Silvercorp reports an Updated NI 43-101 Resource Estimate for the BYP Gold-Lead-Zinc Property in Hunan Province, China
May 08 2019 - 4:05PM
Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX / NYSE
American: SVM) is pleased to report an updated National Instrument
43-101 Technical Report has been completed by RPMGlobal Asia
Limited (“RPM”) on the Baiyunpu (“BYP”) gold-lead-zinc property in
Hunan Province, People’s Republic of China (the “BYP NI 43-101
Technical Report”). The BYP NI 43-101 Technical Report, with
an effective date of April 30, 2019, will be filed under the
Company’s SEDAR profile at www.sedar.com within 45 days of this
news release and on the Company’s website at www.silvercorp.ca.
The 2012 NI 43-101 report on the BYP property
was based on data effective 2011. The current report is based
on an additional 22 diamond drill holes and 1,099 metres of channel
samples from tunnels.
The results of the mineral resource estimates
for the three physically distinct areas (gold, lead & zinc, and
overlap) of the BYP project, as extracted from the BYP NI 43-101
Technical Report prepared by RPM, are presented in Tables 1 and 2.
A 1.6 g/t Au cut-off grade was used for the gold area in the
report based on the following parameters for the project: the
previous underground mining operations, its processing cost, and
120% of the Consensus Price forecasts for the product element as at
January 2019.
|
Table 1 – BYP Property - Mineral Resources for the Gold
Area |
|
|
Area |
Classification |
Au Mineral Resource |
|
|
Quantity |
AuGrade |
AuMetal |
AuMetal |
|
|
Mt |
g/t |
koz |
Tonne |
|
|
Gold area |
Measured |
2.8 |
3 |
269 |
8.37 |
|
|
Indicated |
1.5 |
3.1 |
149 |
4.63 |
|
|
Measured & Indicated |
4.3 |
3.1 |
418 |
13.00 |
|
|
Inferred |
1.3 |
2.5 |
109 |
3.39 |
|
|
Table 2 – BYP Property - Mineral Resources for the Lead and
Zinc Area and the Overlap Area |
|
|
Area |
Classification |
Pb and Zn Mineral Resource |
|
|
Quantity |
PbGrade |
ZnGrade |
AuGrade |
PbMetal |
ZnMetal |
AuMetal |
|
|
Mt |
% |
% |
g/t |
kt |
kt |
koz |
|
|
Lead and Zinc area |
Indicated |
4.0 |
0.7 |
2.3 |
- |
28 |
89 |
- |
|
|
Inferred |
6.1 |
1.4 |
3.1 |
- |
83 |
187 |
- |
|
|
Overlap area |
Indicated |
0.12 |
1.2 |
1.7 |
0.8 |
2 |
2 |
3 |
|
|
Inferred |
0.03 |
2.7 |
3.5 |
1 |
1 |
1 |
1 |
|
Notes:
- CIM Definition standards (2014)
were used for reporting the Mineral Resources.
- All data current to November 30,
2018.
- Silvercorp owns 70% equity interest
of BYP Au-Pb-Zn Project.
- Pb Equivalent (PbEq) formulas used
for equivalent grade is: PbEq= Pb + Zn*1.3069 + Au*2.1386.
- Mineral Resources are reported on a
dry, in-situ basis.
- The overlapped areas were reported
inside lead and zinc resource table based on PbEq cut-off.
- Mineral Resources are reported at a
1.6 g/t Au cut-off and 3% Pb equivalent cut-off. Cut-off
parameters were selected based on an RPM internal cut-off
calculator in which the gold price of USD$1,490 per ounce, Lead
price of USD$2,280/t and Zinc price of USD$2,760/t, increased to
120% of prices from "Energy & Metals Consensus Forecasts", to
reflect long term price movements were applied, and the mining cost
of USD$35 per ton, processing cost of USD$13.3 per ton milled and
processing recovery of 87.41% Au, 85.87% Pb and 92.71% Zn based on
2018 BYP development and utilization plan report were applied.
- No mining license depth limit was
applied for the Mineral Resource reporting. No mining license
depth limit was applied for the Mineral Resource reporting as the
mining license update is still in progress.
- The Mineral Resources referred to
above have not been subject to detailed economic analysis and
therefore have not been demonstrated to have actual economic
viability.
- It should be noted that for any SEC
filings that the SEC does not recognize resources, only reserves
and the resources stated above are classified as mineralized
material with no value.
Mineral Resources estimated for the gold area
include a total of 4.3 million tonnes grading 3.1 g/t Au in the
Measured and Indicated categories, containing approximately 418,000
ounces of gold. The previous mining operation between 2011
and 2014 produced 221,000 tonnes of gold mineralized material at an
average recovered grade of 3.56 g/t Au for approximately 25,335
ounces of recovered gold. Mineralization is open along strike
and down dip for both the gold and lead-zinc areas.
Qualified PersonsMr. Guoliang
Ma, P.Geo., Manager of Exploration and Resource of the Company, is
the Qualified Person for Silvercorp as defined by NI 43-101 and has
reviewed and given consent to the technical information contained
in this news release. Mr. Bob Dennis, Geologist of RPM, Mr.
Tony Cameron, Principal Mining Engineer of RPM, and Mr. Huang Song,
consultant for RPM, are Qualified Persons for the purposes of NI
43-101 and have reviewed and consented to this news release and
believe it fairly and accurately represents the information in the
BYP NI 43-101 Technical Report that supports the disclosure.
The reader is directed to the BYP NI 43-101 Technical Report on
SEDAR or the Company’s website for details of the estimate.
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 informationLon
ShaverVice PresidentSilvercorp Metals Inc.Phone: (604) 669-9397Toll
Free: 1(888) 224-1881Email: investor@silvercorp.ca Website:
www.silvercorp.ca
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