drill cores are NQ/HQ size and drill core samples were taken from sawn half core limited by apparent massive galena sheet contact or shear/alteration contact.
The Company maintains a quality control program to ensure best practice in sampling and analysis of the tunnel samples. The samples are shipped directly in security sealed bags to two labs: and the Langfang Institute of Geochemical and Geophysical Exploration (Certification ISO 9001), a well-regarded analytical laboratory in Langfang, Hebei Province near Beijing and analytical Lab of No. 6 Team of Henan Non-Ferrous Metals Geological and Mineral Resources Bureau in Luoyang located 125km by road northeast of the LM Mine.
The sample preparation consists of drying, crushing, and splitting of the sample to 250 grams, then the sample is pulverized to 200 mesh.
No. 6 Lab utilizes two acid digestion and AA finish 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.
Langfang Lab uses the ICP-OES process to analyze for lead, zinc and silver a 0.1 gram sample is digested with hot HCL, Hot HNO3, HF and HClO4 (200 degrees centigrade) the pregnant solution is analyzed utilizing mass spectrometry.
Both labs utilize a QA/QC system of duplicates replicates and Standards.
Mike Hibbitts, P.Geo, is the Qualified Person on the project under NI 43-101.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition, exploration, and development of silver related mineral properties focusing in the People’s Republic of China (“China”). Currently, the Company is operating and developing four Silver-Lead-Zinc mines at the Ying Mining Camp, Henan Province, owned through its 77.5% and 70% Chinese subsidiary companies, respectively and is also exploring the Na-Bao Polymetalic Project in Qinghai Province, China owned through its 82% Chinese subsidiary company.
The Company’s common shares are included as a component of the S&P/TSX Composite, the S&P/TSX Global Gold, and the S&P/TSX Global Mining Indexes.
For further information: SILVERCORP METALS INC., Rui Feng, Chairman & CEO, & Lorne Waldman, Corporate Secretary.
Phone: (604) 669-9397, Fax: (604) 669-9387, Email: email@example.com, Website: www.silvercorp.ca
CAUTIONARY DISCLAIMER — FORWARD LOOKING STATEMENTS
Statements in this press release other than purely historical information, including statements relating to the Company’s future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in mineral exploration, development, and mining. Production and revenue projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. As a result, actual results may vary materially from those described in the forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.