Good metal grades found at Santa Elena.
posted on
Nov 05, 2009 09:56AM
Acquisition & Production of high grade, low cost Silver resources - Mexico & El Salvador
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2009) - SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL - News) is pleased to report that a pre-production in-fill drilling program at the Santa Elena Project located in Sonora, Mexico has been completed.
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The 11 in-fill reverse circulation holes (total of 577 metres, to view attached drill plan for hole locations please click on the following link: http://media3.marketwire.com/docs/1svl114.pdf) reported below are located in the Phase I pit which represents approximately the first two years of planned metal production. The most notable intercepts of this near surface series of holes were encountered in hole SERC09-24 which intercepted 22.0 metres grading 6.37 g/t gold and 72.7 g/t silver and hole SERC09-26 with 28 metres grading 3.1 g/t gold and 115.9 g/t silver.
Uncut Weighted Average
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Au Ag
Equiv- Equiv-
Hole From To Length Au Ag alent alent
Number (m) (m) (m) g/t g/t (i) g/t (i) g/t
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SERC09-22 22 30 8 5.51 116.1 7.44 446.4
includes 26 28 2 12.85 252.0 17.05 1023.0
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SERC09-23 30 48 18 1.54 125.8 3.98 238.8
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SERC09-24 26 48 22 6.37 72.7 7.59 455.4
includes 40 42 2 42.40 307.0 47.52 2851.2
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SERC09-25 32 54 22 3.37 54.7 4.28 256.8
includes 36 38 2 17.65 233.0 21.53 1291.8
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SERC09-26 26 54 28 3.10 115.9 5.03 301.8
includes 42 46 4 9.86 449.5 17.35 1041.0
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SERC09-27 4 20 16 2.44 100.4 4.11 246.6
includes 8 10 2 9.88 63.6 10.94 656.4
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SERC09-28 2 32 30 2.43 65.9 3.53 211.8
includes 8 10 2 16.90 482.0 24.93 1495.8
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SERC09-29 2 18 16 1.37 37.7 2.00 120.0
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SERC09-30 8 26 18 1.82 30.5 2.33 139.8
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SERC09-31 24 30 6 0.25 33.6 0.81 48.6
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SERC09-32 28 36 8 0.63 49.9 1.47 88.2
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(i) Based on a silver/gold ratio of 60:1 and 100% metal recovery.
Most intercepts include allowances for voids due to old
underground workings of 0.5 to 4m wide. All holes drilled
near-perpendicular to mineralized zone with true thicknesses
shown except SERC09-26 which is an apparent thickness. Samples
analyzed at ALS-Chemex in Hermosillo, Mexico and North Vancouver,
BC, Canada.
These drill holes have an average true thickness of approximately 16 metres with an uncut, weighted average grade of 4.1 g/t gold equivalent which translates to high grade, low cost metal production in the first few years of the mine life. Drill results will be used to revise the Life-of-Mine Plan and update the reserve estimates in the ongoing independent Feasibility Study being completed by SRK Consulting of Denver, CO.
As announced on October 22, 2009, the open pit heap leach Santa Elena Project is under construction with anticipated first gold-silver pour expected in Q2 2010 with commercial production to occur in late 2010.
The official registration of 100% ownership in the Santa Elena Project was recently finalized which enables the Company to access the US$12 million from the gold purchase agreement with Sandstorm Resources. These monies are sufficient to complete most of the remaining construction. Final legal paperwork is being completed with Macquarie Bank Ltd. to access the additional US$12.5 million project loan facility. Further disclosure on project financing activities is forthcoming.
J. Scott Drever stated: "The results of this in-fill pre-production drilling further confirms that the initial years of production at Santa Elena will provide some extraordinarily high gold and silver grades for a heap leach operation. The higher than life of mine grades in the starter pit will assure early payout of capital, improve our rate of return on the project, and most importantly, give us substantial free cash flow in the near-term. The important milestone of official registration of 100% ownership in Santa Elena will help provide the funds necessary to complete ongoing construction to meet the Company's production goals."
N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest Mines Inc. and Qualified Person for this news release has reviewed and approved its contents.