SVM.TO · 2019-09-03 12:00:00

News release

Corporate Updates

NEWS

Tradin

VANC

“Com

Instru

Miner

(“AMC

Repub

The fo

Perso

projec

Gaoch

the Co

Highli

From

tonne

Despit

Reserv

of rep

Based

years

with a

g/t fo

2031,

develo

Measu

the n

tonne

The re

open

1The eq

recover

S RELEASE

ng Symbol: TS

SILVERCOR

COUVER, Briti

pany”) (TSX/N

ment 43‐101

ral Reserves e

C”) on the Gao

blic of China (t

our authors o

ns. Two of th

ct, including d

heng NI 43‐10

ompany’s web

ights of the Ga

the start of

es have been m

te mine prod u

ves compared

port June 30, 2

d on Proven a n

through to 2 0

average silver

r the remaind

via conversio

opment.

ured and Indi

umber of vei

es have decrea

esults of the

at depth.

quivalency formul

ries of 77% Ag, 88%

SX: SVM

YSE American

RP REPORTS

sh Columbia

NYSE America

Technical Rep

ffective Dece

ocheng silver‐

the “Gaochen

of the Gaoche

e authors vis i

drill core, und e

1 Technical Re

bsite at www.s

aocheng NI 43

operations at

mined at avera

uction depleti

d to the Mine r

2018).

nd Probable R

031, at an av e

equivalent g

er of the mine

on of existing

cated Minera

ns and conve

ased by 3%.

underground

a is Ag g/t + 46.

% Pb, and 84% Zn,

n: SVM

INCREASED R

– September

an: SVM) is p

port with an e

mber 31, 201

‐zinc‐lead prop

g NI 43‐101 Te

eng NI 43‐101

ted the GC M

erground wor

eport will be m

silvercorp.ca i

3‐101 Technic

t t h e G C M in

age head grad

ion, there ha s

ral Reserve es

Reserves only,

erage annual

rades1 of app

e life. The GC

Mineral Resou

l Resource t o

ersion of Infe

drilling progr

1*Pb% + 42.8*Zn

and respective pa

RESERVES AN

r 3 , 2 0 1 9 – Si

pleased to rep

effective date

8), prepared b

perty (the “GC

echnical Repo

Technical Re

Mine in Janua r

rkings, proces

made availabl

n due course.

cal Report

ne in 2014 th

des of 96 g/t s

s been a 7% i n

stimate in the

, the GC Min e

production ra

roximately 33

Mine also has

urces to Min e

onnes increase

rred material

ram at the GC

n% using prices o

ayables of 85%, 90

ND RESOURCE

ilvercorp Met

port the resu

of June 30, 2

by AMC Mini n

C Mine”) in Gu

ort”).

eport all quali

ry 2018. AMC

sing plant an d

le for review o

rough to Dec

ilver, 1.5% lea

ncrease in to n

previous Tec

e has a projec

ate of approxi

34 g/t for the

s the potentia

eral Reserves,

ed by 42%, w h

l t o a h i g h e r

C M i n e s h o w

f $18/oz Ag, $1.0

0% and 70%.

Silvercorp M

希尔威金属

Suite 1750 – 1

Vancouver, B

Tel: 604‐669‐

Fax: 604‐669

ES AT THE GC

tals Inc. (“Silv

ults of an upd

2019 (Mineral

ng Consultant

uangdong Pro

ify as indepen

examined all

d surface infr a

on the SEDAR

cember 31, 2

ad and 2.7% zi

nnes of Prove n

hnical Report

cted life of mi n

imately 300,0

first six year s

al to extend th

and further e

hich is due t o

classification

that vein stru

00/lb Pb and $1.2

Metals Inc.

矿业有限公司

1066 West Hastings

C, Canada V6E 3X1

‐9397

9‐9387

C MINE

vercorp” or th

dated Nation

Resources an

ts (Canada) Lt

ovince, People

ndent Qualifie

aspects of t h

astructure. Th

system and o

018, 1,251,00

inc.

n and Probab

(effective dat

ne (LOM) of 1

00 tonnes, a n

s and then 2 7

he LOM beyon

exploration an

o an increase

level. Inferre

uc t u r e s a r e st

25/lb Zn, estimate

St.

e’s

till

2018 Mineral Reserve and Mineral Resource Update

Silvercorp completed its first phase of diamond drilling at the GC Mine in 2008. Systematic drilling

commenced on the property in 2011 and continued through to 2018. The previous independent

Mineral Resource and Mineral Reserve estimates on the property were at December 31, 2017

(Technical Report effective date June 30, 2018). All Silvercorp drilling was completed as NQ‐sized

core. Drillhole collars were surveyed using a total station and down hole surveys were completed

every 50 m downhole. Core recoveries varied between 42% and 100%, averaging 97%.

Mineral Reserves

The Mineral Reserve estimates for the GC Mine were prepared by Silvercorp under the guidance of

an independent Qualified Person, Mr. H. A. Smith, P.Eng, of AMC, who takes QP responsibility for

tho s e es timates . T he as s umptio n has been made tha t current s to ping practices will continue to be

employed at the GC Mine, namely predominantly shrinkage stoping (73% of projected LOM) but also

with some cut and fill resuing (27% of projected LOM), using hand‐held drills and hand‐mucking

within stopes, and loading to mine cars by rocker‐shovel or by hand. Minimum mining widths of

1.0 m for shrinkage and 0.5 m for resuing are assumed.

Average dilution beyond planned mining widths has been estimate d at between 13% and 14%, while

assumed mining recovery factors are 92% for shrinkage stopes and 95% for resuing stopes.

The Gaocheng NI 43‐101 Technical Report defines Mineral Reserves of 3.82 million tonnes in the

P r o v e n a n d P r o b a b l e c a t e g o r i e s , g r a d i n g 9 5 g / t A g , 1 . 5 % P b , a n d 3.2% Zn, containing 11.7 million

ounces of silver, 125 million pounds of lead, and 271 million p ounds of zinc. Mineral Reserve tonnes

are noted to be 42% of Mineral Resource (Measured plus Indicated) tonnes. Silver, lead, and zinc

Mineral Reserve grades are 113%, 125% and 114%, respectively, of the corresponding Measured plus

Indicated Mineral Resource grades. Metal content conversions fo r silver, lead, and zinc from

Measured plus Indicated Mineral Resources to Proven plus Probab le Mineral Reserves are 48%, 53%

and 48%, respectively. Mineral Reserves are detailed in Table 1 below.

Table 1 GC Mine ‐ Mineral Reserves

Reserve

classification

Tonnes

(kt)

(g/t)

(%)

Contained metal

Ag (koz) Pb (Mlbs) Zn (Mlbs)

Proven 1,865 94 1.6 3.5 5,611 65 142

Probable 1,955 96 1.4 3.0 6,064 60 129

Proven and Probable 3,820 95 1.5 3.2 11,675 125 271

Notes to Mineral Reserve Statement:

Full breakeven cut‐off grades: Shrinkage = 200 g/t AgEq: Resuing = 245 g/t AgEq.

Marginal material cut‐off grade: Shrinkage = 160 g/t AgEq; Resuing = 205 g/t AgEq.

Dilution (zero grade) assumed as a minimum of 0.1 m on each wall of a shrinkage stope and 0.05 m on each wall of a resuing stope.

Mining recovery factors assumed as 95% for resuing and 92% for shrinkage.

Metal prices: Silver US$18/troy oz, lead US$1.00/lb, zinc US$1.25/lb, with respective payables of 85%, 90% and 70%.

Processing recovery factors: Ag – 77%, Pb ‐ 88%, Zn – 84%.

Effective date December 31, 2018.

Exchange rate assumed is RMB 6.50: US$1.00.

Rounding of some figures may lead to minor discrepancies in totals.

Mineral Reserve cut‐off grade and key estimation parameters are shown in Table 2 below.

Table 2 Mineral Reserve Cut‐off Grades and Key Estimation Parameters

Item GC Mine

Foreign exchange rate (RMB:US$) 6.5 6.5

Shrinkage Resuing

Operating costs

Mining cost (includes development & exploration) ($/t) 35.39 53 .29

Milling cost ($/t) 15.06 15.06

G&A and product selling cost ($/t) 6.82 6.82

Sustaining & non‐sustaining capital ($/t) 6.33 6.33

Mineral Resources tax, etc. ($/t) 6.90 6.90

Total operating costs (US$/t) 70.50 88.40

Mining recovery (%) 92 95

Mill recoveries

Ag (%) 77 77

Pb (%) 88 88

Zn (%) 84 84

Breakeven COG (AgEq g/t) 200 245

Metal price assumptions: Ag $18/oz; Pb $1.00/lb; Zn $1.25/lb; respective payables of 85%, 90%, and 70%.

Mineral Resources:

T h e M i n e r a l R e s o u r c e e s t i m a t e s f o r t h e G C M i n e w e r e p r e p a r e d b y M r S h o u p u X i a n g , R e s o u r c e

Geologist of Silvercorp, and were reviewed by an independent Qu alified Person, Ms. Dinara

Nussipakynova, P.Geo of AMC, who takes responsibility for the e stimates. Resources were estimated

using a block modelling approach, with MicromineTM s o f t w a r e . I n t e r p o l a t i o n w a s c a r r i e d o u t u s i n g

inverse distance cubed (ID3) for all the veins. Estimates were made for a total of 110 min eralized vein

structures for the GC Mine.

The Mineral Resources are reported above a cut‐off of 100 g/t silver equivalent (AgEq). Cut‐off

g r a d e s a r e b a s e d o n i n s i t u v a l u e s i n A g E q t e r m s i n g r a m s p e r tonne (after application of mining

recovery and payable values) and incorporate all mining and proc e s s i n g c o s t s ( n o c a p i t a l , G & A , o r

exploration drilling and tunnelling costs) provided by Silvercorp and reviewed by AMC.

Mineral Resources at December 31, 2018 total 9.1 million tonnes (inclusive of Mineral Reserves) in

the Measured and Indicated categories, grading 84 g/t Ag, 1.2% Pb, and 2.8% Zn, containing

approximately 24.5 million ounces of silver, 233 million pounds of lead, and 564 million pounds of

zinc and are detailed in Table 3 below.

Table 3 GC Mine ‐ Measured & Indicated Resources (Inclusive of Mineral Reserves), and Inferred

Mineral Resources

Resource

classification Tonnes (Mt) Ag (g/t) Pb (%) Zn (%)

Contained metal

Ag (koz) Pb (Mlbs) Zn (Mlbs)

Measured 3.366 96 1.4 3.3 10,350 107 246

Indicated 5.686 77 1.0 2.5 14,155 126 318

Measured

and

Indicated

9.052 84 1.2 2.8 24,505 233 564

Inferred 7.245 91 1.0 2.4 21,167 166 391

Notes: CIM Definition standards (2014) were used for reporting the Mineral Resources

Mineral Resources are reported at a cut‐off grade of 100 g/t AgEq

The equivalency formula is Ag g/t+46.1*Pb% + 42.8*Zn% using prices of $18/oz Ag, $1.00/lb Pb and $1.25/lb Zn and estimated

recoveries of 77% Ag, 88% Pb, and 84% Zn.

Sample results up to 31 December 2018.

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The numbers may not compute exactly due to rounding.

Source: Silvercorp, reproduced as a check by AMC Mining Consultants (Canada) Ltd.

Qualified Persons

D. B. Nussipakynova, P.Geo., H. A. Smith, P.Eng., A. Riles, MAI G and P. R. Stephenson, P.Geo. of AMC

Mining Consultants (Canada) Ltd. are Qualified Persons as defin ed by National Instrument 43‐101. D.

B. Nussipakynova, H. A. Smith, P. R. Stephenson and A. Riles have reviewed and consented to this

press release and believe it fairly and accurately represents t he information in the Technical Report

that supports the disclosure.

About Silvercorp

Silvercorp is a profitable Canadian mining company producing si lver, lead and zinc metals in

concentrates from mines in China. The Company’s goal is to cont inuously create healthy returns to

shareholders through efficient management, organic growth and t he acquisition of profitable

projects. Silvercorp balances profitability, social and environ mental relationships, employees’

wellbeing, and sustainable development. For more information, p lease visit our website at

www.silvercorp.ca

For further information

Lon Shaver

Vice President

Silvercorp Metals Inc.

Phone: (604) 669‐9397

Toll Free: 1(888) 224‐1881

Email: [email protected]

Website: www.silvercorp.ca

CAUTIONARY DISCLAIMER ‐ FORWARD‐LOOKING STATEMENTS

Certain of the statements and information in this news 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 (collectively, “forward‐looking statements”). Any

statements or information that express or involve discussions w ith respect to predictions, expectations, beliefs, plans,

projections, objectives, assumpt ions or future events or perfor mance (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”, “b udgets”, “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 exp ressions) are not statement s of historical fact and may

be forward‐looking statements. Forward‐looking statements relate to, among other things: the price of silver and

other metals; the accuracy of mineral resource and mineral rese rve 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 the 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 are subject to a variety of known an d unknown risks, uncertainties and other factors that

could cause actual events or res ults to differ from those refle cted in the forward‐looking statements, including,

without limitation, risks relating to: fluctuating commodity pr ices; calculation of resources, reserves and

mineralization and precious and base metal recovery; interpreta tions and assumptions of mineral resource and

mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and

licences; 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; competitio n; operations and political conditions; regulatory

environment in China and Canada; environmental risks; foreign e xchange rate fluctuations; insurance; risks and

hazards of mining operations; key personnel; conflicts of inter est; dependence on management; internal control over

financial reporting; 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. Forward‐

looking statements are statements about the future and are inherently uncertain, and actual achievements of the

Company or other future events or conditions may differ materia lly from those reflected in the forward‐looking

statements due to a variety of risks, uncertainties and other f actors, including, without limitation, those referred to in

the Company’s Annual Information Form under the heading “Risk F actors”. Although the Company has attempted to

identify important factors that could cause actual results to d iffer 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.

The Company’s forward‐looking statements are based on the assum ptions, beliefs, expectations and opinions of

management as of the date of this news release, and other than as required by applicable securities laws, the

Company does not assume any obligation to update forward‐looking statements if circumstances or management’s

assumptions, beliefs, expectations or opinions should change, o r changes in any other events affecting such

statements. For the reasons set forth above, investors should not place undue reliance on forward‐looking statements.

← Back to feed