VANCOUVER, British Columbia, Jan. 21, 2021 (GLOBE NEWSWIRE) — Silvercorp Metals Inc. (“Silvercorp” or the “Firm”) (TSX/NYSE American: SVM) pronounces that its subsidiary, Henan Discovered Mining Co. Ltd. (“Henan Discovered”), gained a web based public sale to amass the exploration rights to the Zhonghe Silver Venture (the “Zhonghe Venture”) from the Henan provincial authorities. The public sale was held on December 17, 2020 and following a public remark interval, the Firm obtained affirmation of its profitable bid. The Zhonghe Venture covers an space of 4.96 sq. kilometres (“km”) roughly 50 km (75 km by highway) northeast of Silvercorp’s Ying Mining District, additionally positioned in Luoning County.

Silver-lead-zinc mineralization on the Zhonghe Venture is just like that discovered on the SGX Mine within the Ying Mining District (i.e., large galena lenses in structural veins). Highlights of chosen drill intercepts embody:

• Gap ZK2602 intercepted 3.55 metres (“m”) from 145.53 m grading 876 grams per ton (“g/t”) silver (“Ag”), 25.25% lead (“Pb”), and 15.39% zinc (“Zn”);
• Gap ZK806 intercepted 1.95 m from 513.95 m, grading 1,592 g/t Ag, 12.33% Pb and three.45% Zn;
• Gap ZK804 intercepted 1.71 m from 275.54 m, grading 955 g/t Ag, 14.30% Pb and 10.82% Zn.
• Gap ZK1104 intercepted 1.36 m from 283.16 m, grading 1,383 g/t Ag, 29.92% Pb, and 5.08% Zn; and
• Gap ZK4204 intercepted 1.63 m from 570.98 m, grading 1,446 g/t Ag, 1.39% Pb, and 4.0% Zn;

The Firm will make the most of Henan Discovered’s present administration staff on the Ying Mining District to handle the longer term growth of Zhonghe. As the biggest taxpayer in Luoning County, Henan Discovered has established an excellent working relationship with the Luoning authorities, has a wonderful repute inside the local people, and intends to herald the native authorities and group as 8% – 10% companions on the mission. The Firm expects full help from the native authorities and group sooner or later, changing the exploration proper to a mining license and growing operations on the Zhonghe Venture.

The Zhonghe Venture

The exploration proper comprising the Zhonghe Venture is positioned in Dongshong Township of Luoning County and covers an space of 4.9 km², being roughly 1.1 km extensive (east-west) by 4.9 km lengthy (north-south). From March 2016 to August 2019, the Division of Pure Assets of Henan Province accomplished 3,213 m³ of trenching and 36,091 m of diamond drilling in 54 diamond drill holes that outlined silver-lead-zinc vein constructions extending over 4.9 km lengthy, and from floor at 640 m elevation right down to minus 450 m elevation, dipping to the west at a mean of 70 levels.

Primarily based on the drill grid spacing of 175 m to 223 m alongside strike and 162 m to 272 m down dip, mineral sources for silver, lead and zinc estimated utilizing Chinese language requirements (not NI 43-101 compliant) had been calculated by the No 1 Institute of Geological and Mineral Useful resource Survey in Henan Province in 2019, and printed on the public sale web site.

Twenty-three drill holes intercepted vital silver grades listed within the desk beneath.

Public sale Outcomes and Fee Particulars

• The reserve value for the Zhonghe Venture Exploration Allow was RMB 485 million per the public sale discover posted by the Division of Pure Useful resource of Henan Province. The ultimate profitable bid submitted by the Firm was RMB 495 million, or roughly US$76 million.
• The Firm will enter right into a mineral rights switch contract with the Division of Pure Assets of Henan Province and can make a primary fee of roughly US$15.2 million, as soon as the mission space is cleared by the authorities as a non-military space. The primary fee represents 20% of the acquisition value.
• The remaining 80% of the acquisition value is due solely within the occasion the exploration proper is transformed right into a mining license and shall be paid yearly over the period of the mining license.
• When the exploration proper is transformed to a mining license, no extra mineral rights switch funds shall be required to be paid (in line with Article 16 of The Interim Measures for the Administration of Charge Assortment of the Switch of Mining Rights by Authorities).

Future Exploration and Improvement Plans

Primarily based on China’s laws on issuing mining licenses, one requirement is that this mission will should be superior to “exploration stage”, that’s, at the very least 50% of the useful resource estimates shall be outlined by a drilling grid averaging no better than 75 m by 75 m. For 50% of the world of mineralization (4 km lengthy by 1 km extensive) on the Zhonghe Venture to succeed in a drilling grid of 75 m by 75 m from its present stage, it’s estimated 200,000 m in 350 holes will should be drilled. The Firm plans to provoke a drilling marketing campaign within the first quarter of 2021 that shall be accomplished by 2022.

Guoliang Ma, P. Geo., Supervisor of Exploration and Useful resource of the Firm, is the Certified Individual for Silvercorp beneath NI 43-101 and has reviewed and given consent to the technical info contained on this information launch.

About Silvercorp

Silvercorp is a worthwhile Canadian mining firm producing silver, lead and zinc metals in concentrates from mines in China. The Firm’s aim is to constantly create wholesome returns to shareholders by environment friendly administration, natural development and the acquisition of worthwhile tasks. Silvercorp balances profitability, social and environmental relationships, staff’ wellbeing, and sustainable growth. For extra info, please go to our web site at www.silvercorp.ca.

For additional info

Lon Shaver
Vice President
Silvercorp Metals Inc.

Cellphone: (604) 669-9397
Toll Free: 1 (888) 224-1881
E mail: investor@silvercorp.ca
Web site: www.silvercorp.ca

CAUTIONARY DISCLAIMER – FORWARD-LOOKING STATEMENTS

Sure of the statements and knowledge on this information launch represent “forward-looking statements” inside the that means of the US Personal Securities Litigation Reform Act of 1995 and “forward-looking info” inside the that means of relevant Canadian provincial securities legal guidelines (collectively, “forward-looking statements”). Any forward-looking statements that categorical or contain discussions with respect to predictions, expectations, beliefs, plans, projections, goals, assumptions or future occasions or efficiency (typically, however not all the time, utilizing phrases or phrases reminiscent of “expects”, “is predicted”, “anticipates”, “believes”, “plans”, “tasks”, “estimates”, “assumes”, “intends”, “methods”, “targets”, “targets”, “forecasts”, “goals”, “budgets”, “schedules”, “potential” or variations thereof or stating that sure actions, occasions or outcomes “could”, “may”, “would”, “would possibly” or “will” be taken, happen or be achieved, or the detrimental of any of those phrases and comparable expressions) are usually not statements of historic reality and could also be forward-looking statements. Ahead-looking statements relate to, amongst different issues: future profitability, development, acquisitions and shareholder returns, and potential future choices of Securities.

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Ahead-looking statements are statements in regards to the future and are inherently unsure, and precise achievements of the Firm or different future occasions or circumstances could differ materially from these expressed or implied within the forward-looking statements.

The Firm’s forward-looking statements are essentially primarily based on quite a few estimates, assumptions, beliefs, expectations and opinions of administration as of the date of this information launch that whereas thought of affordable by administration of the Firm, are inherently topic to vital enterprise, financial and aggressive uncertainties and contingencies. These estimates, assumptions, beliefs, expectations and opinions embody, however are usually not restricted to, these associated to the Firm’s capability to hold on present and future operations, together with: the period and results of COVID-19 on our operations and workforce; growth and exploration actions; the timing, extent, period and financial viability of such operations; the accuracy and reliability of estimates, projections, forecasts, research and assessments; the Firm’s capability to fulfill or obtain estimates, projections and forecasts; the provision and price of inputs; the value and marketplace for outputs; international change charges; taxation ranges; the well timed receipt of needed approvals or permits; the flexibility to fulfill present and future obligations; the flexibility to acquire well timed financing on affordable phrases when required; the present and future social, financial and political circumstances; and different assumptions and components usually related to the mining trade. Aside from as required by relevant securities legal guidelines, the Firm doesn’t assume any obligation to replace forward-looking statements if circumstances or administration’s assumptions, beliefs, expectations or opinions ought to change, or modifications in every other occasions affecting such statements. Though the Firm has tried to determine essential components that might trigger precise outcomes to vary materially, there could also be different components that trigger outcomes to not be as anticipated, estimated, described or meant. For the explanations set forth above, traders mustn’t place undue reliance on forward-looking statements.

CAUTIONARY NOTE TO US INVESTORS

This information launch has been ready in accordance with the necessities of NI 43‐101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Requirements, which differ from the necessities of U.S. Securities legal guidelines. NI 43‐101 is a rule developed by the Canadian Securities Directors that establishes requirements for all public disclosure an issuer makes of scientific and technical info regarding mineral tasks.