- Annual Record 2.81M AgEq Ounces Produced
in 2014
- Record 936,472 AgEq Ounces Produced in
Q4
TSX: SVL NYSE MKT: SVLC
VANCOUVER, Jan. 15, 2015 /CNW/ - SilverCrest Mines Inc.
(the "Company") is pleased to announce record production of 2.81
million ounces AgEq(1) for 2014, record production of
936,742 ounces AgEq(1) for the fourth quarter ("Q4") of
2014, and guidance for 2015 from its 100% owned Santa Elena Mine
located in Sonora, Mexico. In
2014, the Santa Elena Mine successfully transitioned from an open
pit heap leach operation to an underground mining and milling
operation. For additional information and to view photos and
videos, please visit the Company's website at
www.silvercrestmines.com.
2014 Production Highlights (Compared to 2013)
- AgEq(1) production record of 2.81
million ounces; a 6% increase with 2.9 million ounces
AgEq(1) sold.
- Silver production record of 1.16 million ounces; a 49%
increase.
- Gold production of 27,609 ounces; an 11% decrease.
Q4 2014 Production Highlights (Compared to Q4 2013)
- AgEq(1) production record of
936,472 ounces; an 18% increase.
- Silver production record of 397,509 ounces; a 74%
increase.
- Gold production of 8,983 ounces; a 3% decrease.
N. Eric Fier, President and
COO stated; "SilverCrest is pleased to report record quarterly
and annual AgEq(1) production at Santa Elena. I would like to thank our hard
working team for their contributions and our shareholders for their
ongoing support. SilverCrest achieved 93% of its 2014 metal
production guidance(3) in spite of the early closure of
the open pit and short-term delays relating to the first
underground stope. As of today, we have temporarily reopened the
pit to provide approximately 6 months of low cost production. Our
current operational focus is to improve underground stope
production and continue to optimize the mill to ensure throughput
tonnages at or above the nameplate capacity of 3,000 tonnes per day
("tpd") and increase metallurgical recoveries to our budget rates
of 92% for gold and 70% for silver. Stringent cost controls
continue to ensure that positive operating and all-in sustaining
cash flow are generated at current metal prices. SilverCrest
expects annual production for 2015 to range between 4.0 – 4.4
million ounces of AgEq(1), a significant increase over
2014 production of 2.81 million AgEq ounces."
Santa Elena Mine
Operating Statistics:
|
2014
|
2013
|
%
Change
|
Q4
2014
|
Q4
2013
|
%
Change
|
Tonnes processed on
leach pad (t)
|
213,017
|
1,081,159
|
-80%
|
-
|
263,097
|
-100%
|
Average silver grade
processed on leach pad (g/t)
|
89.65
|
72.90
|
23%
|
-
|
81.58
|
-100%
|
Average gold grade
processed on leach pad (g/t)
|
1.79
|
1.61
|
11%
|
-
|
1.82
|
-100%
|
Tonnes milled
(t)
|
526,525
|
-
|
100%
|
268,287
|
-
|
100%
|
Average tonnes per
day milled
|
2,460
|
-
|
100%
|
2,916
|
-
|
100%
|
Average silver grade
processed through mill (g/t)
|
68.23
|
-
|
100%
|
73.83
|
-
|
100%
|
Average gold grade
processed through mill (g/t)
|
1.03
|
-
|
100%
|
1.17
|
-
|
100%
|
Silver recovery per
mill (%)(2)
|
65.96
|
-
|
100%
|
62.42
|
-
|
100%
|
Gold recovery per
mill (%) (2)
|
89.55
|
-
|
100%
|
89.26
|
-
|
100%
|
|
|
|
|
|
|
|
Silver ounces
produced
|
1,157,021
|
779,026
|
49%
|
397,509
|
228,787
|
74%
|
Gold ounces
produced
|
27,609
|
31,099
|
-11%
|
8,983
|
9,218
|
-3%
|
AgEq ounces produced
(1)
|
2,813,559
|
2,661,979
|
6%
|
936,472
|
796,751
|
18%
|
|
|
|
|
|
|
|
Silver ounces
sold
|
1,177,936
|
751,633
|
57%
|
422,250
|
208,200
|
103%
|
Gold ounces
sold
|
28,678
|
30,487
|
-6%
|
8,968
|
8,220
|
9%
|
AgEq ounces sold
(1)
|
2,898,643
|
2,595,716
|
12%
|
960,330
|
714,678
|
34%
|
|
|
|
|
|
|
|
Ag : Au Ratio
(1)
|
60.0:1
|
60.5:1
|
-1%
|
60.0:1
|
61.6:1
|
-3%
|
|
(1) Silver
equivalent ("AgEq") ounces consist of the number of ounces of
silver production/sold plus the number of ounces of gold
production/sold multiplied by 60:1 gold price to silver price
ratio, as determined in the 2014 budget. Prior to Q1 2014, the AgEq
ratio was based on the spot gold price to the spot silver price at
the quarter end dates for financial reporting. For fiscal 2013 and
Q4 2013, the gold price to silver price ratio was 60.5:1 and 61.6:1
respectively. All numbers are rounded.
|
(2)
Estimated recoveries for fiscal 2014 and Q4 2014 are as reported,
based on calculated grade.
|
(3) 2014
metal production guidance was expected to range between 3.0 - 3.3
million AgEq ounces.
|
|
The new 3,000 tpd mill was commissioned in August of 2014 and
the 526,525 tonnes of mill throughput represents approximately
7 months of production, including pre-commissioning milling.
Metal production from the mill is estimated at 761,882 ounces for
silver and 15,628 ounces of gold. Milling grades were impacted due
to approximately 78% of the mixed mill ore coming from the leach
pad reserve which has a lower grade than the 22% from the
underground reserve grades. The expectation, in the first half of
2015, is that higher grade underground and open pit ore will be
approximately 60 to 70% of the mill feed versus the lower grade
leach pad ore. Final 2014 mill metal recoveries were slightly below
design criteria of 67.5% silver and 92% gold. Mill recoveries are
still being optimized (grinding size and cyanide rates) with 2015
targets of 70% silver and 92% gold.
In addition to production from the mill, an estimated 213,017
tonnes were placed on the leach pad during the first half of 2014.
Metal production of an estimated 395,139 ounces of silver and
11,981 ounces of gold were recovered through heap leaching
processing at Santa Elena.
2015 SilverCrest Production Outlook and Cost
Guidance*:
- Achieve estimated 2015 production guidance of 4.0 – 4.4 million
ounces of AgEq (Ag:Au 66.7:1).
- Silver production is expected to range between 1.6 – 1.8
million ounces.
- Gold production is expected to range between 36,000 – 39,000
ounces.
- Achieve estimated cash operating cost of $10 - $11 per AgEq ounce sold* (Ag:Au
66.7:1).
- Achieve estimated all-in sustaining cash cost of $14 - $15 per AgEq ounce sold* (Ag:Au
66.7:1).
*These are Non-IFRS
performance measures. Refer to "CAUTIONARY NOTE REGARDING
NON-IFRS PERFORMANCE MEASURES".
|
|
2015 Santa Elena Capital Expenditure
Budget
Santa Elena
Sustaining Capital:
|
2015 Estimated
Expenditures
|
Sustaining
Development Costs
|
$
6,400,000
|
Sustaining Plant,
Property and Equipment Costs
|
$
4,100,000
|
Sustaining
Exploration Costs
|
$
2,000,000
|
Total
|
$
12,500,000
|
2015 SilverCrest Exploration Budget
Exploration:
|
2015 Estimated
Expenditures
|
Sonora – Exploration
Projects 30/60 Km radius from Santa Elena Operations
|
$
2,800,000
|
La Joya Project –
Acquisition Payments
|
$
600,000
|
La Joya Project –
Exploration Program
|
$
500,000
|
Total
|
$
3,900,000
|
Note: Exploration
expenditures may be adjusted throughout the year depending on
success.
|
|
Release of 2014 Financial Results and Conference Call
SilverCrest plans to release its audited annual financial
statements and MD&A after market closes on Wednesday March 11, 2015. A telephone conference
call to discuss these results will be held at 10am PDT (1pm EDT)
on Thursday, March 12, 2015.
Upcoming Conference:
SilverCrest will be attending the Vancouver Resource
Investment Conference held at the Vancouver Convention Centre on January 18 to 19, 2015. Management looks forward
to meeting its shareholders and interested parties at booth
#1310.
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,
President and Chief Operating Officer for SilverCrest Mines Inc.,
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 km northeast of
Hermosillo, near Banamichi in the State of Sonora, México. The mine is a
highgrade, epithermal silver and gold producer, with an estimated
life of mine of 7 years at an average operating cash costs of
$11 per ounce of silver equivalent
(55:1 Ag:Au). SilverCrest anticipates that the new 3,000 tonnes per
day conventional mill facility at the Santa Elena Mine should
recover an average of 1.5 million ounces of silver and 32,800
ounces of gold per annum over the current reserve life. Exploration
programs continue to result in new discoveries at Santa Elena and also have rapidly 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.
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 and 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; the amount 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 processing recoveries; cash operating costs and outflows,
all-in sustaining cash cost; 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: the presence of and continuity of
metals at the Company's projects; cost of production and
productivity levels; plant and equipment function as anticipated;
the availability of skilled labour; contracted parties provide
goods and services on agreed time frame; ability to develop and
finance projects; accuracy of the interpretations and assumptions
used in calculating reserve and resource estimates; and operations
not being disrupted or delayed by unusual geological or technical
problems.
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 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 included in this
news release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by
applicable law.
CAUTIONARY NOTE REGARDING NON-IFRS PERFORMANCE
MEASURES
This news release includes the terms "Cash operating cost per
AgEq ounce sold" and "All-in sustaining cash cost per AgEq ounce
sold". These terms are commonly used in the mining industry
but are not defined under International Financial Reporting
Standards ("IFRS"). The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate SilverCrest's
performance and its ability to generate cash flow. The data
presented is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The Company
calculates Cash operating costs per AgEq as cost of sales over
total AgEq ounces sold and All-in sustaining cash cost per AgEq as
the sum of cost of sales, general and administrative expenses and
sustaining capital expenditures from Santa Elena over total AgEq ounces
sold.
SOURCE SilverCrest Mines Inc.