SilverCrest Announces Initial Resources at La Joya
Property;
+100 million Ounces
Silver Equivalent*
VANCOUVER,
B.C. January 5, 2012 � SilverCrest Mines Inc. (the �Company�)
is pleased to announce it has completed its initial resource estimation for
its La Joya Property in Durango, Mexico. Inferred Resources within the
Phase I area are estimated at 57.9 million tonnes grading 28 gpt silver,
0.18 gpt gold, and 0.21% Cu. Initial resources contain approximately 51.3 million ounces of silver,
333,400 ounces of gold (16.7 million ounce of Ag Eq.) and 270.3 million pounds
of copper (33.9 million ounces Ag Eq.) for a total of 101.9 million ounces
silver equivalent* (Ag Eq) using a cutoff grade of 15 gpt
Ag Eq.
These resources have been independently estimated utilizing Company Phase I
drilling and sampling programs along with independently-validated historic
data. Drilling to date has been relatively widespread in the Phase I area
which is approximately 1 kilometre by 500 metres. As a result, the
initial resource estimates are considered by the Company to cover only a
portion of the overall potential within the Phase I area.
The Main Mineralized Trend which includes the Phase I and II drilling areas
has an overall length of 2.5 kilometres and an average minimum width of 500
metres (Click
here for attached map and News Release dated Nov. 14, 2011 for
description of target areas). Phase II drilling is currently underway.
La Joya Resource Summary
(Phase I Area)
CATEGORY**
|
TONNES
|
AG
GPT
|
AU
GPT
|
CU
%
|
CONTAINED
AG OZ
|
CONTAINED
AU OZ
|
CONTAINED
CU LBS
|
CONTAINED
AG EQ. OZ*
|
INFERRED***
|
57,940,000
|
28.0
|
0.18
|
0.21
|
51,348,000
|
333,400
|
270,296,000
|
101,918,000
|
* 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 assumed.
**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.
Using a higher cutoff grade of 30 gpt Ag Eq. reduces the Inferred Resource
tonnage to an estimate of 35.5 million tonnes with increased grades of 39
gpt silver, 0.22 gpt gold, and 0.30% Cu. Compared to the lower cutoff grade
of 15 gpt Ag Eq., these resources contain approximately 44.3 million ounces
of silver, 246,000 ounces of gold and 237.5 million pounds of copper or a
total of 86.4 million ounces silver equivalent*.
The resource estimation for La Joya is based on recent and historical
information collected by the Company and previous operators
(Luismin/Goldcorp) from1979 to present. The most significant components of
the data for the Phase I resource area are the recent results from 27 drill
holes (5,753.7 metres) and 178 surface samples (504.7 metres) completed by
the Company. Eight previously announced independently validated historic
drill holes (2,574.35 metres) were also used for resource estimation (see
News Release dated Nov. 14, 2011). Drill hole spacing for the 35 holes (8,328
metres) used in the resource estimation is approximately 100 metres. The
entire database includes 83 drill holes totaling 21,473 metres, 77 holes on
the Company concessions and 6 holes on the adjacent Goldcorp concessions.
There are 48 holes located outside of the Phase I resource area that are
being used to guide Phase II drilling.
Selective areas of lead, zinc, tungsten and molybdenum mineralization are
also being evaluated. These metals are considered potential by-products of
the Ag-Au-Cu mineralization. Resource estimations for these metals will be
reported when completed and incorporated in the Technical Report.
Based on available data and computer modeling, the current most continuous
mineralization at La Joya is hosted within at least 9 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. At least 14
near-horizontal mantos (semi-continuous disseminated stratabound sulphides)
have been defined within the resource area, which are cross-cut by the
stockwork zones and are currently considered secondary to stockwork
mineralization. The La Joya deposit is currently interpreted to host four
related styles of mineralization, (See News Release dated October 17, 2011
for defined types of mineralization at La Joya.)
Initial metallurgical test work on three mineralized core samples suggests
that the La Joya deposit may be amenable to conventional flotation
processes for copper concentrating with gold and silver components. Further
metallurgical test work is required to fully confirm flotation amenability
and determine metal 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 by EBA
Engineering Consultants Ltd., a Tetra Tech Company, using Gemcom GEMS
modelling software to conform to guidelines and definitions established by
National Instrument 43-101 and the Canadian Institute of Mining and
Metallurgy. The resource is based on verified information from historical
and recent Company sources. 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 1 metre and interpolated into
a 5 metre x 5 metre x 5 metre block size model using inverse distance
squared methodology and two sets of search ellipses. The search
ellipse ranges were based on geological field observation, geostatistical
analysis and iterative interpolation. 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 200 gpt Ag, 2 gpt Au, or 3% Cu, the search ellipse
was limited to major and semi-major axis ranges of 50 metres, and a minor
axis range of 25 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 150 metres and a minor axis range of 30 metres. Aminimum of 3
composites, to a maximum of 20, were required to interpolate block grades
with no more than 5 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 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 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 whom
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. from
Wardrop Engineering, a Tetra Tech Company. A Technical Report currently
being prepared by the Qualified Persons 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. There have been no previous qualified resources
reported for La Joya.
SilverCrest Mines
Inc. (TSX-V: SVL; OTCQX: STVZF) is a Mexican
precious metals producer with headquarters based in Vancouver, BC.
SilverCrest�s flagship property is the 100%-owned Santa Elena Mine, which
is located 150 km northeast of Hermosillo, near Banamichi in the State of
Sonora, M�xico. 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�
J. Scott Drever,
President
For further information, please contact:
Fred Cooper
570 Granville Street, Suite 501
Vancouver, BC V6C 3P1
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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