Silvercorp Metals Inc. ("Silvercorp" or the
“Company”) is pleased to report that its first underground drill
hole at the DCG Mine in the Ying Mining District, Henan Province,
China intercepted a 1.90 metre (“m”) interval grading 15.0 grams
per tonne (g/t) gold (“Au”).
In 2006, Silvercorp acquired the DCG exploration
permit, which is adjacent to the north of the TLP Mine. It covers
an area of 19.77 km2. A series of drill programs between 2006 and
2011 of 25 drill holes comprised of 9,026 m focused on obvious
lead-zinc veins. A maiden resource estimate that complies with
Chinese government requirements, but not NI 43-101, was completed
in 2014, and Silvercorp successfully converted the exploration
permit to a mining permit in 2015. Information regarding the DCG
Mine, including a resource estimate, will be contained in the
upcoming NI 43-101 update for the Ying Mining District planned to
be released this quarter, currently being prepared by the Company
with assistance from AMC Mining Consultants (Canada) Ltd.
In late 2018, the Company decided to develop the
DCG Mine and bring it into production. At present, 1,670 m of a 4.2
m wide by 3.8 m high access ramp has been developed and the
remaining 95 m should be completed by mid-August 2020, which will
allow for mining late this year.
In addition, a 1,756 m transportation ramp is
also under development from the TLP Mine camp area to enable ore
haulage. So far, 447 m has been completed, with the remaining 1,309
m expected to be completed by the end of April 2021.
Despite the mapping of extensive gold soil
geochemical anomalies at the DCG Mine area by the previous owner in
2003, the 2020 underground drill program at the DCG Mine of 8,000 m
in 22 holes, like the previous drilling, was focused on extending
the previously-identified lead-zinc veins. Three holes have been
completed and assay results have been received for one
hole.
Previously, only very select intervals with
obvious lead-zinc mineralization alteration were sampled for the
drill holes from the Ying Mining District. Recently, as potential
gold mineralization was identified at the nearby LMW, LME and TLP
Mines, the Company has decided to sample the full length of the
drill core. As a result, hole ZK03AC702 intercepted a 1.02 m
interval from 259.01 to 260.03 m grading 1.5 g/t Au and a 1.90 m
interval from 406.86 to 408.76 m grading 15.0 g/t Au (Table 1),
with native gold grains observed to be associated with strong
silicification, and fine pyrite-ankerite veinlets occurring near
the foot wall contact of a diabase dyke with the host Archean
gneisses. The gold-bearing diabase contact appears perpendicular to
the drill hole orientation, and therefore the 1.90 m interval is
believed to be close to true width. The Company was able to make
this discovery of gold mineralization only by sampling the full
length of the drill core. The extension of this gold discovery will
now be the focus of the 2020 drilling program.
Table 1: Initial assay results from the DCG Mine 2020
drill program
Year |
Hole ID |
From(m) |
To (m) |
Elevation(m) |
Interval(m) |
Ag (g/t) |
Pb (%) |
Zn (%) |
Au (g/t) |
Cu (%) |
2020 |
ZK03AC702 |
259.01 |
260.03 |
761.21 |
1.02 |
1 |
0.01 |
0.01 |
1.50 |
0.04 |
|
|
406.86 |
408.76 |
687.29 |
1.90 |
1 |
0.03 |
0.04 |
15.00 |
0.01 |
Table 2 below lists the assay results of select mineralized
drill hole intercepts obtained between 2006 and 2011.
Table 2: Select drill results at the DCG Mine between
2006 and 2011
Year |
Hole ID |
From(m) |
To (m) |
Elevation(m) |
Interval(m) |
True thickness(m) |
Ag (g/t) |
Pb (%) |
Zn (%) |
Au (g/t) |
Cu (%) |
Vein |
2006 |
ZK5002 |
5.48 |
5.73 |
852.67 |
0.25 |
0.18 |
135 |
8.73 |
4.12 |
0.73 |
0.00 |
C9_1 |
2007 |
ZK501 |
239.50 |
239.90 |
750.96 |
0.40 |
0.26 |
10 |
3.63 |
0.10 |
0.16 |
0.02 |
C8 |
2007 |
ZK901 |
29.38 |
30.23 |
987.39 |
0.85 |
0.54 |
115 |
0.71 |
0.00 |
0.09 |
0.02 |
C8-1 |
2007 |
ZK002 |
100.90 |
101.62 |
847.02 |
0.72 |
0.48 |
16 |
7.35 |
0.00 |
0.04 |
0.04 |
C8-1 |
2007 |
ZK002 |
170.70 |
170.94 |
778.26 |
0.24 |
0.17 |
22 |
10.54 |
0.00 |
0.03 |
0.00 |
C8 |
2007 |
ZK002 |
245.60 |
246.20 |
704.6 |
0.60 |
0.35 |
9 |
7.25 |
0.00 |
0.02 |
0.02 |
C8-2 |
2007 |
ZK102 |
246.28 |
246.83 |
703.67 |
0.55 |
0.31 |
167 |
0.74 |
0.05 |
0.34 |
0.02 |
C8 |
2010 |
ZK4001 |
202.76 |
202.88 |
790.29 |
0.12 |
0.10 |
241 |
33.63 |
2.48 |
2.50 |
0.30 |
C4E |
2010 |
ZK4002 |
201.28 |
201.67 |
756.55 |
0.39 |
0.25 |
27 |
5.46 |
0.10 |
0.00 |
0.06 |
C4 |
2010 |
ZK4002 |
234.69 |
235.90 |
725.28 |
1.21 |
0.78 |
12 |
3.89 |
0.41 |
0.05 |
0.01 |
C4E |
2010 |
ZK4042 |
60.82 |
61.12 |
838.57 |
0.30 |
0.21 |
163 |
8.43 |
5.19 |
3.00 |
0.21 |
C4 |
2010 |
ZK4042 |
214.38 |
214.74 |
690.62 |
0.36 |
0.29 |
19 |
4.89 |
0.04 |
0.13 |
0.00 |
C4E |
2010 |
ZK4031 |
234.16 |
234.75 |
835.29 |
0.59 |
0.53 |
90 |
18.02 |
0.17 |
0.01 |
0.03 |
C4E |
2010 |
ZK4032 |
225.86 |
226.66 |
791.84 |
0.80 |
0.55 |
116 |
1.29 |
0.07 |
0.63 |
0.05 |
C4 |
2011 |
ZK4071 |
135.21 |
135.57 |
838.44 |
0.36 |
0.33 |
52 |
10.54 |
0.14 |
0.00 |
0.00 |
C4E |
2011 |
ZK4051 |
138.28 |
139.02 |
869.23 |
0.74 |
0.60 |
17 |
4.27 |
0.09 |
0.00 |
0.04 |
C4E |
2011 |
ZK4052 |
106.94 |
107.44 |
866.65 |
0.50 |
0.32 |
771 |
0.40 |
0.08 |
0.12 |
0.29 |
C4 |
2011 |
ZK4053 |
403.88 |
404.41 |
610.4 |
0.53 |
0.43 |
80 |
9.21 |
0.07 |
0.85 |
0.00 |
C4E |
2011 |
ZK16001 |
236.34 |
237.94 |
767.94 |
1.60 |
1.42 |
132 |
0.20 |
0.70 |
0.02 |
0.05 |
W16 |
Quality Control
Drill cores are NQ size. Drill core samples,
limited by apparent mineralization contact or shear/alteration
contact, were split into halves by saw cutting. The half 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 the Chengde Huakan 514 Geology and Minerals
Test and Research Institute in Chengde, Hebei Province, China, 226
km northeast of Beijing, and the Zhengzhou Nonferrous Exploration
Institute Lab in Zhengzhou, Henan Province, China. Both labs are
ISO9000 certified analytical labs. For analysis the sample is dried
and crushed to minus 1mm and then split to a 200-300 g 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 5 m along
strike. Both the mineralized vein and the altered wall rocks are
cut with continuous chisel chipping. Sample length ranges from 0.2
m to more than 1 m, 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 200 g sample of minus 160 mesh is prepared for assay.
A duplicate sample of minus 1 mm 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 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 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 about 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.
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
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. 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.
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:
social and economic impacts of COVID-19; 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; exploration and
development programs; feasibility and engineering reports; permits
and licenses; title to properties; property interests; joint
venture partners; acquisition of commercially mineable mineral
rights; financing; recent market events and conditions; economic
factors affecting the Company; timing, estimated amount, capital
and operating expenditures and economic returns of future
production; integration of future acquisitions into the Company’s
existing operations; competition; operations and political
conditions; regulatory environment in China and Canada;
environmental risks; foreign exchange rate fluctuations; insurance;
risks and hazards of mining operations; key personnel; conflicts of
interest; dependence on management; internal control over financial
reporting as per the requirements of the Sarbanes-Oxley Act; and
bringing actions and enforcing judgments under U.S. securities
laws.
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, 2020 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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