? Silvercorp Intersects Vein LM5 With 0.91 Metres True Width Grading 6,455 Grams Per Tonne Silver and 10 Grams Per Tonne Gold at the LME Mine, Ying Mining District, China

<br /> </p> <p>Silvercorp Intersects Vein LM5 With 0.91 Metres True Width Grading 6,455 Grams Per Tonne Silver and 10 Grams Per Tonne Gold at the LME Mine, Ying Mining District, China<br />


Silvercorp Intersects Vein LM5 With 0.91 Metres True Width Grading 6,455 Grams Per Tonne Silver and 10 Grams Per Tonne Gold at the LME Mine, Ying Mining District, China

PR Newswire


Trading Symbol

TSX: SVM



NYSE American: SVM


VANCOUVER, British Columbia

,

June 22, 2021

/PRNewswire/ – Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX: SVM) (NYSE American: SVM) is pleased to report results from its 2021 exploration programs at the LME mine. Extensive exploration drilling and tunneling are ongoing at the LME mine, and all other mines at the Ying Mining District,

Henan Province

,

China

.

From

October 1, 2020

to

May 31, 2021

, 17,752 metres (“m”) from a total of 113 diamond drill holes, including 98 underground holes and 15 surface holes, were completed at the LME mine.  Assay results for 102 holes have been received, with 52 holes intercepting mineralization. Currently, seven rigs are drilling at the LME mine.


Drilling Intersects High-Grade Veins in and outside the Resource Areas

The diamond drilling programs at the LME mine  targeted blocks of known silver-lead-zinc veins in the resource areas that were previously missed due to limited drilling or tunneling, changes in the strikes and dips, and/or pinch-swelling of the pay-zones in the veins.  Since access tunnels are already in place, any discovered high-grade blocks can quickly be converted to reserves and mined.

The high-grade intercepts for this period are associated with parallel veins LM5, LM5E, LM5E1, LM5E2, M5W, and LM5W2.  Other veins include LM4W, LM4W2, LM6 and its parallel veins LM6E, LM6E2, LM6W and LM6W1.

Step-out drilling at the LME mine also hit high-grade silver-lead-zinc mineralization, including veins LM61 and LM66 to the south and vein ML18E to the north. Hole ZKG20AT1704 confirmed that the north-south striking vein T17E at the TLP mine extended southward to the area between the TLP and LME mines. These discoveries confirm the potential of high-grade silver-lead mineralization extending beyond the defined resource area of the LME mine.

Highlights of high-grade intercepts of vein LM5, LM6 and their parallel veins at the LME mine:


  • Hole


    ZKL5202SC

    intersected a

    0.92 m

    interval (

    0.91 m

    true width) of vein LM5 grading 6,455 grams per tonne (“g/t”) silver (“Ag”), 5.28% lead (“Pb”), 1.19% zinc (“Zn”), 10.00 g/t gold (“Au”), and 0.29% copper (“Cu”) at the

    498 m

    elevation;

  • Hole


    ZKL51LM4E204

    intersected a

    0.76 m

    interval (

    0.68 m

    true width) of vein LM5E grading 1,538 g/t Ag, 5.65% Pb, 1.89% Zn, 0.73 g/t Au, and 0.38% Cu at the

    573 m

    elevation;

  • Hole


    ZKL53LM4E208

    intersected a

    0.71 m

    interval (

    0.65 m

    true width) of vein LM5W2 grading 1,902 g/t Ag, 1.48% Pb, 0.32% Zn, 0.01 g/t Au, and 0.48% Cu at the

    633 m

    elevation;

  • Hole


    ZKL5801SC

    intersected a

    0.94 m

    interval (

    0.53 m

    true width) of vein LM6E2 grading 3,014 g/t Ag, 5.51% Pb, 0.39% Zn, 0.20 g/t Au, and 0.11% Cu at the

    502 m

    elevation;

  • Hole


    ZKL53LM602

    intersected a

    0.65 m

    interval (

    0.64 m

    true width) of vein LM6W grading 1,596 g/t Ag, 2.06% Pb, 0.63% Zn, 0.05 g/t Au, and 0.27% Cu at the

    680 m

    elevation; and

  • Hole


    ZKLDB1712

    intersected a

    1.14 m

    interval (

    1.08 m

    true width) of vein LM61 grading 13.70 g/t Au, 19 g/t Ag, 0.51% Pb, 0.08% Zn, and 0.01% Cu at the

    681 m

    elevation.


In-fill Drilling of Sub-Horizontal Gold Zone LM4E2

During this period, 22 out of the 44 holes targeting the sub-horizontal gold structures of LM4E2 intersected gold mineralization (Table 1).


  • Hole


    ZKL55LM4E203

    intersected a

    1.16 m

    interval (

    0.93 m

    true width) of vein LM4E2 grading 5.43 g/t Au and 70 g/t Ag at the

    581 m

    elevation.


Table 1: Selected intercepts from the 2021 drill programs at the LME Mine



Hole ID



From

(m)



To

(m)



Elevation

(m)



Interval

(m)



True Width

(m)



Ag

(g/t)



Pb

(%)



Zn

(%)



Au

(g/t)



Cu

( %)



Vein



Ore Type


ZKG20AT1704


91.46


92.16


872


0.70


0.66


389


1.29


1.41


0.05


0.04


T17E


Ag-Pb


ZKL51ALM4E201


23.28


24.03


593


0.75


0.46


5


5.41


0.24


0.10


0.02


LM4W


Ag-Pb


ZKL51ALM4E202


35.07


36.32


620


1.25


0.88


490


0.94


0.59


0.01


0.06


LM6


Ag-Pb


ZKL51ALM4E204


23.19


23.75


638


0.56


0.52


326


0.74


0.21


0.01


0.10


LM6


Ag-Pb


ZKL51ALM4E204


112.87


113.61


581


0.74


0.68


2,148


5.84


2.48


0.38


0.51


LM4E2


Au


ZKL51ALM4E205


19.31


19.83


641


0.52


0.50


635


2.51


0.90


0.03


0.28


LM6W1


Ag-Pb


ZKL51BLM4E201


24.50


25.13


640


0.63


0.51


123


0.28


0.15


0.01


0.09


LM6


Ag-Pb


ZKL51LM4E202


32.06


33.26


626


1.20


0.75


290


0.85


0.32


0.01


0.07


LM6


Ag-Pb


ZKL51LM4E203


23.74


28.83


634


5.09


1.01


104


0.75


0.18


0.01


0.05


LM6


Ag-Pb


ZKL51LM4E204


99.51


102.96


586


3.45


1.02


772


1.84


0.93


0.03


0.24


LM5


Ag-Pb


ZKL51LM4E204


121.16


121.92


573


0.76


0.68


1,538


5.65


1.89


0.73


0.38


LM5E


Ag-Pb


ZKL5201SC


26.42


27.09


489


0.67


0.56


199


0.84


0.29


0.04


0.03


LM5


Ag-Pb


ZKL5201SC


54.73


55.79


475


1.06


0.49


215


1.47


0.39


0.31


0.03


LM5E


Ag-Pb


ZKL5202SC


21.50


22.42


498


0.92


0.91


6,455


5.28


1.19


10.00


0.29


LM5


Ag-Pb


ZKL5202SC


52.83


54.05


489


1.22


1.20


395


0.56


0.04


0.04


0.08


LM5E


Ag-Pb


ZKL5202SC


63.30


63.92


487


0.62


0.92


345


1.30


0.10


0.05


0.04


LM9


Ag-Pb


ZKL5202Y


184.44


185.37


889


0.93


0.72


247


0.37


1.76


0.01


0.04


LM18E1


Ag-Pb


ZKL5203SC


29.80


31.04


475


1.24


0.98


149


0.28


0.09


0.39


0.03


[1]


Ag-Pb


ZKL5204SC


23.36


23.94


485


0.58


0.50


837


3.17


0.14


0.76


0.03


LM5W


Ag-Pb


ZKL52LM6W01


22.76


23.32


541


0.56


0.30


200


0.48


2.05


0.03


0.06


LM6W1


Ag-Pb


ZKL53ALM4E201


62.51


63.60


544


1.09


0.47


14


0.21


0.18


2.13


0.04


LM4E2


Au


ZKL53ALM4E202


72.92


74.02


542


1.10


0.95


14


0.22


0.21


1.22


0.01


LM4E2


Au


ZKL53ALM4E202


79.18


79.79


537


0.61


0.53


1


0.03


0.01


2.66


0.01


LM4


Ag-Pb


ZKL53ALM4E202


281.67


283.34


370


1.67


0.52


204


0.64


0.36


0.46


0.03


LM5


Ag-Pb


ZKL53ALM4E202


314.97


316.25


343


1.28


0.79


138


0.02


0.03


0.01


0.01


LM5E


Ag-Pb


ZKL53ALM4E203


163.55


164.51


510


0.96


0.77


104


0.27


0.46


0.01


0.16


LM5W2


Ag-Pb


ZKL53ALM4E204


89.14


90.64


561


1.50


1.18


26


0.75


0.21


3.23


0.03


LM4E2


Au


ZKL53ALM4E204


157.88


159.62


529


1.74


0.79


177


3.33


2.25


0.06


0.05


LM5W


Ag-Pb


ZKL53ALM4E205


54.15


55.52


565


1.37


1.05


3


0.04


0.02


2.30


0.01


LM4E2


Au


ZKL53ALM4E207


82.72


83.55


571


0.83


0.65


2


0.04


0.00


2.50


0.01


LM4E2


Au


ZKL53LM4E202


97.77


99.08


544


1.31


0.98


12


0.16


0.05


1.40


0.03


LM4E2


Au


ZKL53LM4E202


132.69


134.22


523


1.53


1.14


2


0.02


0.01


1.62


0.01


LM6


Ag-Pb


ZKL53LM4E208


29.52


30.23


633


0.71


0.65


1,902


1.48


0.32


0.01


0.48


LM5W2


Ag-Pb


ZKL53LM602


23.73


24.84


696


1.11


1.09


341


0.16


0.13


0.05


0.35


LM4W


Ag-Pb


ZKL53LM602


41.6


44.04


690


2.44


2.39


118


0.73


0.31


0.05


0.02


LM4


Ag-Pb


ZKL53LM602


73.36


74.01


680


0.65


0.64


1,596


2.06


0.63


0.05


0.27


LM6W


Ag-Pb


ZKL53LM603


64.54


65.38


645


0.84


0.74


718


0.41


0.43


0.00


0.10


LM4


Ag-Pb


ZKL53LM603


108.98


110.56


604


1.58


1.38


432


0.92


0.38


0.00


0.04


LM6W


Ag-Pb


ZKL53LM603


179.78


180.31


540


0.53


0.47


165


0.23


0.06


0.03


0.01


LM5W2


Ag-Pb


ZKL5403SC


4.12


8.19


499


4.07


2.90


280


0.45


0.23


0.28


0.02


LM6E2


Ag-Pb


ZKL5403SC


129.98


130.76


388


0.78


0.56


696


6.53


0.97


0.00


0.28


LM5E2


Ag-Pb


including


7.59


8.19


496


0.60


0.47


1,238


2.04


0.82


1.24


0.06


LM6E2


Ag-Pb


ZKL5404SC


44.52


45.39


477


0.87


0.76


239


0.24


0.11


0.05


0.02


LM5W


Ag-Pb


ZKL54ALM6W01


2.95


3.38


552


0.43


0.30


454


1.44


0.14


0.15


0.05


LM6


Ag-Pb


ZKL54ALM6W01


38.78


40.26


541


1.48


0.53


256


0.14


0.16


0.06


0.07


LM6W


Ag-Pb


ZKL54ALM6W01


129.54


130.08


511


0.54


0.39


29


0.08


0.05


1.59


0.01


LM4W2


Ag-Pb


ZKL55ALM4E203


38.41


39.04


570


0.63


0.45


186


1.40


0.20


0.83


0.52


LM4E2


Au


ZKL55ALM4E204


28.84


29.73


583


0.89


0.78


65


0.47


0.48


1.41


0.03


LM6W


Ag-Pb


ZKL55ALM4E204


33.78


35.77


579


1.99


0.88


9


0.16


0.12


1.73


0.01


LM6


Ag-Pb


ZKL55ALM4E204


50.26


51.65


568


1.39


1.22


154


0.83


0.63


0.24


0.03


LM6E


Ag-Pb


ZKL55ALM4E205


27.18


29.25


591


2.07


0.83


24


0.18


0.12


1.17


0.02


LM4E2


Au


ZKL55ALM4E205


50.88


51.42


581


0.54


0.43


828


0.53


0.23


0.04


0.06


LM6E


Ag-Pb


ZKL55ALM4E207


76.91


77.88


593


0.97


0.58


108


0.32


0.25


1.28


0.02


LM4E2


Au


ZKL55LM4E201


65.09


69.39


559


4.30


1.03


14


0.34


0.19


2.05


0.02


LM4E2


Au


ZKL55LM4E202


84.70


85.92


565


1.22


1.00


27


0.67


0.21


1.98


0.02


LM4E2


Au


ZKL55LM4E203


26.44


27.60


581


1.16


0.93


70


0.57


0.26


5.43


0.02


LM4E2


Au


ZKL55LM4E203


78.30


79.10


539


0.80


0.63


2


0.35


0.00


1.51


0.01


LM5W2


Ag-Pb


ZKL55LM4E204


47.45


48.49


578


1.04


0.98


16


0.09


0.27


2.22


0.01


LM4E2


Au


ZKL5601Y


297.12


298.02


811


0.90


0.83


177


1.56


0.48


0.04


0.01


LM3_1


Ag-Pb


ZKL5602Y


126.54


127.73


897


1.19


1.00


103


4.17


0.60


0.05


0.06


LM18E1


Ag-Pb


ZKL5602Y


152.39


153.64


893


1.25


1.05


37


3.74


0.39


0.05


0.05


LM2_1


Ag-Pb


ZKL57LM4E201


65.15


66.23


554


1.08


0.83


5


0.25


0.03


2.00


0.03


LM4E2


Au


ZKL57LM4E204


46.03


47.56


585


1.53


0.91


14


0.30


0.36


1.20


0.02


LM4E2


Au


ZKL57LM4E206


75.18


80.32


594


5.14


0.61


321


1.91


0.89


0.16


0.04


LM4E2


Au


ZKL57LM601


89.62


90.96


807


1.34


1.32


311


0.73


0.31


0.05


0.05


LM6


Ag-Pb


ZKL57LM601


120.89


123.60


794


2.71


2.67


143


2.42


0.08


0.05


0.02


LM5


Ag-Pb


ZKL5801SC


4.9


5.84


502


0.94


0.53


3,014


5.51


0.39


0.20


0.11


LM6E2


Ag-Pb


ZKL5802SC


5.53


6.5


500


0.97


0.81


328


0.32


0.10


0.05


0.05


LM6E2


Ag-Pb


ZKL58ALM6E201


129.67


130.52


522


0.85


0.79


210


0.22


0.25


0.10


0.04


LM6E2


Ag-Pb


ZKL58ALM6E201


190.78


192.56


484


1.78


1.64


88


1.40


0.46


0.07


0.06


LM5E1


Ag-Pb


ZKL61B01


80.70


81.55


590


0.85


0.31


38


0.10


0.23


1.59


0.01


LM4E2


Au


ZKL61E02


33.61


34.98


625


1.37


1.36


85


1.54


0.39


2.16


0.04


LM4E2


Au


ZKL63ALM4E205


41.74


43.29


634


1.55


0.71


149


1.45


0.96


4.23


0.60


LM5


Ag-Pb


ZKL63ALM4E205


76.36


78.66


618


2.30


0.54


60


0.70


0.14


0.91


0.01


LM4E2


Au


ZKL63LM4E206


39.03


40.11


633


1.08


0.74


2


0.04


0.02


1.95


0.01


LM4E2


Au


ZKL64Y09


49.20


49.74


806


0.54


0.47


18


3.35


0.19


0.05


0.01


LM2_2


Ag-Pb


ZKL64Y10


36.31


36.81


826


0.50


0.43


19


3.30


0.15


0.01


0.01


LM2E


Ag-Pb


ZKL64Y11


31.34


31.83


830


0.49


0.40


13


4.46


0.08


0.01


0.01


LM2E


Ag-Pb


ZKL68Y01


107.42


107.92


726


0.50


0.38


392


2.31


0.21


0.03


0.02


LM6


Ag-Pb


ZKLDB1712


238.15


239.29


681


1.14


1.08


19


0.51


0.08


13.70


0.01


LM61


Au


ZKLDB51LM4E202


0.89


2.00


902


1.11


1.10


156


0.12


0.06


0.01


0.09


LM66


Ag-Pb


ZKLDB56ALM4W01


264.50


265.30


952


0.80


0.79


397


0.58


0.12


0.10


0.04


LM4W


Ag-Pb


ZKLDB57ALM503


380.87


382.80


691


1.93


1.81


2


0.01


0.01


2.01


0.01


LM4E2


Au

[1] No vein id assigned


Quality Control

Drill cores are NQ size. Drill core samples, limited by apparent mineralization contacts or shear/alteration contacts, were split into halves by saw cutting. The half cores are stored in the Company’s core shacks for future reference and checks, and the other half core samples are shipped in securely sealed bags to the Chengde Huakan 514 Geology and Minerals Test and Research Institute in Chengde,

Hebei Province

,

China

, 226 km northeast of

Beijing

, the Zhengzhou Nonferrous Exploration Institute Lab in

Zhengzhou

,

Henan Province

,

China

, and the Analytical Lab of the Inner Mongolia Geological Exploration Bureau in Hohhot, Inner Mongolia,

China

. All the three labs are ISO9000 certified analytical labs. For analysis, the sample is dried and crushed to minus 1 mm and then split to a 200-300 g subsample which is further pulverized to minus 200 mesh. Two subsamples are prepared from the pulverized sample. One is digested with aqua regia for gold analysis with atomic absorption spectroscopy (“AAS”), and the other is digested with two-acids for analysis of silver, lead, zinc and copper with AAS.

Channel samples are collected along sample lines perpendicular to the mineralized vein structure in exploration tunnels. Spacing between sampling lines is typically

5 m

along strike. Both the mineralized vein and the altered wall rocks are cut by continuous chisel chipping. Sample length ranges from

0.2 m

to more than

1 m

, depending on the width of the mineralized vein and the mineralization type. Channel samples are prepared and assayed with AAS at Silvercorp’s mine laboratory (

Ying Lab

) located at the mill complex in Luoning County,

Henan Province

,

China

. The Ying lab is officially accredited by the Quality and Technology Monitoring Bureau of

Henan Province

and is qualified to provide analytical services. The channel samples are dried, crushed and pulverized. A 200 g sample of minus 160 mesh is prepared for assay. A duplicate sample of minus 1 mm is made and kept in the laboratory archives. Gold is analysed by fire assay with AAS finish, and silver, lead, zinc and copper are assayed by two-acid digestion with AAS finish.

A routine quality assurance/quality control (“QA/QC”) procedure is adopted to monitor the analytical quality at each lab. Certified reference materials (“CRMs”), pulp duplicates and blanks are inserted into each batch of lab samples. QA/QC data at the lab are attached to the assay certificates for each batch of samples.

The Company maintains its own comprehensive QA/QC program to ensure best practices in sample preparation and analysis of the exploration samples. Project geologists regularly insert CRM, field duplicates and blanks to each batch of 30 core samples to monitor the sample preparation and analysis procedures at the labs. The analytical quality of the labs is further evaluated with external checks by sending approximately 3-5% of the pulp samples to higher level labs to check for lab bias.  Data from both the Company’s and the labs’ QA/QC programs are reviewed on a timely basis by project geologists.


Guoliang Ma

, P. Geo., Manager of Exploration and Resource of the Company, is the Qualified Person for Silvercorp under NI 43-101 and has reviewed and given consent to the technical information contained in this news release.


About Silvercorp

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in

China

. The Company’s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development.  For more information, please visit our website at

www.silvercorp.ca

.

For further information

Lon Shaver

Vice President

Silvercorp Metals Inc.

Phone: (604) 669-9397

Toll Free: 1(888) 224-1881

Email:

[email protected]


Website:

www.silvercorpmetals.com



CAUTIONARY DISCLAIMER – FORWARD LOOKING STATEMENTS


Certain of the statements and information in this press release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.  Forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral resource and mineral reserve estimates at the Company’s material properties; the sufficiency of the Company’s capital to finance the Company’s operations; estimates of the Company’s revenues and capital expenditures; estimated production from the Company’s mines in the Ying Mining District; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company’s operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company’s properties.


Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks relating to: social and economic impacts of COVID-19; fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licenses; title to properties; property interests;  joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company’s existing operations;  competition;  operations and political conditions; regulatory environment in

China

and Canada;  environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act; and bringing actions and enforcing judgments under U.S. securities laws.


This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company’s Annual Information Form for the year ended

March 31, 2020

under the heading “Risk Factors”.  Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended.  Accordingly, readers should not place undue reliance on forward-looking statements or information.


The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this press release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements and information if circumstances or management’s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements or information. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information.



CAUTIONARY NOTE TO US INVESTORS


The disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the “SEC”).  The terms “proven mineral reserve”, “probable mineral reserve” and “mineral reserves” used in this news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the “CIM Definition Standards”), which definitions have been adopted by NI 43-101.  Accordingly, information contained in this news release providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to

the United States

federal securities laws and the rules and regulations thereunder.


Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, “Inferred mineral resources” are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.  Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity.  An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration.  Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases.  Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable.  Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.


Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7.  Effective

February 25, 2019

, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021.  The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7.  As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”.  In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to corresponding definitions under the CIM Definition Standards.  During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S. standards.  While the SEC Modernization Rules are purported to be “substantially similar” to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards.  Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

Cision
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SOURCE Silvercorp Metals Inc

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