Silvercorp Provides Plan to Develop the Condor Gold Project as a High-Grade Underground Mine
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NEWS RELEASE
Trading Symbols: SVM (TSX/NYSE American)
Silvercorp Provides Plan to Develop the Condor Gold Project as a
High-Grade Underground Mine
VANCOUVER, British Columbia –December 4, 2024 – Silvercorp Metals Inc. (“Silvercorp” or the
“Company”) (TSX/NYSE American: SVM) is pleased to report its plans to develop the Condor gold
project (the “Project”), located in southern Ecuador. A preliminary economic assessment (PEA)
was completed on the Project1 by a previous operator, which outlined a high tonnage, low-grade,
open pit gold project.
The Project comprises a cluster of gold deposits in the Condor North area (Figure 1), with Camp
and Los Cuyes contributing the majority of the known mineral resources. Each deposit is unique
and different from the others on a deposit scale. Previous drilling reported numerous long core
intersections of gold mineralization, usually consisting of higher-grade intervals and surrounding
lower-grade halos.
After reviewing the technical Project data, including re-logging of the historical core, the Company
believes that high-grade g old mineralization mostly occurs in subvertical vein /rhyolitic dyke
structures containing pyrite and sphalerite . Minor amounts of galena and chalcopyrite are also
present and may form low grade halos, which can be quite extensive along certain volcanic layers.
Select drilling intercepts (Table 1) , show higher -grade drill intervals with true widths over 3.5
metres (“m”). This highlights the potential for selective underground mining at Condor .
Noteworthy intercepts include:
• Camp: CC19-01, 9.03 grams per tonne (“g/t”) over 8.05 m true width from 260 m
• Enma: DEN-31, 44.16 g/t Au over 4.5 m true width from 90 m
• Los Cuyes: DCU-17B, 8.98 g/t Au over 16.7 m true width from 202 m
• San Jose: DD-004, 9.00 g/t Au over 21.1 m true width from surface
1 Condor Project NI 43-101 Report on Preliminary Economic Assessment Zamora-Chinchipe, Ecuador, July 28, 2021, filed under
Luminex Resources on Sedar+
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Development Plan for a Possible Underground Operation
In order to advance the Condor gold project as an underground operation, the Company will focus
on high-grade gold structures/rhyolitic dykes. Work to be conducted may include:
1. Studies and Permitting
a. Re-estimate mineral resources as an underground focused operation.
b. Publish a Preliminary Economic Assessment as an underground mine operation.
c. Execute community agreements and complete government permitting process in order
to develop exploration tunnels.
2. Underground Tunneling
a. Develop two cross-cut exploration access tunnels, at two different elevations, to confirm
the high-grade gold intervals.
b. Conduct underground drilling to inform a future feasibility study and to improve the
understanding of the geology.
3. Construction Readiness
a. Complete a feasibility study based on the data gathered from the underground
tunneling program.
b. Complete permitting for a process plant, underground mine and tailings storage facility.
c. Construction decision.
4. Drilling:
Limited drilling will target the high-grade mineralized structures by optimizing the grid pattern
and could include:
a. Infill drilling: Targeted between previous drill sections to confirm the continuity of high-
grade mineralized structures.
b. Step-out drilling: Targeted along strike and dip of known high -grade zones to increase
the mineral resource.
c. New targets:
a) Broad zones of sub-horizontal disseminated gold mineralization which
occur within the rhyolitic tuffs at Los Cuyes.
b) Contact zone of crypto rhyolite domes with batholith granodiorite for
wide mineralization at Camp.
c) Region between the Camp and Los Cuyes deposits.
d) Gap area between Camp and Soledad, testing for potential connection
of NW trending mineralized structures across the two deposits and for
potential strike extension of NW trending mineralized structures.
e) Gap between the Los Cuyes and Enma deposits for potential strike
extension of NW trending mineralized structures.
f) Test expansion potential of near-surface, high-grade breccia deposits
such as San Jose/Soledad.
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Deposit Descriptions
The Condor deposits are hosted in a Cretaceous volcanic complex of diatremes and rhyolite/dacite
intrusives crosscutting the Zamora batholith granodiorite of Jurassic age. The Project consists of
the following five known deposits:
• Los Cuyes: Gold is hosted in a volcanic diatreme which crosscuts a granodiorite batholith.
The diatreme, with a dimension of 450m in NE -SW x 300m in NW -SE x 350m depth
comprises phreatomagmatic breccias, tuff and sediments, all of which are cross -cut by
NW and NE striking dykes of rhyolite and dacite.
Gold mineralization mostly occurs in subvertical vein structures containing pyrite and
sphalerite with minor amounts of galena and chalcopyrite. The vein -like mineralisation
primarily occurs along the contact zones of intrusive dykes with the surrounding volcanics
and Granodiorite batholith. In addition, gold is also associated with sulfide dissemination
occurring in rhyolitic tuff units, resulting in wide sub -horizontal zones of gold
mineralization.
• Camp: Gold mineralization occurs within veins of pyrite/sphalerite and is controlled by
NW striking rhyolite dykes at shallow levels, as well as crypto intrusive domes of rhyolite
at depth. Gold mineralization remains open beyond a depth of 700 metres based on
existing drill data.
• Soledad: Gold mineralization is associated with pyrite/sphalerite replacement of feldspar
grains (patchy) or veins hosted in a rhyodacite porphyry. At San Jose, gold mineralization
consists of sphalerite-rich veins hosted in phreatomagmatic breccia.
• Guaya: Gold mineralization is associated with pyrite -sphalerite veins hosted in a rhyo -
dacite porphyry.
• Enma: Gold mineralization occurs within veins of pyrite/sphalerite hosted in the rhyolitic
breccia along the contact between dacitic tuff and granodiorite batholith.
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Table 1 Select High-Grade Drill Intervals from Previous Drilling
Area Hole ID From
(m)
To
(m)
Interval
(m)
Estimated
True Width
(m)
Au
(g/t)
Ag
(g/t)
Zn
(%)
Camp CC19-01 260.13 272.00 11.87 8.05 9.03 9 0.25
Camp CC19-02_EXT 308.00 323.44 15.44 10.70 5.11 12 0.69
Camp CC19-03 155.00 167.00 12.00 7.30 7.27 19 0.43
Camp 173.00 185.00 12.00 7.30 5.25 9 0.62
Camp CC19-11 114.00 126.00 12.00 8.90 5.55 11 0.52
Camp CC19-12 646.00 665.30 19.30 9.50 6.09 36 1.25
Camp CC19-14 209.00 227.00 18.00 7.10 5.85 35 2.26
Camp CC19-21 348.00 358.00 10.00 6.00 8.39 99 3.17
Camp CC20-28 421.00 432.00 11.00 7.05 7.56 184 4.39
Camp CC20-29 628.00 638.00 10.00 6.71 6.34 38 2.25
Enma DEN-31 90.00 106.00 16.00 4.50 44.16 561 0.29
Los Cuyes CU23-17 255.40 268.00 12.60 8.10 5.58 79 0.31
Los Cuyes CU23-20 269.00 281.00 12.00 8.10 5.55 52 0.56
337.00 343.00 6.00 4.08 7.81 18 0.12
Los Cuyes CU23-22 314.00 319.00 5.00 3.50 15.77 107 2.6
Los Cuyes CU23-25 221.00 247.00 26.00 15.80 5.87 25 0.72
Los Cuyes DC001 238.00 245.00 7.00 4.87 8.78 28 1.05
Los Cuyes DCU-17B 202.00 242.00 40.00 16.70 8.98 55 2.78
Los Cuyes 274.00 296.00 22.00 9.00 8.14 33 2.44
Los Cuyes DCU-18 296.00 312.00 16.00 4.30 5.10 51 2.42
Los Cuyes DCU-27 94.00 112.00 18.00 4.50 5.56 9 0.05
Los Cuyes DCU-41 262.00 274.80 12.80 7.60 5.30 43 0.73
San Jose DD-004 0.00 45.00 45.00 21.10 9.00 7 0.76
San Jose DD-005 1.00 13.41 12.41 9.00 10.70 7 0.72
San Jose DD-005A 2.00 20.00 18.00 15.10 10.00 10 0.52
San Jose DD-005A 29.00 40.00 11.00 7.80 5.40 5 0.21
San Jose DD-006 0.91 24.00 23.09 9.60 5.66 5 0.84
San Jose DD-053 91.00 101.00 10.00 5.40 5.91 33 0.32
San Jose DSJ-03 42.50 52.50 10.00 n/a 5.70 4 0.27
San Jose DSJ-07 25.00 40.00 15.00 5.50 6.80 2 0.38
San Jose DSJ-09 20.00 45.47 25.47 n/a 5.00 13 0.47
San Jose DSJ-10 5.00 22.50 17.50 n/a 5.50 5 0.16
San Jose DSJ-17 5.55 38.05 32.50 n/a 5.20 9 0.58
San Jose DSJ-19 0.00 10.00 10.00 n/a 9.20 8 0.58
Note:
1). The compositing of drill intercepts is done using a cut-off grade of 2g/t gold, may include lower grade samples within.
2). True width is estimated based on the current interpretation of mineralized structures.
3). n/a - no adequate information to make estimate of true width
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Figure 1: Condor plan view showing deposits
Qualified Person
The scientific and technical information contained in this news release has been reviewed and
approved by Alex Zhang, P. Geo., technical consultant of Silvercorp (the “Qualified Person”), who
is a qualified person under National Instrument 43 -101 Standards of Disclosure for Mineral
Projects (“NI 43-101”) for the purposes of NI 43-101.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history
of profitability and growth potential. The Company’s strategy is to create shareholder value by 1)
focusing on generating free cashflow from long -life mines; 2) organic growth through extensive
drilling for discovery; 3) ongoing merger and acquisition efforts to unlock value; and 4) a long -
term commitment to responsible mining and ESG. For more information, please visit our website
at www.silvercorpmetals.com.
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For further information:
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: [email protected]
Website: www.silvercorpmetals.com
CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS
This news release includes “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 securities laws relating to, among other thi ngs the discussions regarding the grade gold
mineralization, the development plan for a possible underground operation , including with respect to
future drilling, the timing of publication of technical reports for the Project as an underground mine
operation, executing community agreements and the government permitting process in order to develop
exploration tunnels and the timing thereof. By their very nature, forward -looking statements involve
known and unknown risks, uncertainties and other factors that may cause our actual results, performance
or achievements to be materially different from any future results, performance or achievements expressed
or implied by the forward -looking statements. Such factors includ e, amongst others, risks related to the
exploration, development, production, recoveries and other anticipated or possible future developments
at Condor including, without limitation, risks relating to inaccurate geological and engineering assumptions;
risks relating to unanticipated operational difficulties (including failure of equipment or processes to
operate in accordance with specifications or expectations, cost escalation, unavai lability of materials and
equipment, government action or delays in the receipt of government approvals, industrial disturbances or
other job action, and unanticipated events related to health, safety and environmental matters); escalation
in artisanal and/or illegal mining activity, incursions, or incidents of local community unrest in response to
increased Project activity, social opposition generated by interference from external actors, including illegal
mining interests, environmental or social activists, and politicians, who may oppose activity at the Project,
risks relating to adverse weather conditions; changes in general economic conditions or conditions in the
financial markets ; and general economic, business and political conditions. Forward -looking information
may in some cases be identified by words such as “will”, “anticipates”, “expects”, “intends” and similar
expressions suggesting future events or future performance.
We caution that all forward -looking information is inherently subject to change and uncertainty and that
actual results may differ materially from those expressed or implied by the forward -looking information. A
number of risks, uncertainties and other factors, including social and political riskcould cause actual results
and events to differ materially from those expressed or implied in the forward-looking information or could
cause our current objectives, strategies and intentions to change. Accordingly, we warn investors to
exercise caution when considering statements containing forward-looking information and that it would be
unreasonable to rely on such statements as creating legal rights regarding our future results or plans. We
cannot guarantee that any forward-looking information will materialize and you are cautioned not to place
undue reliance on this forward -looking information. Any forward -looking information contained in this
news release represent expectations as of the date of this news release and are subject to change after
such date. However, we are under no obligation (and we expressly disclaim any such obligation) to update
or alter any statements containing forward -looking information, the factors or assumptions underlying
them, whether as a result of new information, future events or otherwise, except as required by law. All of
the forward-looking information in this news release is qualified by the cautionary statements herein.
A comprehensive discussion of other risks that impact Silvercorp can also be found in their public reports
and filings which are available under its profile at www.sedarplus.ca.