FEBRUARY 7, 2013
VANCOUVER, BRITISH COLUMBIA — (MARKET WIRE) — 02/07/13 — Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) (“Silvercorp” or the “Company”) is pleased to report the results from its 2012 underground tunneling and diamond drilling campaign at the HZG Mine, Ying Mining District, Henan Province, China.
The HZG Mine is located 1.4 kilometres south of the SGX Mine in the Ying Mining District. A total of 4,681 metres (“m”) of underground tunneling and 14,394m of diamond drilling in 41 holes were completed between January 1, 2012 and December 31, 2012 at the HZG Mine for the purposes of testing the strike and downdip extension of the major mineralized vein structures HZ20, HZ22 and HZ5. As a result of this program, five new vein structures HZ20W, HZ22W, HZ23, HZ23E and HZ23E1 have been discovered and contain high-grade silver mineralization.
Highlights of selected mineralization zones exposed in underground tunnels:
-- Drift PD820-HZ20-690-SYM-ECM3-SYM along vein HZ20 on 690m level, has
revealed a zone 130m in length, 0.74m true width grading 599 g/t silver
("Ag"), 3.29% lead ("Pb") and 0.35% zinc ("Zn");
-- Drift PD820-HZ20W-650 along vein HZ20W, a newly discovered vein, on 650m
level, has revealed a zone 45m in length, 1.25m true width grading
1,409g/t Ag, 0.30% Pb and 0.85% Zn;
-- Drift PD810-740-HZ5 along vein HZ5 on 740m level, has revealed a zone of
75m in length, 0.50m true width grading 669g/t Ag, 0.79% Pb and 0.11%
Zn;
-- Drift PD810-HZ5-780-SYM along vein HZ5 on 780m level, has revealed a
zone 85m in length, 0.54m true width grading 544g/t Ag, 0.88% Pb and
0.10% Z; and
-- Drift PD820-HZ20-770-SYM along vein HZ20 on 770m level, has revealed a
zone 50m in length, 0.74m true width grading 664g/t Ag, 2.61% Pb and
0.27% Zn.
Highlights of selected intercepts of drill holes:
-- Hole ZK43B02 intercepted a 1.12m interval, 1.12m true width of vein HZ22
grading 637g/t Ag, 1.25% Pb and 0.13% Zn at the 711m elevation; and
-- Hole ZK47B03 intercepted a 1.14m interval, 1.13m true width of vein
HZ22W grading 542g/t Ag, 1.02% Pb and 0.11% Zn at the 700m elevation,
and a 0.77m interval, 0.76m true width, of vein HZ23 grading 449 g/t Ag,
0.51% Pb, and 0.32% Zn.
The purpose of the underground tunneling program (consisting of 2,541m of drifts, 1,174m of cross-cuts, and 1,015m of raises) was to delineate and upgrade the previous drill-defined resource blocks within the major vein structures between the 650m and the 850m elevations. Drift and crosscut tunnels have been developed at 40m to 50m intervals and are connected with raises, declines, and shafts through different levels. A total of 1,790 chip samples were collected during the 2012 underground tunneling program. Zones of mineralization were exposed in tunnels on different levels along major mineralized vein structures HZ20, HZ20W, HZ22 and HZ5 between the 650m and the 850m elevations.
The 2012 diamond drilling program was designed to test the lateral and downdip extension of the major mineralized vein structures between the 750m and the 400m elevations. A total of 14,394m of drilling (including 7,768m in 17 surface holes and 6,626m in 24 underground holes), was completed and a total of 1,009 core samples were collected in the 2012 drilling program. As at December 31, 2012, assay results for 28 holes have been received. 19 of the 28 holes with assay results intercepted mineralization zones. The 2012 diamond drilling program delineated a resource block that extends 400m along strike and from the 800m to 550m elevation downdip between exploration lines 41 and 51 within the vein structure HZ22. Furthermore, five new mineralized vein structures; HZ20W, HZ22W, HZ23, HZ23E and HZ23E1 have been discovered as a result of the 2012 underground tunneling and diamond drilling campaign. A summary of the new vein structures is as follows:
-- Vein Structure HZ20W: HZ20W is located parallel to the west of vein
structure HZ20 and has been revealed by underground tunneling at the
650m elevation. The vein structure has been traced for approximately
400m along strike and high-grade mineralization zones have been exposed
within the structure in underground tunnels.
Vein Structure HZ22W: HZ22W is located 30m to 40m (and runs parallel) to
the west of vein structure HZ22. Mineralization zones within this
structure have been intercepted between the 700m and 750m elevations in
surface holes ZK45B03, ZK4703, ZK4704, ZK47B03 and ZK47B04 between
exploration lines 45 and 48.
-- Vein Structure HZ23: HZ23 is located parallel to the east of HZ22 and
the discovery was made by surface drilling. The mineralization zones
within the vein structure have been intercepted at the 660m, 620m and
390m elevations by surface holes ZK43B02, ZK43B04, ZK4505 and ZK4703,
drilled between exploration lines 43 and 47.
-- Vein Structures HZ23E and HZ23E1: HZ23E and its parallel zones are
located approximately 50m to the east of HZ23. The vein group consists
of at least three mineralized zones which have been intercepted in holes
ZK43B03 and ZK43B04 on exploration line 44.
Tables 1 and 2 below list the assay results of some selected mineralization zones exposed in tunnels and intercepts in drill holes.
In 2013, a comprehensive exploration program including 2,062m of underground tunneling on vein structures HZ20, HZ22 and HZ5 and 29,568m of underground diamond drilling on vein structures HZ20, HZ20W, HZ22, and HZ23 is planned at the HZG Mine.
Table 1: Selected tunneling results from the HZG Mine
---------------------------------------------------------------------------
Dist- Mineralization Intercepts
ance --------------------------
to Ho-
Re- riz-
fer- on-
ence Chan- tal True
Po- Refe- nel Wi- Wi-
Level int rence Azi- dth dth Ag Pb Zn
Tunnel ID (m) Vein (m) Point muth (m) (m) (g/t) (%) (%)
---------------------------------------------------------------------------
PD810-HZ5-780-SYM 780 HZ5 65 XA4 130 0.70 0.68 482 1.45 0.08
---------------------------------------------------------------------------
780 HZ5 70 XA4 130 0.60 0.58 228 0.92 0.10
---------------------------------------------------------------------------
780 HZ5 75 XA4 130 0.80 0.77 1,009 3.41 0.12
---------------------------------------------------------------------------
780 HZ5 80 XA4 130 1.60 1.55 1,390 0.67 0.11
---------------------------------------------------------------------------
780 HZ5 85 XA4 130 0.80 0.77 587 0.72 0.13
---------------------------------------------------------------------------
780 HZ5 90 XA4 130 0.20 0.19 13 0.24 0.12
---------------------------------------------------------------------------
780 HZ5 95 XA4 130 0.60 0.58 13 0.56 0.13
---------------------------------------------------------------------------
780 HZ5 100 XA4 130 0.50 0.48 666 1.19 0.07
---------------------------------------------------------------------------
780 HZ5 105 XA4 130 0.45 0.43 1,450 0.61 0.09
---------------------------------------------------------------------------
780 HZ5 110 XA4 137 0.60 0.58 80 0.33 0.10
---------------------------------------------------------------------------
780 HZ5 115 XA4 137 0.40 0.39 9 0.20 0.04
---------------------------------------------------------------------------
780 HZ5 120 XA4 137 0.50 0.48 172 0.85 0.11
---------------------------------------------------------------------------
780 HZ5 125 XA4 150 0.40 0.39 175 0.93 0.09
---------------------------------------------------------------------------
780 HZ5 130 XA4 150 0.50 0.48 36 0.08 0.05
---------------------------------------------------------------------------
780 HZ5 135 XA4 150 0.30 0.29 3 0.11 0.16
---------------------------------------------------------------------------
780 HZ5 140 XA4 150 0.30 0.29 13 0.06 0.04
---------------------------------------------------------------------------
780 HZ5 145 XA4 150 0.40 0.39 573 0.89 0.22
---------------------------------------------------------------------------
780 HZ5 150 XA4 150 0.50 0.48 102 0.37 0.11
---------------------------------------------------------------------------
Length of the zone 85m Weighted 0.56 0.54 540 0.88 0.10
Average
---------------------------------------------------------------------------
PD810-740-HZ5-SYM 740 HZ5 0 A9 137 0.95 0.92 1,116 0.84 0.16
---------------------------------------------------------------------------
740 HZ5 5 A9 137 1.10 1.06 3,046 0.29 0.17
---------------------------------------------------------------------------
740 HZ5 10 A9 137 0.30 0.29 7 0.05 0.08
---------------------------------------------------------------------------
740 HZ5 15 A9 137 0.55 0.53 103 0.19 0.08
---------------------------------------------------------------------------
740 HZ5 20 A9 137 0.55 0.53 22 0.34 0.11
---------------------------------------------------------------------------
740 HZ5 25 A9 137 0.70 0.68 264 3.13 0.12
---------------------------------------------------------------------------
740 HZ5 30 A9 135 0.25 0.24 3 0.01 0.01
---------------------------------------------------------------------------
740 HZ5 35 A9 135 0.40 0.39 51 0.81 0.06
---------------------------------------------------------------------------
740 HZ5 40 A9 135 0.20 0.19 3 0.01 0.01
---------------------------------------------------------------------------
740 HZ5 45 A9 135 0.50 0.48 76 0.28 0.07
---------------------------------------------------------------------------
740 HZ5 50 A9 135 0.35 0.34 3 0.31 0.09
---------------------------------------------------------------------------
740 HZ5 55 A9 135 0.30 0.29 29 0.01 0.06
---------------------------------------------------------------------------
740 HZ5 60 A9 135 0.30 0.29 24 0.01 0.07
---------------------------------------------------------------------------
740 HZ5 65 A9 135 0.50 0.48 875 0.62 0.13
---------------------------------------------------------------------------
Length of the zone 65m Weighted 0.50 0.48 745 0.65 0.11
Average
---------------------------------------------------------------------------
PD810-780-HZ22-NYM 780 HZ22 130 CM'1 146 0.65 0.59 48 0.16 0.06
---------------------------------------------------------------------------
780 HZ22 135 CM'1 146 0.50 0.45 3 0.03 0.04
---------------------------------------------------------------------------
780 HZ22 140 CM'1 122 0.50 0.45 223 1.22 0.16
---------------------------------------------------------------------------
780 HZ22 145 CM'1 122 0.60 0.54 105 1.78 0.08
---------------------------------------------------------------------------
780 HZ22 150 CM'1 115 0.85 0.77 113 0.24 0.05
---------------------------------------------------------------------------
780 HZ22 155 CM'1 115 0.55 0.50 334 0.65 0.11
---------------------------------------------------------------------------
780 HZ22 160 CM'1 135 0.55 0.50 357 1.26 0.03
---------------------------------------------------------------------------
780 HZ22 165 CM'1 135 0.70 0.63 308 0.12 0.04
---------------------------------------------------------------------------
780 HZ22 170 CM'1 135 0.55 0.50 140 1.22 0.06
---------------------------------------------------------------------------
780 HZ22 175 CM'1 122 0.50 0.45 61 1.00 0.02
---------------------------------------------------------------------------
780 HZ22 180 CM'1 122 0.90 0.82 440 0.33 0.02
---------------------------------------------------------------------------
780 HZ22 185 CM'1 122 0.80 0.73 388 0.46 0.07
---------------------------------------------------------------------------
780 HZ22 190 CM'1 122 0.80 0.73 99 0.35 0.10
---------------------------------------------------------------------------
780 HZ22 195 CM'1 122 0.45 0.41 566 0.21 0.04
---------------------------------------------------------------------------
Length of the zone 65m Weighted 0.64 0.58 230 0.60 0.06
Average
---------------------------------------------------------------------------
PD810-780-HZ22-NYM 780 HZ22 215 XA4 140 0.60 0.54 151 0.13 0.08
---------------------------------------------------------------------------
780 HZ22 220 XA4 140 0.85 0.77 650 0.73 0.13
---------------------------------------------------------------------------
780 HZ22 225 XA4 140 0.90 0.82 1,353 0.74 0.25
---------------------------------------------------------------------------
780 HZ22 230 XA4 140 0.95 0.86 867 0.38 0.08
---------------------------------------------------------------------------
780 HZ22 235 XA4 135 0.95 0.86 760 1.30 0.18
---------------------------------------------------------------------------
780 HZ22 240 XA4 135 0.45 0.41 48 0.10 0.01
---------------------------------------------------------------------------
780 HZ22 245 XA4 135 0.40 0.36 323 0.52 0.07
---------------------------------------------------------------------------
780 HZ22 250 XA4 135 0.60 0.54 248 1.84 0.19
---------------------------------------------------------------------------
Length of the zone 35m Weighted 0.71 0.65 650 0.76 0.14
Average
---------------------------------------------------------------------------
PD810-740-HZ5-NYM 740 HZ5 80 A9 138 0.80 0.77 84 3.58 0.09
---------------------------------------------------------------------------
740 HZ5 85 A9 138 0.70 0.68 462 0.17 0.05
---------------------------------------------------------------------------
740 HZ5 90 A9 138 0.70 0.68 998 0.79 0.09
---------------------------------------------------------------------------
740 HZ5 95 A9 138 0.55 0.53 135 0.59 0.12
---------------------------------------------------------------------------
740 HZ5 100 A9 138 0.20 0.19 3 0.01 0.01
---------------------------------------------------------------------------
740 HZ5 105 A9 138 0.30 0.29 3 0.01 0.04
---------------------------------------------------------------------------
740 HZ5 110 A9 138 0.50 0.48 160 0.40 0.13
---------------------------------------------------------------------------
Length of the zone 30m Weighted 0.54 0.52 332 1.08 0.08
Average
---------------------------------------------------------------------------
PD890-HZ22-850-SYM 850 HZ22 0 A5' 121 0.60 0.54 455 1.33 0.27
---------------------------------------------------------------------------
850 HZ22 5 A5' 121 0.40 0.36 10 0.06 0.03
---------------------------------------------------------------------------
850 HZ22 10 A5' 121 0.60 0.54 62 6.01 0.18
---------------------------------------------------------------------------
850 HZ22 15 A5' 121 0.20 0.18 38 0.05 0.02
---------------------------------------------------------------------------
850 HZ22 20 A5' 121 0.40 0.36 16 0.36 0.06
---------------------------------------------------------------------------
850 HZ22 25 A5' 121 0.50 0.45 91 2.91 0.17
---------------------------------------------------------------------------
850 HZ22 30 A5' 121 0.50 0.45 296 7.82 0.14
---------------------------------------------------------------------------
Length of the zone 30m Weighted 0.46 0.41 163 3.11 0.15
Average
---------------------------------------------------------------------------
PD890-HZ22-850-NYM 850 HZ22 0 A4-1 110 0.48 0.44 860 1.85 0.13
---------------------------------------------------------------------------
850 HZ22 5 A4-1 110 0.58 0.53 592 0.46 0.10
---------------------------------------------------------------------------
850 HZ22 10 A4-1 110 0.63 0.57 456 2.14 0.49
---------------------------------------------------------------------------
850 HZ22 15 A4-1 110 0.40 0.36 367 0.59 0.19
---------------------------------------------------------------------------
850 HZ22 20 A4-1 110 0.50 0.45 87 0.09 0.07
---------------------------------------------------------------------------
850 HZ22 25 A4-1 110 0.55 0.50 52 0.05 0.03
---------------------------------------------------------------------------
850 HZ22 30 A4-1 110 0.70 0.63 56 0.08 0.01
---------------------------------------------------------------------------
Length of the zone 30m Weighted 0.55 0.50 339 0.75 0.15
Average
---------------------------------------------------------------------------
PD890-HZ22-850-SYM 850 HZ22 95 A5' 123 0.40 0.36 464 0.45 0.09
---------------------------------------------------------------------------
850 HZ22 100 A5' 305 1.30 1.18 42 0.03 0.01
---------------------------------------------------------------------------
850 HZ22 105 A5' 305 0.80 0.73 40 0.07 0.13
---------------------------------------------------------------------------
850 HZ22 110 A5' 305 0.85 0.77 398 0.33 0.07
---------------------------------------------------------------------------
850 HZ22 115 A5' 305 0.90 0.82 210 0.09 0.01
---------------------------------------------------------------------------
850 HZ22 120 A5' 305 0.80 0.73 304 0.01 0.01
---------------------------------------------------------------------------
850 HZ22 125 A5' 305 0.40 0.36 47 0.21 0.15
---------------------------------------------------------------------------
850 HZ22 130 A5' 305 0.70 0.63 72 0.08 0.04
---------------------------------------------------------------------------
850 HZ22 135 A5' 305 0.80 0.73 356 0.23 0.25
---------------------------------------------------------------------------
850 HZ22 140 A5' 305 0.50 0.45 53 0.23 0.08
---------------------------------------------------------------------------
850 HZ22 145 A5' 305 0.50 0.45 52 0.17 0.08
---------------------------------------------------------------------------
850 HZ22 150 A5' 305 0.90 0.82 64 0.12 0.11
---------------------------------------------------------------------------
Length of the zone 55m Weighted 0.74 0.67 170 0.14 0.08
Average
---------------------------------------------------------------------------
PD850-HZ22-810-SYM 810 HZ22 0 22S1 116 0.50 0.45 249 0.62 0.23
---------------------------------------------------------------------------
810 HZ22 5 22S1 116 0.20 0.18 20 0.15 0.07
---------------------------------------------------------------------------
810 HZ22 10 22S1 116 0.70 0.63 350 0.23 0.17
---------------------------------------------------------------------------
810 HZ22 15 22S1 116 0.60 0.54 775 0.19 0.13
---------------------------------------------------------------------------
810 HZ22 20 22S1 116 0.50 0.45 565 0.46 0.19
---------------------------------------------------------------------------
810 HZ22 25 22S1 116 0.80 0.73 690 0.22 0.10
---------------------------------------------------------------------------
810 HZ22 30 22S1 116 0.60 0.54 307 0.09 0.05
---------------------------------------------------------------------------
810 HZ22 35 22S1 130 0.40 0.36 268 0.42 0.14
---------------------------------------------------------------------------
810 HZ22 40 22S1 130 0.40 0.36 46 1.33 0.05
---------------------------------------------------------------------------
810 HZ22 45 22S1 130 0.60 0.54 46 0.24 0.02
---------------------------------------------------------------------------
810 HZ22 50 22S1 130 0.20 0.18 5 0.13 0.03
---------------------------------------------------------------------------
810 HZ22 55 22S1 130 0.50 0.45 77 0.02 0.02
---------------------------------------------------------------------------
810 HZ22 60 22S1 130 1.30 1.18 797 1.89 0.20
---------------------------------------------------------------------------
Length of the zone 60m Weighted 0.56 0.51 423 0.60 0.12
Average
---------------------------------------------------------------------------
PD850-HZ20-810-SYM 810 HZ20 135 XS40-4 78 0.50 0.48 4,589 5.36 0.93
---------------------------------------------------------------------------
810 HZ20 140 XS40-4 78 0.60 0.58 149 0.22 0.22
---------------------------------------------------------------------------
810 HZ20 145 XS40-4 78 1.00 0.97 353 0.95 0.12
---------------------------------------------------------------------------
810 HZ20 150 XS40-4 78 0.40 0.39 411 10.37 0.17
---------------------------------------------------------------------------
810 HZ20 155 XS40-4 78 0.70 0.68 716 0.52 0.16
---------------------------------------------------------------------------
810 HZ20 160 XS40-4 78 1.00 0.97 247 0.93 0.42
---------------------------------------------------------------------------
810 HZ20 165 XS40-4 78 0.60 0.58 142 0.61 0.05
---------------------------------------------------------------------------
810 HZ20 170 XS40-4 87 0.40 0.39 62 0.69 0.04
---------------------------------------------------------------------------
810 HZ20 175 XS40-4 87 0.60 0.58 9 0.45 0.06
---------------------------------------------------------------------------
810 HZ20 180 XS40-4 87 0.60 0.58 110 0.69 0.04
---------------------------------------------------------------------------
810 HZ20 185 XS40-4 87 0.50 0.48 1,369 12.31 1.62
---------------------------------------------------------------------------
810 HZ20 190 XS40-4 87 0.60 0.58 51 29.58 0.15
---------------------------------------------------------------------------
Length of the zone 55m Weighted 0.63 0.60 606 4.59 0.31
Average
---------------------------------------------------------------------------
PD850-HZ22-810-SYM 810 HZ22 0 XS51-6 138 0.80 0.73 334 0.44 0.38
---------------------------------------------------------------------------
810 HZ22 5 XS51-6 121 0.60 0.54 81 0.47 0.05
---------------------------------------------------------------------------
810 HZ22 25 XS51-6 308 1.20 1.09 89 2.28 0.22
---------------------------------------------------------------------------
810 HZ22 30 XS51-6 138 1.20 1.09 408 5.49 0.24
---------------------------------------------------------------------------
810 HZ22 35 XS51-6 308 0.50 0.45 2,160 1.00 2.08
---------------------------------------------------------------------------
810 HZ22 45 XS51-6 138 0.80 0.73 24 2.30 0.10
---------------------------------------------------------------------------
Length of the zone 45m Weighted 0.85 0.77 394 2.41 0.39
Average
---------------------------------------------------------------------------
PD820-HZ20-770-SYM 770 HZ20 0 S26 78 0.40 0.39 1,159 0.62 1.95
---------------------------------------------------------------------------
770 HZ20 5 S26 78 0.40 0.39 164 0.30 0.12
---------------------------------------------------------------------------
770 HZ20 20 S26 78 0.40 0.39 30 0.92 0.08
---------------------------------------------------------------------------
770 HZ20 25 S26 78 0.40 0.39 86 2.77 0.51
---------------------------------------------------------------------------
770 HZ20 30 S26 78 0.40 0.39 5 0.06 0.06
---------------------------------------------------------------------------
770 HZ20 35 S26 78 0.40 0.39 261 0.37 0.17
---------------------------------------------------------------------------
770 HZ20 40 S26 85 0.50 0.48 76 0.29 0.12
---------------------------------------------------------------------------
Length of the zone 40m Weighted 0.41 0.40 248 0.75 0.42
Average
---------------------------------------------------------------------------
PD820-HZ20-770-SYM 770 HZ20 70 S26 98 0.50 0.48 3,311 0.32 1.26
---------------------------------------------------------------------------
770 HZ20 75 S26 98 0.50 0.48 252 2.16 0.60
---------------------------------------------------------------------------
770 HZ20 80 S26 98 0.40 0.39 19 0.15 0.08
---------------------------------------------------------------------------
770 HZ20 85 S26 98 0.40 0.39 142 0.35 0.09
---------------------------------------------------------------------------
770 HZ20 90 S26 98 0.80 0.77 138 5.22 0.13
---------------------------------------------------------------------------
770 HZ20 95 S26 98 0.80 0.77 98 0.95 0.12
---------------------------------------------------------------------------
770 HZ20 100 S26 98 1.20 1.16 88 2.32 0.17
---------------------------------------------------------------------------
770 HZ20 105 S26 98 0.80 0.77 109 7.27 0.12
---------------------------------------------------------------------------
770 HZ20 110 S26 98 1.20 1.16 546 8.47 0.17
---------------------------------------------------------------------------
770 HZ20 115 S26 98 1.20 1.16 146 2.06 0.10
---------------------------------------------------------------------------
Length of the zone 30m Weighted 0.91 0.88 198 4.11 0.13
Average
---------------------------------------------------------------------------
PD820-HZ20-770-SYM 770 HZ20 5 S32 77 0.80 0.77 1,329 0.05 0.10
---------------------------------------------------------------------------
770 HZ20 10 S32 102 0.80 0.77 45 0.60 less
than
0.10
---------------------------------------------------------------------------
770 HZ20 15 S32 102 0.40 0.39 2 0.26 0.05
---------------------------------------------------------------------------
770 HZ20 20 S32 92 0.80 0.77 405 0.23 0.21
---------------------------------------------------------------------------
770 HZ20 25 S32 92 0.80 0.77 2,420 16.10 0.50
---------------------------------------------------------------------------
770 HZ20 30 S32 92 0.80 0.77 1,836 4.12 1.10
---------------------------------------------------------------------------
770 HZ20 35 S32 98 0.80 0.77 143 0.98 0.19
---------------------------------------------------------------------------
770 HZ20 40 S32 98 0.80 0.77 282 0.42 0.18
---------------------------------------------------------------------------
770 HZ20 45 S32 98 0.80 0.77 468 4.10 0.42
---------------------------------------------------------------------------
770 HZ20 50 S32 91 0.80 0.77 2 0.14 0.14
---------------------------------------------------------------------------
770 HZ20 55 S32 91 0.80 0.77 36 0.55 less
than
0.10
---------------------------------------------------------------------------
Length of the zone 50m Weighted 0.76 0.74 664 2.61 0.27
Average
---------------------------------------------------------------------------
PD820-HZ20-730-SYM- 730 HZ20 0 DS16 101 0.50 0.48 204 0.28 0.24
WCM1-SYM
---------------------------------------------------------------------------
730 HZ20 5 DS16 101 0.40 0.39 117 0.67 0.06
---------------------------------------------------------------------------
730 HZ20 10 DS16 101 0.50 0.48 198 0.54 0.33
---------------------------------------------------------------------------
730 HZ20 15 DS16 101 0.50 0.48 470 0.17 0.27
---------------------------------------------------------------------------
730 HZ20 20 DS16 101 0.50 0.48 102 3.41 0.41
---------------------------------------------------------------------------
730 HZ20 25 DS16 101 0.40 0.39 72 1.80 0.24
---------------------------------------------------------------------------
730 HZ20 30 DS16 101 0.40 0.39 220 4.15 0.13
---------------------------------------------------------------------------
730 HZ20 35 DS16 101 0.40 0.39 1,269 0.78 1.19
---------------------------------------------------------------------------
Length of the zone 35m Weighted 0.45 0.43 322 1.43 0.35
Average
---------------------------------------------------------------------------
PD820-HZ20-730-SYM- 730 HZ20 5 DS16 104 0.40 0.39 297 1.02 0.38
WCM1-NYM
---------------------------------------------------------------------------
730 HZ20 10 DS16 104 0.70 0.68 78 0.17 0.18
---------------------------------------------------------------------------
730 HZ20 15 DS16 104 0.60 0.58 762 0.23 0.18
---------------------------------------------------------------------------
730 HZ20 20 DS16 104 0.70 0.68 842 5.78 1.04
---------------------------------------------------------------------------
730 HZ20 25 DS16 104 0.55 0.53 51 0.20 0.14
---------------------------------------------------------------------------
730 HZ20 30 DS16 104 0.65 0.63 554 1.25 0.64
---------------------------------------------------------------------------
730 HZ20 35 DS16 104 0.55 0.53 158 0.57 0.29
---------------------------------------------------------------------------
730 HZ20 40 DS16 104 0.60 0.58 68 0.18 0.13
---------------------------------------------------------------------------
730 HZ20 45 DS16 104 0.75 0.72 366 0.21 0.21
---------------------------------------------------------------------------
Length of the zone 40m Weighted 0.61 0.59 366 1.13 0.36
Average
---------------------------------------------------------------------------
PD820-HZ20-730-SYM- 730 HZ20 35 DS20 75 1.60 1.55 131 0.27 0.09
ECM2-SYM
---------------------------------------------------------------------------
730 HZ20 40 DS20 75 1.20 1.16 909 0.62 0.23
---------------------------------------------------------------------------
730 HZ20 45 DS20 102 0.80 0.77 166 3.34 0.73
---------------------------------------------------------------------------
730 HZ20 50 DS20 102 0.80 0.77 339 3.36 0.11
---------------------------------------------------------------------------
730 HZ20 55 DS20 88 1.00 0.97 24 0.05 0.10
---------------------------------------------------------------------------
730 HZ20 60 DS20 88 0.80 0.77 12 0.28 0.05
---------------------------------------------------------------------------
730 HZ20 65 DS20 95 0.90 0.87 80 4.36 0.20
---------------------------------------------------------------------------
730 HZ20 70 DS20 95 0.80 0.77 2 0.42 0.05
---------------------------------------------------------------------------
730 HZ20 75 DS20 95 0.80 0.77 5 0.05 0.05
---------------------------------------------------------------------------
730 HZ20 80 DS20 95 0.80 0.77 64 1.46 less
than
0.10
---------------------------------------------------------------------------
730 HZ20 85 DS20 95 0.80 0.77 2 0.13 0.05
---------------------------------------------------------------------------
730 HZ20 90 DS20 87 0.80 0.77 26 0.47 0.11
---------------------------------------------------------------------------
730 HZ20 95 DS20 87 0.80 0.77 30 3.04 less
than
0.10
---------------------------------------------------------------------------
730 HZ20 100 DS20 87 0.80 0.77 448 3.21 0.35
---------------------------------------------------------------------------
730 HZ20 105 DS20 100 1.20 1.16 115 2.97 0.11
---------------------------------------------------------------------------
730 HZ20 110 DS20 100 1.00 0.97 43 5.96 0.46
---------------------------------------------------------------------------
Length of the zone 75m Weighted 0.93 0.90 165 1.83 0.17
Average
---------------------------------------------------------------------------
PD820-HZ20-690-ECM3- 690 HZ20 0 EN5 65 0.60 0.58 1,128 0.09 0.41
NYM
---------------------------------------------------------------------------
690 HZ20 5 EN5 65 0.60 0.58 1,120 0.02 0.31
---------------------------------------------------------------------------
690 HZ20 10 EN5 65 0.40 0.39 855 0.10 0.19
---------------------------------------------------------------------------
690 HZ20 25 EN5 65 0.40 0.39 111 0.04 0.17
---------------------------------------------------------------------------
690 HZ20 30 EN5 65 0.80 0.77 82 0.11 0.08
---------------------------------------------------------------------------
Length of the zone 30m Weighted 0.56 0.54 643 0.08 0.23
Average
---------------------------------------------------------------------------
PD820-HZ20-690-ECM3- 690 HZ20 0 EN5 65 0.60 0.58 1,128 0.09 0.41
NYM
---------------------------------------------------------------------------
690 HZ20 5 EN5 65 0.60 0.58 1,120 0.02 0.31
---------------------------------------------------------------------------
690 HZ20 10 EN5 65 0.40 0.39 855 0.10 0.19
---------------------------------------------------------------------------
690 HZ20 15 EN5 65 0.30 0.29 16 0.11 0.07
---------------------------------------------------------------------------
690 HZ20 20 EN5 65 0.30 0.29 45 0.12 0.13
---------------------------------------------------------------------------
690 HZ20 25 EN5 65 0.40 0.39 111 0.04 0.17
---------------------------------------------------------------------------
690 HZ20 30 EN5 65 0.80 0.77 82 0.11 0.08
---------------------------------------------------------------------------
Length of the zone 30m Weighted 0.49 0.47 535 0.08 0.21
Average
---------------------------------------------------------------------------
PD820-HZ20-690-SYM- 690 HZ20 5 ES10 90 0.40 0.39 110 0.62 0.26
ECM3-SYM
---------------------------------------------------------------------------
690 HZ20 10 ES10 90 0.40 0.39 210 0.19 0.15
---------------------------------------------------------------------------
690 HZ20 15 ES10 90 0.40 0.39 5 0.51 0.13
---------------------------------------------------------------------------
690 HZ20 20 ES10 90 0.40 0.39 363 1.98 0.26
---------------------------------------------------------------------------
690 HZ20 25 ES10 90 0.40 0.39 26 0.26 0.21
---------------------------------------------------------------------------
690 HZ20 30 ES10 90 0.40 0.39 121 0.40 0.32
---------------------------------------------------------------------------
690 HZ20 35 ES10 90 0.80 0.77 500 0.33 0.23
---------------------------------------------------------------------------
690 HZ20 40 ES10 90 0.80 0.77 2,491 3.07 1.97
---------------------------------------------------------------------------
690 HZ20 45 ES10 90 0.80 0.77 1,038 1.34 0.65
---------------------------------------------------------------------------
690 HZ20 50 ES10 90 0.40 0.39 521 1.27 0.22
---------------------------------------------------------------------------
690 HZ20 55 ES10 90 0.80 0.77 679 3.25 1.49
---------------------------------------------------------------------------
690 HZ20 60 ES10 97 0.80 0.77 1,671 0.70 0.79
---------------------------------------------------------------------------
690 HZ20 65 ES10 97 0.80 0.77 1,965 1.09 0.62
---------------------------------------------------------------------------
690 HZ20 70 ES10 97 0.80 0.77 1,784 8.78 0.36
---------------------------------------------------------------------------
690 HZ20 75 ES10 80 0.80 0.77 36 2.43 less
than
0.10
---------------------------------------------------------------------------
690 HZ20 80 ES10 80 1.20 1.16 148 4.09 0.11
---------------------------------------------------------------------------
690 HZ20 85 ES10 98 0.80 0.77 411 0.22 0.19
---------------------------------------------------------------------------
690 HZ20 90 ES10 98 0.80 0.77 480 18.38 0.17
---------------------------------------------------------------------------
690 HZ20 95 ES10 89 0.80 0.77 420 9.21 0.15
---------------------------------------------------------------------------
690 HZ20 100 ES10 89 0.80 0.77 11 0.19 0.05
---------------------------------------------------------------------------
690 HZ20 105 ES10 89 0.80 0.77 5 0.25 0.05
---------------------------------------------------------------------------
690 HZ20 110 ES10 97 0.80 0.77 290 0.50 0.29
---------------------------------------------------------------------------
690 HZ20 115 ES10 97 0.80 0.77 262 0.31 0.17
---------------------------------------------------------------------------
690 HZ20 120 ES10 97 1.20 1.16 134 3.64 0.23
---------------------------------------------------------------------------
690 HZ20 125 ES10 81 0.80 0.77 934 3.68 0.19
---------------------------------------------------------------------------
690 HZ20 130 ES10 81 1.20 1.16 426 6.28 0.00
---------------------------------------------------------------------------
690 HZ20 135 ES10 81 0.80 0.77 252 4.87 0.21
---------------------------------------------------------------------------
Length of the zone 130m Weighted 0.74 0.72 599 3.29 0.35
Average
---------------------------------------------------------------------------
PD820-650- 650 HZ20W 70 F4-1 89 0.40 0.39 68 0.31 0.19
Transportation
---------------------------------------------------------------------------
650 HZ20W 75 F4-1 89 0.50 0.48 120 0.51 0.22
---------------------------------------------------------------------------
650 HZ20W 80 F4-1 89 0.40 0.39 656 0.32 0.40
---------------------------------------------------------------------------
650 HZ20W 85 F4-1 89 0.50 0.48 57 0.22 0.10
---------------------------------------------------------------------------
650 HZ20W 90 F4-1 89 0.70 0.68 46 0.12 0.06
---------------------------------------------------------------------------
650 HZ20W 95 F4-1 89 0.50 0.48 134 0.26 0.19
---------------------------------------------------------------------------
650 HZ20W 100 F4-1 89 1.00 0.97 252 0.57 0.22
---------------------------------------------------------------------------
650 HZ20W 105 F4-1 89 0.50 0.48 69 0.21 0.09
---------------------------------------------------------------------------
Length of the zone 35m Weighted 0.56 0.54 170 0.33 0.18
Average
---------------------------------------------------------------------------
PD820-HZ20W-650- 650 HZ20W 5 FN10 358 1.30 1.26 1,082 0.24 0.80
PD700Main-NYM
---------------------------------------------------------------------------
650 HZ20W 10 FN10 358 1.30 1.26 1,204 0.06 0.59
---------------------------------------------------------------------------
650 HZ20W 15 FN10 358 0.80 0.77 786 0.19 1.08
---------------------------------------------------------------------------
PD820-HZ20W-650- 650 HZ20W 0 FN10 178 1.90 1.84 1,393 0.16 0.61
PD700Main-SYM
---------------------------------------------------------------------------
650 HZ20W 5 FN10 178 1.50 1.45 2,657 0.07 1.48
---------------------------------------------------------------------------
650 HZ20W 10 FN10 178 0.90 0.87 3,952 0.32 2.03
---------------------------------------------------------------------------
650 HZ20W 15 FN10 178 0.80 0.77 3,024 0.15 1.10
---------------------------------------------------------------------------
650 HZ20W 20 FN10 174 1.30 1.26 312 0.05 0.93
---------------------------------------------------------------------------
650 HZ20W 25 FN10 174 0.90 0.87 107 0.23 0.12
---------------------------------------------------------------------------
650 HZ20W 30 FN10 174 2.20 2.13 664 1.00 0.42
---------------------------------------------------------------------------
Length of the zone 45m Weighted 1.29 1.25 1,409 0.30 0.85
Average
---------------------------------------------------------------------------
Table 2: Selected drill results from the HZG Mine
---------------------------------------------------------------------------
Eleva- Reco- Inte- True Mineral-
tion very rval Width Ag Pb Zn ized
Hole ID From To (m) (%) (m) (m) (g/t) (%) (%) Vein
---------------------------------------------------------------------------
ZK43B02 246.59 247.99 711 99 1.12 1.12 637 1.25 0.13 HZ22
320.77 322.09 661 100 1.06 1.05 76 1.11 0.30 HZ23
---------------------------------------------------------------------------
ZK41B02 496.10 498.90 588 100 0.41 0.39 33 2.22 0.18 HZ22
---------------------------------------------------------------------------
ZK43B03 274.40 276.89 645 98 1.45 1.44 234 0.29 0.07 HZ22
463.66 465.33 482 98 0.96 0.95 151 0.55 0.20 HZ23E1
---------------------------------------------------------------------------
ZK41B03 158.41 159.58 797 100 0.42 0.40 618 0.40 0.18 HZ20
---------------------------------------------------------------------------
ZK43B04 496.28 497.28 427 97 0.47 0.47 92 0.34 0.15 HZ23E
536.00 537.32 390 100 0.81 0.78 143 0.40 0.15 HZ23E1
---------------------------------------------------------------------------
ZKB59A001 296.69 298.07 668 100 1.05 1.02 165 0.06 0.10 New Zone
---------------------------------------------------------------------------
ZK45B03 232.18 233.18 717 100 0.58 0.57 18 2.48 1.56 HZ22W
249.92 252.02 701 100 1.21 1.20 255 0.85 0.10 HZ22
---------------------------------------------------------------------------
ZK4703 465.85 468.14 620 99 2.05 2.02 178 3.24 0.17 HZ23
---------------------------------------------------------------------------
ZKB57A003 287.25 289.25 601 100 1.59 1.52 109 0.30 0.06 HZ5
---------------------------------------------------------------------------
ZK47B03 271.05 271.72 733 100 0.55 0.55 141 4.03 0.49 New Zone
319.83 321.20 701 100 1.14 1.13 542 1.02 0.11 HZ22W
360.91 361.92 674 99 0.84 0.83 184 12.86 0.16 HZ22
395.16 396.59 651 100 1.19 1.18 113 0.22 0.10 HZ22E
468.57 469.49 603 93 0.77 0.76 449 0.51 0.32 HZ23
---------------------------------------------------------------------------
ZK47B04 325.94 326.94 680 100 0.90 0.87 69 1.85 0.07 HZ22W
---------------------------------------------------------------------------
ZK4704 474.55 475.60 564 99 0.84 0.83 223 3.03 0.06 HZ23
---------------------------------------------------------------------------
ZK45B04 272.99 274.24 666 100 0.89 0.84 339 0.52 0.23 HZ22
---------------------------------------------------------------------------
ZKB4505 246.53 249.43 715 100 2.43 2.38 149 0.58 0.12 HZ22
323.75 325.25 659 100 1.27 1.24 80 0.97 0.12 HZ23
---------------------------------------------------------------------------
ZK47B05 289.57 291.26 682 99 1.37 1.33 189 0.58 0.08 HZ5
---------------------------------------------------------------------------
Quality Control
Drill cores are NQ size. Drill core samples, limited by apparent mineralization contact or shear/alteration contact, were split into halves by saw cutting. The half cores are stored in the Company’s core shacks for future reference and checking, and the other half core samples are shipped in security sealed bags to the Chengde Huakan 514 Geology and Minerals Testing and Research Institute in Chengde, China, 226 km northeast of Beijing, an ISO9000 certified analytical lab. Sample is dried and crushed to minus 1mm and then split to a 200-300g subsample which is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized sample. One is digested with aqua regia for gold analysis with AAS, and the other is digested with two-acids for analysis of silver, lead, zinc and copper.
Chip samples are collected along sample lines perpendicular to the mineralized vein structure in exploration tunnels. Spacing between sampling lines is typically 5m along strike. Both the mineralized vein and the altered wall rocks are cut with continuous chisel chipping. Sample length ranges from 0.2m to more than 1m, depending on the width of the mineralized vein and the mineralization type.
A routine quality assurance/quality control procedure is adopted at each lab to monitor the analytical quality at the lab. Certified reference materials (CRM), pulp duplicates and blanks are inserted into each lab batch of samples. QA/QC data at the lab are attached to the assay certificates for each batch of samples.
The Company maintains a comprehensive quality assurance and quality control program to ensure best practice in sample preparation and analysis of the drill core samples. Project geologists regularly insert certified reference materials (CRM), field duplicates and blanks to each batch of core samples to monitor the sample preparation and analysis procedures at the labs. The analytical quality of the labs is further evaluated with external checks by sending about 3% of the pulp samples to higher level labs to check for lab bias.
Data from both the Company’s and the labs’ QA/QC programs are timely reviewed and evaluated by project geologists.
Rujin Jiang , P.Geo., is the Qualified Person on the project as defined under National Instrument 43-101. He has verified the information and has reviewed and approved the contents of this news release.
About Silvercorp
Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China which has paid a cash dividend since 2007. The Company is currently developing the GC project in southern China which it expects will become its next operating mine in early 2013. The Company’s vision is to deliver shareholder value by focusing on the acquisition of under developed projects with resource potential and the ability to grow organically. For more information, please visit our website at 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 licenses; 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, 2012 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.
Contacts: Silvercorp Metals Inc. Jonathan Hackshaw Director, Investor Relations 604-669-9397 or Toll Free: 1-888-224-1881 604-669-9387 (FAX) investor@silvercorp.ca www.silvercorp.ca
