VANCOUVER, British Columbia – September 6, 2012 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM) (NYSE: SVM) is pleased to report the results of the first six months of its 2012 underground diamond drilling program at the GC project in Guangdong Province, China.
The 2012 underground drilling program is a follow up to Silvercorp’s surface drilling program in 2011 and has been mainly focused on major known vein structures V2, V7, V8, V9 and their parallel branch veins. As at July 31, 2012 the Company had completed 7,223 metres (“m”) of drilling in 32 core holes using five underground drill rigs. Assay results for 28 holes have been received while assay results for 5 holes are pending. 22 of the 28 holes for which assay results were received intercepted higher-grade silver-lead-zinc mineralization.
Step-out and in-fill drilling on major vein structures has further defined the known mineralization zones as well as extended the mineralized vein structures down-dip and along strike. The drilling program has also intercepted numerous new mineralized veins (referred to as “New Discovery – to be named” in Table 1) and delineated significant new higher silver grade mineralization in some of those newly discovered vein structures such as V9W-2 and V9W-1 which run parallel to the major known vein structures.
Table 1 below contains assay results for 22 holes that intercepted significant mineralization in the GC project area. Highlights of selected intercepts are:
- Hole CK1000A intercepted 1.45m of vein V23 grading 691 grams per tonne (“g/t”) silver (“Ag”), 0.34% lead (“Pb”), 0.46% zinc (“Zn”) and 0.02% tin (“Sn”) at the 112m elevation, including a 0.45m interval grading 2,190 g/t Ag, 1.04% Pb, 1.42% Zn and 0.06% Sn;
- Hole CK1810 intercepted 3.69m of vein V9 grading 400 g/t Ag, 6.09% Pb, 3.21% Zn and 0.14% Sn at the 240m elevation, including a 1.03m interval grading 1,020 g/t Ag, 16.8% Pb, 5.11% Zn and 0.14% Sn;
- Hole CK2001 intercepted 3.15m of vein V9W-2 grading 441 g/t Ag, 3.29% Pb, 5.71% Zn and 0.16% Sn at the 46m elevation, including a 0.50m interval grading 829 g/t Ag, 9.16% Pb, 4.15% Zn and 0.10% Sn;
- Hole CK2002 intercepted 6.68m of vein V7-0 grading 244 g/t Ag, 2.39% Pb, 4.31% Zn and 0.57% Sn at the minus 265m elevation, including a 1.27m interval grading 555 g/t Ag, 0.38% Pb, 2.66% Zn and 1.81% Sn;
- Hole CK2015 intercepted 0.97m of vein V15-0 grading 2,260 g/t Ag, 1.18% Pb,3.27% Zn and 0.11% Sn at the 132m elevation;
- Hole CK2410 intercepted 3.88m of vein V15-1 grading 609 g/t Ag, 0.41% Pb, 0.56% Zn and 0.03% Sn at the 106m elevation, including a 1.05m interval grading 1,250 g/t Ag, 0.67% Pb, 0.86% Zn and 0.05% Sn;
- Hole CK2613 intercepted 1.15m of vein V15-1 grading 364 g/t Ag, 1.24% Pb, 0.96% Zn and 0.03% Sn at the 104m elevation.
All intervals are reported as downhole lengths and are not corrected to true widths for the mineralized intervals as drill holes typically cut mineralization at variable angles and geometries of mineralized zones remain speculative until further drilling is completed.
Table 1: Selected drill hole results from the GC project:
|CK1000C||3.49||4.92||1.43||108||51||0.08||1.00||0.14||New discovery – to be named|
|CK1003||78.99||82.00||3.01||71||0.24||2.13||0.03||New discovery – to be named|
|CK1215||27.24||28.83||1.59||210||0.89||0.63||0.09||New discovery – to be named|
|CK1409||90.73||92.13||1.40||49||111||0.37||0.18||<0.01||New discovery – to be named|
|127.36||128.76||1.40||29||41||0.04||2.99||0.07||New discovery – to be named|
|CK1810||146.63||148.22||1.59||63||102||0.19||0.87||0.06||New discovery – to be named|
|CK2002||156.15||158.27||2.12||25||158||0.37||1.37||0.07||New discovery – to be named|
|163.32||165.96||2.64||19||215||0.77||1.49||0.30||New discovery – to be named|
|226.49||227.49||1.00||68||248||0.24||7.08||0.15||New discovery – to be named|
|CK2609||141.95||142.60||0.65||40||374||4.81||1.26||0.36||New discovery – to be named|
|218.75||220.38||1.63||-29||38||0.69||1.00||0.07||New discovery – to be named|
|230.55||232.27||1.72||77||20||0.01||2.27||0.09||New discovery – to be named|
|241.46||242.86||1.40||73||60||0.16||1.35||0.08||New discovery – to be named|
|268.69||270.52||1.83||62||64||0.09||3.05||0.16||New discovery – to be named|
|273.20||275.22||2.02||60||53||0.44||2.47||0.06||New discovery – to be named|
|303.18||306.77||3.59||50||150||2.48||2.12||0.11||New discovery – to be named|
|CK2805||127.64||127.84||0.20||56||156||6.55||5.18||<0.01||New discovery – to be named|
|CK3003||9.14||9.74||0.60||86||52||0.01||3.14||0.07||New discovery – to be named|
|26.33||26.95||0.62||75||17||0.07||2.53||0.04||New discovery – to be named|
|141.13||144.69||3.56||1||41||1.19||3.16||0.08||New discovery – to be named|
|210.16||214.44||4.28||-43||47||0.38||0.88||0.05||New discovery – to be named|
|219.23||222.15||2.92||-48||11||1.07||0.86||0.04||New discovery – to be named|
|300.37||301.43||1.06||-98||102||0.11||0.73||0.04||New discovery – to be named|
|375.81||376.99||1.18||-145||174||0.50||0.55||0.70||New discovery – to be named|
|CK3202||9.53||10.30||0.77||85||53||0.01||9.80||0.23||New discovery – to be named|
|30.05||31.02||0.97||71||67||0.24||7.34||0.20||New discovery – to be named|
|165.38||169.56||4.18||-20||44||0.75||1.29||0.11||New discovery – to be named|
|191.75||193.61||1.86||-37||198||0.10||0.52||0.08||New discovery – to be named|
Drill cores are in NQ size. Drill core samples, from 1.00m to 1.50m in length, or limited by apparent mineralization contact or shear/alteration contact, were split into halves by saw cutting. One half of the 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 ALS Chemex in Guangzhou, China (Certification ISO 9001), located approximately 180 km southeast of the GC project site for sample preparation and assay.
Sample preparation consists of drying, crushing and splitting of the sample to 250 grams and then the sample is pulverized to 200 mesh. Silver, lead and zinc in drill core samples were analyzed by aqua regia digestion and AAS finish. Tin was analyzed by fusing with peroxide then by leaching the melt and acidifying to precipitate the tin for AAS finish.
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 into 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 reviewed and evaluated frequently 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.
Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China which has paid a cash dividend since 2008. 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 small-scale projects with resource potential and self-fund the growth of those assets. For more information, please visit our website at www.silvercorp.ca.
For further information
Chairman & CEO
Investor Relations Director
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
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