Silvercorp Reports Discovery of Significant Mineralized Vein Structures IN Its 2016 Exploration Program at the Lmw MINE
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NEWS RELEASE
Trading Symbol: TSX: SVM
SILVERCORP REPORTS DISCOVERY OF SIGNIFICANT MINERALIZED VEIN STRUCTURES IN ITS
2016 EXPLORATION PROGRAM AT THE LMW MINE, YING MINING DISTRICT, CHINA
VANCOUVER, British Columbia – January 30, 2017 – Silvercorp Metals Inc. ("Silvercorp” or the
“Company”) (TSX:SVM) is pleased to repo rt the results of its 2016 exploration program at the
LMW mine, Ying Mining District, Henan Province, China.
The Company completed 17,410 meters (“m”) underground diamond drilling and 7,909m
exploration tunneling in 2016 at the LMW mine. Highlights of the 2016 exploration results is the
delineation of high -grade northwest -trending vein structures LM19W1 and S19W2 and other
parallel vein groups . T he 4,877m drift tu nneling exposed a total of 1,931m of high-grade
mineralized zones.
Highlights of selected mineralization zones exposed in exploration drift tunnels includes:
Drift Tunnel PD969-LM13-969-1NSYM exposed mineralization of 90m long and 0.56m wide
(true width) grading 1,265 grams per tonne (“g/t”) silver (“Ag”), 8.86% lead (“Pb”) and 0.44%
zinc (“Zn”) within vein structure LM13 on the 969m level;
Drift Tunnel SJ969-LM19W2-650-110NYM exposed mineralization of 105m long and 0. 74m
wide (true width) grading 761g/t Ag, 5.19% Pb and 1.08% Zn within vein structure LM19W2
on the 650m level; and
Drift Tunnel XPDN-LM19W1-650-112NYM exposed mineralization of 175m long and 0.8 4m
wide (true width) grading 527g/t Ag, 3.95% Pb and 0.62% Zn within vein structure LM19W1
on the 650m level.
Highlights of selected intersections of drill holes includes:
Hole ZKX0351 intersected an 1.86m interval from 126.59m to 128.45m, 1.20m true width,
of vein LM41 grading 222g/t Ag and 0.32% Pb at the 889m elevation, and a 0.51m interval
from 131.50m to 132.01m, 0.49m true width, of vein LM17W grading 866g/t Ag, 7.97% Pb
and 0.67% Zn at the 887m elevation;
Hole ZK13261 intersected a 0.62m interval from 358.57m to 359.19m, 0.37m true width, of
vein LM19W1 grading 1,328g/t Ag, 4.94% Pb and 4.80% Zn at the 703m elevation, and an
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1.46m interval from 395.50m to 396.96m, 0.89m true width, of vein LM19 grading 622g/t
Ag, 1.98% Pb and 0.47% Zn at the 681m elevation; and
Hole ZKX0161B intersected a 2.45m interval from 146.64m to 149.09m, 1.86m true width,
of LM13 grading 767g/t Ag, 0.87% Pb and 0.43% Zn at the 881m elevation.
Re-interpretation of previous exploration data in early 2015 resulted in identification of the
northwest striking vein structures LM19W1 and LM1 9W2 at LMW mine. Underground drilling
and exploration tunneling afterwards in 2015 and 2016 have controlled strike lengths of more
than 700 m for both vein structures, and exposed stable and continuous high -grade
mineralization zones in drift tunnels within the two newly defined structures. In addition to the
known dominant northeast striking vein structures, d iscovery of vein structures LM19W1 and
LM19W2 at LMW may indicate enormous exploration potential of the previously less -explored
northwest striking vein structures in the Ying mining district, especially the TLP, LME and LMW
mines.
Underground drill holes in 2016 were mainly designed to delineate the downdip and along -
strike extensions of known mineralized vein structures in the production area and test for new
veins in the adjacent less-explored areas.
The 2016 drilling program at LMW is briefly summarized in the following table:
Major Target Veins
Target
Elevation
(m)
Meters
Drilled
Holes
Completed
Core
Samples
Collected
Holes
with
Assay
Received
Holes
Intercepted
Vein
Structures
Holes
Intercepted
Mineralization
LM8, LM12, LM12-2,
LM13, LM14, LM16,
LM17, LM19W, LM19W1,
LM19W2, LM20W
550-950 17,410 48 960 39 48 19
Exploration tunneling, comprising drifting, crosscutting and raising, was driven along and across
major mineralized vein structures to upgrade drill defined mineral resources and test for parallel
and splay structures.
The 2016 tunneling program at LMW is briefly summarized in the following table:
Major Target Veins
Range of
Target
Levels (m)
Total
Tunneling
(m)
Channel
Samples
Collected
Drift
Tunneling
Included
(m)
Total Mineralization Exposed by Drift
Tunneling
Length
(m)
Average
True
Width (m)
Ag
(g/t)
Pb
(%)
Zn
(%)
LM8-2, LM13, LM14, LM16,
LM17, LM19W1, LM19W2,
LM20, LM28, LM30, LM31
550 -1,003 7,909 3,650 4,877 1,931 0.70 416 4.84 0.44
Tables 1 and 2 below list the assay results of some selected mineralized zones exposed in drift
tunnels and mineralized intersections in drill holes in the 2016 exploration program.
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Table 1: Selected mineralized zones exposed by exploration tunneling at the LMW Mine
Tunnel ID Target Vein Level
(m)
Length
(m)
Horizontal
Width (m)
True
Width
(m)
Ag
(g/t)
Pb
(%)
Zn
(%)
XPDN-LM8-1-750-106NYM LM8_1 750 55 0.75 0.72 270 1.42 0.16
XPDN-LM11E-750-5SYM LM11E 750 50 0.41 0.39 266 2.52 0.53
XPDN-LM12-785-0TJSYM LM12 785 49 0.79 0.74 303 3.66 0.27
PD969-LM13-969-1NSYM LM13 969 90 0.63 0.56 1,265 8.86 0.44
PD924-LM13-924-0NYM LM13 924 65 0.65 0.61 319 5.98 0.55
PD924-LM13-898-1NSYM LM13 898 100 0.62 0.58 290 2.26 0.27
XPDS-LM17-725-28SYM LM17 725 35 1.07 0.97 197 2.97 0.22
XPDN-LM19W1-650-112NYM LM19W1 650 175 0.85 0.84 527 3.95 0.62
SJ969-LM19W2-650-110NYM LM19W2 650 105 0.75 0.74 761 5.19 1.08
XPDN-LM20-650-110SYM LM20 650 55 0.65 0.63 148 3.36 0.31
SJ969-LM20-600-112NYM LM20 600 45 0.40 0.40 480 1.93 0.26
XPDN-LM20W-700-110SYM LM20W 700 35 0.48 0.46 1,123 4.78 2.38
XPDN-LM28-650-114NYM LM28 650 75 0.68 0.61 264 7.22 0.31
XPDN-LM28-650-114SYM LM28 650 45 0.46 0.42 162 15.81 0.13
SJ969-LM30-600-116NSYM LM30 600 100 0.85 0.82 462 4.96 0.44
PD969-LM30-550-114NYM LM30 550 50 1.14 1.12 156 3.25 0.28
PD969-LM30W-550-114NYM LM30W 550 100 0.77 0.76 455 7.75 0.37
SJ969-LM31-600-116NSYM LM31 600 80 0.98 0.95 339 7.21 0.42
SJ969-LM32-600-116NSYM LM32 600 75 0.84 0.83 407 5.32 0.17
PD924-T24-900-108SYM T24 900 35 0.84 0.81 179 2.83 0.34
PD924-T27-924-110NSYM T27 924 70 0.76 0.72 463 6.70 1.08
Table 2: Selected results from the 2016 drilling program at the LMW mine
Hole ID From
(m) To (m) Elevation
(m)
Interval
(m)
True
Width
(m)
Ag
(g/t)
Pb
(%)
Zn
(%)
Mineralized
Vein Remarks
ZKX0351 126.59 128.45 889 1.86 1.20 222 0.32 0.04 LM41 Test
131.50 132.01 887 0.51 0.49 866 7.97 0.67 LM17W Test
ZKX10021A 357.32 357.90 840 0.58 0.47 45 1.40 0.05 LM14 Test
ZKX10171 134.42 135.73 949 1.31 0.77 252 0.80 0.02 LM16W1 Test
ZKX0461 226.98 227.38 786 0.40 0.39 675 0.73 0.36 LM17 Test
ZKX13261 358.57 359.19 703 0.62 0.37 1,328 4.94 4.80 LM19W1 Test
395.50 396.96 681 1.46 0.89 622 1.98 0.47 LM19 Test
ZKX0161B 146.64 149.09 881 2.45 1.86 767 0.87 0.43 LM13 Stepout
ZKX0061B 70.26 71.18 901 0.92 0.84 118 0.37 0.02 LM13W Test
ZKX13062 267.00 267.85 695 0.85 0.48 10 6.21 0.03 LM19W1 Stepout
ZKX116F01 251.05 251.74 824 0.69 0.31 90 0.23 0.10 LM29 Test
ZKX105N01 390.59 391.99 576 1.40 1.00 136 0.73 0.21 LM14 Stepout
ZKX02Q01 189.37 190.10 787 0.73 0.63 351 2.62 1.32 LM17W Test
*Stepout: intersections adjacent to existing resource blocks for resource expansion;
**Test: intersections in open areas without known mineralized intersections nearby.
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The exploration results ending June 30, 2016 will be incorporated in a NI43 -101 mineral
resource update report expected to be announced in the first quarter of 2017.
Exploration in 2017 at LMW will be mainly focused on vein groups LM14, LM16, LM17, LM19,
LM30, LM32, and LM41. The Company ha s proposed a comprehensive program comprising
9,654m tunneling to upgrade the previously drill defined mineral resources between Level 900m
and Level 550m, and 12,400m underground drilling to further trace the striking and downdip
extensions of the target veins and test for new veins between the 520m and 0m elevations.
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 ot her half core samples are
shipped in security sealed bags to the Chengde Huakan 514 Geology and Minerals Testing and
Research Institute in Chengde, Hebei Province, China, 226 km northeast of Beijing, a nd the
Zhenzhou Nonferrous Exploration Institute Lab in Zhengzhou, Henan Province, China, and both
labs are ISO9000 certified analytical lab. For analysis the sample is dried and crushed to minus
1mm and then split to a 200 -300g 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 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 5m along strike.
Both the mineralized vein and the altered wall rocks are cut with continuous chisel chipping.
Sample length ranges from 0.2m to more than 1m, 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 service. The channel samples are
dried, crushed and pulverized. A 200g sample of minus 160 mesh is prepared for a ssay. A
duplicate sample of minus 1mm is made and kept at 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 cont rol (QA/QC) procedure is adopted to monitor the
analytical quality at the 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 core samples to monitor the sample
preparation and analysis procedures at the labs. The analytical quality of the labs is further
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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.
Ruijin Jiang, P. Geo , reviewed the exploration data and prepared t he scientific and technical
information regarding exploration results contained herein . Alex Zhang, P. Geo, VP exploration
of the Company, is the Qualified Person on the project as defined under National Instrument 43-
101 and he has verified and approved the contents of this news release.
About Silvercorp
Silvercorp is a low-cost silver-producing Canadian mining company with multiple mines in China.
The Company’s vision is to deliver shareholder value by focusing on the acquisition of under
developed projects with resource potential and the ability to grow organically. For more
information, please visit our website at www.silvercorp.ca.
For further information
Gordon Neal
Vice President, Corporate Development
Silvercorp Metals Inc.
Phone: (604) 669-9397
Toll Free: 1(888) 224-1881
Email: [email protected]
Website: www.silvercorpmetals.com
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
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permits and regulatory approvals ; availability of funds from production to finance the
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