Silvercorp (SVM.TO)

Silvercorp Metals Inc. ("Silvercorp") (TSX:SVM)

is pleased to report the new and compiled results for the drill programs completed between April 2005 up to the end of February, 2006 on the high-grade Ying Silver-Lead-Zinc project in Henan province, China.

Of the 86 holes drilled so far, every hole intercepted the mineralized vein structure and 30 of the holes hit massive galena sheets (MGS) exceeding a 1,250 g/t Ag-equivalent grade cut-off giving a 35% drilling success rate.

From FreeMarketNews.com

With the silver price breaking $10 US per ounce for the first time in 23 years, Silvercorp had impeccable timing for the release of drilling results from its massive drilling program in the Henan province of China. Numerous silver stocks have been on a tear, but few have spiked like Silvercorp, a Vancouver-based silver/lead/zinc play.

From Resource Investor

Clearly the easy money has been made here, but one should not rule out further upside as permits are issued and the Silvercorp moves to full-scale production. They will be amongst the world largest silver producers, and the world lowest-cost producers. It is unclear how much of a discount there will be going forward for China, but management has done a great job, and there are very few large producing silver plays out there for the institutions to bet on. This reality should mitigate the discount, and it is important to keep in mind that with the massive cash flows coming in, the company will be able to diversify if it so chooses, thus minimizes country risk.