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Silvercorp Metals Won Auction To Acquire the Zhonghe Silver Project in Luoning County, Henan Province, China
VANCOUVER, British Columbia, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Silvercorp Metals Inc. ("Silvercorp” or the “Company”) (TSX/NYSE American: SVM) announces that it
About this update from Silvercorp Metals Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Jan. 21, 2021 (GLOBE NEWSWIRE) -- Silvercorp Metals Inc. (\"Silvercorp” or the “Company”) (TSX/NYSE American: SVM) announces that its subsidiary, Henan Found Mining Co. Ltd. (“Henan Found”), won an online auction to acquire the exploration rights to the Zhonghe Silver Project (the “Zhonghe Project”) from the Henan provincial government. The auction was held on December 17, 2020 and following a public comment period, the Company received confirmation of its successful bid. The Zhonghe Project covers an area of 4.96 square kilometres (“km”) approximately 50 km (75 km by road) northeast of Silvercorp’s Ying Mining District, also located in Luoning County. Silver-lead-zinc mineralization at the Zhonghe Project is similar to that found at the SGX Mine in the Ying Mining District (i.e., massive galena lenses in structural veins). Highlights of selected drill intercepts include: Hole 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”); Hole ZK806 intercepted 1.95 m from 513.95 m, grading 1,592 g/t Ag, 12.33% Pb and 3.45% Zn; Hole ZK804 intercepted 1.71 m from 275.54 m, grading 955 g/t Ag, 14.30% Pb and 10.82% Zn. Hole ZK1104 intercepted 1.36 m from 283.16 m, grading 1,383 g/t Ag, 29.92% Pb, and 5.08% Zn; and Hole ZK4204 intercepted 1.63 m from 570.98 m, grading 1,446 g/t Ag, 1.39% Pb, and 4.0% Zn; The Company will utilize Henan Found’s existing management team at the Ying Mining District to manage the future development of Zhonghe. As the largest taxpayer in Luoning County, Henan Found has established a good working relationship with the Luoning government, has an excellent reputation within the local community, and intends to bring in the local government and community as 8% - 10% partners on the project. The Company expects full support from the local government and community in the future, converting the exploration right to a mining license and developing operations at the Zhonghe Project. The Zhonghe Project The exploration right comprising the Zhonghe Project is located in Dongshong Township of Luoning County and covers an area of 4.9 km², being approximately 1.1 km wide (east-west) by 4.9 km long (north-south). From March 2016 to August 2019, the Department of Natural Resources of Henan Province completed 3,21...