SilverCrest Santa Elena Mine Start-Up Phase Update
- SilverCrest
Mines Inc. (the "Company") is pleased to report on start-up
production and commissioning phase activities at its 100% owned Santa Elena
mine located in Sonora, Mexico. The mine is expected to produce
approximately 35,000 ounces of gold and 600,000 ounces of silver per full
year of production at an estimated life of mine cash cost of less than
US$375 per ounce of gold equivalent. The most significant production
activities completed since the first metal pour on September 9, 2010 are
outlined below. For more information and to view production photos, please
visit the Company's website at http://www.silvercrestmines.com/.
Production
and Commissioning Activities to December. 31, 2010
�Approximately 371,000
tonnes of lower grade ore (includes 15,000 tonnes of old dumps) have been mined from the open pit
at a strip ratio of waste to ore of approximately 2:1. Mining of these
lower grade tonnes (average grade of 0.60 gpt Au and 40.2 gpt Ag) was
necessary to provide working space for equipment in the initial cut and to
create a lower angle for the ultimate pit high wall for safety reasons.
This lower grade material is considered pre-strip for the higher grade Main
Zone which is now being mined and will provide the bulk of the ore to be
mined in 2011.
�The crusher is
operating at near design throughput capacity of approximately 2,500 tpd with an estimated 336.500 tonnes
of ore crushed to year end. There are currently 35,000 tonnes
of ore from the open pit in stockpile waiting to be crushed. Optimization
of the various operating parameters of the crusher is underway in order to
reach a steady state of production at design capacity and to achieve the
ultimate size reduction of ore to 100% minus 3/8".
�The heap leach pad
currently holds an estimated 336,500 tonnes of
ore containing approximately 6,800 ounces of gold and 370,000 ounces of
silver that are under leach. In the first 30 days of the leach cycle for
current ore on the pad, recovery was estimated at 25 to 35% for gold and 15
to 25% for silver. The first ore placed on the pad has been under leach for
130 days with estimated recoveries of 55% of the gold and 35% of the
silver. The optimum recoveries of 65 to 70% gold and 35 to 40% silver
predicted by the design metallurgical test work over a projected 300 day
leach cycle appear to be achievable.
�The Merrill Crowe
recovery unit, refinery and on-site lab are all performing as designed and
expected.
�As of December 31,
approximately 2,140 ounces of gold and 54,900 ounces of silver have been
produced as dore with a significant amount of
gold and silver still in solution for processing and recovery. The Company
has received final settlement for the first two shipments of metal to the
refinery.
�To date, no lost time
accidents have occurred with over 340,000 hours worked.
�All production staff
is in place with 68% of employees locally hired. The goal is for 75% of
mine employees to be locally hired and trained over the next year.
Santa
Elena Expansion Plan
The Company engaged a
number of independent consultants in 2010 to examine the preliminary
economics of expanding the current production at Santa Elena to
approximately 100,000 ounces Au equivalent per year by phasing in the
construction of a conventional mill facility and supplementing the ore from
the open pit with the development of Santa Elena underground resources,
mill feed from its nearby Cruz de Mayo deposit and re-treatment of the
leach pad material to recover the residual gold and silver.
The Preliminary
Assessment (PA) of the Expansion Plan for Santa Elena is nearing completion
and the results of the PA as well as a NI 43-101 Technical report updating
the Santa Elena reserves and resources are expected to be available
shortly. It is expected that PA will demonstrate economic viability
for the expansion plan which would then result in the implementation of the
PA's recommendations and the commissioning of a Pre-Feasibility Study in
2011.
Exploration
Update
Santa
Elena Norte: Drilling is expected
to begin on the Santa Elena Norte (SEN) target in January 2011. This target
is conveniently located approximately one kilometre
north of the current Santa Elena operations and is geologically similar to
the Santa Elena Main Zone currently being mined. Mapping at SEN shows an
exposed outcrop with a strike length of 200 metres
with epithermal quartz banded veins, stockwork
and breccias. The width at the surface of the exposed mineralized structure
is estimated at 5 to 10 metres carrying grades of
0.5 gpt to 2 gpt Au and
minor Ag. Projection of the mineralized zone strike length, based on
intermittent vein outcrops, is approximately 500 metres.
The Company plans to drill approximately 1000 metres
in 8 drill holes to initially test the Santa Elena Norte mineralization.
The current NI-43-101
compliant reserves and resources for the Santa Elena mine and Cruz de Mayo
satellite deposit are presented below;
|
|
|
|
|
|
|
CONTAINED
|
CONTAINED
|
OPEN PIT RESERVES*
|
TONNES
|
AU GPT
|
AG GPT
|
TONS
|
AU OPT
|
AG OPT
|
AU OZ
|
AG OZ
|
PROBABLE
|
6,541,950
|
1.61
|
56.7
|
7,211,250
|
0.047
|
1.68
|
339,600
|
11,927,100
|
UNDERGROUND RESOURCES**
|
|
|
|
|
|
|
|
|
INDICATED
|
1,084,390
|
2.10
|
127.6
|
1,195,000
|
0.061
|
3.72
|
73,235
|
4,448,800
|
INFERRED
|
1,350,080
|
1.94
|
121.5
|
1,487,790
|
0.056
|
3.55
|
84,057
|
5,276,300
|
CRUZ DE
MAYO
(CM) RESOURCES***
|
|
|
|
|
|
|
|
|
INDICATED
|
1,141,000
|
0.10
|
64.2
|
1,257,700
|
0.003
|
1.87
|
3,800
|
2,353,400
|
INFERRED
|
6,065,000
|
0.10
|
66.5
|
6,685,500
|
0.003
|
1.94
|
20,000
|
12,967,100
|
TOTALS
|
|
|
|
|
|
|
|
|
TOTAL PROBABLE
|
6,541,950
|
1.61
|
56.7
|
7,211,250
|
0.047
|
1.68
|
339,600
|
11,927,100
|
TOTAL INDICATED
|
2,225,390
|
1.08
|
95.1
|
2,452,700
|
0.031
|
2.77
|
77,035
|
6,802,200
|
TOTAL INFERRED
|
7,415,080
|
0.44
|
76.5
|
8,173,290
|
0.013
|
2.23
|
104,057
|
18,243,400
|
*based on US$765 gold and
$11.95 silver, cut-off grade of 0.5 gpt gold
equivalent at a ratio of 64:1 silver to gold
|
|
|
**based on US$850 gold and
$12 silver, cut-off grade is 1.75 gpt gold
equivalent at a ratio of 83:1 (Au:Ag) using 94%
recovery of Au and 80% recovery of Ag
|
***satellite deposit based
on US$750 gold and $11 silver, cut-off grade is 30 gpt
silver
|
|
|
|
|
J. Scott Drever, President stated; "We are certainly
pleased at this time as to how the commissioning phase for the Santa Elena
operations is progressing. Our supervisory personnel are working diligently
to assure that the normal start-up challenges are resolved and the project
reaches a steady state, design capacity as soon as possible. We are
beginning to see the high grade ore of the Main Zone that convinced us that
the low strip ratio and higher grades in the initial years of mining would
provide accelerated payback, begin to be stacked on the pads. The receipt
of revenues from the sale of our gold and silver will set the stage for
early, free cash flow that will be utilized to implement the Company's
strategy for corporate growth."
N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest
Mines Inc. and Qualified Person for this news release has reviewed and
approved its contents.
SilverCrest Mines Inc. is a "Precious Metals Focused"
exploration and development company with a portfolio of gold and&
silver deposits and high grade exploration properties located in Mexico and
El Salvador. This property portfolio, which includes reported, probable
reserves as well as indicated and inferred gold and silver resources and
substantial exploration potential, provides an important base from which SilverCrest can develop its corporate objective of
becoming a significant precious metals asset based company. The Company's
immediate initiative is to acquire and develop substantial mineral
resources and ultimately to operate multiple low cost, high grade precious
metals mines.
This news release
contains forward-looking statements, which address future events and
conditions, which are subject to various risks and uncertainties. The
Company's actual results, programs and financial position could differ
materially from those anticipated in such forward-looking statements as a
result of numerous factors, some of which may be beyond the Company's
control. These factors include: the availability of funds; the timing
and content of work programs; results of exploration activities and
development of mineral properties, the interpretation of drilling results
and other geological data, the uncertainties of resource and reserve
estimations, receipt and security of mineral property titles; project cost
overruns or unanticipated costs and expenses, fluctuations in metal prices;
currency fluctuations; and general market and industry conditions.
Forward-looking
statements are based on the expectations and opinions of the Company's
management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements.
|