VANCOUVER, BRITISH COLUMBIA - June 18, 2014 (Investorideas.com Mining
Stocks
Newswire) SilverCrest Mines Inc. (
TSX:SVL) (
NYSE MKT: SVLC)
is pleased to provide an update on the commissioning of the new 3,000
tonnes per day (“tpd”) milling facility and processing plant and
progress of underground development at its 100% owned Santa Elena Mine
in Sonora, Mexico. The commissioning of the new mill commenced May 1st,
2014 and it is projected that continuous nameplate production of 3,000
tpd will be achieved by the start of August. Underground development
continues with over 4,500 metres completed to date on ramping,
ventilation and ore development. For additional information and to view
photos and videos of the mill, the processing plant and the mine site,
please visit the Company’s website at
www.silvercrestmines.com.
N. Eric Fier, President and COO stated, "The mill
start-up in May was a significant milestone in the development and
responsible growth of the Company. We are confident that our projected
early August completion of commissioning of the mill and ancillary
facilities will be on schedule. The commissioning effort continues to be
supported by highly experienced field engineers from FLSmidth &
Co., who supplied most of the major process plant equipment. The Company
is nearing the completion of its three year, $100 million Expansion
Plan which is expected to be completed on budget and with minimal delay.
The
capital
expenditure budget for 2014 is $26 million with $7.5 million remaining
to be spent mostly for underground equipment and development. The
remaining capital expenditures are expected to be completed in early Q3,
2014 which will allow free cash flow from operations to be generated
for the balance of 2014."
Santa Elena Mine Update:
- Residual leaching of the leach pad continues and is expected to provide silver and gold production through at least July, 2014.
- During the first six weeks of commissioning, the average mill
throughput of reclaimed leach pad material ("pad ore”) was approximately
1,000 tpd on an intermittent basis as the CCD thickeners and belt
filters were being tested and fine-tuned.
- The mill and ancillary facilities have run for extended periods
so that the first gold and silver metal recovered from the milled pad
ore is scheduled prior to the end of June 2014.
- Over 4,500 metres of underground development has been completed
including ramping, ventilation and ore development on five levels.
Approximately 53,000 tonnes of development ore has been mined, project
to date, with 41,500 tonnes delivered to the leach pad and 11,500 tonnes
grading Au 1.17 g/t and Ag 98 g/t in stockpile awaiting mill
processing. Blending of underground ore and pad ore for processing is
scheduled to commence in July.
- The new long-hole drill arrived at Santa Elena on June 12 th,
2014. All underground production equipment purchased by the Company (1
long-hole drill and 3 LHD’s) is now on site. As planned, SilverCrest
personnel will carry out all underground production mining from stopes
while all development work will continue to be done by a contractor.
- Key underground positions have been filled with highly
experienced people, several of whom came from Mexican operations where
similar mining methods to Santa Elena are employed. Company underground
mining personnel are in place and are being trained to start stope
production on the 575 level in July.
- Underground close-spaced definition drilling is underway to
better define reserves for initial and longer term stope production.
Initial results from this detailed drilling reconcile closely with the
underground reserve model. Results will be announced once compilation is
complete.
As forecast, the
Company
expects Q2, 2014 production during the transition to be lower than Q1,
2014 production as the open pit heap leach production phases out and the
mill facility ramps up to full production. Current market guidance of
3.3 to 3.6 million AgEq ounces for 2014 remains unchanged since the
second half of 2014 is heavily weighted with significantly higher metal
recoveries ( 92% Au and 67.5% Ag ) and full production through the mill.
Market production guidance will be reviewed for possible changes once
mill commissioning is complete and underground production is underway.
The Qualified Person under
National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects
for this News Release is N. Eric Fier, CPG, P.Eng, President and Chief
Operating Officer for SilverCrest Mines Inc., who has reviewed and
approved its contents.
SilverCrest Mines Inc. (NYSE MKT: SVLC; TSX: SVL)
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, México. The mine is a high-grade, epithermal silver and gold
producer, with an estimated life of mine of 8 years and operating
cash
costs of $11 per ounce of silver equivalent (55:1 Ag:Au). SilverCrest
anticipates the new 3,000 tonnes per day conventional mill facility at
the Santa Elena Mine should recover average silver and gold annual
quantities of 1.5 million ounces of silver and 32,800 ounces of gold
over the current 8 year reserve. Exploration programs continue to make
new discoveries at Santa Elena and also have rapidly advanced the
definition of a large polymetallic deposit at the La Joya property in
Durango State, Mexico.
CAUTIONARY NOTE REGARDING 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 material properties being located in
Mexico, 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.
Contact:
Fred Cooper
Telephone: (604) 694-1730 ext. 108
Fax: (604) 694-1761
Toll Free: 1-866-691-1730
info@silvercrestmines.com
www.silvercrestmines.com
Suite 501 - 570 Granville Street
Vancouver, BC Canada V6C 3P1
Published at Investorideas.com Newswire
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