VANCOUVER, BC � November 14, 2011 � SilverCrest Mines Inc. (the �Company�) is pleased to
announce that data compilation for the Phase I drilling program and a
newly received historic database has identified a large, near-surface bulk tonnage
target at its La Joya property in
Durango, Mexico. The compilation by SilverCrest
has involved data and/or drill core review of 51 historic holes (14,786 metres) and 26 Company drill holes (5,716 metres) totaling 20,502 metres
of drilling in 77 holes on the property. Verification or validation work
completed by an Independent Qualified Person included review of 22 historic
holes, Company drill information, geologic mapping, sampling, geochemistry,
and historic airborne and ground geophysics. The compilation of these data
will be incorporated into the upcoming NI43-101 Technical Report and
resource estimate.
All 26 SilverCrest drill holes and 27 historic
drill holes (verified with assays) intersected polymetallic
mineralization that includes silver (Ag), copper (Cu), gold (Au), lead (Pb), zinc (Zn), tungsten (W) and molybdenum (Mo).
Thirty three widely-spaced holes approximately 100 metres
apart have identified a large,
near-surface bulk tonnage target in the Phase I drilling
area along the Main Mineralized Trend (�MMT�) at La Joya. The
MMT is defined, by using results from the Company�s Phase I program and
validated historic drill hole information, as a
semi-continuous Ag-Cu-Au-Pb-Zn mineralized
corridor with current �drilled-defined� dimensions of approximately 1,000 metres by 500 metres. The MMT
includes a combination of wide vertical stockwork
zones and multiple-stacked, polymetallic, stratabound horizons up to 230 metres in vertical
thickness with grades ranging from 15.9 gpt to
202.4 gpt Ag equivalent*.
The remaining 44 holes that lie outside the Phase I drilling area have
identified extensions to current mineralization along the MMT (see news
release dated October 17, 2011) and have discovered a number of additional
separate targets. Information from the historic database has extended
the �overall� dimensions of the Main Mineralized Trend to greater than 2.5 kilometres in strike length by approximately one kilometre in width (see table on next page, attached maps and sections).
N. Eric Fier, CPG, P.Eng. and Chief Operating Officer stated; �In
our first review of the Phase I results we focussed
on the higher grade intercepts, but with the receipt of significant
historical data we recognized the potential for a much larger, lower grade
deposit. The key to identifying the presence of a potential large,
near-surface bulk tonnage deposit is establishing continuity of the
mineralization and grades of the drill hole
intercepts. Our initial geological computer-generated model is increasing
our confidence in the continuity and our ability to apply it to the
anticipated La Joya resource estimates. The
upcoming Phase II drill program will further systematically test the
continuity and grade of mineralization in the Phase I area, as well as
along the extensions of the Main Mineralized Trend.�
The several styles of mineralization have been identified at La Joya as follows;
1) at least 6 multi-stacked, polymetallic,
disseminated sulfide, stratabound horizons and mantos up to 50 metres in
true thickness with Ag-Cu-Au-Pb-Zn
mineralization,
2) at least 6 structurally-controlled vertical stockwork
zones up to 50 metres in true width with Ag-Cu-Au
mineralization,
3) a Contact Zone with the underlying intrusive up to 100 metres in true thickness with Ag-Cu-Au-Pb-Zn-W mineralization, and
4) pervasive gold and tungsten mineralized halos proximal to the underlying
intrusive.
The attached sections, AA� and
BB�, show the overall inferred continuity of the polymetallic,
stratabound horizons, mantos
and the Contact Zone, cross-cut by wide mineralized stockwork
zones. Longitudinal Section AA� is along the main axis of a
northwest-southeast trending anticline and is looking
northeast. Section BB� is a cross section of the MMT looking
north and intercepts Section AA� at hole SAC98-04. The stratabound
horizons, mantos and Contact Zone are more
continuous proximal to the centre of the sections
where they are influenced by the axis of an anticlinorium. Late stage stockwork zone placement along the axis positively
impacts mineralization where the highest grades tend to be located. True
thicknesses of mineralization in drill holes can be approximated from the
attached sections.
The following table presents the weighted, uncut average assay results (excluding
Pb, Zn, Mo and W) of the 33 drill holes located
within the Phase 1 area which identify the potential bulk tonnage deposit
at La Joya. Twenty five of the 26 holes drilled
by the Company in Phase I are stated in the table below with most
significant hole intercepts. Selective higher
grade intervals for these holes were previously announced and can be
reviewed in news releases dated March 7, 2011, June 6, 2011 and October 17,
2011.
Hole
|
From (m)
|
To
(m)
|
Interval (m)
|
Ag
gpt
|
Cu
%
|
Au
gpt
|
Ag
(gpt)
|
equiv. *
|
L J DD11-1
|
28.2
|
182.6
|
154.4
|
30.7
|
0.28
|
0.18
|
64.4
|
L J DD11-2
|
165.8
|
200.0
|
34.2
|
44.3
|
0.06
|
0.27
|
64.4
|
L J DD11-3
|
137.5
|
160.6
|
23.1
|
25.5
|
0.29
|
0.37
|
71.2
|
L J DD11-4
|
23.5
|
90.7
|
67.2
|
63.4
|
0.33
|
0.10
|
97.3
|
L J DD11-5a
|
151.9
|
176.2
|
24.3
|
10.3
|
0.03
|
0.14
|
20.5
|
L J DD11-6
|
180.6
|
196.9
|
16.3
|
14.8
|
0.03
|
0.04
|
19.3
|
L J DD11-7
|
29.3
|
94.2
|
64.9
|
17.8
|
0.18
|
0.10
|
38.6
|
L J DD11-8
|
19.3
|
89.0
|
69.7
|
15.5
|
0.18
|
0.20
|
41.9
|
L J DD11-9
|
21.0
|
111.8
|
90.8
|
19.4
|
0.12
|
0.17
|
39.3
|
L J DD11-10
|
0.0
|
107.0
|
107.0
|
24.1
|
0.25
|
0.19
|
55.9
|
L J DD11-11
|
0.0
|
57.0
|
57.0
|
31.8
|
0.15
|
0.05
|
46.8
|
L J DD11-12
|
0.0
|
30.0
|
30.0
|
7.4
|
0.08
|
0.02
|
15.9
|
L J DD11-13
|
9.0
|
26.0
|
17.0
|
15.2
|
0.10
|
0.03
|
25.5
|
L J DD11-14
|
27.0
|
60.0
|
33.0
|
19.1
|
0.15
|
0.09
|
37.0
|
L J DD11-16
|
75.0
|
106.0
|
31.0
|
29.9
|
0.09
|
0.22
|
49.8
|
L J DD11-17
|
27.0
|
232.2
|
205.2
|
44.9
|
0.44
|
0.18
|
92.7
|
L J DD11-18
|
30.0
|
93.8
|
63.8
|
28.7
|
0.23
|
0.13
|
55.4
|
L J DD 11-19
|
69.0
|
153.4
|
84.4
|
55.7
|
0.29
|
0.16
|
89.6
|
L J DD 11-20
|
15.0
|
221.6
|
206.6
|
23.0
|
0.16
|
0.17
|
46.4
|
L J DD 11-21
|
30.0
|
91.9
|
61.9
|
36.2
|
0.35
|
0.18
|
75.9
|
L J DD11-22
|
2.0
|
209.0
|
207.0
|
17.2
|
0.08
|
0.07
|
28.5
|
L J DD11-23
|
100.1
|
168.0
|
67.9
|
17.7
|
0.15
|
0.41
|
53.1
|
L J DD11-24
|
48.0
|
100.2
|
52.2
|
35.6
|
0.08
|
0.11
|
48.9
|
L J DD11-25
|
184.5
|
226.2
|
41.7
|
17.4
|
0.19
|
0.26
|
47.8
|
L J DD11-26
|
0.0
|
265.0
|
265.0
|
17.1
|
0.10
|
0.23
|
38.2
|
SAC98-01
|
39.0
|
105.0
|
66.0
|
52.6
|
0.29
|
0.04
|
80.1
|
SAC98-02
|
115.0
|
209.0
|
94.0
|
24.7
|
0.12
|
0.15
|
43.5
|
SAC98-03
|
13.8
|
234.0
|
220.2
|
33.7
|
0.18
|
0.12
|
55.9
|
SAC98-04
|
9.0
|
104.0
|
95.0
|
43.6
|
0.21
|
0.34
|
79.8
|
SAC98-05
|
202.0
|
216.0
|
14.0
|
26.8
|
0.29
|
0.29
|
67.8
|
SAC98-06
|
45.0
|
276.0
|
231.0
|
11.0
|
0.10
|
0.11
|
25.6
|
S-9
|
51.4
|
290.0
|
238.6
|
16.7
|
0.16
|
0.15
|
38.7
|
LB98-04
|
401.7
|
437.8
|
36.1
|
86.0
|
1.22
|
0.21
|
202.4
|
*Cutoff of 15 gpt Ag equivalent, Ag equivalent is
based on 100% metallurgical recovery, combination of Ag, Cu, Au only and
price ratios of 86:1- Cu:Ag and 55:1- Ag:Au. Metals prices used to determine ratios were US$
24/oz for Ag; US$ 3/lb
for Cu and US$ 1200/oz for Au. Minimum 2 metre width for mineralized intercept. All numbers are
rounded.
Company hole LJ DD11-15 not presented in the table
intercepted the �gold-tungsten halo� from surface to 64.0 meters grading
7.8 gpt Ag, 0.1 % Cu, 0.13 gpt
Au and 0.074 % W. This hole is currently considered to be outside of the
Main Mineralized Trend. Holes SAC98-01 to 06, S-9 and LB98-04 are historic
holes that have been validated by an Independent Qualified Person for the
purpose of NI43-101 reporting. Currently, only these 8 historic holes and
all 26 Company holes have been independently validated for resource
estimation purposes. Work is ongoing to further validate additional
historic information.
There are numerous lead and zinc values in selected drill hole intervals
grading up to 2.5 % combined Pb and Zn over 16.6 metres, which are not included in the silver equivalent
calculations. High grade selective molybdenum intervals have been
intersected in drill holes grading up to 0.7 % Mo over 1.5 metres. In addition to the silver, copper, gold, lead,
zinc and molybdenum mineralization, the La Joya
property potentially hosts a large, near-surface bulk tonnage tungsten
deposit. This target partially overlaps polymetallic
mineralization within the Main Mineralized Trend. Grades for near-surface
tungsten range from 0.02 to 0.50 % W. Further results on tungsten will be
provided once compilations have been completed.
All sample preparation for Company-drilled holes and validation of historic
results was completed by ALS Chemex in Zacatecas,
and analyzed by ALS Chemex in North Vancouver.
Selected samples were analyzed at the Company�s lab at its Santa Elena
Mine, and were re-run at ALS Chemex for
verification and QA/QC purposes.
Additional Targets
Outside the MMT
Surface work, recent geophysics and historic drilling have outlined
additional targets at La Joya with excellent
potential for continued discoveries (see attached map). Further drilling in
these areas is planned for the Phase II program.
Cerro Coloradito: This target lies
approximately 1 kilometre west of the MMT. It has
been drilled with 7 widely spaced drill holes, all of which contain
significant values of Ag, Cu, Au, and Mo. Historic hole
S-4 intercepted 76.2 metres from surface grading
24 gpt Ag, 0.15 gpt Au
and 0.076 % molybdenum (Mo). Eight holes are proposed to further test this
target by Q2 2012.
Santo Nino: This
target is approximately 1 kilometre east of the
MMT and has been tested with 3 widely spaced drill holes. Historic hole
S-1, intercepted 24.3 metres grading 11.8 gpt Ag, 0.45 % Cu, and 0.12 gpt
Au. Six holes are proposed to further test this target by Q2 2012.
La Esperanza: This
target is approximately 500 metres northeast of
the MMT and contains an underground historic mine with geology and
mineralization similar to the MMT.Five holes are
proposed to further test this target by Q2 2012.
The Company is completing a resource estimate for La Joya
and a NI 43-101 Technical Report which is anticipated in Q4 2011. A Phase
II program is currently in the planning stage, and contemplates a program
of approximately 60 drill holes, in excess of 10,000 metres,
to begin in Q4 2011 at an estimated cost of US$3 million.
The Company has the right to acquire 100% of the La Joya
Property which is located approximately 75 kilometres
southeast of the city of Durango, Mexico. The property is located in a
productive mineralized region which currently supports several large scale
mining operations including Grupo Mexico�s San
Martin Mine, Industrias Pe�oles�
Sabinas Mine, Pan American Silver�s La Colorada Mine and First Majestic Silver�s La Parrilla Silver Mine. Please reference our website at www.silvercrestmines.com for
more information, photos, a video and figures on La Joya.
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) 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 150km 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 potential large polymetallic
deposit at the La Joya property in Durango State.
FORWARD-LOOKING
STATEMENTS
This presentation
contains �forward-looking statements� within the meaning of Canadian
securities legislation and the United States Securites
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 environmental laws risks related to the Company�s status
as a foreign private issuer; 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.