Silvercorp Metals Inc. ("Silvercorp” or the
“Company”) (TSX:SVM) (NYSE American:SVM) is pleased to report
results of its 2016 and 2017 exploration program at its GC Ag-Pb-Zn
mine, Guangdong Province, China.
In 2016 and 2017, the Company launched extensive
exploration program and completed a total of 33,029 meters (“m”) of
underground diamond drilling and 19,619 m of exploration tunneling
at its GC Ag-Pb-Zn mine. Significant high-grade mineralized zones
have been exposed at and below the current production levels, and
major mineralized zones have been extended along strike and
downdip.
The drilling program included infill drilling to
define and upgrade the current resource model, and step-out
drilling for new resources surrounding and below the current
resource area. Between 2016 and 2017, 294 NQ sized diamond drill
holes with total length of 33,029 meters were accomplished at 7
production levels from 150 m to -200 m at 50 m interval (the
elevation of the head frame is 258.5 m). Among them, 153 holes
intersected ore veins with Ag equivalent (AgEq) values greater than
194 g/t, and another 36 holes hit mineralized veins with AgEq
values between 97 and194 g/t (Tab. 1).
Table 1: Summary of the drilling
programs in 2016 and 2017
Year |
Meters Drilled |
Holes Completed |
Samples Collected |
Holes InterceptedMineralization |
Holes InterceptedOre |
2016 |
11,878 |
129 |
2,235 |
29 |
77 |
2017 |
21,151 |
165 |
4,595 |
7 |
76 |
Total |
33,029 |
294 |
6,830 |
36 |
153 |
In 2016 and 2017, 19,619 m of tunneling were
driven along and across the major mineralized vein structures to
upgrade the resource model and test for new vein structures. These
included 7,767 m key drifts that exposed 4,803 m of ore veins, as
well as 4,351 m of key raises that exposed 3,002 m of ore veins
(Tab. 2).
Table 2: Summary of the
tunneling programs in 2016 and 2017
Year |
Tunneling (m) |
Samples Collected |
Key Drifts Included (m) |
Ore Exposed in Drifts
(m) |
Key Raise Included (m) |
Ore Exposed in Raises (m) |
2016 |
9,152 |
4,063 |
2,482 |
1,980 |
1,683 |
1,266 |
2017 |
10,467 |
5,608 |
5,285 |
2,823 |
2,668 |
1,736 |
Total |
19,619 |
9,671 |
7,767 |
4,803 |
4,351 |
3,002 |
Tables 3 and 4 below list assay results of some
selected drill holes that intercepted ores and drift tunnels that
exposed ore zones in the 2016 and 2017 exploration programs.
Table 3: Selected drilling
results from the 2016 and 2017 drilling programs at GC
mine
Year |
Hole ID |
From (m) |
To (m) |
True Width (m) |
Vein |
Elevation (m) |
Ag (g/t) |
Pb (%) |
Zn (%) |
AgEq (1,2) (g/t) |
2016 |
CK10381 |
29.97 |
32.74 |
2.54 |
V12 |
52.1 |
97 |
0.11 |
9.65 |
590 |
2016 |
CK10582 |
85.74 |
89.84 |
2.84 |
V36 |
-73.7 |
78 |
2.66 |
3.21 |
383 |
2016 |
CK11201 |
17.44 |
19.65 |
2.02 |
V28-4 |
-152.0 |
233 |
4.68 |
2.30 |
601 |
2016 |
CK11301 |
11.68 |
27.51 |
8.64 |
V1 |
-151.9 |
48 |
2.03 |
6.08 |
464 |
2016 |
CK3086 |
0 |
8.2 |
6.39 |
V7E |
-101.2 |
90 |
0.62 |
1.69 |
209 |
2016 |
CK3087 |
0 |
6.27 |
3.58 |
V7E |
-100.4 |
134 |
1.48 |
4.01 |
416 |
2016 |
CK4083 |
82.22 |
87.6 |
4.48 |
V7N |
-145.4 |
45 |
1.24 |
3.53 |
290 |
2016 |
CK4083 |
103.44 |
109.69 |
5.20 |
V7E |
-157.4 |
49 |
0.91 |
2.07 |
203 |
2016 |
CK4084 |
50.88 |
60.04 |
7.35 |
V7E |
-115.4 |
43 |
0.89 |
3.87 |
286 |
2016 |
CK4280 |
17.25 |
21.71 |
3.48 |
V10 |
-99.9 |
45 |
1.69 |
5.65 |
421 |
2017 |
18CK26A04 |
126.59 |
132.08 |
3.77 |
V2-4 |
-316.7 |
72 |
0.91 |
3.72 |
309 |
2017 |
18CK26A05 |
277.32 |
281.96 |
3.31 |
V2-2 |
-463.7 |
171.2 |
1.99 |
5.12 |
537 |
2017 |
18CK28A05 |
295.05 |
297.97 |
1.97 |
V6-1 |
-453.0 |
310 |
2.13 |
14.69 |
1,167 |
2017 |
CK10586 |
114.16 |
116.39 |
1.61 |
V9W-2 |
89.2 |
491 |
0.69 |
5.63 |
813 |
2017 |
CK10588 |
33.11 |
37.23 |
2.83 |
V19 |
78.9 |
87 |
3.12 |
2.62 |
387 |
2017 |
CK10691 |
99.57 |
102.38 |
2.14 |
V33 |
43.1 |
191 |
3.68 |
3.09 |
545 |
2017 |
CK1080 |
83.13 |
84.28 |
1.11 |
V40 |
-2.6 |
758 |
1.97 |
2.98 |
1,015 |
2017 |
CK10982 |
117.35 |
128.37 |
6.51 |
V7E |
-193.2 |
55 |
2.02 |
3.55 |
343 |
2017 |
CK10986 |
97.06 |
100.35 |
3.23 |
V14 |
14.3 |
94 |
0.46 |
5.95 |
419 |
2017 |
CK2282 |
56.56 |
60.64 |
3.90 |
V9-9 |
-94.0 |
57 |
1.21 |
6.52 |
451 |
2017 |
CK2688 |
115.76 |
123.59 |
7.57 |
V2E1 |
-245.6 |
64 |
0.75 |
4.00 |
306 |
2017 |
CK26A84 |
135.49 |
138.33 |
2.56 |
V2E1 |
-294.6 |
92 |
1.58 |
5.74 |
467 |
2017 |
CK26A88 |
106.15 |
108.95 |
2.79 |
V2-1 |
-239.4 |
109 |
4.59 |
5.29 |
624 |
2017 |
CK26A88 |
128.67 |
134.78 |
5.53 |
V2E1 |
-248.1 |
58 |
0.82 |
5.65 |
388 |
2017 |
CK28A84 |
116.96 |
120.93 |
3.47 |
V2-4 |
-272.6 |
299 |
3.00 |
10.54 |
993 |
2017 |
CK28A84 |
143.19 |
152.1 |
7.79 |
V2E |
-289.4 |
143 |
3.58 |
4.08 |
542 |
2017 |
CK28A86 |
96.95 |
97.89 |
0.77 |
V18 |
142.0 |
932 |
5.83 |
5.05 |
1,501 |
2017 |
CK30A83 |
184.5 |
191.15 |
5.01 |
V2E |
-297.6 |
101 |
0.90 |
2.89 |
295 |
(1) Metal
prices assumed: Ag USD19/Oz, Pb USD1.0/lb., Zn
USD1.2/lb.(2) Ag equivalent AgEq
= Ag grade (g/t) + 53.9 x Pb grade (%) + 50.5 x Zn grade
(%)
Table 4: Selected drifts that
exposed ore zones at GC mine in 2016 and 2017
Drift ID |
Vein |
Elevation (m) |
Length (m) |
True Width(m) |
Ag (g/t) |
Pb (%) |
Zn (%) |
AgEq(g/t) |
V2W-(-150)-22YM |
V2W |
-150 |
128 |
1.89 |
132 |
2.77 |
3.48 |
457 |
V2W-(-150)-22AYM+CM |
V2W |
-150 |
54 |
8.00 |
132 |
3.12 |
4.63 |
534 |
V2E-(-150)-26EYM |
V2E |
-150 |
300 |
1.70 |
134 |
2.85 |
3.89 |
484 |
V2E-(-200)-28EYM |
V2E |
-200 |
117 |
2.69 |
99 |
1.25 |
4.19 |
379 |
-150-V2E1-26YM |
V2E1 |
-150 |
86 |
5.99 |
96 |
0.66 |
1.78 |
221 |
V2E1-(-200)-26AYM |
V2E1 |
-200 |
71 |
2.70 |
163 |
2.18 |
2.79 |
421 |
V7E(V36)-(-100)-40YM |
V7E |
-100 |
110 |
1.75 |
106 |
2.14 |
4.04 |
426 |
V9-5-(-150)-30WYM |
V9-5 |
-150 |
150 |
1.45 |
96 |
3.41 |
3.57 |
461 |
-100-V10-40AYM |
V10 |
-100 |
210 |
1.29 |
41 |
1.29 |
3.34 |
280 |
V10-1-0-42SYM |
V10-1 |
0 |
145 |
1.57 |
101 |
0.86 |
4.16 |
357 |
V14-50-(105-111)YM |
V14 |
50 |
163 |
0.83 |
129 |
1.93 |
6.15 |
544 |
-100-V16-22AYM |
V16 |
-100 |
208 |
1.73 |
44 |
0.48 |
2.75 |
209 |
V24-0-14SWYM |
V24 |
0 |
90 |
1.10 |
312 |
2.63 |
5.81 |
747 |
The step-out drilling and tunneling in the east
of the mine defined new mineralized vein structures including
V7E、NV10、V14、V19、V31、V32 and V33. Vein V7E has been defined 95 m in
strike length, 150 m in downdip length and 0.8-1.75 m in width,
with average grade of 81 g/t Ag, 1.43 % Pb and 3.08% Zn. The
exploration program at -150m and -200m levels indicated that the
length and width, ore continuity and ore grades improved greatly
with the increase of depth (Tab. 5).
Table 5: Increases of average
grades in veins V2E and V2W with depth
Vein |
Level (m) |
Length (m) |
True Width (m) |
Ag (g/t) |
Pb (%) |
Zn (%) |
AgEq (g/t) |
V2E |
100 |
30 |
1.52 |
212 |
1.42 |
0.59 |
318 |
|
50 |
164 |
1.24 |
71 |
1.73 |
2.83 |
307 |
|
0 |
229 |
1.02 |
74 |
1.32 |
2.40 |
266 |
|
-50 |
225 |
1.2 |
94 |
1.47 |
2.62 |
306 |
|
-100 |
450 |
1.48 |
105 |
1.33 |
2.80 |
318 |
|
-150 |
418 |
1.28 |
122 |
1.94 |
3.35 |
396 |
|
-200 |
400 |
1.92 |
126 |
2.10 |
3.82 |
432 |
V2W |
100 |
77 |
3.57 |
100 |
0.15 |
2.20 |
219 |
|
50 |
174 |
2.15 |
118 |
0.83 |
3.91 |
360 |
|
0 |
106 |
3.03 |
139 |
1.71 |
3.38 |
402 |
|
-50 |
242 |
3.4 |
141 |
1.62 |
3.48 |
404 |
|
-100 |
128 |
2.19 |
120 |
1.39 |
2.51 |
322 |
|
-150 |
183 |
6.32 |
277 |
5.00 |
6.53 |
876 |
In addition, two drill holes, 18CK26A04 and
18CK28A05, hit high-grade mineralization with true width of 3.31 m
and 1.97 m, respectively, at elevation around -455 m. The host rock
of the mineralization is slate, which indicated that the
mineralization system is not limited to granite, but extend into
the sedimentary rock underneath the granite intrusive. Also, the
trend of increasing Ag, Pb, Zn and Cu grades with depth continued
to below -450 m elevation. The assay results of the intercepted ore
of drill hole 18CK28A05 are 310 g/t Ag, 2.13% Pb, 14.96% Zn, 0.73%
Cu, 0.19% Sn and 0.34 g/t Au.
Quality
Control
Drill core samples were taken from sawn half
core for every 1.5m or limited by apparent wall rock and
mineralization contact. Half of the core was sent to the laboratory
for analysis and the other half retained for archive. The channel
samples are collected along sample lines perpendicular to the
mineralized vein structure in exploration tunnels. Sample length
ranges from 0.2 m to more than 1.0 m, depending on the width of the
mineralized vein and the mineralization type. Spacing between
sampling lines is typically 5 m along strike. Both the mineralized
vein and the altered wall rocks are cut with continuous chisel
chipping. The samples are individually secured in cotton sample
bags and then collectively secured in rice bags for shipment to the
on-site laboratory.
For analysis, the sample is dried and crushed to
minus 1 mm and then split to a 200-300 g subsample which is further
pulverized to minus 200 mesh. A duplicate sample of minus 1 mm is
made and kept at the laboratory archives. Two subsamples are
prepared from the pulverized sample. One is digested with two-acids
for analysis of silver, lead, zinc and copper with AAS. The other
is retained as pulp reject at the lab for future reference.
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 lab’s QA/QC
programs are reviewed on a timely basis by project geologists.
Guoliang Ma, P. Geo, Silvercorp’s Manager of
Exploration and Resource, reviewed the exploration data and
prepared the scientific and technical information regarding
exploration results contained herein. He is the Qualified
Person on the project as defined under National Instrument 43-101
and 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
informationSilvercorp Metals Inc.Lorne Waldman
Senior Vice PresidentPhone: (604) 669-9397Toll Free 1(888)
224-1881Email: investor@silvercorp.ca Website:
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.
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 and exploration
results at the Company’s GC mine.
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; and exploration results. 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.
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