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Silvercorp Metals Announces Underground Drilling Results from LM Mine in China

Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) has reported the results for its 2010 underground diamond drilling program at the LM Mine, within the LM Mining Permit area, Ying Mining District, Henan, China.

The drill program has successfully extended the existing veins further to down dip and striking directions, and has discovered twelve new high grade silver-lead veins, increasing the total number of mineralized veins at the LM Mine to 19 veins.

The diamond drilling program and the underground tunneling program aimed to upgrade inferred mineral resources to the indicated and measured categories, and to explore and define new mineralized veins at the LM Mine. During 2010 a total of 12,255 meters (m) of drilling comprising of 44 underground holes were completed by 2 underground drill rigs at the LM Mine.

At the LM Mine, the mineralized veins can be grouped into two vein systems – north-south and northeast striking. The north-south striking veins steeply dip to east while northeasterly extending veins dip to northwest. Most of the veins are closely spaced, either being parallel or intersecting each other as "X" pattern, and a drill hole or cross-cut tunnel often intercepts multiple veins. With these successful drilling results, additional tunneling and drill holes are on going to further define the striking and dipping extensions of these veins.

At the LM Mine, mining and exploration activities are conducted through main access tunnel PD838 and PD900 and two declines. The decline LM838-LM-810 is down to 810m elevation while the decline LM838-LM-790 is bottomed at 790m elevation. Since the beginning of 2010 the Company has been developing a 400m deep shaft from 903m elevation down to 500m elevation and it is expected to be fully operational by mid 2011. Once operational, this shaft will provide access to mine these veins and provide access for drilling at depth. A re-suing mining method, which has been successfully used by the Company at the LM Mine with a 30% dilution, will be applied to mine these veins.

Selected significant intercepts are as follows:

  • Hole ZKL6902 intersected 4.1m of the LM6 vein grading 671 grams per tonne (g/t) Ag, 2.29% Pb, and 1.73% Zn at the 569m elevation, including a 1.38m interval containing 1,383 g/t Ag and 4.75% Pb;
  • Hole ZKL5707 intersected 0.43 m of the LM4 vein grading 4,042 g/t Ag and 0.71% Pb at the 748m elevation;
  • Hole ZKL5002 intersected two veins: 0.89 m of the LM6 vein containing 1,572 g/t Ag and 0.75% Pb at the 678m elevation and 0.33 m of the LM6E vein grading 1,098 g/t Ag and 1.32% Pb;
  • Hole ZKL5103 intercepted 8.85 m of the LM5 vein containing 360 g/t Ag and 1.40% Pb, including 0.88 m grading 1,073 g/t Ag and 3.41% Pb;
  • Hole ZK51A02 intersected two veins: 1.46 m of the LM2-1 vein containing 1,811 g/t Ag and 3.89% Pb at the 811m elevation and 0.20 m of the LM5W vein grading 6,989 g/t Ag and 5.48% Pb at the 723m elevation;
  • Hole ZKL002 intercepted 0.45 m of the LM3 vein containing 1,517 g/t Ag and 6.66% Pb at the 780m elevation.

New Discovered Veins

These newly discovered veins are LM2-1, LM2-2, LM3-1, LM4W, LM4W2, LM5E, LM5E2, LM5W, LM5W2, LM6E, LM6E2, and LM6W.

LM2-1 and LM2-2 Vein

The veins strike to north-south and steeply dip to the east and are parallel to LM2. LM2-1 is at 20 to 30m east of LM2 while LM2-2 is further 10m east of LM2-1. LM2-1 is defined by 6 drill holes from 767 to 841m elevation. The drill intercepts were 0.27 to 2.12m and contained 41 to 1,811 g/t Ag and 0.14 to 3.89% Pb.

Two drill holes intersected LM2-2. One hole returned 55 g/t Ag and 0.20% Pb over 1.36m interval and another hole cut 0.40m of the vein grading 284 g/t Ag and 0.13% Pb.

LM3-1 Vein

The vein is at 10m west of LM3, striking northeasterly and dipping to the northwest at 75 to 80 degree dipping angle. LM3-1 is defined by two drill holes at 811m and 775m elevation, which intercepted over 1.1m containing 137 g/t Ag and 0.33% Pb (ZK001) and 1.68m grading 792 g/t Ag and 6.61% Pb (hole ZKL002).

LM4W and LM4W2

LM4W and LM4W2 are parallel to LM4, being 5 to 10m and 25m apart from the LM4. The veins extend northeasterly and dip to the northwest at a 70 to 75 degree angle. LM4W is intersected by drill holes from 615 to 831m elevation and is over 0.15 to 0.90 m in true width, grading 117 to 449 g/t Ag and 0.10 to 3.76% Pb.

LM4W2 is only intercepted by one drill hole that contains 432 g/t Ag and 0.73% Pb over 0.13m true width.

LM5E, LM5E2, LM5W, and LM5W2

These four veins are closely spaced and are parallel to LM5, about 5 to 50m apart each other. They extend northeasterly and dip to the northwest with 65 to 75 degree dipping angle. LM5E is at the east of LM5, being defined by 10 drill holes ranging from 529 to 753m elevation. It extends over 500m along strike over 0.10 to 1.63m true width. The best drill intercept is 0.36m true width grading 814 g/t Ag and 4.68% Pb.

LM5E2 is also at the east of LM5 and extends over 250m in strike length. Two holes were drilled on LM5E2 from 542 to 562m elevation, containing grades averaging 182 g/t Ag and 1.07% Pb over 0.34m interval.

LM5W is 5 to 30 m west of LM5 and extends about 450m in strike and 240m in dipping directions. The vein is defined by 9 drill holes, of which 7 holes intercepted high grade mineralization, ranging 197 to 6,988 g/t Ag and 0.31 to 3.66% Pb over 0.20 to 0.43m intervals.

LM5W2 is located at 28m west of LM5. One hole cut the vein at 537m elevation that contains 109 g/t Ag and 0.30% Pb over 0.28m interval.

LM6E, LM6E2, and LM6W

These veins are within the LM6 vein cluster and are parallel each other, striking northeasterly and steeply dipping to the northwest. LM6E is 5 to 33m east of LM6 and extends over 475m in strike length and 115m in dipping direction. Four drill holes intersected the vein, returning 25 to 1,098 g/t Ag and 0.53 to1.32% Pb over 0.33 to 5.69m intervals.

LM6E2 is located at 10m east of LM6E. The vein was defined by 2 drill holes from 614 and 635m elevation. The hole ZKL6901 intercepted 0.33m of LM6E2 that contains 1,039 g/t Ag and 0.88% Pb while the second hole ZKL6903 cuts 0.66m of the vein that grades 325 g/t Ag, 0.35% Pb, and 1.24 g/t gold (Au).

LM6W is at 6m west of LM6 and is intercepted by three drill holes, with the best intercept in drill hole ZKL6903, grading 1,124 g/t Ag and 0.73% Pb over a 0.64m interval.

Quality Control

Drill cores are NQ size and drill core samples were taken from sawn half core limited by apparent massive galena sheet contact or shear/alteration contact.

The Company maintains a quality control program to ensure best practice in sampling and analysis of the drill core samples. The samples are shipped directly in securely sealed bags to the Analytical Lab of Henan Non-Ferrous Metals Geological and Exploitation Institute in Zhengzhou, located 215 km by road northeast of the LM Mine.

The sample preparation consists of drying, crushing, and splitting of the sample to 250 grams, then the sample is pulverized to 200 mesh. Two acid digestion and AA finish are utilized on a 0.5 gram sample for lead and zinc. Titration is utilized as a modified process for higher grade materials. Silver is also analyzed using a two acid digestion on a 0.5 gram sample and AA finish. Both labs utilize a QA/QC system of duplicates, replicates and standards.

Myles Gao, P.Geo, is the Qualified Person on the project under NI 43-101.

Source: Silvercorp Metals Inc.


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