VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 18, 2007) - Silvercorp Metals Inc. (the "Silvercorp") (TSX:SVM) reports on the status of its 100% owned Mac Molybdenum Property, located in British Columbia, Canada and the Ying Molybdenum Project, located in Henan Province, China.
Mac Property
The Mac property covers 500 hectares and is located approximately 43 kilometres (km) southeast of the Bell and Granisle past producing porphyry mines, and the town of Granisle in BC, where development logistics are located. The Mac property is directly accessible by a 35 km forestry road from the paved highway to Granisle. The topography in the area is moderate, with elevations ranging from 900 to 1,500 metres (m). The property is in an area with a long history of mining, free of any issues related to parks, the environment or native.
The Mac prospect was originally discovered in 1982 by Rio Algom Exploration Inc. An extensive surface exploration program was conducted in 1983 and 1984 which resulted in the discovery of the porphyry system and three mineralized zones. In 1989, 12 diamond drill holes (totaling 1,488m) outlined the molybdenum/copper mineralization within the Camp Zone. Silvercorp (then known as Spokane Resources Ltd.) acquired the property in the spring of 1995, and by 1997 had completed a total of 49 drill holes averaging 220m per hole - total 10,818m - and 62 km of geophysics and geochemical survey. Based on a technical report published by Dr. P.E. Fox (P. Eng.) for Silvercorp in 1997, the work outlined a mineralization zone some 700m by 500m consisting of two lobes or contact zones linked by an porphyry body hosting a molybdenite stockwork. The drill results have been in the public domain since 1997 and were filed with the TSX Venture Exchange and related government authorities. The reports predate NI 43-101, however they are believed to be reliable. The significant drill results from the technical report include:
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Drill Intercept MoS2 Cu
hole Zone (m) (%) (%)
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89-11 East Contact Zone 50.0 0.225 0.190
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95-14 East Contact Zone 66.0 0.110 0.094
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96-27 East Contact Zone 165.8 0.203 0.214
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Including 96.0 0.308 0.256
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95-15 East Contact Zone 196.3 0.125 0.172
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Including 79.0 0.217 0.256
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96-24 East Contact Zone 200.0 0.135 0.221
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Including 78.0 0.226 0.378
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89-3 East Contact Zone 54.0 0.117 0.040
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89-4 East Contact Zone 128.3 0.143 0.160
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96-25 East Contact Zone 96.0 0.168 0.130
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96-25 East Contact Zone 41.9 0.090 0.314
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89-1 Prophyry 70.5 0.073 0.050
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89-3 Prophyry 54.0 0.070 0.040
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89-9 Prophyry 105.2 0.045 -
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89-10 Prophyry 51.0 0.095 0.060
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96-31 West Contact Zone 18.0 0.106 0.093
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96-31 West Contact Zone 52.0 0.116 0.111
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89-2 West Contact Zone 47.6 0.098 0.090
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96-30 West Contact Zone 117.9 0.130 0.093
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Including 80.0 0.190 0.141
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96-29 West Contact Zone 96.0 0.133 0.072
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Including 56.0 0.172 0.074
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95-16 West Contact Zone 93.0 0.220 0.122
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Including 73.0 0.252 0.139
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96-34 West Contact Zone 90.0 0.118 0.106
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89-12 West Contact Zone 221.9 0.155 0.120
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Including 72.2 0.335 0.210
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95-17 West Contact Zone 91.7 0.125 0.090
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Including 39.0 0.215 0.132
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89-5 West Contact Zone 12.0 0.175 0.040
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89-2 West Contact Zone 47.6 0.059 0.090
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The preliminary metallurgical study carried out by Lakefields in 1997 indicated a recovery rate of 71% for copper and 78% for molybdenum. Based on a preliminary scoping study report by Fluor Daniels Wright (1998), the potential strip ratio of 1.5:1 is assumed for open pit mining.
As Silvercorp is focused on exploring and developing silver related properties in China, Silvercorp intends to maximize shareholders value by optioning or selling the Mac Molybdenum Property.
Ying Molybdenum Project, Henan, China
On April 12, Silvercorp announced that it had commenced drilling the NPG Molybdenum Project ("Ying Moly Project") located within the Ying Silver Mining Permit area. Legal advice was subsequently received that the Ministry of Land and Resources and the National Development and Reform Commission of China recently issued a policy prohibiting the granting of land usage title to any new development of molybdenum and tungsten mines in China. As a result Silvercorp has decided to stop the program at the Ying Moly Project, so that it can focus its drill rigs and technical staff on silver exploration and development.
Myles Gao, P.Geo, is the Qualified Person on the project.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is an exploration and development stage company, which along with its subsidiary companies and joint ventures (collectively the "Company"), is engaged in the acquisition, exploration, development, and mining of precious and base metal mineral properties in the People's Republic of China. Currently, the Company's main mining operations are in Henan Province at the Ying Silver-Lead-Zinc mine and the Hou-Ping Gou Silver-Gold-Lead-Zinc mine, owned through 77.5% and 70% Chinese subsidiary companies, respectively. The Company is a reporting issuer in British Columbia, Alberta, Ontario, Nova Scotia, New Brunswick, Manitoba, and Saskatchewan and trades on the TSX under the symbol "SVM".
Standard & Poors Canadian Index operations added the Company's common shares to the S&P/TSX Composite Index and the S&P/TSX Global Gold Index (formerly the S&P/TSX Capped Gold Index), effective December 18, 2006. In addition, effective June 12, 2007, Standard & Poor's Canadian index operations added Silvercorp Metals Inc. as a constituent for the new S&P/TSX Global Mining Index.
CAUTIONARY DISCLAIMER - 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, development, and mining. Production and revenue projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. As a result, actual results may vary materially from those described in the forward-looking statements. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.
FOR FURTHER INFORMATION PLEASE CONTACT:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397
(604) 669-9387 (FAX)
Email: info@silvercorp.ca
Website: www.silvercorp.ca
