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Monday, 4 February 2013
Silvercorp Metals hits high silver grades of significant widths at LM West mine
Silvercorp Metals (TSE:SVM)(NYSE:SVM) reported Thursday results from underground diamond drilling last year at its LM Mine West, in the Ying mining district in China, with more drilling planned for 2013.
Last year, the company completed a total of nearly 44,000 metres of drilling in 123 holes at LM West.
Notable results included an 18.8 metre interval in hole ZKX03S31, which intercepted 368 grams per tonne (g/t) silver and 1.78% lead, including 7.95 metres grading 788 g/t silver and 3.6% lead.
Hole ZKX3404 also intercepted a 6.44 metre interval grading 369 g/t silver and 1.7% lead, including 1.51 metres at 1,323 g/t silver and 6.28% lead.
The silver producer said underground drilling was done from near-surface tunnels between the 900 and 950 metre elevations, and was focused primarily on major mineralized vein structures as well as parallel structures to expand mineralization.
The company decided to change its drilling strategy in the second half of last year to begin testing the lateral extensions of the mineralization zones and to infill drill at shallow depths of the major vein structures. This was instead of step out drilling at depths below the 600 metre elevation.
Silvercorp said that based on these results, a 29,000 metre underground program is planned for next year at the mine, which will continue to focus on assessing major vein structures, drilling lateral extensions and infill drilling at shallow depth.
As of the end of last year, results from 59 holes were received, 25 of which intercepted "significant silver-lead-zinc mineralization".
Earlier this week, Silvercorp said that a normal course issuer bid to buy back up to 8.5 million of its common shares had been approved by the Toronto Stock Exchange.
The news came a day after the Vancouver-based company said it had added two to its management team in China to support its growth efforts.
Silvercorp is currently developing its GC project in southern China, which it expects will become its next operating mine early this year.
The silver‐producing Canadian mining company has multiple mines in China. In December 2010, it received a mining permit on the GC project, with the construction of a 1,600 tonne per day mine and mill currently underway. The property is located about 200 kilometres west of Guangzhou City, Guangdong Province, southern China.