Silvercorp Metals Inc. ("Silvercorp” or the “Company”) (TSX/NYSE
American: SVM) announces its subsidiary, New Infini Silver Inc.
(“New Infini”), has acquired a 100% interest in the La Yesca Silver
Project (“La Yesca” or the “Project”), a silver-polymetallic,
epithermal-type project located in Nayarit State, Mexico,
approximately 100 kilometres (“km”) (185 km by road) northwest from
Guadalajara, the second-largest city in Mexico.
La Yesca Silver Project
The Project covers an area of approximately 47.7
square km. Previous exploration activities between 2014 and
2018 included geological mapping, stream sediment and soil
geochemical surveys, and widely-spaced drilling. A
silver-lead-zinc soil geochemical anomaly of more than 500 metres
(“m”) wide by 7.5 km long has been defined.
A total of 4,878 m3 in 106 trenches and surface
strips and 7,649 m of diamond drilling in 25 widely-spaced drill
holes has been completed to test the southern half of the 7.5 km
long geochemical anomaly in Areas I, II, and III (see Figure
1). Fifty-six surface trenches and all of the 25 near
vertically-drilled holes intersected mineralization, with 22 of the
drill holes intersecting multiple mineralized intervals that have
defined a northwest-trending 1,100 m long and 200 m wide
mineralized zone in Area I, and a 3,500 m long and 400m wide zone
in Areas II and III (see Figure 1).
Highlights of selected drill hole intercepts
(see Table 1 for details):
- Hole ZK3562 intercepted a 3.3 m interval from
197.2 m, grading 744 grams per tonne (“g/t”) silver (“Ag”), 0.12%
lead (“Pb”) and 1.39% zinc (“Zn”);
- Hole ZK3642 intercepted a 10.0 m interval from
78.8 m, grading 977 g/t Ag, 0.23% Pb and 0.59% Zn, and a 2.3 m
interval from 103.8 m, grading 840 g/t Ag, 0.25% Pb and 0.68 %
Zn, and a 6.0 m interval from 127.4 m, grading 388 g/t Ag,
0.11% Pb and 0.45% Zn;
- Hole ZK3721 intercepted a 6.5 m interval from
79.9 m, grading 725 g/t Ag, 0.55% Pb and 1.79% Zn, and a 5.9 m
interval from 92.4 m, grading 293 g/t Ag, 0.22% Pb and 1.38%
Zn;
- Hole ZK3801 intercepted a 2.4 m interval from
36.1 m, grading 823 g/t Ag, 0.30% Pb and 4.01% Zn, and a 3.0 m
interval from 140.2 m, grading 718 g/t Ag, 0.21% Pb and 3.34% Zn;
and
- Hole ZK4002 intercepted a 17.0 m interval from
195.8 m, grading 252 g/t Ag, 0.76% Pb and 2.10% Zn.
Highlights of selected surface trench samples
(see Figure 1):
- TC001 from Area I graded 420 g/t Ag, 0.22% Pb, and 2.80% Zn
across 25.6 m;
- TC111 from Area I graded 389 g/t Ag, 0.09% Pb, and 0.25% Zn
across 14.3 m;
- BT742 from Area III graded 295 g/t Ag, 2.02% Pb, and 1.72% Zn
across 47.6m; and
- TC4081 from Area III graded 161 g/t Ag, 1.38% Pb and 1.32% Zn
across 32.9 m.
Table 1.
Assay results for all 25 drill holes |
|
From |
To |
Interval |
Ag |
Pb |
Zn |
Hole ID |
(m) |
(m) |
(m) |
g/t |
(%) |
(%) |
ZK001 |
20.6 |
26.2 |
5.5 |
141 |
0.13 |
1.28 |
ZK001 |
34.2 |
41.1 |
7.0 |
65 |
0.08 |
1.24 |
ZK002 |
46.4 |
54.4 |
8.0 |
274 |
0.89 |
0.84 |
ZK002 |
61.4 |
65.7 |
4.3 |
243 |
0.19 |
0.90 |
ZK002 |
128.0 |
133.0 |
5.0 |
108 |
0.16 |
0.48 |
ZK003 |
155.0 |
157.0 |
2.0 |
77 |
0.40 |
0.51 |
ZK003 |
166.7 |
168.7 |
2.0 |
159 |
0.90 |
0.59 |
ZK003 |
203.4 |
205.4 |
2.0 |
153 |
0.86 |
0.75 |
ZK003 |
248.8 |
262.3 |
13.5 |
97 |
0.25 |
1.15 |
ZK003 |
328.9 |
338.8 |
9.8 |
122 |
0.43 |
0.57 |
ZK003 |
547.6 |
548.6 |
1.1 |
162 |
0.63 |
1.75 |
ZK031 |
43.4 |
45.9 |
2.5 |
510 |
0.17 |
2.34 |
ZK031 |
64.4 |
66.4 |
2.0 |
292 |
0.18 |
1.39 |
ZK071 |
30.1 |
38.9 |
8.9 |
390 |
0.16 |
1.89 |
ZK071 |
114.4 |
119.3 |
5.0 |
672 |
0.09 |
0.84 |
ZK072 |
30.0 |
34.5 |
4.5 |
73 |
0.01 |
0.31 |
ZK081 |
165.8 |
167.8 |
2.0 |
146 |
0.29 |
0.67 |
ZK081 |
174.0 |
176.0 |
2.0 |
217 |
0.13 |
0.29 |
ZK081 |
185.0 |
190.9 |
5.9 |
185 |
0.11 |
0.59 |
ZK081 |
196.9 |
200.1 |
3.3 |
296 |
0.04 |
0.36 |
ZK161 |
118.0 |
119.2 |
1.2 |
58 |
0.01 |
0.03 |
ZK161 |
125.1 |
132.0 |
6.9 |
88 |
0.05 |
1.05 |
ZK241 |
102.7 |
105.1 |
2.4 |
145 |
0.09 |
1.51 |
ZK241 |
156.4 |
157.9 |
1.5 |
54 |
0.12 |
0.13 |
ZK2001 |
100.9 |
103.0 |
2.1 |
232 |
1.36 |
1.18 |
ZK2001 |
314.8 |
316.1 |
1.3 |
67 |
6.44 |
12.23 |
ZK2001 |
340.4 |
344.3 |
3.9 |
100 |
2.11 |
4.47 |
ZK2041 |
32.2 |
38.2 |
6.0 |
304 |
0.36 |
1.30 |
ZK2041 |
68.3 |
70.9 |
2.6 |
328 |
0.08 |
2.00 |
ZK2042 |
102.5 |
105.1 |
2.6 |
62 |
0.60 |
0.80 |
ZK2081 |
5.2 |
6.6 |
1.4 |
132 |
0.09 |
1.18 |
ZK2081 |
182.7 |
184.0 |
1.3 |
84 |
0.08 |
0.63 |
ZK3481 |
55.4 |
60.6 |
5.2 |
114 |
0.14 |
0.43 |
ZK3481 |
96.0 |
98.6 |
2.6 |
286 |
0.23 |
0.49 |
ZK3561 |
48.7 |
55.0 |
6.3 |
112 |
0.36 |
0.58 |
ZK3561 |
82.8 |
84.1 |
1.3 |
57 |
0.11 |
0.13 |
ZK3561 |
188.9 |
190.9 |
2.0 |
277 |
0.12 |
0.18 |
ZK3561 |
268.8 |
271.4 |
2.6 |
46 |
0.02 |
0.02 |
ZK3562 |
197.2 |
200.5 |
3.3 |
744 |
0.12 |
1.39 |
ZK3562 |
226.5 |
227.8 |
1.3 |
61 |
0.06 |
0.17 |
ZK3562 |
422.2 |
424.8 |
2.6 |
173 |
0.04 |
0.14 |
ZK3562 |
433.9 |
435.2 |
1.3 |
78 |
0.03 |
0.68 |
ZK3641 |
49.4 |
72.6 |
23.2 |
149 |
0.42 |
2.12 |
ZK3641 |
79.8 |
82.4 |
2.6 |
135 |
0.22 |
1.60 |
ZK3641 |
147.7 |
150.3 |
2.6 |
161 |
0.17 |
1.26 |
ZK3641 |
171.9 |
174.5 |
2.6 |
214 |
0.21 |
2.07 |
ZK3642 |
78.8 |
88.7 |
10.0 |
977 |
0.23 |
0.59 |
ZK3642 |
103.8 |
106.1 |
2.3 |
840 |
0.25 |
0.68 |
ZK3642 |
127.4 |
133.4 |
6.0 |
388 |
0.11 |
0.45 |
ZK3721 |
79.9 |
86.4 |
6.5 |
725 |
0.55 |
1.79 |
ZK3721 |
92.4 |
98.3 |
5.9 |
293 |
0.22 |
1.38 |
ZK3722 |
198.9 |
204.3 |
5.3 |
83 |
0.14 |
0.31 |
ZK3722 |
210.9 |
227.2 |
16.3 |
222 |
0.14 |
0.76 |
ZK3801 |
36.1 |
38.5 |
2.4 |
823 |
0.30 |
4.01 |
ZK3801 |
140.2 |
143.2 |
3.0 |
718 |
0.21 |
3.34 |
ZK4001 |
54.9 |
61.2 |
6.4 |
121 |
0.46 |
2.57 |
ZK4001 |
70.8 |
72.1 |
1.3 |
161 |
0.06 |
0.38 |
ZK4001 |
145.6 |
147.6 |
2.1 |
349 |
0.33 |
1.86 |
ZK4001 |
234.3 |
238.2 |
3.9 |
310 |
0.21 |
3.04 |
ZK4002 |
175.1 |
177.7 |
2.6 |
106 |
0.10 |
0.21 |
ZK4002 |
195.8 |
212.7 |
17.0 |
252 |
0.76 |
2.10 |
ZK4002 |
262.5 |
263.6 |
1.2 |
59 |
0.35 |
0.11 |
ZK4081 |
58.0 |
63.4 |
5.4 |
210 |
0.40 |
1.73 |
ZK4081 |
106.2 |
107.5 |
1.3 |
55 |
0.16 |
0.54 |
ZK4081 |
143.0 |
144.3 |
1.3 |
143 |
0.41 |
0.64 |
ZK4082 |
260.5 |
283.9 |
23.4 |
143 |
0.28 |
0.32 |
ZK4082 |
373.7 |
375.9 |
2.2 |
45 |
0.17 |
0.04 |
ZK4082 |
507.7 |
509.0 |
1.3 |
136 |
0.40 |
0.22 |
Notes:
- Intervals are drill core length in m. True widths are
unknown.
- A 50 g/t Ag minimum grade was used in calculating the average
Ag grades.
Figure 1. Project focus area
map: https://www.globenewswire.com/NewsRoom/AttachmentNg/1d77238a-0722-4651-b88b-44eb5a97e391
As the 25 drill holes were widely spaced, near
vertically-drilled and all intercepted mineralization, the previous
owner interpreted the silver mineralization as sub-horizontal or
low angle dipping zones (30-40 degrees) (See Section 372 in Figure
2). During on-site due diligence trips, Silvercorp geologists
observed abundant evidence of steeply-dipping (70-85 degrees) and
northwest (325 degree) extending structures/mineralization in
trenches and outcrops, and observed almost all mineralization
fractures in drill cores as near parallel to the cores, yielding
further evidence that mineralization may have occurred as
sub-vertical (See Section 372 in Figure 2).
This may imply that the mineralized intervals
intercepted by these 25 widely-spaced drill holes are from
multiple, different zones. A hole drilled 100 m away to test
trench mineralization may have intercepted new zones rather than
the mineralized zone revealed by the trenches. The future
drill program will drill holes at a 45 degree angle to either
validate this new model or as in-fill drilling for the low-angle
interpretation. For example, trench BT742, with a 47.6 m
interval grading 295 g/t Ag, 2.02% Pb, and 1.72% Zn, can be easily
tested by a 45 degree drill hole, whether it is a low-angle or
sub-vertical zone.
Figure 2. Section 372 cross
section: https://www.globenewswire.com/NewsRoom/AttachmentNg/15513e7d-e5da-491d-bd8c-ac367e595287
Silvercorp’s independent geological consultant
also took core samples for re-assaying. The results shown in
Table 2 have large variation, but all have significant, high silver
grades.
Table 2. Selected drill core samples
from due diligence re-assay comparison
Hole ID |
From (m) |
To (m) |
Interval (m) |
Original Assay |
Silvercorp Confirmation Assay |
Ag
(g/t) |
Pb
(%) |
Zn (%) |
Ag
(g/t) |
Pb
(%) |
Zn (%) |
ZK3561 |
48.7 |
55.0 |
6.3 |
112 |
0.36 |
0.58 |
99 |
0.14 |
0.28 |
ZK071 |
114.4 |
119.3 |
5.0 |
672 |
0.09 |
0.84 |
353 |
0.21 |
0.39 |
ZK4002 |
195.8 |
207.5 |
11.8 |
316 |
1.09 |
2.80 |
546 |
0.28 |
1.17 |
ZK081 |
196.9 |
200.1 |
3.3 |
296 |
0.04 |
0.35 |
1650 |
0.00 |
0.11 |
ZK3721 |
79.9 |
86.4 |
6.5 |
725 |
0.55 |
1.79 |
564 |
0.49 |
1.00 |
ZK002 |
61.4 |
66.7 |
5.3 |
204 |
0.17 |
0.80 |
1419 |
0.08 |
0.63 |
ZK3722 |
210.9 |
227.2 |
16.3 |
222 |
0.14 |
0.76 |
63 |
0.11 |
0.42 |
ZK3801 |
140.2 |
143.2 |
3.0 |
718 |
0.21 |
3.34 |
83 |
0.20 |
0.51 |
ZK3562 |
197.9 |
200.5 |
2.6 |
943 |
0.15 |
1.78 |
387 |
0.07 |
0.99 |
Note:
1. Intervals are
drill core length in m. True widths are unknown.
Silvercorp Development
Strategy
With successfully incubating New Pacific Metals
Corp. and Whitehorse Gold Corp., Silvercorp intends to follow the
same strategy and list New Infini as an independent public company,
with a controlling interest, in the near future. This
approach allows each company to operate independently on projects
in different jurisdictions to reduce management risk and enables
each company to pursue independent growth and capital allocation
strategies while still maintaining Silvercorp’s interest,
leadership, and core values. The success of this strategy is
attributed to a disciplined and methodical approach in structuring
and financing each new opportunity, and selecting and incentivizing
dedicated and experienced executives and directors with a strong
commitment to sustainable development and shared value
creation.
Agreement Details and Share
Structure
- In December 2020, Silvercorp’s 100%-owned subsidiary, New
Infini, acquired a 100% interest in Infini Resources, S.A. de C.V.
(“Infini SA”), a Mexican corporation which holds a 100% interest in
the La Yesca project, in return for a US$9.25 million cash payment
and a 45% interest in New Infini shares to the arm’s length vendors
(the “Vendors”), pursuant to the terms and conditions of a
framework agreement (the “Agreement”).
- The cash payment of US$9.25 million was provided by Silvercorp
(US$7.57 million) and a group of Silvercorp’s directors, officers,
employees, and consultants (US$1.68 million) in return for their
interests of 45% and 10%, respectively, in New Infini.
- Through New Infini, Silvercorp assumed management and control
of Infini SA and became the operator of the Project.
- A “discovery payment” of up to $30 million calculated on the
basis of US$0.20 per ounce of silver resources as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects (“NI 43-101”), is payable by New Infini to the Vendors
subject to certain permitting considerations.
- A subsequent private placement financing for New Infini in
January 2021 raised US$4.0 million by issuing 8 million shares of
New Infini at US$0.50 per share to Silvercorp, the Vendors and the
management team. The funds will be sufficient to finance an
initial drilling campaign of 10,000 m prior to listing New Infini
as an independent public company.
- The current New Infini share structure after the January 2021
financing has Silvercorp at 21 million shares (43.75%), the Vendors
at 18.6 million shares (38.75%), and management team at 8.4 million
shares (17.50%) of the total 48 million shares outstanding.
Future Exploration Plans
New Infini has assembled a team in Mexico to
apply for drilling permits and to initiate a Phase I 10,000 m
drilling program, which is expected to start in Q2 2021, once
permits are received.
The technical information contained in this news
release has been reviewed and approved by Ruijin Jiang, P. Geo.,
who is a Qualified Person for the purposes of NI 43-101.
About Silvercorp
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.
For further information
Lon ShaverVice PresidentSilvercorp Metals
Inc.
Phone: (604) 669-9397Toll Free: 1
(888) 224-1881Email: investor@silvercorp.ca Website:
www.silvercorp.ca
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For the reasons set forth above, investors should not place
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which differ from the requirements of U.S. Securities laws.
NI 43‐101 is a rule developed by the Canadian Securities
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