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Silvercorp Metals Inc
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Silvercorp drills 19.67 m of 261 g/t Ag at LMW

2021-05-25 07:04 ET - News Release

Mr. Guoliang Ma reports

SILVERCORP INTERSECTS VEIN LM7 WITH 19.67 METRES TRUE WIDTH GRADING 261 GRAMS PER TONNE SILVER, 1.1% LEAD, AND 0.78% COPPER AT THE LMW MINE, YING MINING DISTRICT, CHINA

Silvercorp Metals Inc. has drilled wide and high-grade intercepts from its 2021 exploration program at the LMW mine, Ying mining district, Henan province, China. Extensive exploration drilling and tunnelling are continuing at the LMW mine and all other mines at the Ying mining district.

The drilling program from Oct. 1, 2020, to May 1, 2021, at the LMW mine has been focused on infill drilling target areas of known silver-lead-zinc veins that were believed to be uneconomic based on limited prior drilling and tunnelling. Currently, 10 rigs are drilling at the LMW mine, and a total of 116 diamond drill holes, including 100 underground holes and 16 surface holes, totalling 22,890 metres have been completed. Assay results for 101 holes have been received with 53 holes intercepting many zones of high-grade silver-lead mineralization and gold mineralization, including veins LM7, LM7E, LM8, LM8-1, LM12, LM12-1, LM13, LM13W, LM16W1, LM17, LM17E, LM19, LM19Wa, LM41E, LM41E1 and LM50.

Wide intercepts of vein LM7

Four infill drill holes, together with crosscut tunnels and previously intercepted drill holes, have defined a block of vein LM7 showing wide intercepts traced along a strike length of 320 m near the development tunnels at the 600 m level. Currently, three rigs are drilling this discovery:

  • Hole ZKX0575 intersected a 20.75-metre interval (19.67 m true width) of vein LM7 grading 261 grams per tonne silver, 1.08 per cent lead, 0.04 per cent zinc, 0.16 g/t gold and 0.78 per cent copper, which includes an 8.43 m interval (8.0 m true width) grading 532 g/t Ag, 2.20 per cent Pb, 0.07 per cent Zn, 0.31 g/t Au and 1.62 per cent Cu.
  • Hole ZKX0530 intersected a 25.58 m interval (23.96 m true width) of vein LM7 grading 202 g/t Ag, 1.26 per cent Pb, 0.12 per cent Zn, 0.15 g/t Au and 0.37 per cent Cu, including 3.98 m interval (3.73 m true width) grading 818 g/t Ag, 2.9 per cent Pb, 0.05 per cent Zn, 0.23 g/t Au and 0.46 per cent Cu.
  • Hole ZKX0751 intersected a 20.03 m interval (19.32 m true width) of vein LM7 grading 162 g/t Ag, 1.38 per cent Pb, 0.11 per cent Zn, 0.09 g/t Au and 1.00 per cent Cu.
  • Hole ZKX0732 intersected a 16.93 m interval (16.16 m true width) of vein LM7 grading 112 g/t Ag, 2.00 per cent Pb, 0.13 per cent Zn, 0.09 g/t Au and 0.79 per cent Cu.

Confirmation of vein W1

Drilling and drift tunnels have further demonstrated continuity of the near-north-south-extending W1 and northwestern-striking W6, W6E1, W6E2, W6W and W18 veins, with high-grade silver-lead mineralization intercepts at 800 m to 950 m elevation in the northwestern part of the LMW mine. The discoveries are expected to expand the resources in this area.

Highlights of selected drill hole intercepts:

  • Hole ZKX0429 intersected a 1.51 m interval (1.50 m true width) of vein W1 grading 1,103 g/t Ag, 1.46 per cent Pb, 0.10 per cent Zn, 0.05 g/t Au and 0.65 per cent Cu, which includes a 0.79 m interval (0.77 m true width) grading 2,078 g/t Ag, 0.41 per cent Pb, 0.11 per cent Zn, 0.09 g/t Au and 1.22 per cent Cu.
  • Hole ZKX0728 intersected a 1.17 m interval of vein W1 grading 1,072 g/t Ag, 1.52 per cent Pb, 0.09 per cent Zn, 0.15 g/t Au and 0.08 per cent Cu.

Continuing drilling of subhorizontal gold zone at vein LM50

As listed in the associated table, 10 drill holes intercepted the subhorizontal gold structures at LM50, with hole ZKX0423 intersecting a 2.25 m interval (1.62 m true width) of vein LM50 grading 10.53 g/t Au.

Infill drilling of other veins:

  • Hole ZKX0383 intersected a 2.59 m interval (1.95 m true width) of vein LM13 grading 1,166 g/t Ag, 0.04 per cent Pb, 0.06 per cent Zn, 0.74 g/t Au and 0.65 per cent Cu, which includes a 1.37 m interval (1.03 m true width) grading 2,179 g/t Ag, 0.07 per cent Pb, 0.10 per cent Zn, 0.05 g/t Au and 0.90 per cent Cu.
  • Hole ZKX0305-1 intersected a 6.44 m interval (2.67 m true width) of vein LM13W2 grading 386 g/t Ag, 1.82 per cent Pb, 0.08 per cent Zn, 0.07 g/t Au and 0.80 g/t Cu.
  • Hole ZKX3811 intersected a 5.16 m interval (4.97 m true width) of vein LM17 grading 388 g/t Ag, 1.95 per cent Pb, 0.09 per cent Zn, 0.04 g/t Au and 0.08 per cent Cu, which includes a 1.80 m interval (0.99 m true width) of 833 g/t Ag, 3.11 per cent Pb, 0.10 per cent Zn, 0.06 g/t Au and 0.19 per cent Cu.

Tunnelling results

In addition, a total of 3,352 metres of exploration tunnels have been developed at the LMW mine during the period. These exploration tunnels (including 2,434 m of drifts) were driven along and across major mineralized vein structures to upgrade the drill defined mineral resources and test for new parallel and splay structures, and they are summarized in the associated table.

                                                                      Total mineralization exposed by drifts (1)
                                           Channel                     Average
                                  Total    samples     Drift              true
Major target veins           tunnelling  collected  included   Length    width     Ag    Pb    Zn      Au     Cu
                                    (m)                  (m)      (m)      (m)  (g/t)   (%)   (%)   (g/t)    (%)
LM12-1, LM14, LM16, LM17,
LM17W, LM19W2, LM41E,
LM41E1, LM41Ea, LM50,
LM7, W1, W6, W6E1,
6E2, W6W and W18                  3,352      1,796     2,434      577     0.66    507  4.35  0.48    0.05   0.19

(1) Mineralization is defined by silver equivalent value (AgEq) greater than or equal to 
155 g/t at the LMW mine (formula used for AgEq calculation: AgEq equals Ag g/t plus 35.06 times 
(Pb per cent plus Cu per cent) plus 79.57 times Au g/t).

Highlights of selected mineralized zones exposed in the drift tunnels:

  • Drift tunnel XPDN-LM17-800-9SYM exposed mineralization 15 m long and 1.38 m wide (true width) grading 1,460 g/t Ag, 11.36 per cent Pb, 0.87 per cent Zn, 0.02 g/t Au and 0.22 per cent Cu within vein LM17.
  • Drift tunnel XPDS-LM17-575-26SYM exposed mineralization 40 m long and 1.54 m wide (true width) grading 708 g/t Ag, 4.57 per cent Pb, 0.40 per cent Zn, 0.26 g/t Au and 0.47 per cent Cu within vein LM17.
  • Drift tunnel PD918-W1-918-4SYM exposed mineralization 15 m long and 0.85 m wide (true width) grading 1,561 g/t Ag, 4.31 per cent Pb, 0.62 per cent Zn, 0.02 g/t Au and 0.45 per cent Cu within vein W1.

                      SELECTED RESULTS FROM THE 2021 DRILL PROGRAMS AT THE LMW MINE
  
Hole ID          From        To    Interval    True width        Ag      Pb        Zn        Au        Cu
                  (m)       (m)         (m)           (m)     (g/t)     (%)       (%)     (g/t)       (%)

ZKX0009        132.51    133.14        0.63          0.50        14    0.84      0.29     12.38      0.01
ZKX0022         26.64     27.58        0.94          0.92       208    0.68      0.07      0.01      0.02
ZKX0024          5.38      6.39        1.01          0.69     1,623    0.20      0.08      0.01      0.04
ZKX0217        297.50    298.51        1.01          0.67       195    0.10      0.16      0.04      0.02
ZKX0305-1       48.80     49.57        0.77          0.35     2,290    0.31      0.05      0.01      0.02
ZKX0305-1       93.98     95.13        1.15          0.51        10    0.18      0.06      2.27      0.02
ZKX0305-1      225.07    231.51        6.44          2.67       386    1.82      0.08      0.07      0.80
ZKX0305-1      250.08    251.91        1.83          0.76       467    0.40      0.05      0.01      0.15
ZKX0333         48.04     49.10        1.06          1.06       232    2.36      0.04      0.05      0.15
ZKX0355        115.70    116.43        0.73          0.73        19    5.87      0.31      0.04      0.00
ZKX0383         72.84     75.43        2.59          1.95     1,166    0.04      0.06      0.74      0.65
including       72.84     74.21        1.37          1.03     2,179    0.07      0.10      0.05      0.90
ZKX0413        287.53    288.34        0.81          0.50       286    1.79      0.14      0.02      0.09
ZKX0413        501.84    502.89        1.05          0.64       698   11.69      0.40      0.29      0.15
ZKX0423        221.18    222.51        1.33          0.96       222    1.96      0.67      0.03      0.08
ZKX0423        227.07    228.29        2.25          1.62         2    0.03      0.02     10.53      0.02
ZKX0428         30.32     32.12        1.80          1.57       240    0.31      0.28      0.05      0.03
ZKX0428        147.62    149.07        1.45          1.38       238    2.21      0.19      0.05      0.14
ZKX0429         79.38     79.96        0.58          0.26       219    1.12      2.07      0.01      0.09
ZKX0429        151.35    152.86        1.51          1.50     1,103    1.46      0.10      0.05      0.65
including      151.35    152.14        0.79          0.77     2,078    0.41      0.11      0.09      1.22
ZKX0530        118.63    144.21       25.58         23.96       202    1.26      0.12      0.15      0.37
including      140.23    144.21        3.98          3.73       818    2.90      0.05      0.23      0.46
ZKX0564        159.74    163.56        3.82          2.21         3    0.08      0.02      2.60      0.01
ZKX0564        180.21    181.89        1.68          0.98         2    0.01      0.01      1.86      0.01
ZKX0566        167.48    169.11        1.63          0.72         5    0.11      0.02      1.63      0.00
ZKX0567        157.48    158.34        0.86          0.69        10    0.41      0.31      1.30      0.01
ZKX0575         79.38    100.13       20.75         19.67       261    1.08      0.04      0.16      0.78
including       80.54     88.97        8.43          8.00       532    2.20      0.07      0.31      1.62
ZKX0719         18.94     19.60        0.66           (1)     1,121    7.24      0.35      0.21      0.11
ZKX0728        128.99    130.57        1.58           (1)        95    0.25      0.07      6.02      0.29
ZKX0728        188.33    189.50        1.17           (1)     1,072    1.52      0.09      0.15      0.08
ZKX0732        122.10    139.03       16.93         16.16       112    2.00      0.13      0.09      0.79
ZKX0751         73.73     74.23        0.50          0.45       212    0.87      0.76      0.11      0.14
ZKX0751         82.29    102.32       20.03         19.32       162    1.38      0.11      0.09      1.00
ZKX0811        186.63    187.26        0.63          0.53        12    0.11      0.15      1.75      0.01
ZKX0945         80.54     81.56        1.02          0.93       418    0.48      0.18      0.05      0.04
ZKX0945        277.30    278.25        0.95          0.86       214    0.55      0.15      0.15      0.39
ZKX0957        137.43    138.67        1.24          0.95       338    0.86      0.17      1.29      0.03
ZKX0959         67.91     68.34        0.43          0.21     5,680    1.07      0.52      0.04      5.91
ZKX0959        130.27    132.20        1.93          0.92       223    0.13      0.02      0.01      0.08
ZKX0959        156.85    159.70        2.85          1.36       129    0.78      0.20      0.77      0.09
ZKX10813       106.36    107.60        1.24          1.20       358    3.40      0.72      0.33      0.02
ZKX10813       144.84    145.38        0.54          0.52        52    5.68      0.50      0.03      0.05
ZKX10825       138.34    139.46        1.12          1.08        13    0.02      0.01      2.42      0.01
ZKX10827       112.51    114.55        2.04          1.87       147    0.75      0.06      0.91      0.04
ZKX1115         24.96     25.58        0.62          0.47       502    0.11      0.28      0.03      0.04
ZKX11210       133.80    134.99        1.19          0.70         6    0.01      0.02      2.32      0.00
ZKX11210       165.56    166.80        1.24          0.73       147    0.01      0.01      0.03      0.02
ZKX11210       337.53    338.50        0.97          0.59       129    0.32      0.15      0.01      0.07
ZKX11210       428.51    429.13        0.62          0.38       100   11.56      1.77      0.09      0.42
ZKX11210       512.78    513.57        0.79          0.48       261    3.72      0.55      0.09      0.08
ZKX11307       173.57    174.36        0.79          0.56       171    0.91      0.04      0.03      0.02
ZKX3811         90.89     93.11        2.22          1.85       512    0.48       0.1      0.01      0.24
ZKX3811        338.84     344.0        5.16          4.97       388    1.95      0.09      0.04      0.08
including      340.77    342.89        1.80          0.99       833    3.11      0.10      0.06      0.19
ZKX4210        247.01    247.76        0.75          0.51        74    8.19      0.18      0.03      0.02
ZKX6403         42.08     42.49        0.41          0.37        29    0.02      0.04      0.01      3.03
ZKX6403        261.10    261.33        0.23          0.22       167    0.62      0.11     18.90      0.28

(1) True width was not determined.       
(2) These are new veins with no name assigned.

                SELECTED MINERALIZED ZONES EXPOSED BY DRIFT TUNNELLING AT THE LMW MINE
  
Tunnel ID                    Vein     Ore length   True width       Ag       Pb     Zn        Au    Cu
                                             (m)          (m)    (g/t)      (%)    (%)     (g/t)   (%)

SJ969-LM7-550-9ECM (1)        LM7                       13.57       72     2.02   0.09      0.04  0.56
XPDS-LM14-575-26SYM          LM14             10         0.45       38     1.63   0.73      0.02  0.06
XPDS-LM14-525-115NYM         LM14             45         0.66      675     1.33   0.19      0.02  0.62
XPDS-LM16-695-109TJ-SYM      LM16             42         0.65      584     2.56   0.34      0.02  0.45
XPDN-LM17-800-9SYM           LM17             15         1.38    1,460    11.36   0.87      0.02  0.22
XPDN-LM17-750-7NYM           LM17             40         0.72      517     6.50   0.38      0.02  0.10
XPDS-LM17-625-28SYM          LM17             10         0.65      194     1.56   0.82      0.02  0.06
XPDS-LM17-575-26SYM          LM17             40         1.54      708     4.57   0.40      0.26  0.47
PD1080-LM41E-1080-11SYM     LM41E             10         0.49    1,017     0.63   0.21      0.02  0.55
PD990-LM41E-990-9NYM        LM41E             15         0.27       96     1.04   0.74      0.02  0.04
PD990-LM41E-990-9SYM        LM41E             50         0.37      287     2.87   0.58      0.02  0.05
PD924-LM41E-924-3NYM        LM41E             10         0.50      198     1.23   0.26      0.02  0.07
PD918-W1-918-4SYM              W1             15         0.85    1,561     4.31   0.62      0.02  0.45
PD918-W1-880-8NYM              W1             45         0.81      280     2.61   0.18      0.02  0.08
PD918-W18-880-140SYM          W18             30         0.44       35     3.03   0.05      0.02  0.01
PD918-W18-880-140NYM          W18             65         0.46      108     6.22   0.33      0.02  0.01
PD918-W6-880-128NYM            W6             45         0.62      121     5.11   0.59      0.02  0.02
PD918-W6E1-880-138NYM        W6E1             20         0.59      236     2.75   0.25      0.02  0.02
PD918-W6E1-880-138SYM        W6E1             15         0.51      181     4.82   1.04      0.02  0.05
PD924-W6E1-834-132SYM        W6E1             10         0.43      270     5.37   1.75      0.02  0.06

(1) This is a crosscut.

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 kilometres northeast of Beijing, the Zhengzhou Nonferrous Exploration Institute Lab in Zhengzhou, Henan province, China, and SGS-CSTC Standards Technical Services (Tianjin) Co. Ltd., Tianjin, China. All the three labs are ISO (International Organization for Standardization) 9000-certified analytical labs. For analysis, the sample is dried and crushed to minus one millimetre and then split to a 200 to 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 (atomic absorption spectroscopy).

Channel samples are collected along sample lines perpendicular to the mineralized vein structure in exploration tunnels. Spacing between sampling lines is typically five m along strike. Both the mineralized vein and the altered wall rocks are cut by continuous chisel chipping. Sample length ranges from 0.2 m to more than 1.0 m, 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 200 g sample of minus 160 mesh is prepared for assay. A duplicate sample of minus one mm is made and kept in the laboratory archives. Gold is analyzed 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 (certified reference materials), 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 to 5 per cent of the pulp samples to higher-level labs to check for lab bias. Data from both the company's and the labs' quality assurance/quality control programs are reviewed on a timely basis by project geologists.

Guoliang Ma, PGeo, manager of exploration and resource of the company, is the qualified person for Silvercorp under National Instrument 43-101 and has reviewed and given consent to the technical information contained in this news release.

About Silvercorp Metals Inc.

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.

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