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SilverCrest Mines Inc. (TSX-V:SVL - News) (the
"Company") was advised by the TSX Venture Exchange and IIROC that
trading was halted in the Company's shares due to unusual pre-market trading
activity this morning. Other than what is disclosed in this release the
Company is not aware of any other material change in its affairs.
The Company wishes to announce that it
has acquired a new property in Mexico. The "La Joya
Property" is located approximately 75 kilometres
southeast of the city of Durango, Mexico in a prolific mineralized region
which currently supports several mining operations including Grupo Mexico's San Martin Mine, Industrias
Penoles' Sabinas Mine,
Pan American Silver's La Colorada Mine and First
Majestic Silver's La Parrilla Silver Mine. Access
and infrastructure near the property is considered excellent.
"We are pleased to have been able
to finalize the agreements to acquire these attractive exploration properties
in such a prolific region," said J. Scott Drever,
President. "These properties bear logistical similarities to our Santa
Elena Mine and we are hopeful that we will be able to progress the
exploration in a manner and at a rate similar to Santa Elena."
The Company has entered into agreements
for purchase and sale to purchase 100% of the property from local vendors for
payments of US$2.68 million payable over a 3 year period plus a 2.5% NSR for
"La Joya West" which consists of 521.6
hectares and payments of US$1.5 million payable over a 3 year period plus a
1.5% NSR for "La Joya East" which
consists of 1103.6 hectares. Property payments in the first year are minimal.
Previous work on the property, mainly by
Luismin SA de CV, consists of a number of drill
holes and surface work completed from 1985 to 2001. Surface mapping, sampling
by the Company and previous drill results suggest that geology and
mineralization is similar to the nearby San Martin Mine which is operated by Grupo Mexico and considered historically to be one of the
largest polymetallic (Ag, Cu, Zn, Pb) producers in Mexico. Due diligence work completed by
the Company shows several near vertical veins and structures with widths up
to 50 metres which cross-cut shallow-dipping
mineralized manto (skarn)
deposits up to 30 metres thick associated with an anticlinorium complex. Mantos
appear to be mineralized near the apex of a series of anticlines. The main
alteration and mineralized area appears to be approximately 2 kilometres in strike length, 100 to 200 metres wide and is associated with a nearby exposed
intrusive stock. Geochemistry for the system is Ag-Cu-Au-Sb
with sulfide mineralization consisting of tetrahedrite,
bornite, and chalcopyrite. Native silver may also
be present.
Previous drill results which have
partially-tested the manto style mineralization.
The following is a selection of significant historic results;
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Interval Width Ag Cu Au
(m) (m) (ppm) (%) (ppm)
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Hole SAC98-01 81.3-84.1 2.9 705.0 3.01 0.20
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98.0-99.2 5.1 134.3 0.93 0.10
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Hole SAC98-02 130.0-136.0 6.1 223.0 1.06 0.08
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Hole SAC98-03 15.0-27.0 12.0 141.3 0.44 0.30
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97.39-105.0 7.6 272.9 2.44 0.15
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Hole SAC98-04 16.0-25.0 9.0 350.5 1.56 0.30
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Hole LB96-04 401.6-426.3 24.7 120.6 1.71 0.30
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Hole S-5A 42.6-57.9 15.2 34.0 0.33 3.85
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These historic drill hole
results are wide spread along the 2 kilometre
trend. No previous drilling in the area of interest has adequately tested the
surface-exposed mineralized structures.
Recently the Company collected 118
surface channel samples from exposed outcrops with the most significant
results as follows;
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Width Ag Cu Au
SAMPLE # (m) (ppm) (%) (ppm)
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SA-S-10-21 5.0 814.1 4.59 0.352
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SA-S-10-65 4.0 394.2 0.92 0.506
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SA-S-10-63 4.0 350.4 1.83 0.126
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SA-S-10-29 2.0 265.9 3.63 0.095
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SA-S-10-50 1.0 224.6 1.50 0.090
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SA-S-10-78 4.0 218.5 1.51 0.934
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SA-S-10-72 3.0 215.3 0.84 0.143
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SA-S-10-02 1.5 215.1 1.43 0.075
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SA-S-10-22 6.3 215.0 1.28 0.128
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SA-S-10-80 2.7 214.5 1.85 0.371
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SA-S-10-30 2.8 198.7 1.39 0.492
---------------------------------------------------------------------------
SA-S-10-99 3.0 198.4 0.85 0.063
---------------------------------------------------------------------------
SA-S-10-66 6.3 185.9 1.33 0.965
---------------------------------------------------------------------------
SA-S-10-04 4.1 182.0 2.12 0.124
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SA-S-10-51 1.4 172.8 0.80 0.131
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SA-S-10-33 5.2 172.5 1.40 0.279
---------------------------------------------------------------------------
SA-S-10-67 5.2 162.3 0.79 1.463
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SA-S-10-60 5.0 155.1 0.93 0.099
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SA-S-10-81 5.0 151.1 1.92 0.304
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Weighted average grade of all 118
collected samples is 90.5 gpt Ag, 0.71 % Cu, 0.25 gpt Au. All sample analysis was completed by Inspectorate
Exploration & Mining Services Ltd. in Durango, Mexico and Richmond, BC.
Assay results are based on standard fire AA finish and ICP analyses by
Inspectorate which is a well established, certified laboratory.
The Company has implemented a 16 core
hole drilling program (estimated at 3,000 metres)
with the intention to initially test approximately one kilometre
of the exposed strike length of the mineralized system including the vertical
structures and mantos. The Company has completed 4
drill holes which show visible mineralization in the structures, mantos and intrusive rocks. Core samples from the first
hole have been submitted for assay.
SilverCrest Mines Inc. (TSX-V:SVL - News) 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, Mexico. The mine is a high-grade, epithermal gold and silver
producer, with an estimated life of mine cash cost of less than US$375 per
ounce of gold equivalent. SilverCrest anticipates
that the 2,500 tonnes per day facility will produce
approximately 35,000 ounces of gold and 600,000 ounces of silver per year
from the initial open-pit heap leach operation.
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.
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.
J. Scott Drever,
President
SILVERCREST MINES INC.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Contacts:
SilverCrest Mines Inc.
Fred Cooper
(604) 694-1730 ext. 108 or Toll Free: 1-866-691-1730
(604) 694-1761 (FAX)
info@silvercrestmines.com
www.silvercrestmines.com
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