VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/26/10 -- Silvercorp Metals Inc. (TSX: SVM)(NYSE: SVM) ('Silvercorp' or the 'Company') reports that in the afternoon of July 24, 2010, abnormally heavy rainfall occurred over the area covering the Ying Mining District, causing damage to the mining operations at the Ying mining camp. The amount of rainfall was recorded as 217 millimeters over a three-hour period by the government meteorology site near the Ying mine at Xiayu town. The deluge was sudden enough that despite the substantial amount of flood control work on site, including diversion tunnels, dikes and channels, three access tunnels (two in the Ying Mine and one in the HPG Mine) were flooded. Mining facilities and equipment, such as such as compressors, power switchboards, and transformers at four sites were either flooded or buried by debris washed down from upslope. Six sections of access roads to our different mine sites were also washed away or damaged. There were no human casualties.
Management estimates direct recovery costs for the damage should be no more than $1 million, and the time required to carry out repairs and clean up the Ying, LM, TLP and HPG mines will be approximately 6, 10, 15 and 30 days, respectively. During these periods, operations at the respective mines will be suspended. As a result, the Company expects an approximate 10% reduction in ore production for the current quarter.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation and development of four silver-lead-zinc mines at the highly profitable Ying Mining Camp in the Henan Province of China. The company is also applying for a mining permit at the GC property in the Guangdong Province to establish a second base for production in China. Additionally, Silvercorp recently acquired the Silvertip project in northern British Columbia, Canada, as an additional platform for growth and geographic diversification. The Company's shares are traded on the New York Stock Exchange and Toronto Stock Exchange and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS
Statements in this press release other than purely historical factual information, including statements relating to permitting, the Company's future plans and objectives, expected production levels and capital expenditures constitute forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in mineral exploration, development, and mining. Some production projections may be based not on mineral reserves but on mineral resources which do not have demonstrated economic viability. There can be no assurance that such forward-looking statements, including those in the outlook section, will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on such statements. Except in accordance with applicable securities laws, the Company expressly disclaims any obligation to update any forward-looking statements or forward-looking statements that are incorporated by reference herein.
Contacts:
Silvercorp Metals Inc.
Rui Feng
Chairman & CEO
(604) 669-9397 or Toll Free: 1(888) 224-1881
Silvercorp Metals Inc.
Lorne Waldman
Corporate Secretary
(604) 669-9397 or Toll Free: 1(888) 224-1881
(604) 669-9387 (FAX)
investor@silvercorp.ca
www.silvercorp.ca
