TSX: SVM
NYSE AMERICAN: SVM
VANCOUVER, BC, Oct. 13, 2021 /PRNewswire/ - Silvercorp Metals
Inc. ("Silvercorp" or the "Company") (TSX: SVM) (NYSE American:
SVM) is pleased to announce that the Company, through a 100%
subsidiary of Henan Found Mining Co. Ltd. ("Henan
Found"), Silvercorp's 77.5% subsidiary, has won an online
open auction to acquire a 100% interest in the Kuanping
silver-lead-zinc-gold project (the "Kuanping Project"). The
Kuanping Project is located in Shanzhou District, Sanmenxia City,
Henan Province, approximately 33
kilometres ("km") north of the Company's Ying Mining District and
30 km west of the Zhonghe Project.
Auction Details and Payments
- The auction was for a 100% interest in the shares of Shanxian
Xinbaoyuan Mining Co. Ltd. ("Xinbaoyuan"), an affiliate of a Henan
Provincial government-controlled company located in Sanmenxia City,
Henan Province. The only asset
held by Xinbaoyuan is the Kuanping Project.
- The base auction price for Xinbaoyuan was US$8.1 million (RMB¥52.5 million) plus the
assumption of US$2.1 million
(RMB¥13.3 million) debt (the "Debt") of Xinbaoyuan. The final
winning auction price was US$11.4
million (RMB¥73.5 million) plus the assumption of the Debt
for a total US$13.5 million (RMB¥86.8
million).
- Henan Found is required to: (a)
enter into a share transfer agreement within three business days
after the auction, and (b) make the above payment within five
business days after the execution of the share transfer
agreement.
The Kuanping Project
The Kuanping Project covers an area of 12.39 km2,
being approximately 3 km wide (east-west) and 5 km long
(north-south). The Project's exploration rights are currently in a
reservation period in accordance with China's mining law, and the Company is in a
position to apply for the mining permit. Once the mining permit is
granted, then the environmental permit can be applied for.
Previous exploration activities completed include 1,458
metres ("m") of adits, 3,387
m3 of trenching, and 11,759 m of diamond drilling in 52 diamond drill
holes between 2006 and 2013 focused on the 1 km by 1 km
northwest corner of the project area. Exploration has
defined six silver-lead-zinc vein structures and one gold-silver
vein structure. The most explored vein structures are K3 and K4. K3
dips 25 - 55° to the north-northwest, and extends 600 m along strike and 400
m down-dip from surface, while K4 dips 35 - 65° to the
northwest, and extends 960 m along
strike and 540 m down-dip from
surface. K3, K4 and a majority of other veins are still open along
strike and at depth.
Based on the drill grid spacing of 68
m to 170 m along strike, and
45 m to 230
m down dip, mineral resources for silver, lead, zinc, and
gold were estimated in 2013 by the Geological Brigade No. 1 of
Henan Province Non-ferrous Metals Geological and Mineral Resources
Bureau using Chinese standards (not NI 43-101 compliant), and were
posted on the auction website. The mineral rights fee related to
the estimated mineral resources, with a calculated value of
US$5.4 million (RMB¥34.8
million) based on current regulations, has been previously paid in
full.
Highlights of selected drill hole intercepts (see Table 1 for
details):
- Hole ZK40305 intercepted a 4.15
m interval from 179.49 m,
grading 536 grams per tonne ("g/t") silver ("Ag"), 2.47 g/t gold
("Au"), 2.05% lead ("Pb"), and 8.00% zinc ("Zn");
- Hole ZK30703 intercepted a 0.23
m interval from 131.45 m,
grading 1,462 g/t Ag, 0.69 g/t Au, 0.84% Pb, and 1.41% Zn;
- Hole ZK41501 intercepted a 0.36
m interval from 100.63 m,
grading 1,561 g/t Ag, 5.98 g/t Au, 9.09% Pb, and 14.14% Zn;
- Hole ZK41105 intercepted a 0.48
m interval from 215.77 m,
grading 848 g/t Ag, 10.00 g/t Au, 9.82% Pb, and 7.92% Zn; and
- Hole ZK40311 intercepted a 0.43
m interval from 348.33 m,
grading 92 g/t Ag, 8.78 g/t Au, 9.25% Pb, and 4.5% Zn.
Table 1. 27 Drill Holes that Intercepted Significant Silver
Grades
|
|
|
|
|
|
|
|
|
|
Hole
ID
|
From
|
To
|
Interval
|
True
Width
|
Ag
|
Pb
|
Zn
|
Au
|
Vein
|
(m)
|
(m)
|
(m)
|
(m)
|
(g/t)
|
(%)
|
(%)
|
(g/t)
|
ZK0001
|
122.47
|
122.74
|
0.27
|
0.25
|
477
|
3.06
|
0.56
|
0.26
|
K1
|
ZK0003
|
202.18
|
202.38
|
0.20
|
0.19
|
525
|
0.47
|
1.81
|
0.32
|
K1
|
ZK0801
|
122.77
|
123.00
|
0.23
|
0.20
|
1177
|
1.12
|
1.21
|
0.88
|
K1
|
ZK0802
|
107.90
|
108.42
|
0.52
|
0.40
|
219
|
0.68
|
2.39
|
0.05
|
K1
|
ZK0805
|
86.83
|
87.06
|
0.23
|
N/A[1]
|
237
|
0.27
|
0.11
|
0.05
|
N/A[2]
|
ZK20001
|
165.00
|
165.48
|
0.48
|
0.42
|
517
|
0.42
|
1.57
|
0.05
|
K2
|
ZK20701
|
132.09
|
132.47
|
0.42
|
0.40
|
239
|
0.20
|
0.46
|
0.05
|
K2
|
ZK30003
|
174.01
|
174.44
|
0.43
|
0.40
|
332
|
0.29
|
3.20
|
0.05
|
K3
|
ZK30011
|
126.96
|
127.41
|
0.45
|
N/A
|
371
|
0.18
|
0.86
|
0.05
|
N/A
|
ZK30703
|
131.45
|
131.68
|
0.23
|
0.21
|
1,462
|
0.84
|
1.41
|
0.69
|
K3
|
ZK30801
|
114.81
|
115.14
|
0.33
|
0.33
|
249
|
0.32
|
2.01
|
0.16
|
K3
|
ZK30803
|
128.29
|
128.51
|
0.22
|
0.21
|
1,111
|
2.12
|
3.06
|
0.59
|
K3
|
ZK30803
|
129.86
|
130.63
|
0.77
|
0.75
|
338
|
1.39
|
2.45
|
0.15
|
K4
|
ZK30805
|
221.38
|
222.14
|
0.76
|
0.76
|
424
|
1.25
|
2.35
|
0.27
|
K3
|
ZK31601
|
93.22
|
93.51
|
0.29
|
0.27
|
311
|
0.29
|
2.00
|
0.05
|
K3
|
ZK31611
|
195.75
|
196.55
|
0.80
|
0.78
|
234
|
3.35
|
2.60
|
0.65
|
K3
|
ZK40303
|
124.17
|
124.45
|
0.28
|
0.28
|
293
|
2.44
|
1.69
|
1.15
|
K4
|
ZK40305
|
179.49
|
183.64
|
4.15
|
3.19
|
536
|
2.05
|
8.00
|
2.47
|
K4
|
ZK40811
|
221.69
|
221.97
|
0.28
|
0.26
|
395
|
1.41
|
6.19
|
0.07
|
K4
|
ZK41101
|
108.18
|
110.91
|
2.73
|
1.98
|
45
|
0.16
|
0.85
|
0.05
|
K4
|
incl
|
108.18
|
108.49
|
0.31
|
0.22
|
218
|
0.29
|
2.96
|
0.05
|
K4
|
ZK41103
|
152.13
|
155.18
|
3.05
|
1.64
|
59
|
0.28
|
0.75
|
0.34
|
K4
|
incl
|
153.64
|
154.02
|
0.38
|
0.20
|
244
|
0.38
|
1.55
|
2.00
|
K4
|
ZK41105
|
215.77
|
216.25
|
0.48
|
0.42
|
848
|
9.82
|
7.92
|
10.00
|
K4
|
ZK41501
|
78.35
|
78.85
|
0.50
|
0.44
|
528
|
0.72
|
0.94
|
0.05
|
K4
|
and
|
100.63
|
100.99
|
0.36
|
N/A
|
1,561
|
9.09
|
14.14
|
5.98
|
N/A
|
ZK41503
|
111.19
|
111.50
|
0.31
|
0.21
|
604
|
1.06
|
3.19
|
0.05
|
K4
|
ZK41511
|
294.61
|
295.82
|
1.21
|
0.97
|
219
|
1.43
|
8.91
|
0.96
|
K4
|
ZK41907
|
218.07
|
218.37
|
0.30
|
0.20
|
431
|
1.37
|
5.57
|
2.65
|
K4
|
ZKM0701
|
113.37
|
114.56
|
1.19
|
1.14
|
349
|
0.61
|
0.48
|
0.21
|
K3
|
ZK40311
|
348.33
|
349.78
|
1.45
|
1.25
|
33
|
3.15
|
1.57
|
2.85
|
K4
|
incl
|
348.33
|
348.76
|
0.43
|
0.37
|
92
|
9.25
|
4.50
|
8.78
|
K4
|
[1] true width
unknown
|
[2] new veins with no
name assigned
|
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.
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 and GC Mine; 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; legislative and regulatory initiatives addressing
global climate change or other environmental concerns; 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, 2021 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.
CAUTIONARY NOTE TO US INVESTORS
The disclosure in this news release and referred to herein
was prepared in accordance with NI 43-101 which differs
significantly from the requirements of the U.S. Securities and
Exchange Commission (the "SEC"). The terms "proven mineral
reserve", "probable mineral reserve" and "mineral reserves" used in
this news release are in reference to the mining terms defined in
the Canadian Institute of Mining, Metallurgy and Petroleum
Standards (the "CIM Definition Standards"), which definitions have
been adopted by NI 43-101. Accordingly, information contained in
this news release providing descriptions of our mineral deposits in
accordance with NI 43-101 may not be comparable to similar
information made public by other U.S. companies subject to
the United States federal
securities laws and the rules and regulations thereunder.
Investors are cautioned not to assume that any part or all of
mineral resources will ever be converted into reserves. Pursuant to
CIM Definition Standards, "Inferred mineral resources" are that
part of a mineral resource for which quantity and grade or quality
are estimated on the basis of limited geological evidence and
sampling. Such geological evidence is sufficient to imply but not
verify geological and grade or quality continuity. An inferred
mineral resource has a lower level of confidence than that applying
to an indicated mineral resource and must not be converted to a
mineral reserve. However, it is reasonably expected that the
majority of inferred mineral resources could be upgraded to
indicated mineral resources with continued exploration. Under
Canadian rules, estimates of inferred mineral resources may not
form the basis of feasibility or pre-feasibility studies, except in
rare cases. Investors are cautioned not to assume that all or any
part of an inferred mineral resource is economically or legally
mineable. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations; however, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Canadian standards, including the CIM Definition Standards
and NI 43-101, differ significantly from standards in the SEC
Industry Guide 7. Effective February 25,
2019, the SEC adopted new mining disclosure rules under
subpart 1300 of Regulation S-K of the United States Securities Act
of 1933, as amended (the "SEC Modernization Rules"), with
compliance required for the first fiscal year beginning on or after
January 1, 2021. The SEC Modernization Rules replace the
historical property disclosure requirements included in SEC
Industry Guide 7. As a result of the adoption of the SEC
Modernization Rules, the SEC now recognizes estimates of "Measured
Mineral Resources", "Indicated Mineral Resources" and "Inferred
Mineral Resources". In addition, the SEC has amended its
definitions of "Proven Mineral Reserves" and "Probable Mineral
Reserves" to be substantially similar to corresponding definitions
under the CIM Definition Standards. During the period leading up to
the compliance date of the SEC Modernization Rules, information
regarding mineral resources or reserves contained or referenced in
this news release may not be comparable to similar information made
public by companies that report according to U.S. standards. While
the SEC Modernization Rules are purported to be "substantially
similar" to the CIM Definition Standards, readers are cautioned
that there are differences between the SEC Modernization Rules and
the CIM Definitions Standards. Accordingly, there is no assurance
any mineral reserves or mineral resources that the Company may
report as "proven mineral reserves", "probable mineral reserves",
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources" under NI 43-101 would be the same had
the Company prepared the reserve or resource estimates under the
standards adopted under the SEC Modernization Rules.
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SOURCE Silvercorp Metals Inc