VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 20, 2005) - Silvercorp Metals Inc. ("Silvercorp") (TSX VENTURE:SVM) is pleased to report additional positive exploration results from the high-grade Ying Silver Project, Henan Province. Extension along strike and at depth of massive galena sheets (MGS) has been established by ongoing drifting and underground drilling on the S2 vein, which also appears to have split and twinned itself. Tunneling and underground drilling programs on other veins are progressing well and mine development, including sinking three shafts, is on schedule. In particular:
- New tunnel and underground drill holes reveal that the S2 vein splits into two branches (named S2 and S2E). The newly defined S2E vein has been traced on the 496 m elevation for 90m thus far. Sampling along the drift establishes the S2E contains massive galena sheets averaging 0.5 meters (m) in thickness with extremely high silver (Ag) and lead (Pb) grades. The most significant interval grades 8,566 grams per tonne (g/t) (275.4 ounces per tonne (oz/t)) Ag, 16.70% Pb and 19.86% Zinc (Zn) over 0.40m width.
- New tunneling has also extended the S2 vein, on the 518 m elevation, by almost 500 m southward with the most significant interval grading 2,274 g/t (73.11 oz/t) Ag, 52.23% Pb and 4.15% Zn over 0.9 m width. Only 200 m of the 1,150 m long S2 vein has been examined previously.
- Underground Drill Hole ZK1801 intercepted the S2 vein at 425m elevation and returned 1,104 g/t (35.49 oz/t) Ag, 16.64% lead (Pb), and 12.94% Zinc (Zn) over a 1.67 m interval. This is 71 m below galena sheets exposed in tunnels at the 496m elevation.
- Underground Drill hole ZK1803 has intercepted the S2E vein and returned 1,399 g/t (44.96 oz/t) Ag, 9.2% Pb and 41.95% Zn over a 0.46 m interval at the 428m elevation.
S2 and S2E Vein
The S2 vein was previously mapped by surface trenching and limited tunnelling. The vein structure extends almost north-south over 1.15km, dipping steeply to the southwest. New tunnel and underground drill holes reveal that the S2 vein splits into two branches (named S2 and S2E). S2 and S2E were accessed at the 496m elevation through extended main access tunnel CM103 which orients near east-west. A total of 176.5m drifting (tunnelling) was completed along the S2 vein, and another 192.1m drifting was completed along the S2E, running north of the CM103 intersection.
Through another access tunnel, CM102, about 380 m south of the CM103 intersection with S2, drifting at the 518m elevation has exposed a total 160.7m portion of the S2 vein containing massive galena sheets. The assay results for these new tunnels are listed in the Table below:
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Distance
Mineral Eleva to Ag Ag
-ized -tion CM103 Width Silver Ag Lead Zinc Equiv. Equiv.
Vein (meter) (meter) (meter) (g/t) (oz/t) (%) (%) (g/t) (oz/t)
(x) (x)
------------------------------------------------------------------------
S2 496 -14.5 0.20 155 4.98 0.35 24.70 1342 43.16
518 381.0 0.40 261 8.39 1.02 24.18 1452 46.68
518 396.0 0.40 2289 73.59 10.27 3.29 2879 92.55
518 406.0 0.15 1214 39.03 7.00 15.77 2258 72.60
518 431.0 0.24 608 19.55 12.04 6.17 1409 45.30
518 446.0 0.15 2868 92.21 50.78 11.62 5562 178.84
518 451.0 0.16 1110 35.69 18.91 9.71 2369 76.16
518 466.0 0.90 2274 73.11 52.23 4.15 4675 150.31
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Weighted Average 0.39 1911 61.44 30.78 9.60 3665 117.84
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S2E 496 -74.5 0.50 1474 47.39 44.65 1.01 3406 109.51
496 -69.7 0.25 4766 153.23 52.05 4.17 7160 230.21
496 -65 0.10 763 24.53 37.48 1.17 2400 77.17
496 -60 0.50 1830 58.84 43.12 4.24 3851 123.81
496 -55 0.10 248 7.97 17.27 29.65 2384 76.66
496 -50 0.30 1048 33.69 44.36 3.04 3064 98.52
496 -34.6 0.30 789 25.37 16.35 3.65 1652 53.12
496 -15 0.40 8566 275.40 16.70 19.86 10213 328.37
496 5 0.20 2172 69.83 34.37 2.72 3751 120.61
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Weighted Average 0.29 2776 89.25 35.52 6.51 4584 147.38
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(x) Silver equivalent grade is calculated on the basis of US$6.5/oz Ag,
US$0.40/lb for Pb, and US$0.45/lb for Zn. Distance to CM103:
negative figure refers to north of CM103 and positive figure refers
to south of CM103.
Underground Drilling
One electric rig performed drilling on the S2 vein at 496m elevation on 40 to 50 m spacing to test the downdip extension of MGS in the vein. Three holes have been completed and assay results are listed in the following table.
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Distance
Mineralized Drill from to Width South of Elevation
Veins No (m) (m) (m) CM103 (m)
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S2 ZK1801 82.07 83.74 1.67 -106 425.00
S2 ZK1802 97.01 97.33 0.32 -32 441.66
S2E ZK1802 100.07 101.22 1.15 -32 439.43
S2 ZK1803 91.66 92.66 1.00 -146 441.54
S2E ZK1803 97.16 97.62 0.46 -150 438.55
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Mineralized Ag Ag Pb Zn Ag Equiv. Ag Equiv.
Veins (g/t) (oz/t) (%) (%) (g/t) (x) (oz/t) (x)
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S2 1104 35.49 16.64 12.94 2421 77.83
S2 342 11.01 22.05 0.86 1314 42.23
S2E 51 1.63 3.62 3.41 365 11.74
S2 229 7.38 1.12 9.41 723 23.25
S2E 1399 44.96 9.2 41.95 3779 121.48
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(x) Silver equivalent grade is calculated on the basis of US$6.5/oz Ag,
US$0.40/lb for Pb, and US$0.45/lb for Zn. Distance to CM103:
negative figure refers to north of CM103 and positive figure refers
to south of CM103.
In the NI 43-101 technical report dated April 18, 2005, Mr. Chris Broili, C.P. Geo., L.P. Geo., estimated Resources for the S2 vein based only on a 200 m long pocket of massive galena sheets exposed by tunnel on the 496 m elevation near CM103. These new exploration results on S2 and newly identified S2E veins should greatly expand the S2 vein resource estimate by Mr. Broili. The report is available for review on www.sedar.com. Tunnel maps are available on the Company's website: www.silvercorp.ca.
Quality Control
The Company has implemented a quality control program to ensure best practice in sampling and analysis of the tunnel samples.
Rock samples were collected by channel sampling the face of the undercut drifts. The channels were usually cut 10 cm in width and 5 cm in depth producing a sample weighing approximately 2 kg to 10 kg for each 0.10 to 1.00 m intervals depending on the thickness of mineralization. The drill cores are in NQ size and drill core samples were taken from sawn half core limited by apparent massive galena sheet contact. The samples are shipped directly in security sealed bags to the Langfang Institute of Geochemical and Geophysical Exploration (Certification ISO 9001), a well-regarded analytical laboratory in Langfang, Hebei Province, approximately 60 km from Beijing
The sample preparation consists of drying, crushing, splitting of the sample to 150 grams, then the sample is pulverized to 200 mesh. Ag, Pb and Zn were analyzed by a 3 hour hot aqua regia digestion on 30 gram samples with an AA finish. Check samples including field duplicates and pulps are routinely sent to ALS Chemex Laboratories in Vancouver Canada.
Myles Gao, P.Geo, President of Silvercorp and General Manager of the Ying Project, is the Qualified Person on the Project.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
Statements in this press release other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397
(604) 669-9387 (FAX)
Silvercorp Metals Inc.
Cathy Fong
VP Corporate Development
(604) 669-9397
(604) 669-9387 (FAX)
info@sknresources.com
www.silvercorp.ca
