Silvercorp Metals Inc. ("Silvercorp") (TSX:SVM - News) is pleased to provide an update on exploration results for the SGX area of the Ying Silver Project for the period from May 1st to August 15th 2006. The ongoing tunneling and drilling exploration program is intended to convert inferred resources to indicated and measured resources, to expand inferred resources at depth and along strike, and to find and define new mineralized veins. A total of 3,144 meters (m) of exploration tunnels and a total of 41 drill holes totaling 11,231m (10 surface and 31 underground drill holes) have been completed. Sixteen of 41 drill holes intercepted massive galena sheets with silver equivalent grade exceeding 1,250 g/t, representing a 39% drilling success rate. This drilling (exploration) success rate is comparable to results obtained in our previous drill programs.
Based on the exploration work completed during the period, it is expected that a substantial amount of the Inferred resource category estimate defined in the May 2006 Technical Update will be converted to Indicated resource category estimates. Further, it is expected that the estimated inferred resources will be expanded at depth. In addition, Silvercorp's tunneling and drilling program has also discovered several new concealed veins which contain massive galena mineralization: S14-1, S14-2, S16E1, S16E2, S16E3, S16E4, and S8E. The dimension and extents of these veins are not yet fully understood and are subject to further exploration work. Assay results for these new veins are pending.
The assay results from the new tunnels and drill holes are listed in the Tables below.
Significant results from the new tunnels and drill holes are:
- 0.45m true width grading 2,090 grams per tonne (g/t) or 67.26 ounces per tonne (oz/t) silver (Ag), 34.44 % lead (Pb), 9.77% zinc (Zn) from a raise at 464m elevation on the S2 Vein.
- 1.31m interception grading 2,986 g/t or 96 oz/t Ag, 51.03 % Pb, 5.14% Zn from drill hole ZK814 at 458m elevation on the S6 Vein.
- tunneling intercepted 0.20m true width massive galena in S7-1 Vein grading 3,020 g/t (97.08 oz/t) Ag, 62.57% Pb, and 1.62% Zn at 600m elevation; drill holes ZK14A02 intersected 0.16m wide S7-1 Vein (core length) containing 845 g/t (27.16 oz/t) Ag, 2.4% Pb, and 7.05% Zn.
- 0.5m true width containing 3,500 g/t (112.53 oz/t) Ag, 4.54% Pb, and 3.47% Zn in a raise at 606m elevation on the S8 Vein.
- 0.30m true width grading 4,675 g/t (150.31 oz/t) Ag, 41.55% Pb, and 4.11% Zn in the 480m elevation tunnel on the S14 Vein; drill hole ZK812 intersected 0.35m wide (core length) massive galena of S14 Vein carrying 8,205 g/t (263.8 oz/t) Ag, 33.47% Pb, and 2.64% Zn at 409m elevation.
- 0.50m true width grading 1,390 g/t (44.70 oz/t) Ag, 33.80% Pb, and 16.19% Zn in a drift at 534m elevation on the S16E Vein.
- 1.18m true width grading 2,370 g/t (76.19 oz/t) Ag, 50.22% Pb, and 4.60% Zn in a drift at 534m elevation on the S16W Vein.
- 0.40m true width containing 3,131 g/t (100.66 oz/t) Ag, 3.08% Pb, and 1.28% Zn in a crosscut at 534m elevation on the S16W1 Vein.
- tunneling on S21 Vein cut 0.25m wide massive galena (true width) containing 2,790 g/t (89.7 oz/t) Ag, 57.33% Pb, and 0.28% Zn at 680m elevation.
S2 and S2E Veins
A 41m long section of raise was completed on S2 and S2E Veins from 460m elevation through CM103. Three drill holes (ZK1007, ZK1207, and ZK0606) intersected the S2 Vein with significant Ag-Pb-Zn mineralization at 442, 463, and 483m elevations. Hole ZK1807 intersected massive galena sheet in S2E Vein at 357m elevation.
S7-1 Veins
The tunneling on the S7-1 Vein was carried out at 600m and 560m levels through main access tunnels PD700 and CM103. At 600m elevation, 110m drift was driven, in which over 82m drift exposed massive galena sheet. At 560m elevation, 76m of 126m drift showed massive galena.
Three drill holes (ZK14A02, ZK5105, and ZK5504) intercepted significant Ag-Pb-Zn mineralization at 393m, 468m, and 482m elevation, indicating great downdip extension of the veins.
S8 Vein
A total of 989 m of tunnels were completed on the S8 Vein. The work included: 6 raises totaling 162m; 131 m drift at 705m elevation in tunnel CM104; 292m drift at 640m elevation in CM101; 58m drift at 600m elevation in PD66 and 346 m drift at 510m elevation in YPD01 at the YLG camp, respectively.
S14 Vein
On the S14 Vein, 82m drift and two raises totaling 100m were completed from the 480m elevation through main access tunnel CM102. The ongoing tunneling to the south along the vein at 480m elevation in CM102 instantly expose the massive galena sheet, indicating great possibility that MGS of S14 Vein could extend further south.
During the period, diamond drilling was extensively used to carry out exploration program for the vein, which resulted in the discovery of significant amount of new intersections. This is expected to significantly increase the Inferred mineral resources and convert a large portion of the existing Inferred resources to Indicated. One drill hole, ZK814 intercepted two additional veins (S14-2 and S14-3) that are located less than 10m east of the S14 Vein, contain up to 1,314 g/t equivalent silver. The dimensions of the veins have yet to be defined. To date, a total of 22 holes (5,735m) of drilling were completed on the vein with 16 of them intersecting significant mineralization (Ag equivalent grade exceeding 100 g/t). Ten holes hit 0.30 to 1.15m wide (core length) massive galena sheets, representing a nearly 50% drill success rate. The holes were drilled on 50 X 80m spacing between Section lines 0 to 18 and from 286m to 444m elevations.
S16E
A total of 371m of tunneling on the S16E Vein was completed at the four levels. These included 79m at 680m elevation from PD680, 47m at 640m elevation from CM101, 11m at 570m elevation and 206m at 534m elevation through CM102. A 29m raise was driven at 570m elevation from CM102. The drift at 534m elevation and the raise all expose complete massive galena sheeting.
S16W
The S16W Vein was explored through four levels (680m, 650m, 570m, and 534m) and 227m of drifting, 141m of crosscutting, and 141m of raises were completed. The majority of drifting on 534m level and all five raises show 0.1 to 2.60m wide (true thickness) massive galena sheets.
S16W1
The vein was explored at 680m and 534m elevations. At the 680m level, 84m of drifting, 32m of raise, and 33m of crosscutting were completed. Massive galena sheets were intercepted at the 534m level when developing drawpoints in CM102.
S21
Exploration on the vein 105m long drift on 560m level in CM103 and 176m crosscutting and drifting on 680m level in PD680.
Table: Tunnel Assay Results
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Mine- Eleva- Dis- True Ag Ag Pb Zn Ag Ag
ral- tion tance Width (g/t) (oz/t) (%) (%) Equiv Equiv
ized (m) to (m) (i) (i)
Veins South (g/t) (oz/t)
of
CM103
(m)
-----------------------------------------------------------------------
S2E 480 -187 0.70 1896 60.96 7.75 3.20 2375 76.36
476 -191 0.40 1686 54.22 10.33 9.96 2595 83.43
472 -194 0.40 1129 36.30 8.01 5.98 1751 56.29
-----------------------------------------------------------------------
S2 464 -93 0.45 2092 67.26 34.44 9.77 4009 128.90
467 -89 0.40 1731 55.64 19.54 19.16 3465 111.39
483 -79 0.20 736 23.67 25.97 0.51 1856 59.68
-----------------------------------------------------------------------
S7-1 600 1621 0.80 551 17.73 10.67 27.32 2299 73.90
600 1625 1.50 387 12.45 11.86 12.50 1481 47.63
600 1631 1.10 563 18.10 11.60 14.63 1747 56.17
600 1636 0.60 690 22.18 28.15 20.52 2852 91.69
600 1641 0.60 361 11.61 14.52 16.49 1757 56.48
600 1646 0.50 927 29.80 37.03 9.76 2953 94.93
600 1658 1.10 953 30.63 25.46 8.25 2419 77.76
600 1663 1.30 751 24.13 4.45 7.92 1314 42.26
600 1668 0.20 3020 97.08 62.57 1.62 5737 184.44
600 1683 0.20 1094 35.17 42.53 10.45 3385 108.82
600 1693 0.40 621 19.96 26.26 6.14 2020 64.96
600 1698 0.20 771 24.79 14.31 5.36 1630 52.39
600 1703 0.30 1564 50.29 48.58 4.06 3807 122.39
560 -116 0.95 850 27.31 30.11 8.25 2512 80.75
560 -110 0.35 432 13.90 16.45 14.65 1822 58.57
560 -105 0.30 572 18.37 12.53 18.16 1962 63.09
560 -95 0.15 1841 59.19 15.00 7.00 2806 90.23
560 -90 0.18 1538 49.46 37.79 13.35 3767 121.11
560 -85 0.10 833 26.79 35.11 9.98 2788 89.65
560 -70 0.16 555 17.84 21.88 7.94 1855 59.64
560 -65 0.20 550 17.69 26.21 8.43 2056 66.12
560 -50 0.10 316 10.16 10.23 12.31 1332 42.82
560 -45 0.15 294 9.45 26.43 19.29 2325 74.75
560 -40 0.30 799 25.68 39.75 22.34 3537 113.71
560 55 0.20 916 29.46 16.07 3.31 1752 56.32
560 60 0.10 2483 79.83 33.74 3.23 4060 130.54
-----------------------------------------------------------------------
S8 650 502 0.50 534 17.15 33.19 4.58 2152 69.17
645 505 0.60 1130 36.33 38.11 2.44 2854 91.75
609 350 0.50 771 24.78 4.70 5.94 1251 40.23
606 353 1.20 3500 112.53 4.54 3.47 3856 123.98
602 357 0.28 1970 63.33 1.69 1.09 2093 67.29
595 364 0.40 3309 106.39 22.15 11.66 4797 154.24
592 367 0.50 1076 34.58 40.45 6.53 3092 99.42
592 367 0.40 745 23.95 7.37 5.66 1325 42.59
584 375 0.20 2041 65.62 16.96 18.08 3615 116.22
580 379 0.60 910 29.27 12.63 6.56 1755 56.42
580 -678 0.40 400 12.84 19.96 0.57 1269 40.79
575 -672 0.40 304 9.77 28.56 1.28 1570 50.47
570 -666 1.10 375 12.05 38.93 2.24 2124 68.28
565 -658 0.70 284 9.12 53.54 4.03 2734 87.91
555 -646 0.60 410 13.17 51.82 2.01 2692 86.54
550 -641 0.40 428 13.75 27.15 5.85 1851 59.51
510 -717 0.50 1635 52.57 15.21 1.96 2370 76.19
510 -712 0.50 1132 36.39 23.60 2.42 2243 72.11
510 -707 0.70 1404 45.14 43.95 3.00 3401 109.35
510 -702 0.70 1550 49.83 31.21 2.90 3005 96.60
510 -684 0.40 1180 37.94 14.50 1.30 1854 59.60
-----------------------------------------------------------------------
S14 510 16 0.60 1398 44.95 27.59 2.78 2694 86.62
507 18 0.20 2538 81.60 32.64 4.14 4112 132.20
503 20 0.30 1608 51.70 38.16 0.78 3255 104.66
499 22 0.30 4675 150.31 41.55 4.11 6623 212.95
480 657 0.40 3359 107.99 44.67 5.32 5496 176.71
480 661 0.60 1560 50.15 28.83 5.81 3052 98.13
480 666 0.50 4002 128.67 36.05 1.56 5597 179.96
480 671 0.30 2191 70.44 57.36 0.79 4649 149.46
480 680 0.10 1657 53.28 58.94 0.68 4177 134.28
-----------------------------------------------------------------------
S16E 597 630 0.50 1390 44.70 33.80 16.19 3585 115.26
592 630 0.20 675 21.70 17.33 15.15 2125 68.32
579 630 0.15 244 7.85 21.74 2.21 1266 40.72
534 352 0.20 109 3.49 20.59 7.09 1314 42.25
534 362 0.30 608 19.56 28.48 4.58 2028 65.19
534 372 0.12 800 25.72 25.10 1.52 1931 62.09
534 377 0.10 4094 131.64 55.52 0.99 6484 208.47
534 382 0.20 887 28.51 27.27 1.40 2104 67.64
534 849 0.40 938 30.15 29.26 24.38 3330 107.06
534 854 1.00 137 4.40 12.36 20.01 1608 51.70
534 864 1.00 1070 34.40 2.14 3.44 1324 42.56
534 914 0.24 91 2.93 0.35 35.85 1808 58.12
-----------------------------------------------------------------------
S16W 680 610 0.35 243 7.81 0.81 39.15 2135 68.66
680 615 0.15 793 25.51 40.59 14.74 3206 103.07
680 625 0.40 506 16.28 1.49 28.14 1905 61.25
680 383 0.40 233 7.50 23.64 1.96 1324 42.56
659 659 0.70 1866 60.00 44.43 6.81 4064 130.68
663 663 0.30 2082 66.94 52.53 1.33 4362 140.24
666 666 0.15 2882 92.66 49.95 2.49 5108 164.22
640 301 0.15 153 4.91 13.20 17.33 1533 49.27
596 698 0.08 1576 50.66 31.36 12.37 3486 112.09
592 698 0.45 1599 51.42 42.34 11.67 3940 126.67
587 698 0.50 888 28.55 12.10 11.53 1946 62.57
596 584 0.20 3347 107.59 20.93 11.75 4787 153.92
610 592 0.30 2184 70.20 38.08 15.90 4545 146.13
610 602 0.20 664 21.36 19.32 7.17 1820 58.53
610 607 0.30 675 21.70 13.96 17.54 2097 67.41
573 48 0.15 2472 79.49 60.65 5.78 5306 170.60
570 51 0.50 1122 36.06 26.74 20.15 3207 103.09
566 54 0.10 2067 66.46 53.04 5.60 4571 146.96
563 58 0.05 593 19.07 24.06 16.08 2372 76.25
542 -63 0.18 424 13.62 7.33 14.79 1435 46.13
534 287 1.18 2370 76.19 50.22 4.60 4707 151.34
534 271 0.80 343 11.02 5.32 16.04 1328 42.71
534 266 1.60 1727 55.53 49.28 4.92 4040 129.90
534 265 2.25 1839 59.11 23.14 14.27 3493 112.29
534 261 2.60 1609 51.72 24.89 12.55 3255 104.65
534 259 0.90 1268 40.76 35.10 3.85 2932 94.26
534 254 0.37 785 25.24 24.20 18.30 2675 86.00
534 249 0.35 1815 58.35 36.25 7.06 3680 118.32
534 235 1.00 726 23.34 13.28 14.94 1996 64.16
534 231 0.80 1053 33.85 5.24 2.60 1397 44.92
-----------------------------------------------------------------------
S16W1 680 335 0.40 294 9.45 21.15 13.01 1804 58.00
553 598 0.40 710 22.82 13.16 12.99 1882 60.50
553 603 0.90 830 26.68 14.07 7.73 1790 57.56
534 243 0.35 1159 37.26 26.83 8.56 2698 86.73
534 248 0.30 599 19.25 22.09 7.14 1870 60.12
534 253 0.40 466 14.98 9.85 13.36 1516 48.73
534 270 0.40 3131 100.66 3.08 1.28 3322 106.80
-----------------------------------------------------------------------
S21 680 209 0.25 2790 89.70 57.33 0.28 5222 167.91
560 -180 0.15 922 29.64 13.98 2.27 1620 52.07
560 -165 0.35 1423 45.74 5.26 3.54 1813 58.28
560 -160 0.30 849 27.31 26.12 11.59 2502 80.44
560 -145 0.15 2761 88.77 32.71 9.05 4571 146.96
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(i) Ag Equivalent is calculated on the basis of US$6.5/oz Ag,
US$0.40/lb for Pb, and US$0.45/lb for Zn.
Calculations reflect gross metal content and have not been adjusted
for metallurgical recoveries.Drill Hole Assay Results
-----------------------------------------------------------------------
Distance
Mineralized Drill Core to
Holes From To Intervals South Elevation Ag
Veins (m) (m) (m) of (m) (g/t)
CM103
-----------------------------------------------------------------------
S2 ZK0606 20.21 20.69 0.48 450.8 483.26 46
ZK1207(ii) 120.5 120.7 0.20 198.58 463.05 37
ZK1007(ii) 138.15 138.9 0.75 222.37 442.08 152
-----------------------------------------------------------------------
S2E ZK1807 247.55 247.8 0.25 -58.13 357.07 821
-----------------------------------------------------------------------
S5 ZK1807 81.25 81.65 0.40 -44.4 482.34 245
-----------------------------------------------------------------------
S6 ZK807 0 0.67 0.67 243.04 482.33 2931
ZK811 0 2.02 2.02 457.59 482.18 440
ZK817 0.96 1.39 0.43 220.57 481.47 1193
ZK814 2.73 4.04 1.31 458.08 480.25 2986
ZK812 3.34 4.13 0.79 449.39 479.98 4701
ZK810 3.65 4.05 0.40 466.03 479.51 115
ZK815 4.16 5.53 1.37 454.93 478.28 1998
ZK0202(ii) 176.9 177.3 0.40 671.03 429.87 90
ZK1207(ii) 224.7 224.8 0.10 213.43 391.75 63
ZK1210(ii) 224.65 224.95 0.30 220.88 370.46 55
-----------------------------------------------------------------------
S7-1 ZK5504 110.75 110.96 0.21 492.36 481.62 197
ZK5105 130.66 130.96 0.30 449.99 468.21 59
ZK14A02 201.71 201.87 0.16 40.17 392.98 845
-----------------------------------------------------------------------
S8 ZK12B01 107.07 107.38 0.31 -60.6 506.1 58
-----------------------------------------------------------------------
S14 ZK1602 151.69 152.02 0.33 -23.8 446.24 54
ZK16A01 158.47 158.89 0.42 -63.42 443.91 1297
ZK816 86.85 87.17 0.32 495.33 437.81 1096
ZK807 86.94 87.26 0.32 455.96 411.12 4296
ZK812 104.2 104.55 0.35 394.71 408.66 8205
ZK1820 190 190.85 0.85 -110.22 407.95 518
ZK0216(ii) 202.23 202.53 0.30 638.48 406.3 4494
ZK814 134.85 135.8 0.95 367.28 386.83 1941
ZK16B01 193.4 194.8 1.40 -62.5 386.33 358
ZK817 129.16 129.57 0.41 493.16 364.36 78
ZK810 158.02 158.65 0.63 548.96 357.86 58
ZK0202(ii) 270.4 270.75 0.35 698.76 340.47 1419
ZK1207(ii) 319.6 321 1.40 214.41 328.92 1928
ZK1007(ii) 331.95 332.8 0.85 305.82 301.79 891
ZK16B02 277.85 278.45 0.60 -61.92 286.12 1078
ZK1210(ii) 370.4 370.55 0.15 217.6 270.93 283
S14-2 ZK814 124.47 124.62 0.15 369.6 394.17 929
-----------------------------------------------------------------------
S14-3 ZK814 116.81 117.09 0.28 374.72 399.59 205
-----------------------------------------------------------------------
S16E ZK6309(ii) 610.3 610.4 0.10 978.59 147.14 169
-----------------------------------------------------------------------
S16W ZK6308(ii) 326.9 327.5 0.60 933.88 419.87 11
ZK7405 354.2 354.9 0.70 -20.86 356.08 1055
-----------------------------------------------------------------------
S16W1 ZK6308(ii) 306.6 306.85 0.25 930.3 434.82 2179
-----------------------------------------------------------------------
S16W2 ZK6309(ii) 236.6 236.8 0.20 930 461.95 37
-----------------------------------------------------------------------
S21 ZK7405 25.4 28.3 2.90 -1.89 548.46 66
ZK7205 27.9 28.18 0.28 -0.3 544.53 136
-------------------------------------------------------------------------------------------------------------------------
Mineralized Ag Pb Zn Ag Ag
Equiv Equiv
Veins (oz/t) (%) (%) (i) (i)
(g/t) (oz/t)
--------------------------------------------------
S2 1.47 0.43 6.61 378 12.14
1.18 1.12 5.47 344 11.04
4.88 0.74 0.22 193 6.22
--------------------------------------------------
S2E 26.41 4.7 7.83 1391 44.73
--------------------------------------------------
S5 7.87 0.37 0.14 267 8.58
--------------------------------------------------
S6 94.23 32.13 4.57 4504 144.8
14.13 4.7 1.68 718 23.07
38.35 7.96 0.87 1570 50.48
96 51.03 5.14 5384 173.09
151.14 68.76 2.21 7707 247.8
3.71 7.45 1.19 486 15.63
64.24 42.41 6.15 4080 131.16
2.89 1.25 5.7 414 13.3
2.02 0.32 1.73 159 5.1
1.75 1.94 1.2 193 6.22
--------------------------------------------------
S7-1 6.35 0.46 12.36 804 25.84
1.9 0.2 18.01 922 29.66
27.16 2.4 7.05 1280 41.17
--------------------------------------------------
S8 1.85 0.32 6.29 370 11.89
--------------------------------------------------
S14 1.74 3.22 2.12 290 9.34
41.69 17.26 29.73 3436 110.48
35.24 42.3 0.6 2909 93.54
138.12 31.7 2.35 5745 184.71
263.8 33.47 2.64 9743 313.24
16.65 3.84 1.79 765 24.6
144.49 18.31 0.61 5296 170.26
62.4 2.15 0.53 2057 66.13
11.52 2.68 4.94 706 22.69
2.51 0.61 0.61 132 4.26
1.86 2.21 1.04 201 6.45
45.63 25.15 1.27 2541 81.68
62 23.99 3.37 3101 99.68
28.63 14.59 0.7 1539 49.49
34.67 14.71 2.66 1825 58.69
9.08 4.99 4.57 710 22.83
S14-2 29.86 7.64 1.33 1314 42.25
--------------------------------------------------
S14-3 6.59 0.21 0.3 228 7.34
--------------------------------------------------
S16E 5.42 1.02 1.34 275 8.85
--------------------------------------------------
S16W 0.35 0.44 1.67 109 3.5
33.92 0.2 3.99 1253 40.28
--------------------------------------------------
S16W1 70.05 48.58 13.11 4851 155.97
--------------------------------------------------
S16W2 1.18 2.73 4.34 358 11.51
--------------------------------------------------
S21 2.11 0.37 0.5 105 3.39
4.38 0.14 0.25 154 4.95
--------------------------------------------------
(i) Ag Equivalent is calculated on the basis of
US$6.5/oz Ag, US$0.40/lb for Pb, and US$0.45/lb for Zn.
Calculations reflect gross metal content and have not
been adjusted for metallurgical recoveries.
(ii) Surface diamond drill holes
Tunnel and drill hole plans, cross sections and longitudinal maps of the veins are available on our website: www.silvercorp.ca.
Exploration and mining at the Ying mine is being carried out through Silvercorp's 77.5% subsidiary, Henan Found Mining Co. Ltd., a Sino-foreign joint venture company which holds 100% of the Ying Project and operates under a 30-year business license. Myles Gao, P.Geo, is the Qualified Person on the project under NI 43-101.
Quality Control
Quality Control/Quality Assurance Program is disclosed in the January 4, 2006 -press release.
Statements in this press release other than purely historical information, including statements relating to Silvercorp'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 Silvercorp'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. Production and revenue projections are based not on mineral reserves but on mineral resources which do not have demonstrated economic viability.
Sponsored by China Mining Association (CMA)
