#None #Silvercorp #Condor Gold #Gold Mining

Silvercorp Metals Unveils Development Plans for the Condor Gold Project

Silvercorp Metals Inc. has announced an ambitious plan to transform its Condor Gold Project in southern Ecuador into a high-grade underground mining operation. This initiative follows a preliminary economic assessment that highlighted the project's potential for significant gold production. The Condor project consists of a collection of gold deposits, primarily located in the Condor North area, with two major deposits – Camp and Los Cuyes – housing the bulk of the measured mineral resources.

Overview of the Condor Gold Project

Historically, drilling efforts at the Condor Gold Project revealed numerous long intersecting gold mineralization cores, indicating the presence of higher-grade intervals surrounded by lower-grade halos. Recent evaluations, including the re-logging of historical core data, suggest that the high-grade gold is mainly located within subvertical vein and rhyolitic dyke structures that are rich in minerals like pyrite and sphalerite, with minor amounts of galena and chalcopyrite.

Drilling results from various areas of the Condor project have showcased some impressive intersections, with samples exhibiting true widths of over 3.5 meters of high-grade gold. Some notable drill intercepts include:

• - Camp CC19-01: 9.03 grams per tonne (g/t) over 8.05 meters
• - Enma DEN-31: 44.16 g/t Au over 4.5 meters
• - Los Cuyes DCU-17B: 8.98 g/t Au over 16.7 meters
• - San Jose DD-004: 9.00 g/t Au over 21.1 meters

A Plan for Underground Mining

To proceed with advancing the Condor gold project as an underground operation, Silvercorp is committed to focusing on high-grade gold structures and the rhyolitic dykes. The development plan consists of several key phases:
1. Studies and Permitting: This involves re-estimating mineral resources while focusing on underground operations, publishing an updated Preliminary Economic Assessment specific to underground mining, and securing community agreements along with government permitting for exploration tunnels.
2. Underground Tunneling: The company plans to create two cross-cut exploration access tunnels at varying elevations to confirm the high-grade gold intervals, paired with underground drilling aimed at gathering data for a future feasibility study.
3. Construction Readiness: Based on the findings from the underground tunneling, the company will carry out a feasibility study and complete necessary permitting for a processing plant, mine, and tailings facility before making a construction decision.
4. Drilling Programs: Optimized drilling will be employed to further target the high-grade structures, which may include infill drilling to confirm the continuity of gold mineralization and step-out drilling to expand the known resources.

Detailed Description of Gold Deposits

The Condor deposits are embedded in a complex of Cretaceous volcanic rock featuring diatremes and rhyolite/dacite intrusives intersecting the Jurassic age Zamora batholith granodiorite. The project comprises five recognized deposits:

• - Los Cuyes: Displays gold hosted in a volcanic diatreme, intersected by intrusive dykes. The mineralization is predominantly found in subvertical vein structures with a mixture of pyrite and sphalerite.
• - Camp: Gold mineralization is controlled by NW-striking rhyolite dykes at shallow levels, extending upwards of 700 meters in depth.
• - Soledad, Guaya, and Enma: These deposits display similar characteristics of vein and matrix mineralization with varying associations of pyrite/sphalerite in the surrounding rocks.

Conclusion

Silvercorp's focus on exploring and developing the Condor Gold Project as a high-grade underground mining operation marks a significant step in its growth strategy. By leveraging historical data and community collaboration, it aims to unlock considerable value from the mineral resources found in Ecuador. As the company progresses through its development phases, more precise insights into the project's potential will become clearer, promising an exciting journey for Silvercorp and its stakeholders.