VANCOUVER, BRITISH COLUMBIA, Oct 12, 2011 (MARKETWIRE via COMTEX) — SilverCrest Mines Inc. (the “Company”) (otcqx:STVZF) is pleased to announce continued growth of silver and gold production in the Third Quarter, 2011 from the Santa Elena Mine located in Sonora, Mexico. Silver production was up 43% to 106,636 ounces and gold production was up 61% to 8,805 ounces compared to the Second Quarter, 2011.
The mine is expected to produce over 400,000 ounces of silver and 26,000 ounce of gold in 2011, after declaring commercial production on April 1 of this year. The first full year of production will be 2012 and the mine is expected to produce 478,000 ounces of silver and 32,000 ounces of gold. From 2013 through 2016, silver production is expected to average approximately 921,000 ounces per year and gold production is expected to average approximately 29,000 ounces per year. For additional information and to view production photos, please visit the Company’s website at www.silvercrestmines.com .
Santa Elena Mine Operating Highlights;
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Jan-Mar Apr-Jun July-Sept Q1-Q3, 2011
Q1 2011 Q2 2011 Q3 2011 Total/Average
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Silver ounces produced 64,712 74,678 106,636 246,026
Gold ounces produced 3,152 5,476 8,805 17,433
Silver ounces sold 57,390 70,326 96,631 224,346
Gold ounces sold 2,333 4,300 7,627 14,260
Ore tonnes crushed 218,527 249,054 253,496 721,077
Average ore tonnes crushed per
day 2,428 2,737 2,755 2,641
Average silver ore grade (gpt) 34.07 44.09 48.47 42.59
Average gold ore grade (gpt) 1.14 1.91 2.20 1.78
Silver ounces delivered to pad 239,369 352,995 395,068 987,432
Gold ounces delivered to pad 8,006 15,268 17,912 41,186
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— The crusher is currently operating above daily designed throughput of
2,500 tpd with an average of 2,755 tpd during Q3, and an average of
2,641 tpd to date in 2011.
— Estimated silver recovery to date is approximately 22% and estimated
gold recovery to date is 41%. These recoveries are consistent with
budgeted numbers of 24% for silver and 41% for gold during the ramp up
phase. Projected life of mine total metal recoveries of 35 to 40% silver
and 65 to 70% gold appear to be achievable, as all mining has now
transitioned to the Main Zone. All ore mined for the remainder of the
open pit mine life will be from the Main Zone, which provided the bulk
samples for metallurgical testing that is the basis of projected total
metal recoveries. During the third quarter, high grade ore mined from
the Main Zone averaged approximately 53.83 gpt Ag and 1.99 gpt Au.
— Silver and Gold production has increased significantly from 64,712
ounces of silver and 3,152 ounces of gold in Q1 to 106,636 ounces of
silver and 8,805 ounces of gold in Q3, 2011.
J. Scott Drever, President stated; “We are certainly pleased with the consistent progress being made at the operational level at the Santa Elena Mine. All aspects of the operations are at design capacities and are functioning as expected including the crusher. This has been reflected in the steady increase in the overall performance statistics and more specifically in the increased number of ounces of silver and gold poured on site and sold out of the refinery. The improvements in production numbers are expected to be reflected in our Q3 financial results to be released towards the end of November. Our strong cash position of $32.4 million and substantial cash flow assures that we can proceed with our 3 year expansion plan to double production at Santa Elena and to implement the Company’s overall strategy for corporate growth.”
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.
SilverCrest Mines Inc. /quotes/zigman/325516 CA:SVL -4.08% is a Mexican precious metals producer with headquarters based in Vancouver, BC. SilverCrest’s flagship property is the 100%-owned Santa Elena Mine, which is located 150km 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). 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.
This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company’s control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
J. Scott Drever, President
SILVERCREST MINES INC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
SilverCrest Mines Inc.
Fred Cooper
(604) 694-1730 or Toll Free: 1-866-691-1730
(604) 694-1761 (FAX)
[email protected]
