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Symbols:
SVM (TSX/NYSE American)
VANCOUVER, BC, Dec. 4, 2024
/PRNewswire/ - Silvercorp Metals Inc. ("Silvercorp" or the
"Company") (TSX: SVM) (NYSE American: SVM) is pleased to report its
plans to develop the Condor gold project (the "Project"), located
in southern Ecuador. A preliminary
economic assessment (PEA) was completed on the Project1
by a previous operator, which outlined a high tonnage, low-grade,
open pit gold project.
The Project comprises a cluster of gold deposits in the Condor
North area (Figure 1), with Camp and Los Cuyes contributing the
majority of the known mineral resources. Each deposit is unique and
different from the others on a deposit scale. Previous
drilling reported numerous long core intersections of gold
mineralization, usually consisting of higher-grade intervals and
surrounding lower-grade halos.
After reviewing the technical Project data, including
re-logging of the historical core, the Company believes that
high-grade gold mineralization mostly occurs in subvertical
vein/rhyolitic dyke structures containing pyrite and sphalerite.
Minor amounts of galena and chalcopyrite are also present
and may form low grade halos, which can be quite extensive
along certain volcanic layers.
Select drilling intercepts (Table 1), show higher-grade drill
intervals with true widths over 3.5 metres ("m"). This highlights
the potential for selective underground mining at Condor.
Noteworthy intercepts include:
- Camp: CC19-01, 9.03 grams per tonne ("g/t") over 8.05 m true width from 260
m
- Enma: DEN-31, 44.16 g/t Au over 4.5
m true width from 90 m
- Los Cuyes: DCU-17B, 8.98 g/t Au over 16.7 m true width from 202
m
- San Jose: DD-004, 9.00 g/t Au over 21.1
m true width from surface
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________________________________
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1
Condor Project NI 43-101 Report on Preliminary Economic Assessment
Zamora-Chinchipe, Ecuador, July 28, 2021, filed under Luminex
Resources on Sedar+
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Development Plan for a Possible Underground Operation
In order to advance the Condor gold project as an
underground operation, the Company will focus on high-grade gold
structures/rhyolitic dykes. Work to be conducted may
include:
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1.
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Studies and
Permitting
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a.
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Re-estimate mineral
resources as an underground focused operation.
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b.
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Publish a Preliminary
Economic Assessment as an underground mine operation.
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c.
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Execute community
agreements and complete government permitting process in order to
develop exploration tunnels.
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2.
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Underground
Tunneling
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a.
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Develop two cross-cut
exploration access tunnels, at two different elevations, to confirm
the high-grade gold intervals.
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b.
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Conduct underground
drilling to inform a future feasibility study and to improve the
understanding of the geology.
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3.
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Construction
Readiness
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a.
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Complete a feasibility
study based on the data gathered from the underground tunneling
program.
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b.
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Complete permitting for
a process plant, underground mine and tailings storage
facility.
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c.
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Construction
decision.
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4.
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Drilling:
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Limited drilling will
target the high-grade mineralized structures by optimizing the grid
pattern and could include:
|
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a.
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Infill drilling:
Targeted between previous drill sections to confirm the continuity
of high-grade mineralized structures.
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b.
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Step-out drilling:
Targeted along strike and dip of known high-grade zones to increase
the mineral resource.
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c.
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New targets:
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a)
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Broad zones of
sub-horizontal disseminated gold mineralization which occur within
the rhyolitic tuffs at Los Cuyes.
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b)
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Contact zone of crypto
rhyolite domes with batholith granodiorite for wide mineralization
at Camp.
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c)
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Region between the Camp
and Los Cuyes deposits.
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d)
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Gap area between Camp
and Soledad, testing for potential connection of NW trending
mineralized structures across the two deposits and for potential
strike extension of NW trending mineralized structures.
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e)
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Gap between the Los
Cuyes and Enma deposits for potential strike extension of NW
trending mineralized structures.
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f)
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Test expansion
potential of near-surface, high-grade breccia deposits such as San
Jose/Soledad.
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Deposit Descriptions
The Condor deposits are hosted in a Cretaceous volcanic complex
of diatremes and rhyolite/dacite intrusives crosscutting the
Zamora batholith granodiorite of
Jurassic age. The Project consists of the following five known
deposits:
- Los Cuyes: Gold is hosted in a volcanic diatreme which
crosscuts a granodiorite batholith. The diatreme, with a dimension
of 450m in NE-SW x 300m in NW-SE x 350m depth comprises phreatomagmatic breccias,
tuff and sediments, all of which are cross-cut by NW and NE
striking dykes of rhyolite and dacite.
Gold mineralization mostly occurs in subvertical vein structures
containing pyrite and sphalerite with minor amounts of galena and
chalcopyrite. The vein-like mineralisation primarily occurs along
the contact zones of intrusive dykes with the surrounding volcanics
and Granodiorite batholith. In addition, gold is also associated
with sulfide dissemination occurring in rhyolitic tuff units,
resulting in wide sub-horizontal zones of gold mineralization.
- Camp: Gold mineralization occurs within veins of
pyrite/sphalerite and is controlled by NW striking rhyolite dykes
at shallow levels, as well as crypto intrusive domes
of rhyolite at depth. Gold mineralization remains open beyond a
depth of 700 metres based on existing drill data.
- Soledad: Gold mineralization is associated with
pyrite/sphalerite replacement of feldspar grains (patchy) or veins
hosted in a rhyodacite porphyry. At San Jose, gold mineralization
consists of sphalerite-rich veins hosted in phreatomagmatic
breccia.
- Guaya: Gold mineralization is associated with
pyrite-sphalerite veins hosted in a rhyo-dacite porphyry.
- Enma: Gold mineralization occurs within veins of
pyrite/sphalerite hosted in the rhyolitic breccia along the contact
between dacitic tuff and granodiorite batholith.
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Table 1 Select
High-Grade Drill Intervals from Previous Drilling
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Area
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Hole
ID
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From
(m)
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To
(m)
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Interval
(m)
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Estimated True
Width
(m)
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Au
(g/t)
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Ag
(g/t)
|
Zn
(%)
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Camp
|
CC19-01
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260.13
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272.00
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11.87
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8.05
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9.03
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9
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0.25
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Camp
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CC19-02_EXT
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308.00
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323.44
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15.44
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10.70
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5.11
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12
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0.69
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Camp
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CC19-03
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155.00
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167.00
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12.00
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7.30
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7.27
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19
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0.43
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Camp
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173.00
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185.00
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12.00
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7.30
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5.25
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9
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0.62
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Camp
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CC19-11
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114.00
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126.00
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12.00
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8.90
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5.55
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11
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0.52
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Camp
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CC19-12
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646.00
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665.30
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19.30
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9.50
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6.09
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36
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1.25
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Camp
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CC19-14
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209.00
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227.00
|
18.00
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7.10
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5.85
|
35
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2.26
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Camp
|
CC19-21
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348.00
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358.00
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10.00
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6.00
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8.39
|
99
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3.17
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Camp
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CC20-28
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421.00
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432.00
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11.00
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7.05
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7.56
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184
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4.39
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Camp
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CC20-29
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628.00
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638.00
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10.00
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6.71
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6.34
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38
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2.25
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Enma
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DEN-31
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90.00
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106.00
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16.00
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4.50
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44.16
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561
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0.29
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Los Cuyes
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CU23-17
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255.40
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268.00
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12.60
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8.10
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5.58
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79
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0.31
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Los Cuyes
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CU23-20
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269.00
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281.00
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12.00
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8.10
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5.55
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52
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0.56
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337.00
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343.00
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6.00
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4.08
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7.81
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18
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0.12
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Los Cuyes
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CU23-22
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314.00
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319.00
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5.00
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3.50
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15.77
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107
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2.6
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Los Cuyes
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CU23-25
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221.00
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247.00
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26.00
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15.80
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5.87
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25
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0.72
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Los Cuyes
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DC001
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238.00
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245.00
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7.00
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4.87
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8.78
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28
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1.05
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Los Cuyes
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DCU-17B
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202.00
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242.00
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40.00
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16.70
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8.98
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55
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2.78
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Los Cuyes
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274.00
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296.00
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22.00
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9.00
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8.14
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33
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2.44
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Los Cuyes
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DCU-18
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296.00
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312.00
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16.00
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4.30
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5.10
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51
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2.42
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Los Cuyes
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DCU-27
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94.00
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112.00
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18.00
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4.50
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5.56
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9
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0.05
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Los Cuyes
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DCU-41
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262.00
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274.80
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12.80
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7.60
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5.30
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43
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0.73
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San Jose
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DD-004
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0.00
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45.00
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45.00
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21.10
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9.00
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7
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0.76
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San Jose
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DD-005
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1.00
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13.41
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12.41
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9.00
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10.70
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7
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0.72
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San Jose
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DD-005A
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2.00
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20.00
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18.00
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15.10
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10.00
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10
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0.52
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San Jose
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DD-005A
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29.00
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40.00
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11.00
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7.80
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5.40
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5
|
0.21
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San Jose
|
DD-006
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0.91
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24.00
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23.09
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9.60
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5.66
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5
|
0.84
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San Jose
|
DD-053
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91.00
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101.00
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10.00
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5.40
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5.91
|
33
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0.32
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|
San Jose
|
DSJ-03
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42.50
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52.50
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10.00
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n/a
|
5.70
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4
|
0.27
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San Jose
|
DSJ-07
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25.00
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40.00
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15.00
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5.50
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6.80
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2
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0.38
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San Jose
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DSJ-09
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20.00
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45.47
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25.47
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n/a
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5.00
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13
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0.47
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San Jose
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DSJ-10
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5.00
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22.50
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17.50
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n/a
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5.50
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5
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0.16
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San Jose
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DSJ-17
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5.55
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38.05
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32.50
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n/a
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5.20
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9
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0.58
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San Jose
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DSJ-19
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0.00
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10.00
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10.00
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n/a
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9.20
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8
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0.58
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Note:
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1). The compositing
of drill intercepts is done using a cut-off grade of 2g/t gold, may
include lower grade samples within.
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2). True width is
estimated based on the current interpretation of mineralized
structures.
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3). n/a - no
adequate information to make estimate of true width
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Figure 1: Condor plan view showing deposits
Qualified Person
The scientific and technical information contained in this news
release has been reviewed and approved by Alex Zhang, P. Geo., technical consultant of
Silvercorp (the "Qualified Person"), who is a qualified person
under National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101") for the purposes of NI
43-101.
About Silvercorp
Silvercorp is a Canadian mining company producing silver, gold,
lead, and zinc with a long history of profitability and growth
potential. The Company's strategy is to create shareholder value by
1) focusing on generating free cashflow from long-life mines; 2)
organic growth through extensive drilling for discovery; 3) ongoing
merger and acquisition efforts to unlock value; and 4) a long-term
commitment to responsible mining and ESG. For more information,
please visit our website at www.silvercorpmetals.com.
For further information:
Silvercorp Metals Inc.
Lon Shaver
President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website:
www.silvercorpmetals.com
CAUTIONARY DISCLAIMER - FORWARD-LOOKING
STATEMENTS
This news release includes "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 securities laws relating to, among other
things the discussions regarding the grade gold mineralization, the
development plan for a possible underground operation, including
with respect to future drilling, the timing of publication of
technical reports for the Project as an underground mine operation,
executing community agreements and the government permitting
process in order to develop exploration tunnels and the
timing thereof. By their very nature, forward-looking statements
involve known and unknown risks, uncertainties and other factors
that may cause our actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, amongst others, risks related to
the exploration, development, production, recoveries and other
anticipated or possible future developments at Condor including,
without limitation, risks relating to inaccurate geological and
engineering assumptions; risks relating to unanticipated
operational difficulties (including failure of equipment or
processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and
equipment, government action or delays in the receipt of government
approvals, industrial disturbances or other job action, and
unanticipated events related to health, safety and environmental
matters); escalation in artisanal and/or illegal mining activity,
incursions, or incidents of local community unrest in response to
increased Project activity, social opposition generated by
interference from external actors, including illegal mining
interests, environmental or social activists, and politicians, who
may oppose activity at the Project, risks relating to adverse
weather conditions; changes in general economic conditions or
conditions in the financial markets; and general
economic, business and political conditions. Forward-looking
information may in some cases be identified by words such as
"will", "anticipates", "expects", "intends" and similar expressions
suggesting future events or future performance.
We caution that all forward-looking information is inherently
subject to change and uncertainty and that actual results may
differ materially from those expressed or implied by the
forward-looking information. A number of risks, uncertainties and
other factors, including social and political riskcould cause
actual results and events to differ materially from those expressed
or implied in the forward-looking information or could cause our
current objectives, strategies and intentions to change.
Accordingly, we warn investors to exercise caution when considering
statements containing forward-looking information and that it would
be unreasonable to rely on such statements as creating legal rights
regarding our future results or plans. We cannot guarantee that any
forward-looking information will materialize and you are cautioned
not to place undue reliance on this forward-looking information.
Any forward-looking information contained in this news release
represent expectations as of the date of this news release and are
subject to change after such date. However, we are under no
obligation (and we expressly disclaim any such obligation) to
update or alter any statements containing forward-looking
information, the factors or assumptions underlying them, whether as
a result of new information, future events or otherwise, except as
required by law. All of the forward-looking information in this
news release is qualified by the cautionary statements herein.
A comprehensive discussion of other risks that impact Silvercorp
can also be found in their public reports and filings which are
available under its profile at www.sedarplus.ca.
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SOURCE Silvercorp Metals Inc