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Silvercorp Extends Mineralized Veins By Drilling And Tunneling At The TLP And LME Mines, Ying Mining District, China

Silvercorp Extends Mineralized Veins By Drilling And Tunneling At The TLP And LME Mines, Ying Mining District, China

VANCOUVER, British Columbia – August 24, 2017 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX:SVM / NYSE AMERICAN: SVM) is pleased to report results of the first half of its 2017 exploration programs at the TLP and LME mines, Ying Mining District, Henan Province, China.

In the first half of 2017, the Company completed 17,230 meters (“m”) of underground diamond drilling and 6,196m of exploration tunneling at the TLP and LME mines. Underground drilling continuously extended the major mineralized vein structures along strike and downdip, and drift tunneling exposed high-grade mineralized zones at both mines.

Highlights of selected intersections of drill holes:

LME Mine:

  • Hole ZKL51A21 intersected a 6.85m interval from 21.32m to 28.17m, 6.74m true width, of vein LM5E1 grading 419 grams per tonne (“g/t”) silver (“Ag”), 0.96% lead (“Pb”) and 0.38% zinc (“Zn”) at the 546m elevation, including a 0.58m interval from 23.46m to 24.04m, 0.57m true width grading 1,151g/t Ag, 5.81% Pb and 1.99% Zn, and a 2.16m interval from 41.33m to 43.49m, 2.12m true width, of vein LME grading 1,347 g/t Ag, 1.45% Pb and 0.68% Zn at the 539m elevation;  and
  • Hole ZKL5337 intersected a 7.50m interval from 297.36m to 304.86m, 5.38m true width, of vein LM5 grading 558g/t Ag, 3.31% Pb and 0.56% Zn at the 240m elevation, including a 0.60m interval from 300.94m to 301.54m, 0.43m true width grading 4,229g/t Ag, 19.76% Pb and 0.96% Zn.

TLP Mine:

  • Hole ZKT2541 intersected an 1.17m interval from 86.19m to 87.36m, 0.80m true width, of vein T39W grading 1,577g/t Ag, 10.40% Pb and 3.10% Zn at the 796m elevation.

Highlights of selected mineralization zones exposed in exploration drift tunnels:

LME Mine:

  • Drift Tunnel PD900-LM5E2-550-51NSYM exposed mineralization of 75m long and 1.07m wide (true width) grading 595 g/t Ag, 2.29% Pb and 0.78% Zn within vein structure LM5E on the 550m level.

TLP Mine:

  • Drift Tunnel PD846-T16E-846-4SYM exposed mineralization of 45m long and 0.54m wide (true width) grading 1,621g/t Ag, 2.60% Pb and 0.24% Zn within vein structure T16E on the 846m level; and
  • Drift Tunnel PD820-T14-700-2NYM exposed mineralization of 119m long and 0.86m wide (true width) grading 406g/t Ag, 5.03% Pb and 0.54% Zn within vein structure T14 on the 700m level.

Diamond drill holes are designed to define and upgrade inferred mineral resource blocks and test for new mineral resources. Underground drilling is mainly conducted from current production levels to delineate the downdip and along-strike extensions of known mineralized vein structures in the production area and test for new veins in the previous less-explored areas.

The first half of 2017 drilling program at TLP and LME mines is briefly summarized in the following table:

Major Target
Veins
 Meters DrilledHoles CompletedSamples CollectedHoles with Assay ReceivedHoles Intercepted Vein StructuresHoles Intercepted Mineralization
TLP Mine       
T1W1, T1W2, T8, T11, T15, T15W, T16, T27 ,T28, T38, and T39 12,609441,089454531
LME Mine       
LM3, LM4, LM5, LM6, LM9, and ZG 4,62117639303017

The 2017 exploration tunneling, comprising drifting, crosscutting and raising, was driven along and across major mineralized vein structures to upgrade drill defined mineral resources and test for new parallel and splay structures. The first half of 2017 tunneling program at TLP and LME mines is briefly summarized in the following table:

Major Target Veins Total Tunneling (m)Channel Samples CollectedDrift Tunneling Included (m)Total Mineralization Exposed
by Drift Tunneling
Length (m)Average True Width (m)Ag (g/t)Pb (%)Zn (%)
TLP Mine         
T1, T2, T3, T3E, T4, T5, T14, T14E, T15W, T16, T16W, T16E, T17, T22, T27, T33E 4,4582,1723,2881,2420.664473.730.55
LME Mine         
LM3, LM4, LM5, LM5E, and ZG1 1,7387661,0884420.764421.710.50

Tables 1 and 2 below list the assay results of some selected mineralized intersections in drill holes and mineralized zones exposed in drift tunnels in the first half of 2017 exploration programs.

Table 1: Selected drilling results from the 2017 drilling program at TLP and LME mines

Hole IDFrom (m)To (m)Elevation (m)Interval (m)True Width (m) Ag
(g/t)
Pb (%)Zn (%)VeinRemarks
LME mine          
ZKL503155.9656.494580.530.451100.570.09LM3_1Test*
 208.75209.533380.780.691810.120.63LM6Test
 212.54212.983350.440.391220.432.12LM6ETest
 277.65278.202840.550.482532.832.26LM5EStepout***
ZKL5746358.46358.877670.410.412690.340.44ZG2Test
ZKL51A2115.2216.525481.301.282910.440.17LM5Infill**
 21.3228.175466.856.744190.960.38LM5E1Infill
Including23.4624.045450.580.571,1515.811.99  
 27.2727.765440.490.481,4471.000.11  
 41.3343.495392.162.121,3471.450.68LM5EInfill
Including41.3342.265390.930.911,9681.700.57  
 51.6752.635350.960.842390.810.18LM5E2Test
 300.75301.164500.410.402710.630.33ZG2Infill
ZKL5032237.24237.733050.490.431000.330.20LM6Test
ZKL504321.7323.785492.051.571,3771.251.17LM5Infill
Including22.8823.785480.900.692,5811.832.23  
ZKL510545.8748.555322.682.585820.760.37LM5EInfill
ZKL52A2170.5172.325051.811.609423.980.68LM5Infill
 103.31104.944821.631.431791.680.39LM5EInfill
ZKL532157.7658.175340.410.401090.290.08LM5Test
 93.7795.175221.401.381,3382.430.46LM5EInfill
Including93.7794.455210.680.672,2444.630.66  
ZKL5337297.36304.862407.505.385583.310.56LM5Test
Including300.94301.542360.600.434,22919.760.96  
 315.93316.682230.750.544354.383.33LM5ETest
ZKL53A2121.1922.285471.090.994671.330.93LM5W2Test
 100.91103.235202.322.116932.510.54LM5EInfill
ZKL53A2223.7724.255380.480.423422.531.00LM5W2Stepout
 32.5132.945320.430.382010.720.08LM5WInfill
 111.96112.524820.560.493560.750.58LM5EInfill
 54.9955.495110.500.421050.530.32LM5Test
ZKL5422392.93393.251600.320.221544.082.95LM5ETest
 424.88428.681333.802.592125.831.17LM5E2Test
TLP mine          
ZKT254119.4019.918290.510.352833.001.80T38Test
 86.1987.367961.170.801,57710.403.10T39WTest
ZKG053113.3514.018520.660.611180.200.30T16EStepout
 161.13161.638160.500.46565.101.10T15WTest
ZKG0532211.95212.976851.020.94857.805.20T11Stepout
ZKT2542135.69136.127450.430.281,0330.801.00T39Test
 310.63311.136300.500.34368.202.40T16Stepout
ZKTA120196.5797.239790.660.6354915.402.70T27EStepout
 155.44156.469841.020.951470.400.30T27Infill
ZKTA1002149.64151.249031.600.499926.303.20T1W2Stepout
 163.21163.758970.540.164160.800.10T25Test
 166.83167.998951.160.351180.900.20New vein to be namedTest
ZKG053320.7321.328360.590.391970.400.50T16EInfill
ZKTA1001104.68105.149980.460.423491.300.10T1W2Test
ZKT232693.9494.447550.500.343993.500.40T39WTest
ZKG093321.8222.548360.720.381430.400.50T16EInfill
 261.00262.296291.290.814784.100.30T11Test
ZKG093427.6629.018291.350.612771.000.30T16EInfill
ZKG124150.6050.958100.350.302832.700.90T12Test
ZKT100598.5199.169580.650.492111.700.10T1W2Stepout
ZKT08214.144.579530.430.215451.100.30T16E1Test
ZKT08231.912.839540.920.751340.400.20T16BranchTest
ZKT1744419.08419.466950.380.364600.401.30T15WTest
ZKT06A2125.6728.219442.541.701460.700.30T16ETest
ZKT082260.5661.509940.940.761790.600.10T16ETest
 77.8278.1610040.340.272370.800.10T16Test
ZKG0422201.22201.825230.600.521673.700.70T11Stepout
 284.94285.364680.420.37114.700.50T11EStepout
ZKGA1411154.20154.497720.290.111080.400.60T16WStepout
 166.28169.237662.951.16926.700.10T14EInfill
ZKL260280.7681.589040.820.511991.700.10T15WTest
 324.64325.068570.420.368362.600.60T22Test
ZKT102160.7761.679380.900.381050.300.10T16ETest
 107.34108.399251.050.447675.302.80T16Test

*Test: intersections in open areas without known mineralization for new resource delineation
**Infill: intersections within known resource blocks for resource upgrade
***Stepout: intersections adjacent to existing resource blocks for resource expansion

Table 2: Selected mineralized zones exposed by drift tunneling at TLP and LME mines

Tunnel IDTarget VeinLevel (m)Length (m)True Width (m) Ag
g/t)
Pb
%
Zn
%
TLP Mine       
PD730-T1W2-765-11NYMT1W2765250.631400.650.23
PD1050-T3-1050-1SYMT31050951.011011.560.12
PD800-T3E-800-35SNYMT3E8001150.852555.750.45
PD1070-T4-1070-5NSYMT41070400.405635.000.23
PD840-T5E1-840-13SYMT5E1840350.34 2635.1110.00
PD820-T14-700-2NYMT147001190.86 4065.030.54
PD820-T16E-755-8NYMT16755291.66 9153.400.66
PD820-T16W-700-8SYMT16W700380.621,2076.361.03
PD846-T16E-846-4SYMT16E846450.541,6212.600.24
PD820-T16E-755-8NYMT16E755550.30 1301.510.25
PD820-T17-755-14NYMT17W755600.40  2632.130.22
PD930-T22-930-6NYMT22930250.43  2374.270.20
PD960-T27-960-14NSYMT27960400.49  1592.880.23
PD930-T33E-940-Sublevel-3NSYMT33E940350.57  3035.190.22
PD800-T33E-800-9NYMT33E800250.39  2442.680.59
LME Mine       
PD838-LM3-700-58SYMLM3700300.39  5251.440.41
PD900-LM5-600-60NYMLM5600501.23  3751.500.35
PD900-LM5-500-52SNYMLM5500600.58  4431.110.19
PD900-LM5E-600-67SYMLM5E600500.54  1931.140.57
PD900-LM5E2-550-51NSYMLM5E550751.07  5952.290.78
PD900-LM5E1-560-53NSLM5E1560250.89  5941.080.30

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 Test and Research Institute in Chengde, Hebei Province, China, 226 km northeast of Beijing, and the Zhenzhou Nonferrous Exploration Institute Lab in Zhengzhou, Henan Province, China, and both labs are ISO9000 certified analytical lab. For analysis thesample 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 with AAS.

Channel 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. Channel samples are prepared and assayed with AAS at Silvercorp’s mine laboratory (Ying Lab) located at the mill complex in Luoning County, Henan Province, China. The Ying lab is officially accredited by the Quality and Technology Monitoring Bureau of Henan Province and is qualified to provide analytical service. The channel samples are dried, crushed and pulverized. A 200g sample of minus 160 mesh is prepared for assay. A duplicate sample of minus 1mm is made and kept at the laboratory archives. Gold is analysed by fire assay with AAS finish, and silver, lead, zinc and copper are assayed by two-acid digestion with AAS finish.

A routine quality assurance/quality control (QA/QC) procedure is adopted to monitor the analytical quality at the lab. Certified reference materials (CRMs), 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 its own comprehensive QA/QC program to ensure best practices in sample preparation and analysis of the exploration samples. Project geologists regularly insert 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 3-5% 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 reviewed on a timely basis by project geologists.

Ruijin Jiang, P. Geo, reviewed the exploration data and prepared the scientific and technical information regarding exploration results contained herein. Alex Zhang, P. Geo, VP exploration of the Company, is the Qualified Person on the project as defined under National Instrument 43-101 and he has verified 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. 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.

For further information

Gordon Neal
Vice President, Corporate Development
Silvercorp Metals Inc.

Phone: (604) 669-9397
Toll Free: 1(888) 224-1881
Email: investor@silvercorp.ca  
Website: www.silvercorpmetals.com   

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 District; 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; 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, 2017 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.