VANCOUVER, BRITISH COLUMBIA - December 21, 2012 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines Inc. (
TSX.V:SVL) (
NYSE MKT: SVLC) (
CW5.F)
(the "Company") is pleased to announce the results of an additional 15
holes (LJ DD12-90 to LJ DD12-104) of the Phase II drill program at its
La Joya Property in Durango, Mexico. These are the final results for the
Phase II drilling program. Phase II drilling results reported to date
have extended the Main Mineralized Trend ("Trend") beyond the area
containing the current Inferred Resource of 101.9 million ounces Ag Eq.*
(see News releases dated March 20 and May 7, 2012 and attached Figures:
http://media3.marketwire.com/docs/svl1221_F1-2.pdf).
Drilling and surface sampling has extended the Trend to approximately
2.5 kilometres with an average width of approximately 700 metres. Please
reference our website at www.silvercrestmines.com for more information,
photos and figures on La Joya.
Eight of the 15 holes reported in the tables and text below
continued to test the southern extension of the Trend with the remaining
7 holes focused on the delineation of the Coloradito and Santo Nino
Targets (Targets). Silver values in this series of core holes along the
Trend and Targets range from 1.9 gpt to 176.0 gpt. Silver equivalent
based values range from 14.1 gpt to 411.5 gpt Ag Eq.* (0.41 oz/ton to
12.0 oz/ton Ag Eq.). Mineralized intervals range from 7.1 metres to
251.0 metres. True thicknesses of mineralized intercepts can be
approximated from cross sections of previously announced drill holes in
the respective areas. Intercepts in holes drilled at a 45� angle are at
vertical depths considerably less than implied by the core length
measurements making many of the intercepts near to surface. Intercepts
in holes L J12- 92, 95, 98, 100, and 103, presented below, are examples
of near surface, higher grade mineralization that will be considered as
part of a potential starter pit. The most significant assay results for
this series of holes are shown in the following tables:
Main Mineralized Trend (Ag, Au, Cu)
* Silver equivalency includes silver, gold and
copper and excludes lead, zinc, molybdenum, tin and tungsten values.
Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price
trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100%
metallurgical recovery is assumed. All numbers are rounded. Silver
Equivalent grades may be converted to ounces per ton by dividing the Ag
Eq values by 34.285.
All sample analyses presented in this news release were completed
by ALS Chemex in Zacatecas, Mexico and North Vancouver, BC, Canada.
Holes L J DD12-90, 93, and 99 showed no significant mineralization.
Coloradito Target (W, Mo, Cu, Au, Ag)
Four additional holes were drilled on the near-surface portion of
the Coloradito Target which is located approximately one kilometre west
of the Trend. The Coloradito Target mineralization consists of skarning
with stockwork veining and occurs adjacent to intrusive stock and dykes
which are exposed at surface. Holes intercepting the Coloradito Target
also contain anomalous Pb (lead), Zn (zinc), and Sn (tin).
Partial drilling of the Coloradito Target shows consistent
intercepts of wide-spread tungsten (W03), molybdenum (Mo), gold (Au),
and silver (Ag) mineralization from near surface to depths up to
approximately 250 metres vertically. Drilling to date has identified an
area of approximately 600 metre long, 200 metres wide and at least 250
metres deep starting at surface. A detail model of the Coloradito Target
is being developed from drill data to provide a guide for further
definition of this target which is considered a "potential large bulk
tonnage tungsten-molybdenum target" and will be segregated as part of
the next resource estimation. The summary of the resource revision is
expected to be announced in the next several weeks with the subsequent
NI 43-101 Technical Report to follow within 45 days.
Coloradito and Santo Nino Targets (W, Mo, Cu, Au, Ag)
* Silver equivalency includes silver, gold and
copper and excludes lead, zinc, molybdenum, tin and tungsten values.
Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price
trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100%
metallurgical recovery is assumed. All numbers are rounded. All sample
analyses were completed by ALS Chemex in Zacatecas, Mexico and North
Vancouver, BC, Canada.
Santo Nino Target (W, Mo, Cu, Au, Ag)
Holes L J DD12-97 and 99 were drilled to further test the Santo
Nino Target approximately 1 kilometre east of the Trend''s eastern
boundary. Hole 97 intercepted 27.2 metres of semi-massive sulphides
grading 5.9 gpt Ag, 0.07 gpt Au, 0.48% Cu and 0.066% WO3. This hole
encountered an extension of the massive sulphide mineralization (Santo
Nino) reported in the discovery Hole L J DD12-74 which intercepted 35.2
metres grading 52.2 gpt Ag, 0.05 gpt Au, 1.6% Cu and 0.037% WO3. The
mineralization is believed to be associated with a substantial east-west
structure that cross cuts the width of the Trend mineralization to the
west. Holes L J DD12-99 was located near the Santo Nino target but was
off the target and intercepted no significant values.
The Phase II drill program was designed to test approximately 2.5
kilometres of the Trend which includes at least 8 near-vertical
structures/stockwork zones, 14 near-horizontal, stacked mantos plus the
Contact Zone which is adjacent to the underlying intrusive. Drilling on
the southern extension of the Trend and Contact Zone has been completed
and two of the three core drill rigs have been released. A reverse
circulation drill is expected to commence drilling on exploratory
targets in the area in January 2013. Based on Company surface mapping,
sampling and historic drill hole results, the southern area is still
believed to be potentially the highest grade area along the Trend. The
Company is currently examining the potential for a potential
near-surface, higher grade, low strip open pit as a conceptual "starter
pit" that will be evaluated in a Preliminary Economic Assessment in
2013.
Phase III drill program has begun with core samples for holes L J
DD12-105 to L J DD12-107 currently being logged, sampled or are in the
laboratory for analyzes. This program has approximately 30 core holes
and will include the 20 RVC holes uncompleted in Phase II. The next
phase, planned for the first half of 2013, will further expand
resources, in-fill higher grade defined areas, and test geophysical
anomalies within the Company''s concessions. Several holes contain
anomalous molybdenum, tungsten, tin, lead and zinc values over
significant widths in the skarn. Extensive metallurgical test work is
underway to examine the amenability and potential metallurgical
recoveries of Ag, Au, Cu, W, Mo, Sn, Zn and Pb. Metallurgical test work
results will be presented in the NI 43-101 Technical Report in early
2013.
The La Joya Deposit (Main Mineralized Trend) currently has estimated Inferred Resources of:
* Silver equivalency includes silver, gold and
copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is
50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of
US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100% metallurgical
recovery is assumed.
** Classified by EBA, A Tetra Tech Company and
conforms to NI 43-101, 43-101CP, and CIM definitions for resources. All
numbers are rounded. Inferred Resources have been estimated from
geological evidence and limited sampling and must be treated with a
lower level of confidence than Measured and Indicated Resources.
*** Mineralization boundaries used in the
interpretation of the geological model and resource estimates are based
on cutoff grades of 15 gpt Ag Eq and 30 gpt Ag Eq using the metal price
ratios described above.
Please refer to the January 4, 2012 news release and to the La Joya
NI 43-101 Technical Report dated February 20, 2012 for further details
of the Inferred Resource estimate.
The target size of the La Joya mineralization and the potential
subsequent estimated resources based on the current geologic model,
drilling and sampling from the Phase II 2012 program suggests the
possibility of target resources that may be 50 to 100% greater than the
current resources. This potential increase in quantity of resources is
conceptual in nature and insufficient exploration has been completed to
define with certainty a mineral resource of this size. It is uncertain
that further exploration will result in the target being delineated as a
mineral resource.
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.
SilverCrest Mines Inc. (TSX-V: SVL; NYSE MKT: SVLC)
is a Canadian precious metals producer headquartered in Vancouver, BC.
SilverCrest's flagship property is the 100%-owned Santa Elena Mine,
located 150 km 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 US$8 per ounce of
silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the 2,500
tonnes per day facility should recover approximately 4,805,000 ounces of
silver and 179,000 ounces of gold over the 6.5 year life of the open
pit phase of the Santa Elena Mine. A three year expansion plan is
underway to double metals production at the Santa Elena Mine and
exploration programs are rapidly advancing the definition of a large
polymetallic deposit at the La Joya property in Durango State.
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. Such forward-looking
statements concern the Company's anticipated results and developments in
the Company's operations in future periods, planned exploration and
development of its properties, plans related to its business and other
matters that may occur in the future. These statements relate to
analyses and other information that are based on expectations of future
performance, including silver and gold production and planned work
programs. Statements concerning reserves and mineral resource estimates
may also constitute forward-looking statements to the extent that they
involve estimates of the mineralization that will be encountered if the
property is developed and, in the case of mineral reserves, such
statements reflect the conclusion based on certain assumptions that the
mineral deposit can be economically exploited.
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
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 to raise financing and 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; risks related to governmental regulations and
obtaining necessary licenses and permits; risks related to the business
being subject to environmental laws and regulations which may increase
costs of doing business and restrict our operations; risks related to
mineral properties being subject to prior unregistered agreements,
transfers, or claims and other defects in title; risks relating to
inadequate insurance or inability to obtain insurance; risks related to
potential litigation; risks related to the global economy; risks related
to the Company's status as a foreign private issuer in the United
States; risks related to all of the Company's properties being located
in Mexico and El Salvador, including political, economic, social and
regulatory instability; and risks related to officers and directors
becoming associated with other natural resource companies which may give
rise to conflicts of interests. 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 information provided in this news release is not intended to be
a comprehensive review of all matters and developments concerning the
Company. It should be read in conjunction with all other disclosure
documents of the Company. The information contained herein is not a
substitute for detailed investigation or analysis. No securities
commission or regulatory authority has reviewed the accuracy or adequacy
of the information presented.
J. Scott Drever, President
SILVERCREST MINES INC.
Contact:
SilverCrest Mines Inc.
Fred Cooper
(604) 694-1730 ext. 108
Toll Free: 1-866-691-1730
(604) 694-1761 (FAX)
info@silvercrestmines.comwww.silvercrestmines.com570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
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All sample analyses were completed by ALS Chemex in Hermosillo, Mexico and North Vancouver, BC.
* Silver equivalency includes silver, gold and copper and excludes
lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is
86:1, based on 5 year historic metal price trends of US$24/oz silver,
US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is
incorporated until further information is available.
* WO3 is based on a standard calculation of tungsten (W) times
1.26. 100% metallurgical recovery is incorporated until further
information is available.
In 2012, virtually all operating parameters exceeded those of 2011
with the exception of the gold grade and gold ounces delivered to the
pad. During the year the cut off grade was reduced from 0.38 gpt Au eq.
to 0.20 gpt Au eq. (applies a 55:1 Ag:Au ratio, metallurgical
recoveries, operating costs and current metal prices) which provided
more reserve tonnes but with a lesser reported gold grade. In addition,
much of the planned mining in 2012 was scheduled in a portion of the
open pit which was of a lower grade when compared to those gold grades
mined in 2011. Gold, along with silver grades are anticipated to
increase in 2013.
All sample analyses were completed by ALS Chemex in Hermosillo, Mexico and North Vancouver, BC.