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Silvercorp Metals unveils encouraging exploration drill results from one mine at its flagship Ying project

LME is one of six underground mines at the firm's Ying complex where exploration drilling and tunneling work is ongoing

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Silvercorp noted that most of the higher grade silver-lead zones at LME encountered could be mined using existing access and development tunnels

Silvercorp Metals Inc (NSYEAMERICAN:SVM) (TSE:SVM) (FRA:S9Y) has posted encouraging drill results from exploration at the producing LME mine at its flagship Ying project in China, which showed high-grade silver-lead ore zones.

LME is one of six underground mines at the Ying complex in the mining district, which all feed two mills, and where exploration drilling and tunneling work is ongoing.

READ: Silvercorp Metals still on track to meet fiscal 2021 output guidance as it reports solid second quarter numbers

Exploration at LME from October last year to September 30 this year has targeted down-dip and along-strike extensions of known mineralized veins in the production areas, noted the miner.

In all, 53 diamond holes were sunk at LME, including 47 underground holes and six surface holes. Assays have been received for 32 and of those, 21 hit mineralization.

Significantly, Silvercorp noted that most of the higher grade silver-lead zones encountered at LME could be mined using existing access and development tunnels, which should substantially reduce tunnel development costs. Eight rigs have been drilling at the LME mine since July 2020 to continue identifying these types of easily accessible zones, it added.

The firm also continues to test for new vein structures and said that step-out drilling in the southeast part of the LME mine had discovered new veins.

Highlight intersections included an 0.56 metres (m) interval at vein LM6E in one hole, grading 692 grams per ton (g/t) silver, 0.11% lead and 0.09% zinc, and a 6.08m interval at vein LM4E2 grading 375 g/t silver, 1.61% lead, 0.55% zinc and 0.09 g/t gold.

Another hole hit a 0.92m interval in one hole at vein LM5, which graded 6,455 g/t silver, 5.28% lead, 1.19% zinc, 10 g/t gold and 0.29% copper.

In addition to drilling, 4,180m of exploration tunnels have been developed at the LME mine during the period, Silvercorp said. This exploration tunneling was carried out in a bid to upgrade the drill-defined mineral resources and test for new parallel and splay structures.

Highlighted results here included one tunnel, which exposed mineralization 30m long and 0.98m wide (true width) grading 867 g/t silver, 2.69% lead, 1.07% zinc and 0.26% copper within vein structure LM5E.

Last month, the miner confirmed it was on track to meet its production guidance for fiscal 2021 as it reported a solid set of second-quarter numbers.

It told investors it generated around 1.7 million ounces of silver, 1,100 ounces of gold, 19.1 million pounds of lead, and 7.1 million pounds of zinc in the three months to September 30, 2020.

That was a 2% uptick in zinc output but a decrease of 8%, 6%, and 3% in silver, gold, and lead production respectively, compared to the same period last year.

The figures came from the Ying project in the Ying mining district, together with its GC mine in the Guangdong province of China.

Shares in New York eased 4.2% to stand at $6.95 each.

---Updates for share price---

Contact the author at giles@proactiveinvestors.com

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