TSX: SVL NYSE MKT: SVLC
VANCOUVER, May 7, 2015 /CNW/ - SilverCrest Mines Inc.
("SilverCrest" or the "Company") 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.
|
|
|
|
|
|
Level
|
Development
Length
From (m) To
(m)
|
Number of
Mine Face
Samples
|
Average
Vein
Width (m)
|
Au
(gpt)
|
Ag
(gpt)
|
625
|
0
|
35
|
52
|
3.9
|
9.48
|
392.8
|
including
|
|
|
2
|
2.4
|
21.62
|
532.8
|
600
|
0
|
50
|
61
|
3.3
|
4.32
|
225.7
|
including
|
|
|
2
|
2.5
|
6.69
|
263.1
|
575
|
0
|
15
|
19
|
2.7
|
13.45
|
701.7
|
including
|
|
|
4
|
1.4
|
29.75
|
1,359.0
|
Totals &
Weighted
Average
|
0
|
100
|
132
|
3.3
|
8.80
|
419.4
|
Note:
|
All numbers rounded.
Grades are uncapped and undiluted. Development metres are
estimated. Widths are considered near-true
thickness.
|
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
processing recoveries; expected cash operating costs; and life of
mine.
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; the availability and costs of mining equipment
and of 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 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.
SOURCE SilverCrest Mines Inc.