Silvercorp Drilling Intercepts 1.9 Metres Grading 15 Grams PER Tonne GOLD at the New Dcg MINE
NEWS RELEASE
Trading Symbol: TSX/NYSE AMERICAN: SVM
SILVERCORP DRILLING INTERCEPTS 1.9 METRES GRADING 15 GRAMS PER TONNE GOLD AT
THE NEW DCG MINE, YING MINING DISTRICT, CHINA
VANCOUVER, BRITISH COLUMBIA – July 20, 2020 - 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 gram s
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 requirement s, 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 be en 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 p revious 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 C ompany has decided to sample the full
length of the drill core. As a result, h ole ZK03AC702 intercepted a 1.02 m interval from 259.01 to
260.03 m grading 1.5 g/t Au and a 1.9 0 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 vein lets occur ring 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.
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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, a nd the Zhen gzhou
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 chi sel chipping. Sample length
ranges from 0.2 m to more than 1 m, depending on the width of the mineralized vein and the
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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 practice s 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 Shaver
Vice President
Silvercorp Metals Inc.
Phone: (604) 669-9397
Toll Free: 1(888) 224-1881
Email: [email protected]
Website: www.silvercorp.ca
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