Silvercorp grows resource at SGX

Exploration drifts are advancing and underground drilling has helped to expand the known resource at Silvercorp Metals‘ (SVM-V) Ying silver project, specifically in the SGX area 40 km west of the town of Luoning in western Henan province, China.

The weighted average of nine samples taken at 5-20 metre intervals along the S2E-vein drift graded 2,776 grams silver per tonne, 35.5% lead and 6.5% zinc over 0.29 metre. One of these samples graded as high as 8,566 grams silver per tonne, as well as 16.7% lead and 19.9% zinc over 0.4-metre.

Development work on the 496-metre level has shown that the S2 vein bifurcates; the second vein, S2E, averaged 0.5-metre wide over a 90-metre strike-length.

Mineralization of the S2E vein, like S2, consists of silver-rich massive galena with sphalerite.

The S2 structure trends roughly north, dips steeply southwest and has been traced for at least 1.15 km. The S2 and S2E veins have been followed on the 496-level by about 177 metres and 192 metres of drifting, respectively.

Drifting on the 518-metre level exposed an additional 161 metres of the S2 vein. The weighted average of seven samples taken along an 85-metre strike length of the S2 vein and one sample taken on the 496-metre level graded 1,911 grams silver per tonne, 30.8% lead and 9.6% zinc over 0.39 metre.

Drilling was highlighted by a 0.9-metre intercept, which graded 2,274 grams silver, 52.2% lead and 4.2% zinc.

This area was accessed by a separate drift and cut the S2 vein about 380 metres south, along strike, of other sampling.

The S2 vein was also cut at the 425-metre elevation: 1.67 metres graded 1,104 grams silver per tonne, 16.6% lead and 12.9% zinc.

S2E was cut at the 428-metre level where it graded 1,399 grams silver, 9.2% lead and 42% zinc over 0.46 metre.

Other veins are also being tested by similar exploration programs involving drifting and underground drilling. In addition three shafts are being sunk.

Silvercorp is earning a 77% interest in the property from Chinese subsidiary joint-venture partner Henan Found Mining.