Mining Stocks News: SilverCrest (TSX: SVL) (NYSE MKT: SVLC)
Accelerates Exploration of High Grade El Cholugo Zone at Santa Elena Mine
Vancouver,
BC - May 7, 2015 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines
Inc. (TSX:SVL) (NYSE MKT: SVLC) is pleased to announce initial results of its
accelerated underground exploration of the El Cholugo Zone ("El
Cholugo" or the "Zone") located immediately adjacent to the Main
Mineralized Zone ("MMZ") currently in production at the Santa Elena
Mine, Sonora, Mexico. SilverCrest's recently released technical report titled,
"Update to Santa Elena Pre-Feasibility Study, Sonora, Mexico"
("PFS"), contemplated the exploration and development of El Cholugo
in 2016. However, the high gold and silver grades over significant widths and
lateral dimensions encountered underground has led the Company to accelerate
exploration and development of the Zone with the view to its inclusion in this
year's (2015) mine plan. Please refer to attached figures and news release
dated March 31, 2015 available on the Company's website at www.silvercrestmines.com for more
information.
The El
Cholugo Zone is a drill-identified epithermal vein system that intersects the
MMZ at an oblique angle (see attached figures). Previous drilling has shown at
least two mineralized veins in the Zone, Alejandra and El Cholugo Dos, to range
from 1 to 15 metres wide over a strike length of approximately 200 metres and a
height of an estimated 150 metres. From previous drilling, the average width of
the Alejandra vein is estimated to be 3.2 metres and for El Cholugo Dos vein, 1
to 5 metres. The Company is currently drifting on three levels (625m, 600m, and
575m elevations) from underground at Alejandra. Geometry of the mineralization
is favorable for mining by long hole stoping method. Underground drifting on
the Alejandra vein to date totals approximately 100 metres on three levels. The
Company will also be exploring underground on the 655m level in Q2, 2015. Once
the Alejandra vein is sufficiently defined, it may be partially incorporated
into the 2015 mine plan. For reference, current PFS estimates for El Cholugo
Reserves (cut and diluted) are 251,800 tonnes grading 2.58 gpt Au and 147.1 gpt
Ag.
N. Eric
Fier, CPG, P.Eng., and COO stated; "The accelerated exploration of El
Cholugo is showing very encouraging results to date. The high grade silver and
gold values that we are currently seeing from underground drift exploration are
exceeding our expectations with respect to currently stated PFS Reserves. This
makes El Cholugo a priority target which could potentially add to future
underground production when practical. Additional drifting and underground
drilling at El Cholugo will be completed over the next several months to
confirm and potentially expand current reserves and resources."
A total
of 132 composited assay results (see table below and attached figures) from
mine face channel sampling of Alejandra underground drifting show an average
vein width of 3.3 metres grading 8.80 gpt Au and 419.4 gpt Ag.
All
sample analyses were completed onsite at Santa Elena's production laboratory.
Internal QA/QC protocols are comparable to industry standards.
For
comparison purposes, current MMZ ore grades being mined from underground in
April, 2015 are approximately 1.9 gpt Au and 127 gpt Ag. The highest grade
individual sample collected to date from the Alejandra vein is on the 575m
level over a width of 0.6 metres grading 108.8 gpt Au and 2,705 gpt Ag (uncut and
undiluted).
ADDITIONAL OPERATIONS UPDATE
The
Company continues to review underground reserve reconciliations with mined
stopes (2 and 3, see attached figures) versus PFS reserve model. Indications
from reconciliations on Stopes 2 and 3 appear to be higher grade than PFS
reserves. Also, the Company continues to optimize gold and silver recoveries
based on a higher cyanide levels in the mill and introduction of aeration
(pressurized air) into the leach tanks. Currently gold recoveries are above 92%
and silver recoveries are averaging 75%. Silver recoveries are 23% higher than
previously reported in the first quarter, 2015. Additional metallurgical
testwork is underway to further optimize sustainable silver recoveries at or
above 70% as forecasted.
Q1 FINANCIALS CONFERENCE CALL
SilverCrest
has scheduled the release of its unaudited first quarter financial statements
and MD&A after market close on Wednesday, May 13, 2015. A conference call
to discuss the results for the 2015 first quarter financial results will be
held on Thursday, May 14, 2015. The call will be held at 10am PDT (1pm EDT). To
participate in the conference call, please dial the following:
Updated Participant Dial-In
Number(s)
Local -
Toronto: 1-416-764-8688
Local -
Vancouver: 1-778-383-7413
North
American toll-free: 1-888-390-0546
A replay
of the conference call will be archived for later playback on the Company's
website www.silvercrestmines.com.
The
Qualified Person under National Instrument 43-101 - Standards of Disclosure for
Mineral Projects for this news release is N. Eric Fier, CPG, P.Eng, and COO for
SilverCrest, who has reviewed and approved its contents.
SilverCrest
Mines Inc. (NYSE MKT: SVLC; TSX: SVL) is a Canadian precious
metals producer headquartered in Vancouver, BC . SilverCrest's flagship
property is the 100%owned Santa Elena Mine, located 150 kilometres northeast of
Hermosillo , near Banamichi in the State of Sonora , Mexico. The mine is a
highgrade, epithermal silver and gold producer, with a current reserve
estimated life of mine of 8 years and average operating cash costs of $12 per
ounce of silver equivalent (64.5:1 Ag:Au based on ounces sold). SilverCrest
anticipates the 3,000 tonnes per day conventional mill facility at the Santa
Elena Mine should recover an average of 1.6 million ounces of silver and 33,800
ounces of gold per annum over the current reserve life. Exploration programs
continue to result in discoveries at Santa Elena and have advanced the
definition of a large polymetallic deposit at the La Joya property in Durango
State, Mexico.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking
statements" within the meaning of Canadian securities legislation and the
United States Securities Litigation Reform Act of 1995. These include, without
limitation, statements with respect to: the economic viability of a project;
strategic plans and expectations for the development of the Company's
operations and properties; estimates of mineral reserves and mineral resources;
the amount of future production of gold and silver over any period; the amount
of expected grades and ounces of metals and minerals; expected cash operating
costs and outflows; life of mine and prices of metals and minerals.
These forward-looking statements relate to analyses
and other information that are based on, without limitation, the following
estimates and assumptions: presence of and continuity of metals at the
Company's projects; cost of production and productivity levels at the Santa
Elena Mine; availability and costs of mining equipment and skilled labour;
accuracy of the interpretations and assumptions used in calculating reserve and
resource estimates; operations not being disrupted or delayed by unusual
geological or technical problems; and ability to develop and finance projects.
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 the fluctuations in
the price of consumed commodities; 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 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; and risks related to governmental
regulations and obtaining necessary licenses and permits.
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 Company undertakes no obligation to update or revise any
forward-looking statements, except as otherwise required by applicable law.
Contact:
Fred Cooper
Telephone: (604) 694-1730 ext. 108
Fax: (604) 694-1761
Toll Free: 1-866-691-1730
Email: info@silvercrestmines.com
Website: www.silvercrestmines.com
Suite 501 - 570 Granville Street, Vancouver, BC Canada V6C 3P1
Telephone: (604) 694-1730 ext. 108
Fax: (604) 694-1761
Toll Free: 1-866-691-1730
Email: info@silvercrestmines.com
Website: www.silvercrestmines.com
Suite 501 - 570 Granville Street, Vancouver, BC Canada V6C 3P1
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