Silvercorp Reports Tunneling-Exposed High Grade Mineralization Zones from Its 2017-2018 Exploration Programs at the Sgx MINE
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NEWS RELEASE
Trading Symbol: TSX: SVM
NYSE American: SVM
SILVERCORP REPORTS TUNNELING-EXPOSED HIGH GRADE MINERALIZATION ZONES FROM
ITS 2017-2018 EXPLORATION PROGRAMS AT THE SGX MINE, YING MINING DISTRICT,
CHINA
VANCOUVER, British Columbia – June 8 , 2018 – Silvercorp Metals Inc. ("Silvercorp” or the
“Company”) (TSX:SVM ; NYSE American: SVM) is pleased to repo rt results of its exploration
programs from July 1, 2017 to March 31, 2018 at the SGX mine, Ying Mining District, Henan
Province, China.
The exploration program at the SGX mine consists of underground drilling and tunneling. During
the nine month period, t he Company completed 15,592 meters (“m”) underground diamond
drilling with 7 underground rigs and 15,259m exploration tunneling between elevation Levels
120m and 680m . Results of underground drilling continuously extended the major mineralized
vein structures along strike and downdip and exploration tunneling exposed high grade
mineralization zones within major production vein structures.
Highlights of selected mineralization zones exposed in exploration drift tunnels:
Drift Tunnel XPD-S7_2-210-3NMY exposed mineralization of 145m long and 0.75m wide
(true width) grading 420 gram per tonne (“g/t”) silver (“Ag”), 14.72% lead (“Pb”) and 0.44%
zinc (“Zn”) within vein structure S7_2 on the 210m level;
Drift Tunnel XPD-S19-300-11ASYM exposed mineralization of 150m long and 0.80 m wide
(true width) grading 426g/t Ag, 9.32% Pb and 4.76 % Zn within vein structure S19 on the
300m level;
Drift Tunnel CM102-S32-520-65SYM exposed mineralization of 95m long and 0.92 m wide
(true width) grading 595g/t Ag, 16.17% Pb and 7.39 % Zn within vein structure S32 on the
520m level; and
Drift Tunnel PD 700-S28-450-79SYM exposed mineralization of 65m long and 1.06m wide
(true width) grading 532g/t Ag, 20.82% Pb and 1.51% Zn within vein structure S28 on the
450m level.
The exploration tunneling, comprising drifting, crosscutting and r aising, was driven along and
across major mineralized vein structures to upgrade drill defined mineral resources and test for
new parallel and splay structures.
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The tunneling program from July 1, 2017 to March 31, 2018 at SGX is briefly summarized in the
following table:
Major Target Veins
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 (%)
S2, S7, S7-2,
S8,S14W, S16W,
S18, S19, S21, S28,
S32, S33
140-680 15,259 4,202 8,322 2,305 0.73 326 7.5 3.39
*Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 140 g/t. (Formula used for AgEq
calculation: AgEq = 33.1895 * Pb% + 23.4590 * Zn% + Ag g/t)
Highlights of selected intersections of drill holes:
Hole ZK06S8004 intersected a 1.22m interval from 110.92m to 112.14m, 1.02m true width,
of vein S8 W grading 261 g/t Ag, 0.51% Pb and 4.75% Zn at the 172m elevation, and an a
0.86m interval from 182.92m to 183.78m, 0.45m true width, of vein S8 grading 635g/t Ag,
1.72% Pb and 0.24% Zn at the 112m elevation; and
Hole ZK14504 intersected a 0. 85m interval from 37.52m to 38.37m, 0.72m true width, of
vein S1W2 grading 77g/t Ag, 5.58% Pb and 2.68% Zn at the 154m elevation, and an 1.22m
interval from 303.57m to 304.79m, 0.91m true width, of vein S2 grading 566 g/t Ag, 1.47%
Pb and 0.84% Zn at the minus 56m elevation.
The underground drilling program is mainly conducted from the current production lev els to
delineate the downdip and along -strike extensions of known mineralized vein structures in the
production area and test for new veins in the previous less-explored areas.
The drilling program from July 1, 2017 to March 31 , 2018 at SGX is briefly summarized in the
following table:
Major Target Veins
Target
Elevation
(m)
Meters
Drilled
Samples
Collected
Holes
Completed
Holes
with
Assay
Received
Holes
Intercepted
Vein
Structures
Holes
Intercepted
Mineralization**
S1, S2, S4, S6, S7,
S7-1, S8, S14, S16W,
S18, S19,
S22,S30,S32
(-170) - 570 15,592 1052 57 64* 64 32
*Including 12 holes completed in the first half of 2017; 5 holes drilled in the first quarter of 2018 with assay pending.
** Mineralized intersection in drill holes is defined by silver equivalent value (AgEq) greater than or equal to 80 g/t.
Tables 1 and 2 below list the assay results of some selected mineralized intersections in drill
holes and mineralized zones exposed in drift tunnels in the exploration programs from July 1,
2017 to March 31, 2018.
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Table 1: Selected drilling results from the drilling program at the SGX mine
Hole ID From
(m)
To
(m)
Elevation
(m)
Interval
(m)
True
Width
(m)
Ag
(g/t)
Pb
(%)
Zn
(%) Vein Remarks
ZK11S18001 326.24 326.47 124 0.23 0.15 181 0.98 0.18 S30 Test*
ZK18AS2004 282.78 283.09 132 0.31 0.21 163 0.17 0.29 S6 Stepout***
ZK06S19006 335.75 336.76 -41 1.01 0.95 84 2.54 0.21 S19 Test
ZK16502 30.15 33.48 164 3.33 2.53 108 3.63 3.65 S1W2 Infill**
ZK06S7002 72.17 72.75 226 0.58 0.46 125 0.44 0.38 S7 Stepout
100.04 102.95 211 2.91 2.37 175 1.24 0.17 S7E2 Infill
ZK14504 37.52 38.37 154 0.85 0.72 77 5.58 2.68 S1W2 Stepout
303.57 304.79 -56 1.22 0.91 566 1.47 0.84 S2 Stepout
ZK18AS2W202 138.05 138.77 185 0.72 0.49 17 3.84 0.17 S1 Test
170.34 171.30 157 0.96 0.65 47 0.10 0.11 S2W2 Test
ZK6AS7001 77.38 79.79 217 2.41 1.86 143 1.30 0.50 S7 Stepout
ZK06S7004 200.27 200.88 90 0.61 0.22 22 1.24 1.80 S7E2branch Test
ZK16504 237.57 237.89 -5 0.32 0.20 61 1.37 0.13 S2W Test
294.11 295.45 -49 1.34 0.92 233 0.78 0.55 S2 Stepout
ZK4AS8001 58.18 58.51 228 0.33 0.31 187 2.05 7.47 S8W_branch Test
112.32 112.77 195 0.45 0.44 20 1.52 2.09 New vein to
be named Test
ZK17S19001 235.82 237.18 194 1.36 1.00 66 1.66 0.62 S19 Stepout
ZK17AS19003 196.59 197.61 337 1.02 0.41 143 0.41 0.34 S19 Stepout
ZK12A001 45.85 46.71 169 0.86 0.20 386 11.05 3.04 S0 Test
ZK08S7002 36.41 38.04 230 1.63 0.76 33 1.78 2.85 S22 Stepout
ZK04S8002 114.38 114.74 186 0.36 0.35 143 0.49 13.70 S8W Stepout
134.90 135.73 172 0.83 0.60 41 1.75 0.23 New vein to
be named Test
142.97 143.87 167 0.90 0.65 38 1.43 0.87 S8 Test
230.71 230.99 106 0.28 0.30 36 7.33 0.36 S8E Test
ZK16A001 17.67 18.16 178 0.49 0.35 406 0.10 0.23 S1W3 Test
ZK51S16W006 90.36 90.65 183 0.29 0.15 233 0.31 0.29 S7 Test
ZK17S19003 324.95 325.57 78 0.62 0.40 14 2.57 1.10 S19 Stepout
ZK04S8004 188.05 189.72 98 1.67 0.78 128 2.24 0.19 S8 Test
210.62 210.98 77 0.36 0.17 57 2.55 0.12 S8branch Test
ZK06S8004 110.92 112.14 172 1.22 1.02 261 0.51 4.75 S8W Stepout
182.92 183.78 112 0.86 0.45 635 1.72 0.24 S8 Test
ZK2AS19002 154.92 155.23 177 0.31 0.20 63 3.30 0.21 S7_3 Test
ZK16AS18E002 68.27 68.54 238 0.27 0.25 612 0.12 6.80 S18W Test
ZK07S30004 200.70 201.20 452 0.50 0.35 469 0.03 0.07 S18 Test
ZK02S19001 120.32 122.36 215 2.04 1.54 81 1.19 1.16 S7-3 Test
ZK5AS18005 209.60 209.84 431 0.24 0.14 246 0.29 0.75 S18 Stepout
ZK15AS8E001 204.46 204.83 214 0.37 0.30 34 2.03 0.05 S8 Test
ZK02S19003 59.75 61.84 220 2.09 0.71 100 4.81 0.14 S7-2 Test
ZK2BS8E001 67.86 70.62 240 2.76 0.99 118 11.01 0.47 S16W Test
ZK08S18E002 4.63 4.91 452 0.28 0.29 207 0.11 0.19 S14E1 Infill
211.06 211.58 392 0.52 0.51 115 0.19 0.39 New vein to
be named Test
*Test: intersections in open areas without known mineralization for new resource delineation;
**Infill: intersections within known resource blocks for resource upgrade;
***Stepout: intersections adjacent to existing resource blocks for resource expansion;
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Table 2: Selected mineralized zones exposed by drift tunneling at the SGX mine
Tunnel ID Target Vein Level
(m)
Length
(m)
True
Width
(m)
Ag
(g/t)
Pb
(%)
Zn
(%)
CM105-S2-260-12SYM S2 260 35 0.48 316 7.66 1.59
CM105-S2-180-12ANYM_CZ S2 180 93 0.98 184 5.00 0.62
CM105-S2SJ-S2-140-12ANYM S2 140 55 0.86 808 12.57 1.34
CM101-S7-210-4NYM S7 210 30 1.42 331 4.56 1.12
YPD01-S7-2-550-24NYM S7-2 550 55 0.71 95 0.64 0.68
XPD-S7_2-210-3NYM S7_2 210 145 0.72 420 14.72 0.44
CM101-S7_2-210-2ANYM S7_2 210 30 0.76 345 9.36 0.96
CM101-S7_2-210-2ASYM S7_2 210 30 0.70 344 12.40 0.09
PD700-S7_3-400-15SYM S7_2branch3 400 30 0.48 115 5.67 3.12
PD700-S7_3-450-17ANYM S7_3 450 60 0.73 299 0.91 3.58
PD700-S7_3-400-15NYM S7_3 400 50 0.46 111 1.70 3.00
CM101-S7-210-4NYM S7E2 210 45 1.17 155 3.25 0.99
CM105-S7W-300-12SYM S7W1 300 38 0.44 271 8.11 0.43
CM105-S8-260-8ASYM S8 260 40 0.81 156 1.68 1.97
PD16-S14-160-4ANYM S14 160 60 0.57 294 5.34 0.69
PD16-S14W-160-8NYM S14W 160 35 0.55 568 10.33 4.74
PD16-S14W-160-NYM S14W 160 40 0.37 730 22.17 6.90
PD16-S14E1-450-8NSYM S14E1 450 30 0.22 354 0.78 1.44
CM105-S16W-260-64NYM S16W 260 35 1.23 10 2.98 4.11
CM105-S16E-350-12SYM S16E 350 45 0.52 125 4.26 0.32
CM101-S18-490-0NYM S18 490 30 0.40 201 0.74 1.46
CM101-S18E-450-6ANYM S18E 450 35 0.72 142 0.22 0.30
CM101-S19-350-7ASNYM S19 350 35 0.90 374 9.52 2.97
XPD-S19-300-11ASYM S19 300 150 0.80 426 9.32 4.76
XPD-S19-260-17NSYM S19 260 90 1.48 275 3.16 3.42
XPD-S21-355-26NYM S21 355 50 0.65 219 3.10 2.79
XPD-S21branch2-355-24ASYM S21 355 35 0.52 278 6.40 5.99
YPD01-S21W-585-16ANYM S21W 585 50 0.49 441 5.90 10.11
CM101-S22-300-6NYM S22 300 55 0.64 351 13.82 0.32
PD700-S28-450-79SYM S28 450 65 1.06 532 20.82 1.51
CM101-S28-400-3ASYM S28 400 40 0.69 197 7.63 3.21
CM105-S2W2-260-10SYM S29 260 45 0.65 132 3.78 2.60
PD16-S31-160-8NYM S31 160 40 0.39 442 5.03 0.96
CM102-S32-570-59SYM S32 570 65 0.92 454 5.95 6.26
CM102-S32-520-65SYM S32 520 95 0.92 595 16.17 7.39
CM102-S32-480-67SYM S32 480 140 0.82 106 5.25 8.97
PD16-S33-300-6NYM S33 300 30 0.33 226 2.71 7.19
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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 Test and
Research Institute in Chengde, Hebei Province, China, 226 km northeast of Beijing, a nd the
Zhengzhou 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 -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 chis el 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 comple x 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 200 g sample of minus 160 mesh is prepared for assay. 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 control (QA/QC) procedure is adopted to monitor the
analytical quality at each lab. Certified reference materials (CRM s), 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, fie ld 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.
Ruijin Jiang, P. Geo , reviewed the exploration data and prepared t he scientific and technical
information regarding exploration results contained herein . Mr. 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.
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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
Lorne Waldman
Senior Vice President
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
1995 and “forward -looking information” within the meaning of applicable Canadian pr ovincial
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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 Comp any’s capital to finance the
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estimated production from the Company’s mines in the Ying Mining District; timing of receipt of
permits and regulatory approvals; availability of funds from production to finance the
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Forward-looking statements or information are s ubject to a variety of known and unknown
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mineral resource and mineral reserve estimates; exploration and development programs;
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