Mining Stock News: SilverCrest (TSX.V: SVL) (NYSE MKT: SVLC) Discovers Bonanza Grades and New Zone at Santa Elena 15.6m @ 23.9 gpt Au and 307.9 gpt Ag Including 2.3m @ 157.3 gpt Au and 1,610.5 gpt Ag
Category: Investment, Gold, Mining
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VANCOUVER, BRITISH COLUMBIA - January 7, 2013 (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. Eighty seven 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/svl107_F1-2.pdf). This drill program continues to be extremely successful and several recent holes have identified multiple bonanza grade intercepts and a new high grade gold and silver zone that lies below and is sub-parallel to the Main Mineralized Zone currently being mined. All holes included in this program will assist with resource confirmation and reclassification which will be included in the upcoming Pre-Feasibility Study for the Santa Elena Expansion Project.
J. Scott Drever, President stated; "We have always been confident that the underground portion of the Santa Elena Main Mineralized Zone would prove to be larger and higher grade than was indicated by the initial drilling and our drilling to date has vindicated that confidence. In an epithermal deposit such as Santa Elena one can always expect narrow widths of high grades but to encounter 15.6 metres grading 23.9 gpt Au (0.69 opt) and 307.9 gpt Ag (9.0 opt) is truly remarkable and the discovery of the new ''El Cholugo Zone" with similar high grades simply adds to the excitement of the increased potential. Our underground decline has progressed beyond 1,050 metres which will enable us to get access to the underground portion of the ore deposit in the next several months."
Core holes SE-12-62, 54, 91, 92, 94, 103, and 106 have all intercepted Bonanza grades of gold, greater than 34 gpt Au and/or silver, greater than 1,000 gpt Ag, ranging from 1.1 metres @ 9.46 gpt Au and 1,700 gpt Ag to 2.3 metres @ 157.3 gpt Au and 1,610.5 gpt Ag (see tables below). Bonanza grade hole SE-12-54 was previously announced (Dec. 4, 2012) with an intercept of 1.0 metre @ 4.94 gpt Au and 1,230 gpt Ag within 30.7 metres @ 1.61 gpt Au and 169.6 gpt Ag.
Holes SE-12-90, 94, 104 and 106 intercepted two mineralized intervals of 10 to 40 metres apart. It is believed that the second interval represents the discovery of a new mineralized zone at Santa Elena with further potential for additional resources. The New Discovery named "El Cholugo Zone" is believed to be related to a sub-parallel cross cutting structure which intersects the Main Mineralized Zone. El Cholugo appears to have minimum dimensions of approximately 150 metres long, 100 metres high and 5 to 14 metres wide. Two other similar structurally-mineralized intersections are known to exist within the open pit and will be explored in due course. Further drilling is underway to help delineate El Cholugo.
Assay values in this series of holes range from 0.21 gpt to 157.3 gpt gold and 20.7 gpt to 1,700.4 gpt silver. Mineralized intervals range from 2 metres to 25.2 metres. All mineralized drill intercepts are near true thicknesses. The most significant assay results in this series of holes are shown in the following tables:
All sample analyses were completed by ALS Chemex in Hermosillo, Mexico and North Vancouver, BC.
Assays for Holes SE-12-49 and SE-12-53 that were pending in the news release dated December 4, 2012 are presented above. Holes SE-12-60, 61, 68 and 69, in the above sequence are either currently being drilled or analyses are pending. Holes 97 to 101 were previously released (November 13, 2012) for Santa Elena NW target area. Hole 76 was lost due to caving.
The Santa Elena Deposit (Main Mineralized Zone) is open along strike and to depth. Core holes SE-12-72, 73, 74 and SE-12-111 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 beyond the current resource model (see attached Figures: http://media3.marketwire.com/docs/svl107_F1-2.pdf). Mineralized intercepts in these four holes are 5 to 10 metres wide with banded quartz and argentite mixed with breccia and disseminated argentite. These intercepts are up to 200 metres beyond the boundary of current resource estimates. An additional 5 to 10 core holes are planned in this area for increased confidence. The Company is compiling results for these holes to determine the extent of expansion potential and will release promptly.
Approximately 30,000 metres of drilling have been completed to date in the program to convert underground resources to reserves and expand total resources. 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 in-fill program in January, 2013. Further expansion drilling will be completed in Q1 2013. Revised Santa Elena Resources and Reserves are expected in Q1 2013 with subsequent reporting of the results of Pre-Feasibility Study for the Expansion Plan.
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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