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silver equivalent formula Notes to Resource Statement: 1. The AgEq ("silver-equivalent") formula is as follows: AgEq (g/t) = (Ag g/t (i) Ag recovery) + ((Au g/t (i) Au price per g (i) Au
recovery) / Ag price per g) + ((Pb% (i) Pb price (i) Pb recovery (i)
22.0462) / Ag price per g) + ((Zn% (i) Zn price (i) Zn recovery (i) 22.0462)
/ Ag price per g). Note that copper is not a contributor and gold only
contributes when there is a gold recovery value. 2. In calculating AgEq grades, metal prices used are Au: US$1,250/troy
ounce; Ag: US$19.00/troy ounce; Pb and Zn: US$1.00/pound.
3. Metal recoveries are based on 2011 metallurgical testwork conducted by
SGS Laboratories. Results chosen for the Silvertip process were recovery
of 84.9% of silver, 92.4% of lead and 81.7% of zinc. Silvercorp includes
recovery of 50% for gold as a conservative estimate.
4. Upper Zone resources are being reported above a $25.00 value cut-off. This cut-off reflects the current mining costs assuming an open pit
mining scenario. These costs are considered to be reasonable when
compared to similar operations in the area. Value was calculated, in the
models, using the formula: $Value = AgEq x $0.61
5. Rounding may result in minor discrepancies in totals. (c) http://finance.yahoo.com/news/silvercorp-reports-independent-mineral-estimates-120000742.html
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