VANCOUVER, British Columbia – November 4, 2019 – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX/NYSE American: SVM) is pleased to report the results of its 2018-2019 exploration programs at the TLP and LME mines, Ying Mining District, Henan Province, China. Exploration drilling is ongoing at the TLP and LME mines, and all other mines at the Ying Mining District.
From April 1, 2018 to September 30, 2019, Silvercorp continued the extensive exploration programs at the TLP and LME mines and completed 37,212 metres (“m”) of diamond drilling with six underground rigs from current production levels, and 33,004m of exploration tunneling between elevation levels 500m and 1,070m. Results from the drilling program extended the major mineralized vein structures along strike and downdip, and exploration tunneling exposed high grade mineralized zones within major production vein structures. Eight new mineralized veins were discovered in the TLP mine during this period. Among them, veins T31W3, T26, T26E, T39E, T39E2 and T17E indicate the increasing importance of the NNW and NS striking veins. The drilling results from veins LM5, LM5E and LM4 at the LME mine extended the high-grade mineralized zones to at least the 260m level.
Highlights of selected mineralized zones exposed in the drift tunnels:
- Drift Tunnel PD890-T5E1_1-890-31NYM exposed mineralization 15m long and 0.44m wide (true width) grading 1,784 grams per tonne (“g/t”) silver (“Ag”), 9.55% lead (“Pb”) and 0.81% zinc (“Zn”) within vein structure T31W3 on the 890m level at the TLP mine;
- Drift Tunnel PD1050-T26-1050-A4NYM exposed mineralization 25m long and 1.11m wide (true width) grading 716 g/t Ag, 9.05% Pb and 0.13% Zn within vein structure T26 on the 1050m level at the TLP mine;
- Drift Tunnel PD930-T14E-930-A0SYM exposed mineralization 60m long and 1.66m wide (true width) grading 430 g/t Ag, 5.05% Pb and 0.39% Zn within vein structure T14E on the 930m level at the TLP mine;
- Drift Tunnel PD820-T16-600-1SYM exposed mineralization 80m long and 1.04m wide (true width) grading 719 g/t Ag, 5.19% Pb and 0.92% Zn within vein structure T16 on the 600m level at the TLP mine; and
- Drift Tunnel PD900-LM18E1-915-52NYM exposed mineralization 60m long and 0.47m wide (true width) grading 1,469 g/t Ag, 2.38% Pb and 0.28% Zn within vein structure LM18E1 on the 915m level at the LME mine.
The exploration tunneling from April 1, 2018 to September 30, 2019 at the TLP and LME mines, comprising drifting, crosscutting and raising, was driven along and across major mineralized vein structures to upgrade the drill defined mineral resources and test for new parallel and splay structures, and is summarized in the following table:
Highlights of selected drill hole intersections:
- Hole ZKT0641 intersected a 2.73m interval from 2.12m to 4.85m, 2.00m true width, of vein T3E grading 841 g/t Ag, 0.67% Pb and 0.20% Zn at the 1079m elevation at the TLP mine;
- Hole ZKL7602 intersected a 3.82m interval from 263.75m to 267.57m, 2.71m true width, of vein LM6W grading 491 g/t Ag, 0.78% Pb and 0.16% Zn at the 601m elevation at the TLP mine;
- Hole ZKX11071 intersected a 1.01m interval from 296.36m to 297.37m, 0.82m true width, of vein T2 grading 471 g/t Ag, 2.84% Pb and 0.33% Zn at the 560m elevation, and a 1.19m interval from 317.55m to 318.74m, 0.97m true width, of vein T3 grading 931 g/t Ag, 0.47% Pb and 0.06% Zn at the 546m elevation at the TLP mine; and
- Hole ZKL6105 intersected a 0.79m interval from 113.98m to 114.77m, 0.53m true width, of vein LM4 grading 2,174 g/t Ag, 0.95% Pb and 0.25% Zn at the 497m elevation, and a 0.45m interval from 289.80m to 290.25m, 0.32m true width, of vein LM5 grading 2,217 g/t Ag, 2.90% Pb and 0.91% Zn at the 333m elevation at the LME mine.
The underground drilling program is conducted mainly from the current production levels to delineate the downdip and along-strike extensions of known mineralized vein structures in the production area and test for new vein structures in the previously less explored areas.
The drilling programs from April 1, 2018 to September 30, 2019 at the TLP and LME mines are summarized in the following table:
Tables 1 and 2 below list the assay results of certain mineralized zones exposed in drift tunnels and selected mineralized drill hole intersections from the exploration programs.
Drill cores are NQ size. Drill core samples, limited by apparent mineralization contacts or shear/alteration contacts, were split into halves by saw cutting. The half cores are stored in the Company’s core shacks for future reference and checks, and the other half core samples are shipped in securely-sealed bags to the Chengde Huakan 514 Geology and Minerals Test and Research Institute in Chengde, Hebei Province, China, 226 km northeast of Beijing, the Zhengzhou Nonferrous Exploration Institute Lab in Zhengzhou, Henan Province, China, and the Analytical Lab of the Inner Mongolia Geological Exploration Bureau in Hohhot, Inner Mongolia, China. All the three labs are ISO9000 certified analytical labs. For analysis, the 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 atomic absorption spectroscopy (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 by 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 services. 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 in 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 each lab. Certified reference materials (CRMs), pulp duplicates and blanks are inserted into each batch of lab 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 30 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 approximately 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.
Guoliang Ma, P. Geo., Manager of Exploration and Resource of the Company, is the Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this news release.
Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development. For more information, please visit our website at www.silvercorp.ca.
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Certain of the statements and information in this news 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.
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