Silvermex Resources Reports on La Guitarra
Mine Production
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Vancouver, BC, Canada - March 30, 2011 - Silvermex
Resources Inc. ("Silvermex") (TSX: SLX)
reports that preliminary production at its La Guitarra
Mine, located in the Temascaltepec Mining District
in Mexico, is currently underway. The company continues to successfully ramp
up production. Since the beginning of 2011, the mine processed 15,008 tonnes of ore grading on average 164 g/t Ag and 2.07 g/t
Au (288 g/t Ag Eq). Total silver equivalent (gold
and silver) production consisted of 126,123 ounces.
Silvermex's technical team continues ramping up
operations with the goal of being at full capacity of 320 tonnes
per day ("tpd") by the fourth quarter of
2011. Due to lack of underground development in recent years, the mine's
current production rate and grades are lower than the historic average.
Management has implemented an aggressive program to bring the mine back to
full production capacity and at the same time improving the safety and
environmental standards at the operation. This program includes expanding underground
development, an extensive underground drilling program and rehabilitation,
and the acquisition of new mine and electrical equipment. Management is
confident that this program will bring the mine back to its full potential. Silvermex President Mike Callahan states "we have
assembled a very talented team that has made some significant improvements at
the site in a very short period of time, and we will see the direct impact of
this effort in increases to production and reductions in operating costs".
Work to-date has focused on mobilization of development contractors,
dewatering the San Rafael Zone, improving ground support of existing access
ways and establishment of ventilation systems.
Programs to be conducted in the near future at La Guitarra
include 7,500 m of surface drilling and 7,500 m of underground drilling,
planned for Q2 and Q3 of this year. The objective of the underground drill
program is to further develop underground reserves and resources in order to
increase production and extend the mine life. The surface program is focused
on delineating potential new ore bodies in order to expand production rates
beyond the current capacity.
"Management is confident the Company will achieve its target of
operational capacity by Q4 of this year", stated Duane Nelson, CEO.
Based on optimal capacity and calculated reserve grades, the 320 tpd operation should produce approximately 1,000,000
silver equivalent ounces on an annualized basis at a cash-cost of
approximately $7.50 per ounce.
The Company's geologic team is in the process of reviewing and compiling the
extensive exploration data provided by previous operators in an effort to
produce a comprehensive new resource model to better define the existing
resources and gain a better understanding of the district potential.
Exploration Update
Geological mapping and sampling are being conducted at La Guitarra
along a structural corridor from the Jessica portion of the Coloso Area and along strike to the southeast to the Los
Angeles Area. The area being mapped covers approximately 3.0 x 1.5 km (450
ha). Much of this area, although covering favourable
structural zones along strike from the La Guitarra
mine, has never seen any significant or modern exploration Results from this
work will aid in target definition and will be followed by a comprehensive
drill program.
Surface mapping is also underway on the Veta de Oro
and the El Concepcion series of veins, which are parallel structures in the
hanging wall to the main La Guitarra vein and have
never been systematically explored. A diamond drilling program will follow.
The company is also in the process of negotiating with surface owners for
access agreements as well as preparing permit applications to obtain
permission from the authorities in anticipation of commencing the surface
programs in the coming months.
Company Profile
Silvermex Resources Inc. is a publicly traded
mining company focused on developing its core asset, the producing La Guitarra silver-gold property located in the Temascaltepec Mining District of Mexico. La Guitarra Mine presently consists of two underground
operation centres and a flotation mill with a
proven capacity of 320 tonnes per day. Silvermex is evaluating options for the expansion of
existing mining operations at La Guitarra as well
as advancing the recently consolidated Rosario/San Marcial
Mining Camp in south eastern Sinaloa, Mexico. The Rosario/San Marcial mining concession consists of two past producing
mines and numerous known high-grade deposits. The project has significant
resources and historic reserves with extensive production related
infrastructure in place. Silvermex is led by a
highly experienced and successful team, comprised of top executives from
leading corporations in the silver mining sector.
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) accepts responsibility for
the adequacy or accuracy of this release.
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