Mining Stock News: SilverCrest (TSX.V: SVL) (NYSE MKT: SVLC) Reports Q3, 2012 Financial Results
Category: Investment, Gold, Mining
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VANCOUVER, BRITISH COLUMBIA - December 4, 2012 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines Inc. (TSX.V:SVL) ( NYSE MKT: SVLC) (CW5.F) (the "Company") is pleased to announce results of further drilling at the Santa Elena Mine in Sonora, Mexico. Seventy nine holes of a planned 100 holes have been completed to re-categorize Indicated and Inferred Resources to Probable Reserves and expand current underground Resources (see attached Figures - http://media3.marketwire.com/docs/svl1204-F1-2.pdf). To date, this drill program has been successful and will assist with resource confirmation and conversion which will be included in the upcoming Pre-Feasibility Study for the Santa Elena Expansion Project.
Assay values in this series of holes range from 0.22 gpt to 4.92 gpt gold and 28.0 to 277.4 gpt silver. Mineralized intervals range from 1.0 metres to 38.9 metres. All mineralized drill intercepts are near true thicknesses. The most significant intercepts are 30.7 metres grading 1.61 gpt Au and 169.6 gpt Ag (Hole SE-12-54) and 16 metres grading 2.15 gpt Au and 166.9 gpt Ag (Hole SERC-12-36). The most significant assay results in this series of holes are shown in the following table;
J. Scott Drever, President stated; "We had another strong quarter with 558,185 silver equivalent ounces sold (2), for reported revenues of $16.7 million. The average cash operating cost was $7.60 per silver equivalent ounce, which is below our budget of $8.20. Our Santa Elena low cost, open pit heap leach mine operations continue to perform well, and generated cash flows of $10.2 million which will contribute to the financing of the Santa Elena Expansion plan and the development of our major polymetallic La Joya Project. Record silver production in the third quarter has enabled us to increase annual silver production guidance from 435,000 ounces to 535,000 ounces. We are on track to meet our annual production guidance of 33,500 gold ounces."
* Silver Equivalency based on a Ag:Au ratio of 50:1. All numbers are uncut and rounded.
** The SERC holes were drilled to intercept the Main Mineralized Zone utilizing reverse circulation drilling at the top of the hole and core through the mineralized interval.
All sample analyses were completed by ALS Chemex in Hermosillo, Mexico and North Vancouver, BC.
Assays are pending for Holes SE-12-49 and SE-12-53, in the above sequence. "GT" numbered holes are geotechnical holes that are being used for underground mine design for the Expansion Pre-Feasibility Study. Holes SERC-12-23, 25 and 26 had significant downhole deviations and were subsequently abandoned.
The Santa Elena deposit (Main Mineralized Zone) is open along strike and depth. Core holes SE-12-72 and SE-12-73 have been completed as part of a 15 hole program to test for the possible expansion of resources along strike to the east and to depth. Mineralized intercepts in these two holes are 5 to 10 metres wide with banded quartz and argentite mixed with breccia and disseminated argentite. These intercepts are approximately 100 to 150 metres beyond the boundary of current resource estimates. Approximately 13 additional holes are planned in this area as steps outs along strike and to depth. The Company is awaiting assay results for holes 72 and 73 to determine the extent of expansion potential.
Seventy nine holes totaling 25,512 metres of drilling have been completed to date in the underground resource conversion to reserves and resource expansion program. Results for the next series of holes will be released once compilation of results is complete. Three drills are currently on site to complete the program by the end of 2012. Revised Santa Elena Resources and Reserves, along with the results of Pre-Feasibility Study for the Expansion Plan are expected in Q1 2013.
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, and Chief Operating Officer for SilverCrest Mines Inc., who has reviewed and approved its contents.
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.
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.
SilverCrest Mines Inc.
(604) 694-1730 ext. 108
Toll Free: 1-866-691-1730
(604) 694-1761 (FAX)
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Published at Investorideas.com Newswire
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