Vancouver,
BC, Canada - April 21, 2011 - Silvermex Resources
Inc. ("Silvermex") (TSX: SLX) reports
that the Company's first quarter silver and gold production surpassed
budgeted estimates.
The company's wholly owned La Guitarra mine, in
the Temascaltepec mining district of Mexico, is
currently undergoing major redevelopments and yet continues to show
consistent month-over-month production growth and grade improvements.
Compared to the fourth quarter of 2010, silver production in the first
quarter of 2011 increased 51.1% to 143,128 of silver equivalent ounces
(actual). Production cost information will be provided in conjunction with
Q1 2011 financial results expected to be released in mid-June.
Highlights of First Quarter 2011
- The
mine produced 1,440 tonnes of concentrate
containing some 1,182 ounces of gold and 92,883 ounces of silver or
143,128 silver equivalent ounces (actual), representing an increase of
51.1% over Q4 2010, and 40% over budgeted estimates.
- Production
grades for the quarter averaged 190.9 g Ag/t and 2.5 g Au/t or 342.8
g/t silver equivalent, 34% over budgeted estimates.
- Recoveries
to concentrate for the quarter averaged 91% for silver and 86% for
gold, exceeding the budgeted estimate of 85% recovery.
- The
mine processed 16,359 tonnes of ore
averaging 181 tonnes per day ("tpd") production.
- Underground
drilling has begun with the goal of delineating known structures in an
effort to increase mine reserves and establish new production areas.
Production Table for Q1 2011
Month
|
Tonnes Produced
|
Tonnes per Day
|
Grade Ag g/t
|
Grade Au g/t
|
Grade Ag Eq g/t
|
Recovery Ag %
|
Recovery Au %
|
Silver Eq Ozs (Actual)
|
Silver Eq Ozs*
|
Jan
|
5,611
|
181.01
|
140.23
|
1.50
|
230.51
|
90%
|
84%
|
33,661
|
36,433
|
Feb
|
5,081
|
181.48
|
240.53
|
2.61
|
397.1
|
95%
|
91%
|
54,534
|
60,513
|
March
|
5,667
|
182.80
|
196.58
|
3.48
|
405.30
|
91%
|
90%
|
53,932
|
66,847
|
Total/Avg
|
16,359
|
180.77
|
190.90
|
2.50
|
342.80
|
92%
|
89%
|
143,128
|
163,792
|
* (Silver equivalents for 2011
using budgeted prices of US$1200/oz Au, US$20/oz Ag. Actual silver
equivalents are based on realized prices for the reporting period)
Actual silver equivalent ounces produced for the quarter were 143,128 based
upon realized prices. Based upon budgeted prices, silver equivalent ounces
produced were 163,792, or 140% of our budgeted production of 117,342.
Michael Callahan, Silvermex's President, stated;
"We are very pleased with the progress we are making at La Guitarra. In only a few months, we have made
significant improvements in safety, equipment availability, grade control
and mining practices and these improvements are reflected in our production
and cost numbers. In our first quarter of operating the mine, we increased
the tons per day by 24% of what the mine had averaged over the past five
years of operation. We are well on track to reach or exceed our objectives
for the year".
Due to the extensive redevelopment programs currently underway, the
production rate in Q1 and Q2 for this year is expected to remain relatively
constant. The current programs include development to access known ore
blocks, and the delineation and development of new ore bodies to reach
current operational capacity. Future development programs will be based on
the results of current resource/reserve modeling and drill programs. These
programs will be designed to identify and delineate new mining areas and
potentially expand production beyond the current capacity. The district
offers incredible potential for growth. With numerous past producing mines
on the property as well as newly identified structures, the district has
the potential to continue delivering sustainable growth for the foreseeable
future.
Silvermex is continuing its extensive review of all past exploration
programs completed on the 40,000 ha property. The geological staff has
increased from one geologist to six and the total staff from 10 to 25. This
team is currently compiling and reviewing an immense amount of data derived
from over 80,000 m of surface and underground drilling, 10,000 channel
samples, test pits and numerous geotechnical and geophysical programs
completed by previous operators. This data will be used to develop a
comprehensive new resource model, which will assist the company to gain a
better understanding of the existing reserves and resources and identify
near-term production targets.
Company Profile
Silvermex Resources Inc. is a publicly traded mining company focused in
Mexico and led by a highly qualified team of professionals from some of the
most notable companies in the silver mining sector. The Company's portfolio
of projects ranges from advanced stage exploration to production. Its core
asset is the producing La Guitarra silver-gold mine located in the Temascaltepec
Mining District of Mexico. Silvermex is currently working to increase
production at the mine to full capacity and is conducting extensive
exploration to further develop the district. Silvermex is well financed to
further develop resources organically from its multiple projects as well as
from the acquisition of additional assets that will drive production
growth.
ON BEHALF OF THE BOARD
"Duane Nelson"
Duane Nelson
CEO & Director
For more information please visit the Company's website at www.silvermexresources.com or
contact Fiona Grant, Manager, Investor Relations
at 604-682-4004.
Neither
the Toronto Stock Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Exchange) accepts responsibility
for the adequacy or accuracy of this release.
This News Release
contains forward-looking statements. Forward looking statements are
statements which relate to future events. In some cases, you can identify
forward-looking statements by terminology such as "may",
"should", "expects", "plans",
"anticipates", believes", "estimates",
"predicts", "potential", or "continue" or the
negative of these terms or other comparable terminology. These statements
are only predictions and involve known and unknown risks, uncertainties and
other factors that may cause our actual results, level of activity,
performance or achievements to be materially different from any future
results, levels of activity, performance, or achievements expressed or
implied by these forward-looking-statements. Management has assumed that
these will be our major projects going forward. Risks include that we are
unable to satisfy environmental or other regulators, that we determine that
our resources are not commercially viable, or that we have difficulties due
to unavailability of labour or equipment.
While these
forward-looking statements, and any assumptions upon which they are based,
are made in good faith and reflect our current judgment regarding the
direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggests herein. Except as required
by applicable law the Company does not intend to update any forward-looking
statements to conform these statements to actual results.
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