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Silvercorp Metals Reports Underground Drilling Results from Ying Mine in China

Silvercorp Metals Inc. (TSX:SVM)(NYSE:SVM) has reported drill results on the S7-1 Vein, part of its 2010 underground diamond drilling program at the Ying Mine, Ying Mining District, Henan Province, China.

The 2010 underground drill program at the Ying Mine intended to investigate down dip extensions of several major production veins (e.g. S16W, S14, S7, S21, and S8) and to drill laterally to define new veins or under-explored veins near these major production veins. Due to delays in excavating drill pads at the 260 metre (m) elevation level tunnel (lowest level in the mine), drilling down dip was limited. The Company instead focused on drilling laterally on those previously known but less explored veins from tunnels above the 260m elevation level.

The 2010 drill program was successful in further defining the S7-1 vein (a branch of the S7 vein), increasing its known extension from 1,400 to 2,000 metres in strike length, and to a depth of 620 metres down dip, to the 200m elevation level. Numerous high grade pockets were discovered in the S7-1 vein which will be subject to further detailed in-fill drilling in 2011. It is expected that these high grade pockets will add resource/reserve that will either extend the Ying mine life or increase current mining capacity as these pockets are close to the existing mining tunnels and can be quickly developed into mining stopes.

A total of 21,199 metres in 80 holes with a drilling spacing of 400 by 200 metres to 200 by 100 metres were drilled on the S7-1 vein during the 2010 drilling program. The rest of the holes intercepted the S7-1 structure without significant mineralization and are not listed.

The highlights of the drilling results of the S7-1 vein are as follows:

  • Hole ZK9B06 intersected a 14.62 metre interval grading 363 g/t Ag, 2.45% Pb, and 4.80% Zn at the 428m elevation level, including 1.5 metre of 1,960 g/t Ag, 13.25% Pb, and 27.06% Zn;
  • Hole ZK4010 intersected 3.28 metres grading 464 g/t Ag, 7.93% Pb, and 1.18% Zn at the 421m elevation level, including 0.45 metres of massive galena that contains 2,331 g/t Ag, 50.01% Pb, and 6.21% Zn;
  • Hole ZK4012 intersected 1.63 metres grading 629 g/t Ag, 12.13% Pb, and 0.95% Zn at the 330m elevation level, including 0.40 metres of massive galena grading 1,405 g/t Ag, 48.34% Pb, and 3.57% Zn;
  • Hole ZK4B11 intersected 0.35 metres grading 1,912 g/t Ag, 40.60% Pb, and 1.91% Zn at the 365m elevation level;
  • Hole ZK5507 intersected 0.27 metres grading 1,397 g/t Ag, 47.29% Pb, and 3.19% Zn at the 309m elevation level; and
  • Hole ZK6308 intercepted 2.30 metres grading 484 g/t Ag, 5.64% Pb, and 1.58% Zn at the 435m elevation level, including 0.25 metres grading 2,179 g/t Ag, 48.58% Pb, and 13.11% Zn.

Silvercorp has planned 20,000 metres of in-fill underground diamond drilling on the S7-1 vein in 2011 at a drill spacing of 100 by 100 metres to further define several newly discovered high grade pockets and to further test its down dip extension.

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 225 km by road northeast of the Ying 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 an AA finish for lead and zinc are utilized on a 0.5 gram sample. Titration is utilized as a modified process for higher grade materials. Silver is also analyzed using a two acid digestion and AA finish on a 0.5 gram sample. The lab utilizes 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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