VANCOUVER, BRITISH COLUMBIA - May 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 updated Reserve
and Resource estimations for its Santa Elena Mine in Sonora, Mexico.
The updated Probable Reserves (underground, open pit and leach pad) are
estimated at 8.2 million tonnes grading 74.9 gpt Ag and 1.24 gpt Au
containing 19.7 million ounces of silver and 327,430 ounces of gold,
representing a 103% increase in contained silver and 50% increase in
contained gold over previous Probable Reserves stated below. Updated
Indicated Resources (exclusive of Probable Reserves) are estimated at
2.1 million tonnes grading 114.9 gpt Ag and 1.69 gpt Au containing 7.9
million ounce of silver and 116,000 ounces of gold, representing a 127%
increase in contained silver and 99% increase in contained gold over
previous Indicated Resources stated below. Details of the updated
Reserves and Resources are summarized in the following tables and will
be included in the Santa Elena Expansion Pre-Feasibility Study
(Technical Report) to be filed on SEDAR within 45 days of this release.
J. Scott Drever, President commented: "We are extremely pleased
with the results of our updated Reserve and Resource estimates for the
underground, open pit and heap leach pad definition and resource
expansion drill program. The significant increase in Reserves has
clearly defined processing feed for our planned 3,000 tonne per day
processing facility (Milling & CCD leaching) for an additional 8
years. What is even more exciting is that we have yet to define the
limits of the Main Mineralized Zone and have only begun to explore the
newly discovered high grade El Cholugo and El Cholugo Dos zones. We look
forward to a banner year in 2014 with the commissioning of the new
processing facility in Q1 2014 and the expansion of our annual metals
production to an estimated 3.5 to 4.0 million ounces of silver
equivalent (55:1 Ag:Au)."
Note: All numbers are rounded. Underground and Leach Pad Reserves
and Resources are based on 3 year historic metal price trends of
US$28/oz silver, US$1450/oz gold and metallurgical recoveries of 92% Au
and 67.5% Ag with a metal ratio of Ag:Au at 70:1 used for grade cutoff
determination. All Mineral Resources and Reserves conform to NI 43-101,
43-101CP, and CIM definitions for Resources and Reserves. Inferred
Resources have been estimated from geological evidence and limited
sampling and must be treated with a lower level of confidence than
Indicated Resources.
1 Open Pit and Leach Pad Probable Reserves were classified by
SilverCrest. Underground Reserves and Resources were classified by EBA, a
Tetra Tech Company.
2 Underground Probable Reserve is based on a cutoff grade of 1.47
gpt AuEq with an average 10% dilution and 90% mine recovery. Average
true thickness of the designed stopes is 13.4 metres.
3 Open Pit Reserve is based on a cutoff grade of 0.20 gpt AuEq in a
constrained pit shell with applied capping of 8 gpt Au and 300 gpt Ag.
4 Leach Pad Reserve based on production and drill hole data for
volumetrics and grade model using a cutoff grade of 0.5 gpt AuEq. No
capping was applied.
5 Underground Resources are exclusive of Probable Reserves and
based on 1 gpt AuEq grade shell, a cutoff grade of 1.4 gpt AuEq, and
applied capping of 12 gpt Au and 600 gpt Ag.
1 based on $1,000/oz of gold and $18/oz of silver, cut-off grade of
0.38 gpt gold equivalent with applied metallurgical recoveries.
2 based on $1,000/oz of gold and $18/oz of silver, cut-off grade is
1.77 gpt gold equivalent with applied metallurgical recoveries.
Before production commenced, the Santa Elena open pit defined a
mine life of approximately 6.5 years (including ramp up) having a
Reserve of 5.1 million tonnes grading 1.72 gpt Au and 73.4 gpt Ag (refer
to Technical Report dated April 1, 2011). In April 2011, the open pit
Reserve was depleted by approximately 6 months of production and
optimized with a remaining 4.79 million tonnes grading 1.81 gpt Au and
75.9 gpt Ag (refer to Technical Report dated April 1, 2011). By January
2012, the open pit was depleted from 2011 production and re-optimized
with a resultant Reserve of 3.45 million tonnes grading 1.96 gpt Au and
87.3 gpt Ag showing lesser tonnes and higher grade. Re-optimization of
the open pit between April 2011 and April 2013 has reclassified
approximately 880,000 tonnes of open pit Reserve to underground
Resources which was converted mostly (excluding stope pillars) to the
new underground Reserves. The main purpose for re-optimization was to
avoid a higher open pit strip ratio at higher cost in future years in
the mine life but still be able to mine the displaced Reserves from
underground.
SANTA ELENA UPDATED RESERVE AND RESOURCE DATABASES
Based on available data, the current dominant silver-gold
mineralization at the Santa Elena Mine is hosted within the Main
Mineralized Zone (MMZ) which is a low-sulfidation calcium-rich
epithermal deposit that strikes nearly east-west for an estimated
distance of 1.3 kilometres with an average true width of approximately
15 metres. The continuous mineralized zone has been drill-tested to a
minimum depth of 500 metres from surface and open in most directions.
The near-parallel El Cholugo and El Cholugo Dos zones are located
approximately 20 to 50 metres below the footwall of the MMZ. These two
new discoveries appear to be splays off the MMZ with similar silver-gold
mineralization.
The updated underground Reserves and Resources have been
independently estimated by EBA, a Tetra Tech Company, utilizing 2012 and
2013 drilling results along with previous independently-validated data
(see SEDAR for previous NI 43-101 compliant Technical Reports). Drilling
in 2012 and early 2013 was focused on conversion and expansion of
underground Resources to Reserves with an average drill hole spacing of
approximately 35 metres. Drilling data from 2012 and 2013 used for
underground Resource estimate included 138 holes (45,011 metres) and 96
previous holes (14,865 metres). A total of 2,941 composite samples were
used as the basis for the block model.
The updated open pit Reserves and Resources have been estimated by
SilverCrest utilizing Company extensive production data (blastholes),
exploration drilling data and computer modelling. All Indicated
Resources in the currently operating open pit have been converted to
Reserves as of April 30, 2013.
The Leach Pad Reserves (spent ore) have been estimated by the
Company utilizing crusher composite samples, drill data from
verification holes on the pad, bottle roll tests to process design
specifications and SilverCrest production leach curves. In early May
2013, the Company completed 25 large diameter drill holes (355 metres)
on the pad to obtain additional information for the purposes of
validation of production data. All spent ore material on the leach pad
will be reprocessed through the new processing facility once
operational. Only the material currently on the pad and leached (300 day
cycle completed or estimated full cycle) has been declared as Reserves.
Approximately 750,000 tonnes of open pit material is planned to be
placed on the pad during the remainder of 2013 and will undergo only
partial leaching before being reprocessed through the new facility. Once
this material is placed on the pad and leaching has been discontinued,
it will be declared as leach pad Reserves for processing and metal
recovery in late 2014 and beyond.
Extensive metallurgical test work including ongoing operations data
show that all declared Reserves are amenable to conventional leaching
either by heap leach technology or standard CCD milling with a Merrill
Crowe recovery system for dore bar production. Estimated recovery grades
are stated below in Reserves Criteria table.
SANTA ELENA UPDATED RESERVE AND RESOURCE MODELLING
The Santa Elena underground, open pit and leach pad Mineral
Resource estimates were completed using Gemcom GEMS modelling software
and are compliant with National Instrument 43-101 and conform to
guidelines and definitions established by the Canadian Institute of
Mining and Metallurgy (CIM). Using CIM Definition Standards for Mineral
Resources and Mineral Reserves, Mineral Resources have been classified
as being either Indicated or Inferred based on the number of samples
used for estimation relative to the block location and the overall
search distance confidence derived from the variogram analysis. 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 Underground Mineral Resource estimates are based on verified
information from historical and recent Company sources, up to and
including drill hole SE-13-145. The block model includes the Main
Mineralized Zone, El Cholugo and El Cholugo Dos. Solid boundaries for
the mineralization were interpreted within a geological vein solid and
constrained using a minimum 1 gpt AuEq cut-off from raw drill hole assay
intervals. The Main Mineralized Zone grade shell was segmented into
three major
domains
to accommodate flexures and structural orientation changes. The raw
assay data was composited to 1 metre within the grade shell and was
interpolated into a 5 metre x 5 metre x 5 metre block size model using
Ordinary Kriging. Grade caps of 12 gpt Au and 600 gpt Ag were determined
from log-probability and histogram analysis and applied after
compositing. The search ellipse ranges were based on geological field
observation, semi-variogram analysis and iterative interpolation. Grade
interpolation within the vein hosted mineralization utilized two passes
with anisotropic search ellipses oriented along the interpreted domain
trend with major axes ranges of 90 and 117 metres, and semi-major ranges
of 69 and 89 metres, respectively. A minimum of 2 composites, to a
maximum of 15, were required to interpolate block grades with no more
than 5 composites reporting from any one drill hole. Based on limited
laboratory and in situ specific gravity testing, a value of 2.60 g/cm3
was applied as a specific gravity for all vein hosted mineralized
material in the model.
The Open Pit Mineral Resource estimates are based on verified
information from historical and recent Company sources. Solid boundaries
for the mineralization were constrained at 0.20 gpt AuEq cut off and
the open pit limits defines the mineralized material dated as December
31, 2012. All open pit Mineral Resources are declared as Reserves. Open
pit production from January 1 to April 30, 2013 was subtracted from the
December 2012 Resource estimation. The Resource estimation was completed
using Gemcom GEMS software applying Ordinary Kriging. Raw data (blast
holes, core and RC samples) were composited to a 5 metre length for
blast holes and 2 metre length for in-pit core and RC samples. These
composites were assessed for spatial and geostatistical purposes. A
capping of 8 gpt Au and 300 gpt Ag was applied to core and RC data only.
The composite data was interpolated into a 5 metre x 5 metre x 5 metre
block size model using Ordinary Kriging in two passes. The first one
using only blast hole data with an average spacing of 4 metres and
interpolating grades to a maximum distance of 15 metres from the sample
location. The second pass used only core and RC drilling data spaced on
average 50 metres to interpolate 5 metre x 5 metre x 5 metre blocks
located in distances beyond 15 metres from the sample location. The
blasthole resource model was compared against the production data for
verification purposes.
The Leach Pad Reserves (spent ore) have been estimated by the
Company utilizing daily production, grade and mass records obtained at
the crushing plant when conveying mineralized material to the pad. These
records represent a complete production dataset since start up of the
operations at Santa Elena. A detailed leach pad survey was completed in
April 2013 to provide volumes of material placed on the pad. This volume
was compared with weightometer data collected on the crushing plant to
validate tonnes on the pad using well known specific gravity on the
leach pad of 1.85 g/cm3. SilverCrest has completed 25 large diameter
Becker Hammer, Tandem Mounted hydraulic drill holes (355 metres- drill
holes spaced on a 25 metre by 25 metre grid) on the pad to obtain
additional information for the purposes of validation of production
data. Raw assay data were interpolated into a 100 metre x 100 metre x 6
metre block size model. An inverse distance squared methodology was used
with a single domain and search ellipse. The search ellipse ranges were
based on drill hole spacing, field observation, geostatistical analysis
and iterative interpolation. No grade capping was applied. Grade
interpolation within the two surfaces utilized an anisotropic ellipse
oriented along the interpreted zone with major and semi-major axis
ranges of 200 metres and a minor axis range of 200 metres. A minimum of 2
composites, to a maximum of 12, were required to interpolate block
grades with no more than 3 composites reporting from any one drill hole
in multi stage search radiuses to populate all blocks. The validation
results support the estimation by the Company utilizing daily production
data.
SANTA ELENA RESERVE CRITERIA
The Santa Elena Reserve estimates as stated above were completed
using GEMS resource models for defining open pit, underground and leach
pad Reserves along with criteria as presented in the following table.
1 Based on 3 year historic metal price trends
2 Underground mining costs, dilution and mine recovery are based on
stope type, either long hole (68% of design stopes) or cut and fill
(32% of designed stopes) mining method.
3 Processing includes crushing, milling, site refining and dry stack tailings disposal.
4 Estimated based on current operations and may vary on an annual basis.
5 Recoveries for leach pad based on 2009 Metcon test work and
recent Company production leach cycles for life of pad. During the
period from 2010 through 2012 (solution ramp up), an average recovery of
57% Au and 30% Ag was achieved. Refer to Technical Report dated May 11,
2011 on SEDAR. Leach pad CCD mill recoveries are based on in-situ
remaining ounces on the pad.
Pre-Feasibility level results including Santa Elena economic
analysis is expected to be announced within 45 days of this news
release. The extended mine life with updated Reserves is anticipated to
be 8 more years at the proposed 3,000 tonne per day milling rate.
The Santa Elena Mine has good potential for additional Resources
with the deposit open in most directions. Further infill and expansion
drilling is recommended to potentially increase Resources and convert to
Reserves.
The Qualified Persons for the Santa Elena Resource and Reserve
estimations who have reviewed and approved the contents of this news
release are N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for
the Company, James Barr., P.Geo. and Mike Tansey, P.Eng. from the
consulting firm of EBA, a Tetra Tech Company, and John Fox, P.Eng. of
Laurion Consulting Inc. SilverCrest is now classified as a "producing
issuer" as defined in NI 43-101, as a result of which the Technical
Report is not required to be prepared by or under the supervision of an
Independent Qualified Person. The Santa Elena Expansion Pre-Feasibility
Study (Technical Report) in compliance with NI 43-101 is currently being
prepared by the Qualified Persons and will be filed on SEDAR 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
Published at Investorideas.com Newswire
Disclaimer / Disclosure :
The Investorideas.com is a third party publisher of news and research
Our sites do not make recommendations, but offer information portals to
research news, articles, stock lists and recent research. Nothing on our
sites should be construed as an offer or solicitation to buy or sell
products or securities. This site is currently compensated by featured
companies, news submissions and online advertising. Disclosure:
SilverCrest Mines has compensated Investorideas.com for the distribution
and publishing of this news release (annual news publication 9700)
http://www.investorideas.com/About/Disclaimer.asp
BC Residents and Investor Disclaimer : Effective September 15 2008 -
all BC investors should review all OTC and Pink sheet listed companies
for adherence in new disclosure filings and filing appropriate documents
with Sedar. Read for more info:
http://www.bcsc.bc.ca/release.aspx?id=6894
in the space have the edge. 
Baidu, Inc. (
Renren Inc. (
About InvestorIdeas.com: