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Operations

LMW Mine

  • Introduction
  • Mining
  • Exploration and Geology

Introduction

LMW

  • Silver-lead-zinc mine ~12 km southeast of SGX, ~2.4 km west of LME

  • Operates under the Tieluping-Longmen Mining License

  • Owned 77.5% by Silvercorp

  • Property acquired in November 2007 and production resumed in March 2008

Mining

 

LMW

Mine type

Ramp and shaft

supported underground

Mining method

Re-suing and shrinkage

Reserve tonnage1

1,860 kt

Reserve grades1

266 g/t silver

0.48 g/t gold

1.99% lead

% of Ying’s LOM ore production

15%

Primary metal

Silver

By-product metals

Lead, gold

  1. Mineral reserves estimate as of December 31, 2021.

Recent Work/Highlights

Silvercorp completed 56,803 m of drilling in 416 diamond drill holes at LMW from October 1, 2021 to September 30, 2022.

New discovery of high-grade silver-lead-zinc veins west of the current mining areas:

  • Hole ZKX0818 intersected a 3.18 m interval (2.82 m true width) of vein W2 grading 2,238 g/t silver (“Ag”), 5.90% lead (“Pb”), 0.61% zinc (“Zn”), and 0.36% copper (“Cu”) at the 1,045 m elevation.

  • Hole ZKX0634 intersected a 4.03 m interval (3.43 m true width) of vein W6W grading 970 g/t Ag, 16.20% Pb, 0.60% Zn, and 0.29% Cu, at the 1,031 m elevation.

  • Hole ZKX0636 intersected a 1.18 m interval (0.91 m true width) of vein W1 grading 2,511 g/t Ag, 3.45% Pb, 1.01% Zn, and 0.38% Cu, at the 963 m elevation.

  • Hole ZKX14214 intersected a 6.58 m interval (1.19 m true width) of vein W18 grading 646 g/t Ag, 3.12% Pb, 0.3% Zn, and 0.16% Cu, at the1039 m elevation.

Low angle gold-copper-silver veins at the LMW mine:

  • Hole ZKX03X021 intersected a 7.03 m interval (5.39 m true width) of vein LM26 grading 0.17 g/t gold (“Au”), 2,896 g/t Ag, and 2.58% Cu, at the 602 m elevation.

  • Hole ZKX07X021 intersected an 1.01 m interval (0.65 m true width) of vein LM50 grading 19.2 g/t Au and 15 g/t Ag at the 791 m elevation.

  • Hole ZKX05X079 intersected a 4.21 m interval (3.42 m true width) of vein LM50 grading 6.36 g/t Au and 11 g/t Ag at the 794 m elevation.

  • Hole ZKX05X098 intersected a 0.77 m interval (0.70 m true width) of vein LM22 grading 29.00 g/t Au, 10 g/t Ag, and 1.21% Cu at the 850 m elevation.

High-grade silver-lead-zinc veins in the production areas:

  • Hole ZKX07X003 intersected a 13.31 m interval (12.80 m true width) of vein LM7 grading 365 g/t Ag, 0.71% Pb, 0.13% Zn, 0.06 g/t Au, and 0.33% Cu at the 778 m elevation.

  • Hole ZKX0733 intersected a 1.46 m interval (1.37 m true width) of vein LM12E grading 4,549 g/t Ag, 1.19% Pb, 0.24% Zn, 0.49 g/t Au, and 0.10% Cu at the 645 m elevation.

High-grade silver-lead-zinc mineralization at the northwest and east sides of the LMW mine:

  • Hole ZKX1166 intersected a 1.36 m interval (1.23 m true width) of vein LM41E grading 2,415 g/t Ag, 2.61% Pb, 0.40% Zn, 0.05 g/t Au, and 0.90% Cu at the 778 m elevation; and

  • Hole ZKX1143 intersected a 3.11 m interval (2.40 m true width) of vein LM41E grading 993 g/t Ag, 1.35% Pb, 0.54% Zn, 0.05 g/t Au, and 0.12% Cu at the 754 m elevation.

Geological Background

The TLP, LME and LMW mines have similar styles of mineralization. Mineralization at LMW is currently defined in 73 veins. The five largest veins, LM7, LM8, LM14, LM17W, and LM25, contain 25% of LMW’s current mineral resources. Sampling in workings along or across these veins indicates that a significant amount of the vein material is mineralized with massive, semi-massive and disseminated galena as well as minor amount of chalcopyrite and sphalerite. Vein widths range from 0.3 m to over 10 m. Other metallic minerals present in much smaller amounts include pyrite, hematite, and very sparse amounts of acanthite.

The veins at TLP mostly dip westward while those at LM dip steeply both east and west. Previous mining and stoping along TLP’s T1 and T2 vein structures indicate that the mineralization plunges shallowly to the north within structural zones extending hundreds of metres to a thousand metres or more along strike. The mineralization occurs as massive accumulations or disseminations in the veins. The galena often occurs as massive tabular lenses comprised of coarsely crystalline aggregates or fine-grained granular “steel galena” bodies, which can be up to 1.0 m thick and over 100 m along vertical and horizontal dimensions.

Most of the silver in the TLP-LM veins is present as microscopic inclusions in the galena. It appears that Ag:Pb ratios are distinctly different between veins of the northern TLP area (North Zone) and the southern TLP and LM area (South Zone). Based upon 15 verification samples collected for a previous Technical Report (Broili et al. 2008), veins in the South Zone appear to have much higher zinc contents and higher Ag:Pb ratios (90 to 130 grams silver for each percent lead) than veins from the North Zone (5 to 15 grams silver for each percent lead), as well as proportionally less gold. This difference could be the result of zonation or reflects differences in the level of exposure.

The veins occur in relatively permeable fault-fissure zones and are extensively oxidized from the surface to depths of about 80 m. Within this zone, the veins show many open spaces with conspicuous box-work lattice textures resulting from the leaching and oxidation of sulphide minerals. Secondary minerals present in varying amounts in this zone include cerussite, malachite and limonite. Beneath this oxide zone, sulphide minerals are mixed with secondary oxide minerals in the vein, with sulphides becoming increasingly abundant with depth until about 150 m, beyond which fresh sulphides are present with little or no oxidation.

Wall rock alteration consists of numerous quartz veinlets accompanied by sericite, chlorite, silicification, and ankerite on fractures. The vein systems appear to have better continuity and increasing mineralization with depth, and many veins exposed in the underground workings are often significantly richer in silver-lead-zinc than the same veins exposed at the surface. This could be due to either leaching from surface outcroppings or—the more likely explanation—to primary mineral zoning.

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