UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

August 31, 2020

Commission File No. 0001-34184

SILVERCORP METALS INC.
(Translation of registrant’s name into English)

Suite 1750 - 1066 West Hastings Street
Vancouver, BC Canada V6E 3X1
(Address of principal executive office)

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F]

Form 20-F [   ] Form 40-F [ X ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) [   ]

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is “submitting” the Form 6-K in paper as permitted by Regulation S-T “Rule” 101(b)(7) [   ]

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [   ] No [ X ]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 31, 2020 SILVERCORP METALS INC.
 

/s/ Derek Liu

 

Derek Liu

 

Chief Financial Officer

 

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EXHIBIT INDEX

EXHIBIT DESCRIPTION OF EXHIBIT

 

99.1 Silvercorp Reports 18% Increase In Measured And Indicated Silver Resources And 4% Increase In Proven And Probable Silver Reserves, On Top Of 21 Million Ounces Of Silver Produced Between June 2016 And December 2019 At The Ying Silver-lead-zinc Mining District
   

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Exhibit 99.1

Exhibit 99.1

NEWS RELEASE

Trading Symbol: TSX/NYSE American: SVM

SILVERCORP REPORTS 18% INCREASE IN MEASURED AND INDICATED SILVER RESOURCES AND 4% INCREASE IN PROVEN AND PROBABLE SILVER RESERVES, ON TOP OF 21 MILLION OUNCES OF SILVER PRODUCED BETWEEN JUNE 2016 AND DECEMBER 2019 AT THE YING SILVER-LEAD-ZINC MINING DISTRICT

VANCOUVER, British Columbia - August 31, 2020 - Silvercorp Metals Inc. (“Silvercorp” or the “Company” ) (TSX / NYSE American: SVM) is pleased to report the results of an updated National Instrument (“NI”) 43-101 Technical Report with an effective date of July 31, 2020 (Mineral Resources and Mineral Reserves effective December 31, 2019), prepared by AMC Mining Consultants (Canada) Ltd. (“AMC”) and covering the SGX, HZG, HPG, TLP, LME, and LMW underground mines on the Ying silver-lead-zinc property (“Ying Property”) in Henan Province, China (the “Ying 2020 Technical Report”).

The authors of the Ying 2020 Technical Report all qualify as independent Qualified Persons (“QPs”). Three of the authors have visited the Ying Property (latest visit in July 2016), with plans for a more recent visit postponed because of the COVID-19 pandemic. The QPs have examined all aspects of the project, including drill core, underground workings, processing plant and surface infrastructure. The Ying 2020 Technical Report, with an effective date of July 31, 2020, will be made available for review on the SEDAR system and on the Company s website at www.silvercorp.ca in due course.

Highlights of the Ying 2020 Technical Report

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Mineral Resources

The Mineral Resource estimates for the SGX, HPG, LMW, and LME deposits were carried out by independent Qualified Person, Rod Webster, MAusIMM, MAIG of AMC, who takes responsibility for these estimates.

The Mineral Resource estimates for the TLP, HZG and DCG deposits were carried out by independent Qualified Person, Simeon Robinson, P.Geo. of AMC, who takes responsibility for these estimates.

The December 2019 Mineral Resources were estimated using a block modelling approach and Datamine’s™ dynamic anisotropy application1. Except for DCG, all grade estimation was completed using ordinary kriging. DCG was estimated using inverse distance squared.

Resource estimates were made for a total of 311 mineralized vein structures for the six active Ying mines, and for the DCG Project that also is located on the Ying Property.

Additional geological sections in the Ying 2020 Technical Report were prepared by independent Qualified Person Dr. Adrienne Ross, P.Geo. of AMC, who takes responsibility for those sections.

The Mineral Resources are reported above cut-offs after applying a minimum practical extraction width of 0.3 m. Diluted grades were estimated for blocks with mineralization widths less than 0.3 m by adding a waste envelope with zero grade. Cut-off grades are based on in situ values in silver equivalent (AgEq) terms in grams per tonne and incorporate mining, processing and shipping costs, and metallurgical recoveries and payable values, provided by Silvercorp for each mine and reviewed by the QPs. AgEq formulae by mine are shown in the footnotes of the table below.

The estimated Mineral Resources and metal content for the Ying Property as of December 31, 2019 are detailed in Table 1 below.

____________________
1 Dynamic anisotropy re-orientates the search ellipsoid for each estimated block based on the local orientation of the mineralization.

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Table 1. Ying Mining District - Mineral Resources and metal content for silver, lead, zinc, and gold as of December 31, 2019 (Inclusive of Mineral Reserves)

Mine Resource category Tonnes (Mt) Au (g/t) Ag (g/t) Pb (%) Zn (%) Metal contained in Mineral Resources
Au (koz) Ag (Moz) Pb (kt) Zn (kt)
SGX Measured 3.29 - 313 6.19 3.12 - 33.08 203.6 102.5
Indicated 3.48 - 257 5.04 2.53 - 28.77 175.5 88.1
Measured + Indicated 6.77 - 284 5.60 2.82 - 61.86 379.1 190.6
Inferred 4.33 - 237 4.84 1.99 - 33.00 209.8 86.1
HZG Measured 0.49 - 342 1.09 0.25 - 5.43 5.4 1.2
Indicated 0.60 - 274 0.70 0.15 - 5.29 4.2 0.9
Measured + Indicated 1.09 - 305 0.87 0.20 - 10.72 9.5 2.1
Inferred 0.97 - 250 0.78 0.18 - 7.77 7.5 1.7
HPG Measured 0.88 1.17 93 3.74 1.43 33.3 2.64 33.1 12.6
Indicated 1.50 1.35 67 3.02 1.30 64.9 3.22 45.2 19.5
Measured + Indicated 2.38 1.28 77 3.29 1.35 98.2 5.87 78.3 32.1
Inferred 3.20 2.05 84 2.65 1.04 211.2 8.65 84.9 33.2
LME Measured 0.49 - 348 1.72 0.38 - 5.47 8.4 1.8
Indicated 1.18 - 282 1.62 0.44 - 10.69 19.1 5.1
Measured + Indicated 1.67 - 301 1.65 0.42 - 16.16 27.5 7.0
Inferred 1.79 - 222 1.73 0.39 - 12.75 30.9 6.9
LMW Measured 0.74 - 330 3.13 0.28 - 7.87 23.2 2.1
Indicated 1.97 - 259 2.33 0.29 - 16.41 45.9 5.8
Measured + Indicated 2.71 - 278 2.55 0.29 - 24.29 69.1 7.9
Inferred 2.41 - 248 2.85 0.39 - 19.22 68.6 9.5
TLP Measured 2.51 - 208 3.44 0.33 - 16.79 86.5 8.3
Indicated 2.92 - 165 2.74 0.32 - 15.48 79.9 9.2
Measured + Indicated 5.43 - 185 3.06 0.32 - 32.27 166.4 17.5
Inferred 5.48 - 157 2.64 0.25 - 27.70 144.7 13.7
DCG Measured - - - - -   - - -
Indicated 0.06 0.09 59 3.78 0.15 0.2 0.12 2.3 0.1
Measured + Indicated 0.06 0.09 59 3.78 0.15 0.2 0.12 2.3 0.1
Inferred 0.40 0.24 61 4.69 0.15 3.2 0.79 18.9 0.6
Total Measured 8.41 0.12 264 4.28 1.53 33.3 71.29 360.2 128.6
Indicated 11.71 0.17 212 3.18 1.10 65.1 79.98 372.1 128.7
Measured + Indicated 20.12 0.15 234 3.64 1.28 98.4 151.26 732.3 257.3
Inferred 18.58 0.36 184 3.04 0.82 214.4 109.87 565.3 151.8

Notes:

A comparison of Mineral Resource estimates between June 30, 2016 and December 31, 2019 indicates the following:

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Reasons for the differences in grade, tonnes, and contained metal include Mineral Resource additions and conversion to higher categories arising from drilling and level development, different cut-off grades and depletion due to mining. Additional channel and drillhole samples also became available between the two estimates to extend the Mineral Resources along-strike and down-dip, and allowed changed interpretation of the veins, given the greater degree of geological understanding.

Mineral Reserves

The Mineral Reserve estimation is based on the assumption that current stoping practices will continue to be predominant at the Ying Property, namely cut and fill resuing and shrinkage stoping, using hand-held drills and hand-mucking within stopes, and loading to mine cars by rocker-shovel or by hand. The largely sub-vertical veins, generally competent ground, reasonably regular vein width, and hand-mining techniques using short rounds, allows a significant degree of selectivity and control in the stoping process. Minimum mining widths of 0.5 m for resuing and 1.0 m for shrinkage are assumed. The QP has observed the mining methods at the Ying property and considers the minimum extraction and mining width assumptions to be reasonable. Minimum dilution assumptions are 0.10 m of total overbreak for a resuing cut and 0.2 m of total overbreak for a shrinkage stope.

Mining dilution and recovery factors vary somewhat from mine to mine and with mining method. Average Ying dilution factors have been estimated as 15% for resuing and 18% for shrinkage, while assumed mining recovery factors are 95% for resuing stopes and 92% for shrinkage stopes.

For the total tonnage estimated as Ying Mineral Reserves, 49.7% is associated with resuing and 50.3% with shrinkage.

The estimated Mineral Reserves and metal content for the Ying Property as of December 31, 2019 are detailed in Table 2 below.

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Table 2 Ying Property Mineral Reserve estimates and metal content at December 31, 2019

Mine Reserve
Category
Mt Au (g/t) Ag (g/t) Pb (%) Zn (%) Metal Contained in Mineral Reserves
Au (koz) Ag (Moz) Pb (kt) Zn (kt)
SGX Proven 2.48   298 5.86 2.80   23.73 145.2 69.4
Probable 2.71   259 5.05 2.35   22.57 137.0 63.9
Total Proven & Probable 5.19   277 5.43 2.57   46.30 282.1 133.3
HZG Proven 0.30   356 0.98 0.24   3.42 2.9 0.7
Probable 0.32   306 0.66 0.12   3.13 2.1 0.4
Total Proven & Probable 0.62   330 0.82 0.18   6.54 5.0 1.1
HPG Proven 0.48 1.05 88 3.66 1.52 16 1.34 17.4 7.2
Probable 0.76 1.38 62 3.07 1.37 34 1.53 23.4 10.5
Total Proven & Probable 1.24 1.25 72 3.29 1.43 50 2.88 40.8 17.7
LME Proven 0.36   352 1.65 0.37   4.05 5.9 1.3
Probable 0.89   287 1.57 0.40   8.18 13.9 3.5
Total Proven & Probable 1.24   306 1.59 0.39   12.23 19.8 4.8
TLP Proven 1.25   241 3.47 0.34   9.71 43.5 4.2
Probable 1.10   216 2.60 0.32   7.62 28.5 3.5
Total Proven & Probable 2.35   230 3.07 0.33   17.34 72.0 7.7
LMW Proven 0.42   347 3.30 0.28   4.73 14.0 1.2
Probable 0.93   303 2.44 0.30   9.00 22.6 2.8
Total Proven & Probable 1.35   317 2.71 0.29   13.73 36.6 4.0
Ying Mine Proven 5.29 0.09 276 4.33 1.59 16 46.99 228.9 84.0
Probable 6.70 0.16 241 3.39 1.26 34 52.02 227.5 84.5
Total Proven & Probable 11.99 0.13 257 3.81 1.41 50 99.01 456.4 168.6

Notes to Mineral Reserve Statement:

The sensitivity of the Ying Mineral Reserves to variation in cut-off grade (COG) has been tested by applying a 20% increase in COG to Mineral Reserves at each of the Ying mines. The lowest sensitivities are seen at SGX and LME with, for the entire Ying Property, an approximate 8.8% reduction in AgEq ounces for a 20% COG increase, demonstrating relatively low overall COG sensitivity.

Total Ying Mineral Reserve tonnes are approximately 60% of Mineral Resource (Measured plus Indicated) tonnes. Silver, lead, and zinc Mineral Reserve grades are 110%, 105% and 110% respectively of the corresponding Measured plus Indicated Mineral Resource grades. Metal conversion percentages for silver, lead, and zinc are 65%, 62%, and 66% respectively.

Some significant aspects of a comparison of Mineral Reserve estimates between June 30, 2016 (previous Technical Report) and December 31, 2019 (Ying 2020 Technical Report) are the following:

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The Ying mine complex is a viable operation with a projected LOM through to 2040 based on only Proven and Probable Mineral Reserves and assuming an average annual production rate of approximately 6 million ounces of silver between fiscal 2021 and 2027, 5 million ounces between 2028 and 2033, 4 million ounces between 2034 and 2036, and 2.5 million ounces between 2037 and 2040. The potential exists for an extended LOM via further exploration and development, particularly in areas with identified Inferred Resources.

Economic Analysis

Although Ying is a producing property and therefore does not require an economic analysis for the purposes of the Ying 2020 Technical Report, the Qualified Persons considered it reasonable to undertake a summary-level analysis to illustrate the potential economic impact relative to the latest Mineral Reserve estimations and to the associated production schedules.

The following metal prices and exchange rate were used for the economic analysis: gold - US$1,400/oz, silver - US$20/oz, lead - US$0.95/lb, zinc - US$1.10/lb; exchange rate - 1US$ = 6.9RMB. Average costs used were: mining - $61.34/t; milling - $10.23/t: shipping - $3.92/t; Mineral Resources tax - $6.86/t; G&A -$8.30/t: government fees and other taxes - $2.78/t; sustaining and growth capital - $16.95/t.

Based on the LOM production forecast through to 2040 and the metal price and other assumptions shown above, a base case pre-tax NPV of US$954M at 5% discount rate is projected (US$713M post-tax). Over the LOM, 62% of the net revenue is projected to come from silver, 29% from lead, 6% from zinc, and 2% from gold.

Qualified Persons

H. Smith, P.Eng., A. Ross, P.Geo. and S. Robinson, P.Geo. of AMC Mining Consultants (Canada) Ltd.; R. Webster, MAusIMM, MAIG and R. Chesher, FAusIMM of AMC Consultants Pty Ltd.; and A. Riles, MAusIMM, MAIG of Riles Integrated Resource Management Pty Ltd are Qualified Persons as defined by National Instrument 43-101. The Qualified Persons have reviewed and consented to this press release and believe it fairly and accurately represents the information in the Technical Report that supports the disclosure.

About Silvercorp

Silvercorp is a profitable Canadian mining company producing silver, lead and zinc metals in concentrates from mines in China. The Company s goal is to continuously create healthy returns to shareholders through efficient management, organic growth and the acquisition of profitable projects. Silvercorp

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balances profitability, social and environmental relationships, employees’ wellbeing, and sustainable development. For more information, please visit our website at www.silvercorp.ca.

For further information
Silvercorp Metals Inc.
Lon Shaver
Vice President
Phone: (604) 669-9397
Toll Free 1(888) 224-1881
Email: investor@silvercorp.ca
Website: www.silvercorp.ca

CAUTIONARY DISCLAIMER - FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this news release constitute “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 Canadian provincial securities laws (collectively, “forward-looking statements”). Any statements or information that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements relate to, among other things: the price of silver and other metals; foreign exchange rates; the accuracy of mineral resource and mineral reserve estimates at the Company s material properties; the sufficiency of the Company s capital to finance the Company s operations; estimates of revenues, operation costs, capital expenditures, mine plan, and estimated production from the Company s mines in the Ying Mining District; timing of receipt of permits and regulatory approvals; availability of funds from production to finance the Company s operations; and access to and availability of funding for future construction, use of proceeds from any financing and development of the Company s properties.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks relating to: global economic and social impact of COVID-19; fluctuating commodity prices; calculation of resources, reserves and mineralization and precious and base metal recovery; interpretations and assumptions of mineral resource and mineral reserve estimates; exploration and development programs; feasibility and engineering reports; permits and licences; title to properties; property interests; joint venture partners; acquisition of commercially mineable mineral rights; financing; recent market events and conditions; economic factors affecting the Company; timing, estimated amount, capital and operating expenditures and economic returns of future production; integration of future acquisitions into the Company s existing operations; competition; operations and political conditions; regulatory environment in China and Canada; environmental risks; foreign exchange rate fluctuations; insurance; risks and hazards of mining operations; key personnel; conflicts of interest; dependence on management; internal control over financial reporting; and bringing actions and enforcing judgments under U.S. securities laws.

This list is not exhaustive of the factors that may affect any of the Company s forward-looking statements. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Company s Annual Information Form under the heading “Risk Factors”. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Accordingly, readers should not place undue reliance on forward-looking statements.

The Company s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this news release, and other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management s assumptions, beliefs, expectations or opinions should change, or changes in any other events affecting such statements. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.

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CAUTIONARY NOTE TO US INVESTORS

This news release has been prepared in accordance with the requirements of NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. Securities laws. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

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