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Silvercorp Reports Positive Exploration Results from the TLP and LME Mines at the Ying Mining District

VANCOUVER, British Columbia, Nov. 04, 2019 (GLOBE NEWSWIRE) -- Silvercorp Metals Inc. ("Silvercorp” or the “Company”) (TSX/NYSE American: SVM) is pleased to report the results of its 2018-2019 exploration programs at the TLP and LME mines, Ying Mining District, Henan Province, China.  Exploration drilling is ongoing at the TLP and LME mines, and all other mines at the Ying Mining District.

From April 1, 2018 to September 30, 2019, Silvercorp continued the extensive exploration programs at the TLP and LME mines and completed 37,212 metres (“m”) of diamond drilling with six underground rigs from current production levels, and 33,004m of exploration tunneling between elevation levels 500m and 1,070m.  Results from the drilling program extended the major mineralized vein structures along strike and downdip, and exploration tunneling exposed high grade mineralized zones within major production vein structures.  Eight new mineralized veins were discovered in the TLP mine during this period.  Among them, veins T31W3, T26, T26E, T39E, T39E2 and T17E indicate the increasing importance of the NNW and NS striking veins.  The drilling results from veins LM5, LM5E and LM4 at the LME mine extended the high-grade mineralized zones to at least the 260m level.

Highlights of selected mineralized zones exposed in the drift tunnels:

  • Drift Tunnel PD890-T5E1_1-890-31NYM exposed mineralization 15m long and 0.44m wide (true width) grading 1,784 grams per tonne (“g/t”) silver (“Ag”), 9.55% lead (“Pb”) and 0.81% zinc (“Zn”) within vein structure T31W3 on the 890m level at the TLP mine;
     
  • Drift Tunnel PD1050-T26-1050-A4NYM exposed mineralization 25m long and 1.11m wide (true width) grading 716 g/t Ag, 9.05% Pb and 0.13% Zn within vein structure T26 on the 1050m level at the TLP mine;
     
  • Drift Tunnel PD930-T14E-930-A0SYM exposed mineralization 60m long and 1.66m wide (true width) grading 430 g/t Ag, 5.05% Pb and 0.39% Zn within vein structure T14E on the 930m level at the TLP mine;
     
  • Drift Tunnel PD820-T16-600-1SYM exposed mineralization 80m long and 1.04m wide (true width) grading 719 g/t Ag, 5.19% Pb and 0.92% Zn within vein structure T16 on the 600m level at the TLP mine; and
     
  • Drift Tunnel PD900-LM18E1-915-52NYM exposed mineralization 60m long and 0.47m wide (true width) grading 1,469 g/t Ag, 2.38% Pb and 0.28% Zn within vein structure LM18E1 on the 915m level at the LME mine.

The exploration tunneling from April 1, 2018 to September 30, 2019 at the TLP and LME mines, comprising drifting, crosscutting and raising, was driven along and across major mineralized vein structures to upgrade the drill defined mineral resources and test for new parallel and splay structures, and is summarized in the following table:

 Mine Major Target Veins Target
Levels
(m)
Total
Tunneling
(m)
Channel
Samples Collected
Drift
Included
 (m)
Total Mineralization Exposed by Drift [1]
Length
(m)
Average True
Width (m)
Ag
(g/t)
Pb
(%)
Zn
(%)
TLP T1W, T1W1, T5, T11, T14E, T15W, T16, T16W, T17, T17E, T17W, T26, T26E, T31W3, T33E, T35E, T39E 510-1070 28,648 10,982 14,404 6,903 0.65 241 3.64 0.41
LME LM4E2, LM5, LM5E, LM6, LM6W, LM18E1 500-1070 4,356 1,402 2,092 754 0.61 282 2.11 0.38

[1] Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 120 g/t at the TLP mine and 125 g/t at the LME mine. (Formulae used for AgEq calculation: TLP=36.75*Pb%+Ag g/t; LME=39.019*Pb%+Ag g/t)

Highlights of selected drill hole intersections:

  • Hole ZKT0641 intersected a 2.73m interval from 2.12m to 4.85m, 2.00m true width, of vein T3E grading 841 g/t Ag, 0.67% Pb and 0.20% Zn at the 1079m elevation at the TLP mine;
     
  • Hole ZKL7602 intersected a 3.82m interval from 263.75m to 267.57m, 2.71m true width, of vein LM6W grading 491 g/t Ag, 0.78% Pb and 0.16% Zn at the 601m elevation at the TLP mine;
     
  • Hole ZKX11071 intersected a 1.01m interval from 296.36m to 297.37m, 0.82m true width, of vein T2 grading 471 g/t Ag, 2.84% Pb and 0.33% Zn at the 560m elevation, and a 1.19m interval from 317.55m to 318.74m, 0.97m true width, of vein T3 grading 931 g/t Ag, 0.47% Pb and 0.06% Zn at the 546m elevation at the TLP mine; and
     
  • Hole ZKL6105 intersected a 0.79m interval from 113.98m to 114.77m, 0.53m true width, of vein LM4 grading 2,174 g/t Ag, 0.95% Pb and 0.25% Zn at the 497m elevation, and a 0.45m interval from 289.80m to 290.25m, 0.32m true width, of vein LM5 grading 2,217 g/t Ag, 2.90% Pb and 0.91% Zn at the 333m elevation at the LME mine.

The underground drilling program is conducted mainly from the current production levels to delineate the downdip and along-strike extensions of known mineralized vein structures in the production area and test for new vein structures in the previously less explored areas.

The drilling programs from April 1, 2018 to September 30, 2019 at the TLP and LME mines are summarized in the following table:

Mine Major Target Veins Target
Elevation
(m)
Metres
Drilled
(m)
Holes
Completed
Samples
Collected
Holes
Intercepted
Vein Structures
Holes
Intercepted
ore
TLP T2, T2W, T3, T3E, T5,
T5E, T5E2, T11, T14E, T15W, T16E, T22, LM5, LM6, LM6W
214-1,111 25,170 92 1,676 86 39
LME LM4, LM5, LM5E, LM5E1, LM6E, LM6E1, T11, T17, T17E, T17E1, T17W1 270-1,000 12,041 34 852 32 17
               

Tables 1 and 2 below list the assay results of certain mineralized zones exposed in drift tunnels and selected mineralized drill hole intersections from the exploration programs.


Table 1: Selected mineralized zones exposed by drift tunneling at the TLP and LME mines

Mine Tunnel ID Target Level Length True
Width
(m)
 Ag Pb Zn
Vein  (m) (m) (g/t)  (%) (%)
TLP PD820-T11-700-4NYM T11 700 120.0 0.78 317 5.09 0.57
TLP PD820-T11-600-1SYM T11 600 90.0 1.21 236 7.70 0.76
TLP PD930-T14E-930-A0SYM T14E 930 60.0 1.66 430 5.05 0.39
TLP PD890-T14E-890-21SYM T14E 890 125.0 0.83 444 3.31 0.40
TLP PD820-T14E-755-3SYM T14E 755 20.0 0.67 103 8.99 0.16
TLP PD820-T15W-650-4SYM T15W 650 35.0 0.57 191 6.77 0.44
TLP PD820-T15W-650-4NYM T15W 650 80.0 1.01 175 10.18 0.33
TLP PD846-T16E-846-7NYM T16 846 35.0 1.10 695 1.23 0.37
TLP PD820XPD-T16W-755-23SYM T16 755 35.0 0.39 669 1.81 2.31
TLP PD820-T16-700-12SYM T16 700 45.0 0.57 679 3.84 1.03
TLP PD820XPD-T16-700-15NYM T16 700 60.0 0.41 785 2.12 2.61
TLP PD820-T16-600-1SYM T16 600 80.0 1.04 719 5.19 0.92
TLP PD846-T16W-846-12SYM T16W 846 105.0 0.42 972 1.25 0.72
TLP PD820-T17W-700-14SYM T16W 700 41.0 0.77 279 4.12 0.37
TLP PD846-T17-846-16NYM T17 846 125.0 0.49 353 3.17 0.47
TLP PD846-T17-846-16SYM T17 846 117.5 0.80 321 3.40 0.83
TLP PD820-T17-700-14NYM T17 700 35.0 1.03 375 4.29 0.39
TLP PD820-T17-700-14SYM T17 700 24.0 0.51 288 5.06 0.10
TLP PD846-T17E-846-16NYM T17E [1] 846 55.0 0.52 412 5.19 0.46
TLP PD820-T17-650-4SYM T17W 650 70.0 0.68 608 1.90 0.93
TLP PD820-T17W-600-1NYM T17W 600 15.0 0.46 976 4.49 0.37
TLP PD960-T1W-990-4NYM T1W 990 35.0 0.71 837 2.62 0.48
TLP PD1070-T1W1-1070-4SYM T1W1 1070 25.0 1.19 304 2.91 0.11
TLP PD1070-T22W-1070-6SYM T22W 1070 30.0 0.49 501 2.31 0.07
TLP PD1050-T26-1050-A4NYM T26 [1] 1050 25.0 1.11 716 9.05 0.13
TLP PD960-T26-990-A6NYM T26 [1] 990 35.0 1.25 312 2.97 0.05
TLP PD840-T26E-840-1SYM T26E [1] 840 20.3 0.52 302 5.50 0.09
TLP PD890-T5E1支-890-31NYM T31W3 [1] 890 15.0 0.44 1,784 9.55 0.81
TLP PD730-T31W-730-A25NYM T31W3 [1] 730 45.0 0.45 209 8.61 0.34
TLP PD730-T33E-560-23NYM T33E 560 90.0 0.52 361 2.18 0.59
TLP PD960-T35E-960-5NYM T35E 960 40.0 0.40 712 2.64 0.79
TLP PD820XPD-T39E-700-15SYM T39E [1] 700 29.0 0.56 478 4.12 0.68
TLP PD820XPD-T39E2-755-27SYM T39E2 [1] 755 110.0 0.52 340 5.09 2.02
TLP PD960-T5-990-11NYM T5 990 32.0 1.10 145 8.03 0.10
TLP PD840-T5E1-840-29NYM T5E1 840 60.0 0.52 395 2.45 0.55
TLP PD840-T5E1-840-29SYM T5E1 840 25.0 0.77 481 2.80 0.51
TLP PD1050-T5W-1050-5SYM T5W 1050 35.0 0.60 274 4.84 0.08
TLP PD1050-T5W1-1050-5NYM T5W1 [1] 1050 35.0 0.44 410 2.85 0.17
LME PD900-LM18E1-915-52NYM LM18E1 [1] 915 60.0 0.47 1,469 2.38 0.28
LME PD900-LM18E1-915-52SYM LM18E1 [1] 915 35.0 0.80 428 3.65 0.32
LME PD900-LM5-600-64NYM LM5 600 25.0 0.39 258 1.81 0.56
LME PD900-LM5-600-69SYM LM5 600 40.0 1.13 235 1.38 0.27
LME PD900-LM6W-650-70SYM LM6W 650 40.0 0.48 335 1.12 0.36

[1] Veins discovered between April 30, 2018 and September 30, 2019


Table 2: Selected results from the drill programs at the TLP and LME mines

Mine Hole ID From
(m)
To
(m)
Elevation
(m)
Width
(m)
True
Width (m)
Ag
(g/t)
Pb
 (%)
Zn
 (%)
Vein
TLP ZKT1331 321.18 321.98 723.19 0.80 0.69 437 2.16 0.17 T15W
359.98 360.31 708.65 0.33 0.28 449 1.85 0.59 T11
TLP ZKX11674 387.97 388.40 458.67 0.43 0.34 18 5.52 0.49 T2
TLP ZKGA3201 206.00 206.40 766.52 0.40 0.36 593 0.16 0.36 T22
TLP ZKT1332 333.31 333.72 641.11 0.41 0.36 56 2.39 0.10 T15W
360.77 361.99 626.24 1.22 1.06 99 10.89 0.28 T11
TLP ZKGA2801 267.80 268.93 757.27 1.13 1.09 414 1.61 0.35 T22
TLP ZKGA2401 155.08 155.48 735.18 0.40 0.39 112 5.32 0.14 T22-1
TLP ZKX11071 296.36 297.37 559.68 1.01 0.82 471 2.84 0.33 T2
317.55 318.74 545.71 1.19 0.97 931 0.47 0.06 T3
TLP ZKTA4011 140.81 143.32 921.34 2.51 1.46 230 6.99 1.51 T14E
TLP ZKTA4012 95.11 98.29 772.65 3.18 1.84 115 13.04 0.33 T14E
TLP ZKT0641 2.12 4.85 1,079.32 2.73 2.00 841 0.67 0.20 T3E
161.21 161.82 1,054.43 0.61 0.42 291 1.58 0.28 T22E
TLP ZKT1136 423.98 424.27 509.53 0.29 0.27 454 0.21 0.18 T11
TLP ZKT1042 6.20 8.16 1,074.50 1.96 1.71 142 0.68 0.05 T3E
TLP ZKT0441 6.14 6.48 1,077.38 0.34 0.16 1,451 1.14 0.76 T3E
152.27 152.96 1,034.66 0.69 0.33 360 0.59 0.10 T5
TLP ZKT0842 104.48 107.05 1,111.22 2.57 1.48 86 4.36 0.31 T5
TLP ZKT0940 90.61 92.15 780.69 1.54 1.30 124 0.42 0.10 T14E
303.01 303.47 638.21 0.46 0.40 254 0.39 0.23 T14
TLP ZKL7602 263.75 267.57 601.25 3.82 2.71 491 0.78 0.16 LM6W
    269.42 272.65 596.47 3.23 2.29 180 0.45 0.11 LM6
    517.68 519.11 389.15 1.43 1.02 119 1.38 0.33 LM5
    572.14 572.84 343.87 0.70 0.50 251 2.28 0.70 LM5E1
576.89 577.23 339.92 0.34 0.24 601 0.92 0.52 LM5E2
TLP ZKT1043 88.79 90.49 1,057.12 1.70 1.15 59 6.16 0.46 T2W
TLP ZKL7604 251.93 252.37 735.17 0.44 0.36 317 0.16 0.39 LM6
TLP ZKT2527 122.44 124.14 734.90 1.70 0.94 31 6.21 0.09 T33W3 [1]
TLP ZKT0135 86.52 86.87 936.71 0.35 0.28 1,286 0.79 2.73 T16E
TLP ZKT0135 118.13 118.84 929.60 0.71 0.58 541 1.19 0.28 T16E1
TLP ZKT0333 91.82 92.18 914.10 0.36 0.14 1,237 1.36 0.27 T16E
TLP ZKT1633 63.12 63.96 929.89 0.84 0.83 133 5.54 0.74 T15W
TLP ZKT1633 89.17 89.50 918.06 0.33 0.33 244 4.08 7.92 T15
TLP ZKT1632 223.96 224.31 987.46 0.35 0.33 290 1.70 4.00 T17
TLP ZKT1432 220.81 222.55 1,006.17 1.74 1.61 108 1.66 0.84 T17
TLP ZKG0123 85.25 85.57 617.24 0.32 0.30 229 8.41 0.26 T15W4
    181.33 181.64 579.70 0.31 0.28 34 5.61 1.86 T16
    263.97 264.60 547.41 0.63 0.58 73 25.13 0.48 T15W
286.28 287.08 538.69 0.80 0.74 76 29.71 0.30 T11
TLP ZKT3724 308.40 308.85 533.74 0.45 0.34 32 13.66 0.14 T39
TLP ZKG0525 215.64 216.12 549.08 0.48 0.34 119 2.56 2.34 T16E
    273.20 273.89 522.05 0.69 0.54 11 6.93 0.21 T15W
    318.84 319.34 500.63 0.50 0.38 12 3.60 0.13 T14E
LME ZKL3201 276.43 276.78 679.68 0.35 0.25 56 16.02 0.05 T11
LME ZKL6105 113.98 114.37 496.69 0.79 0.53 2,174 0.95 0.25 LM4
    289.80 290.25 332.89 0.45 0.32 2,217 2.90 0.91 LM5
    318.78 319.74 306.10 0.96 0.68 244 0.47 0.09 LM5E1
322.53 323.39 302.63 0.86 1.66 528 3.67 1.94 LM5E
LME ZKL6502 94.94 95.98 536.89 1.04 1.25 217 1.95 0.26 LM4
    197.35 197.72 467.63 0.37 1.09 452 0.77 0.73 LM5
    234.74 235.44 442.66 0.70 0.62 721 1.12 1.28 LM5E
LME ZKL6503 207.25 207.92 426.60 0.67 0.49 204 0.70 0.27 LM6E
281.70 282.10 363.79 0.40 0.29 292 17.63 0.10 LM5E
LME ZKL6302 96.87 97.19 520.94 0.32 0.26 506 2.93 0.16 LM4
LME ZKL5903 231.67 232.15 408.56 0.48 0.38 464 1.24 0.25 LM5
    280.38 280.76 367.89 0.38 1.03 602 0.63 0.40 LM5E1
283.07 283.48 365.65 0.41 2.91 590 0.70 0.12 LM5E
LME ZKL54S302 102.43 103.50 773.89 1.07 0.83 509 2.57 2.04 LM3_1
    149.88 150.32 739.44 0.44 0.34 179 1.10 0.68 T17E1
    158.85 159.70 732.90 0.85 0.65 2,019 1.74 0.58 T17E
    355.76 357.17 588.57 1.41 1.09 126 4.95 0.26 T17
    369.28 369.58 578.68 0.30 0.23 374 3.88 0.97 T17W1
LME ZKL58T1701 292.69 293.61 636.37 0.92 0.67 2,246 6.59 2.70 LM3_1
302.55 303.00 629.14 0.45 0.33 22 5.46 0.60 LM4
LME ZKL58T1702 138.55 139.88 770.01 1.33 1.07 647 0.47 0.23 T17E
314.73 315.88 661.05 1.15 0.90 120 3.05 0.36 T17

[1] Veins discovered between April 30, 2018 and September 30, 2019


Quality Control

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contacts or shear/alteration contacts, were split into halves by saw cutting.  The half cores are stored in the Company's core shacks for future reference and checks, and the other half core samples are shipped in securely-sealed bags to the Chengde Huakan 514 Geology and Minerals Test and Research Institute in Chengde, Hebei Province, China, 226 km northeast of Beijing, the Zhengzhou Nonferrous Exploration Institute Lab in Zhengzhou, Henan Province, China, and the Analytical Lab of the Inner Mongolia Geological Exploration Bureau in Hohhot, Inner Mongolia, China.  All the three 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 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 5m along strike.  Both the mineralized vein and the altered wall rocks are cut by 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 services.  The channel samples are dried, crushed and pulverized.  A 200g sample of minus 160 mesh is prepared for assay.  A duplicate sample of minus 1mm 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 batch of lab 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 practices 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 approximately 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: investor@silvercorp.ca
Website: www.silvercorpmetals.com

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. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (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”, “budgets”, “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 expressions) are not statements of historical fact and may be forward-looking statements or 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 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; 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 or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licenses; 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;  competition;  operations and political conditions; regulatory environment in China and Canada;  environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; 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 or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended March 31, 2017 under the heading “Risk Factors”.  Although the Company has attempted to identify important factors that could cause actual results to differ 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 or information.  

The Company’s forward-looking statements and information are based on the assumptions, 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 and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.