VANCOUVER, BRITISH COLUMBIA - January 29, 2013 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines Inc. (
TSX.V:SVL) (
NYSE MKT: SVLC) (
CW5.F)
("SilverCrest" or the "Company") is pleased to announce an updated
resource estimation for the La Joya Property in Durango, Mexico. The
updated Inferred Resources are summarized as (refer to tables below for
details);
- Cutoff grade of 15 gpt silver equivalent (Ag Eq*,Global Case): 198.6 million ounces Ag Eq
- Cutoff grade of 30 gpt Ag Eq (Base Case); 159.8 million ounces Ag Eq
- Cut-off grade of 60 gpt Ag Eq (High Grade Case); 100.8 million ounces of Ag Eq
- Cut-off grade of 0.05% WO3; 75.1 million pounds (35,700 tonnes) of tungsten
The Company believes that the 60 gpt Ag Eq portion of the deposit
with an estimated tonnage of 27.9 million tonnes grading 112 grams per
tonne Ag Eq* constitutes a priority area to be examined as a potential
"Starter Pit" for initial conceptual operations that will be examined in
the Preliminary Economic Assessment (PEA) to be commenced shortly. The
La Joya Property has excellent potential for additional resources with
the deposits being open in most directions. Further infill and expansion
drilling is recommended to increase and convert resources from Inferred
to Indicated.
These resources have been independently estimated by EBA
Engineering Consultants Ltd., a Tetra Tech Company utilizing Company
Phase I and Phase II drill results and surface sampling programs along
with independently-validated historic data. Drilling to date has been
relatively widespread in the Main Mineralized Trend (MMT) as well as the
independent deposits of Coloradito and Santo Nino. The MMT which
includes the Phase I and II drilling areas, has a length of 2.5
kilometres and an average minimum width of over 700 metres (see attached
Figures -
http://media3.marketwire.com/docs/svl129_F1-2.pdf).
The La Joya resource models separate the deposits into two broad
categories based on the predominant mineralogy. The first category is
comprised of silver, gold and copper mineralization (AgCu Rich Zone),
with lesser amounts of tungsten (WO3), molybdenum (Mo), lead (Pb), and
Zinc (Zn). The second category is predominantly tungsten and molybdenum
mineralization (Contact Zone) with lesser amounts of Ag, Cu, Au, Pb, and
Zn. The mineralogy of these categories is often gradational and
overprinted in some areas. The AgCu Rich Zone generally lies spacially
above the Contact Zone and generally follows the contours of the
underlying intrusive, which outcrops in several areas. The summaries of
the resource estimates below show the resources attributed to each of
these mineralization categories for each of the current deposits,
specifically, the MMT, Santo Nino, and Coloradito.
* Silver equivalency includes silver, gold and copper and excludes
lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is
86:1, based on 5 year historic metal price trends of US$24/oz silver,
US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is
incorporated until further information is available.
**Classified by EBA, A Tetra Tech Company and conforms to NI
43-101, 43-101CP, and CIM definitions for resources. All numbers are
rounded. Inferred Resources have been estimated from geological evidence
and limited sampling and must be treated with a lower level of
confidence than Measured and Indicated Resources. Mineralization
boundaries used in the interpretation of the geological model and
resource estimate are based on a cutoff grade of 15 gpt Ag Eq using the
metal price ratios described above.
* WO3 is based on a standard calculation of tungsten (W) times
1.26. 100% metallurgical recovery is incorporated until further
information is available.
** Classified by EBA, A Tetra Tech Company and conforms to NI
43-101, 43-101CP, and CIM definitions for resources. All numbers are
rounded. Inferred Resources have been estimated from geological evidence
and limited sampling and must be treated with a lower level of
confidence than Measured and Indicated Resources. Mineralization
boundaries used in the interpretation of the geological model and
resource estimate are based on a cutoff grade of 200 ppm W.
Much of the Contact Zone resource is considered to be near-surface
and potentially amenable to conventional open pit mining. This zone also
contains gold, silver, copper and tin (as defined by geochemistry)
which may add secondary value as a result of increased metal content.
These resource estimates are based on recent and historical
information collected by SilverCrest Mines and previous operators
(Luismin/Goldcorp) from 1979 to present. Phase II Company drilling
comprising 78 holes (25,812.65 metres), the 26 holes Phase I Company
drilling (5,753.70 metres) in addition to 18 validated historic
drillholes (5,907.26 metres) were included in the geological database
used as source data for the estimation. Drill hole spacing for the 122
holes (37,473.61 metres) used in the resource estimation is
approximately 75 metres.
Based on available data and computer modeling, the current dominant
mineralization at La Joya is hosted within numerous sub-vertical, near
east-west striking structurally-controlled stockwork zones. These zones
are considered to be semi-continuous along strike with true widths
ranging from 15 to 50 metres using a cutoff grade of 15 gpt Ag Eq. Eight
near-horizontal mantos (semi-continuous disseminated stratabound
sulphides) have been modeled within the resource area, which are
cross-cut by the stockwork zones and considered the second dominant
mineralization. The La Joya deposits are currently interpreted to host
three related styles of mineralization. Please refer to News Release
dated October 17, 2011 for defined types of mineralization at La Joya.
Initial metallurgical test work as reported in the first Technical
Report on the property dated February 20, 2012 suggests that the La Joya
deposit may be amenable to conventional flotation processes for copper
concentrating with high grade silver and gold components. Significant
metallurgical test work is being completed by an independent qualified
lab to confirm flotation amenability and fully determine recoveries. The
nearby Sabinas Mine (Penoles), which is considered to be a similar
deposit style to La Joya, has been in production for many years and is
currently producing at an estimated rate of 4,000 tonnes/day and
shipping flotation concentrate overseas.
The La Joya Inferred Mineral Resource Estimate was completed using
Gemcom GEMS modeling software and is compliant with National Instrument
43-101 and conforms to guidelines and definitions established by the
Canadian Institute of Mining and Metallurgy. The resource is based on
verified information from historical and recent company sources. The
Mineral Resources include block models for the Main Mineralized Trend
and Santo Nino located within Cerro Sacrificio, and for Cerro
Coloradito. Solid boundaries for the mineralization were interpreted
using a minimum 15 Ag Eq cut-off from drill holes composites. Raw assay
data was composited to 2 metres and was interpolated into a 5 metre x 5
metre x 5 metre block size model using inverse distance squared
methodology with multiple mineralized
domains
and search ellipses. The search ellipse ranges were based on geological
field observation, geostatistical analysis and iterative interpolation.
Grade caps of 550 gpt Ag, 5.5 gpt Au and 6.0 % Cu were determined from
histogram analysis and applied after compositing. Grade interpolation
within stratabound manto mineralization utilized an anisotropic search
ellipse oriented along the interpreted trend of bedding with major and
semi-major axis ranges of 75 metres and a minor axis range of 40 metres.
Where manto grades exceeded 120 gpt Ag, 1 gpt Au, or 1% Cu, the search
ellipse was limited to major and semi-major axis ranges of 40 metres,
and a minor axis range of 20 metres. Grade interpolation within
sub-vertical structurally-controlled stockwork zones utilized an
anisotropic ellipse oriented along the interpreted zones with major and
semi-major axis ranges of 80 metres and a minor axis range of 30 metres.
A minimum of 2 composites, to a maximum of 15, were required to
interpolate block grades with no more than 3 composites reporting from
any one drill hole in manto mineralization, or no more than 3 composites
reporting from any one drill hole in the stockwork zones. Based on
limited laboratory and in situ testing, a value of 3 was applied as a
specific gravity for all materials in the model. Using the definitions
in the CIM Definition Standards for Mineral Resources and Mineral
Reserves, all Mineral Resources have been classified as being Inferred
based on the number of samples used for estimation relative to the
deposit area and the overall confidence in interpretation from the
widely spaced drill holes for this style of deposit. Inferred Resources
should not be used as the basis for evaluation of economic viability of
the project. Details of these criteria will be presented in the
Technical Report to be filed on SEDAR.
The independent Qualified Persons for the La Joya resource
estimation who have reviewed and approved the contents of this news
release are James Barr., P.Geo., and Lara Reggin, P.Geo. both from the
consulting firm of EBA Engineering Consultants Ltd., a Tetra Tech
Company and Ting Lu, P.Eng. (for Metallurgy) from Wardrop Engineering, a
Tetra Tech Company. A Technical Report currently being prepared by the
Qualified Persons and will adhere to the disclosure requirements of NI
43-101 and will be filed no later than 45 days from the date of this
release.
SilverCrest Mines Inc. (TSX-V: SVL; NYSE MKT: SVLC)
is a Canadian precious metals producer headquartered in Vancouver, BC.
SilverCrest's flagship property is the 100%-owned Santa Elena Mine,
located 150 km northeast of Hermosillo, near Banamichi in the State of
Sonora, Mexico. The mine is a high-grade, epithermal gold and silver
producer, with an estimated life of mine cash cost of US$8 per ounce of
silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the 2,500
tonnes per day facility should recover approximately 4,805,000 ounces of
silver and 179,000 ounces of gold over the 6.5 year life of the open
pit phase of the Santa Elena Mine. A three year expansion plan is
underway to double metals production at the Santa Elena Mine and
exploration programs are rapidly advancing the definition of a large
polymetallic deposit at the La Joya property in Durango State.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the
meaning of Canadian securities legislation and the United States
Securities Litigation Reform Act of 1995. Such forward-looking
statements concern the Company's anticipated results and developments in
the Company's operations in future periods, planned exploration and
development of its properties, plans related to its business and other
matters that may occur in the future. These statements relate to
analyses and other information that are based on expectations of future
performance, including silver and gold production and planned work
programs. Statements concerning reserves and mineral resource estimates
may also constitute forward-looking statements to the extent that they
involve estimates of the mineralization that will be encountered if the
property is developed and, in the case of mineral reserves, such
statements reflect the conclusion based on certain assumptions that the
mineral deposit can be economically exploited.
Forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors which could cause actual
events or results to differ from those expressed or implied by the
forward-looking statements, including, without limitation: risks related
to precious and base metal price fluctuations; risks related to
fluctuations in the currency markets (particularly the Mexican peso,
Canadian dollar and United States dollar); risks related to the
inherently dangerous activity of mining, including conditions or events
beyond our control, and operating or technical difficulties in mineral
exploration, development and mining activities; uncertainty in the
Company's ability to raise financing and fund the exploration and
development of its mineral properties; uncertainty as to actual capital
costs, operating costs, production and economic returns, and uncertainty
that development activities will result in profitable mining
operations; risks related to reserves and mineral resource figures being
estimates based on interpretations and assumptions which may result in
less mineral production under actual conditions than is currently
estimated and to diminishing quantities or grades of mineral reserves as
properties are mined; risks related to governmental regulations and
obtaining necessary licenses and permits; risks related to the business
being subject to environmental laws and regulations which may increase
costs of doing business and restrict our operations; risks related to
mineral properties being subject to prior unregistered agreements,
transfers, or claims and other defects in title; risks relating to
inadequate insurance or inability to obtain insurance; risks related to
potential litigation; risks related to the global economy; risks related
to the Company's status as a foreign private issuer in the United
States; risks related to all of the Company's properties being located
in Mexico and El Salvador, including political, economic, social and
regulatory instability; and risks related to officers and directors
becoming associated with other natural resource companies which may give
rise to conflicts of interests. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
the forward-looking statements. The Company's forward-looking statements
are based on beliefs, expectations and opinions of management on the
date the statements are made. For the reasons set forth above, investors
should not place undue reliance on forward-looking statements.
The information provided in this news release is not intended to be
a comprehensive review of all matters and developments concerning the
Company. It should be read in conjunction with all other disclosure
documents of the Company. The information contained herein is not a
substitute for detailed investigation or analysis. No securities
commission or regulatory authority has reviewed the accuracy or adequacy
of the information presented.
J. Scott Drever, President
SILVERCREST MINES INC.
Contact:
SilverCrest Mines Inc.
Fred Cooper
(604) 694-1730 ext. 108
Toll Free: 1-866-691-1730
(604) 694-1761 (FAX)
info@silvercrestmines.comwww.silvercrestmines.com570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
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