Expansion of SilverCrest's Santa Elena Mine is on track
VANCOUVER, BC 9. July 2012 - SilverCrest Mines Inc. (the "Company") is pleased to announce the current state of expansion planning for the Santa Elena mining operations and the ongoing Phase II drilling at La Joya, Mexico. The expansion works in the Santa Elena Mine are proceeding as planned and should lead to an increase in metal production by 2014% from the beginning of 100. The definition drilling to identify existing resources and the extensive metallurgical investigations at La Joya will continue; in 4. Quarter 2012 is scheduled for a resource revaluation Below is an overview of the most important activities. For more information, including photo material and videos, visit our website at www.silvercrestmines.com.
Expansion planning for Santa Elena
• GR Engineering Services (GRES) of Brisbane (Australia) is responsible for the planning and technical implementation of the planned countercurrent decanter with a processing capacity of 3.000 tonnes per day. With the construction should in the 4. Quarter 2012 be started. During the first construction phase excavation, foundation and tank construction will take place. In the 1. Quarter 2013 then take place the detailed technical work for the entire system. The processing of the ore-mined ore will begin in January with 2014.
• Currently, either used or new machinery and equipment for which long lead times are scheduled to be purchased. The financing comes from the cash balance of the company.
• The construction of the underground tunnels is progressing, so far about 470 meters of the main ramp have been driven into the ground. In total, a budget for 2012 was provided for the underground development on approx. 1500 meters. The conveyor line (4,5 x 4,0 meters) provides access to the underground resources. In the middle of 2014, the start-up of the quarry will take place with a provisional production volume of 1.000 tonnes per day.
• The development of leaching platforms is already well advanced and is expected to be completed in July. With the expansion of the leaching platforms, the processing capacity for the topically conveyed material for heap leaching will be extended by an additional 2 years. Once the new processing plant is in operation, the existing leaching areas are abandoned.
• The stock of gold and silver remaining on the leach platforms is currently under review for the feed of the processing plant as part of the expansion planning. Taking into account the in-pit ore grade, the mixed material from the crusher and the previous metal production, there are still about 1,9 million tons of material in the leach area; it contains larger amounts of gold and silver ounces. Based on the current subsidy plan, it is estimated that approx. 4 million tonnes of heap leach material will be available for further processing after construction of the countercurrent decanter. This inventory and the ability to mine ore at the proposed processing plant will be considered in the upcoming PFS for expansion planning. The company points out that the potential amounts mentioned above are purely conceptual. Previous work is insufficient to define NI 43 101 compliant mineral resources.
• An 13 near-surface pit-pit program designed to better define the tonnages and ore grades at the bottom of the planned surface mining site was completed in June. The results confirm that there is high grade mineralization with up to 6,2 grams of gold per ton and 102,7 grams of silver per ton on 16 meters. Currently, a new Gemcom block model is being developed to extend the life of the Santa Elena Mine and to better estimate future cash flow.
• In the main Santa Elena zone, surface drilling is taking place to delineate subterranean resources that are to be converted into reserves. The basis for this is the PFS for the expansion planning, which is expected at the end of the year. Drilling is currently underway in eighteen holes.
• The Cruz de Mayo project is part of the extension planning for Santa Elena. The aim of the current work is the completion of a PFS in 3. Quarter 2012. In addition, 6 holes will be drilled in July to delineate those resources that are to be converted into reserves.
Exploration activities at La Joya
• As part of the Phase II core drilling with two drill rigs, expansion of the known mineralized zones will continue. The first holes in this program have expanded mineralization to the north and east; In the course of the last wells, however, promising areas were explored to the south and west. To date, 40 of the 60 core holes planned for Phase II drilling have been completed; the remaining 20 holes using reverse flushing will follow when the appropriate drilling equipment is available. The analysis results for the next 10-15 holes are being evaluated and should be released towards the end of the month.
• A new resource estimate for La Joya 4 is planned for the 2012th quarter of 2012; The aim is to increase the current resources of more than 100 million ounces of silver equivalent (Ag-Cu-Au) by 50-100%. Please also note the technical report of February 21, 2012 published on SEDAR.
• The results of drilling at La Joya suggest that there is extensive mineralization of tungsten, molybdenum, tin, lead and zinc. The latter could be promoted as by-products of dominant silver-copper-gold mineralization. Further drilling results and the subsequent re-evaluation of resources should help identify this potential.
• The collection of data from a geophysical flight survey conducted in the past over a 1400 square kilometer area (including La Joya) has now been completed. This data has been re-evaluated by Fugro Airborne Geophysics in Ottawa, Canada. In addition, IP measurements to assess the magnetic field and gravity have defined 25 additional target areas. The geophysical signatures of La Joya served as guidelines. The company is currently selecting those targets that should be explored as a priority. The priority target areas are expected to drill during the second half of the year.
• In order to enable the identification of the new objectives in this area, the company has increased its landed property at La Joya to a total of 10.656 hectares.
President J. Scott Drever said, "We are very pleased with the progress made in each part of the expansion planning for Santa Elena in terms of doubling production and exploration activities in the La Joya project. Most importantly, as planned, most of the work will be funded from operating cash flow of approximately $ 2,5 million a month, so that our $ XNUM $ million cash balance will be maintained for major investments in the processing facilities. With this planned strategy, the company is making itself independent of financing under current market conditions. "
N. Eric Fier, CPG, P. Eng. and Chief Operating Officer of SilverCrest Mines Inc., as a Qualified Person under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects, has reviewed and approved this news release.
SilverCrest Mines Inc. (TSX-V: SVL; OTCQX: STVZF) is a Mexican precious metal producer headquartered in Vancouver, British Columbia. The flagship project of SilverCrest is the company's own Santa Elena Mine. It is located 150 km northeast of Hermosillo near Banamichi in the Mexican state of Sonora. The mine produces high grade epithermal gold and silver. The cash costs over the life of the mine are estimated at 8 US $ per ounce silver equivalent (55: 1 Ag: Au). SilverCrest estimates that 6,5 ounces of silver and 2.500 ounces of gold will be mined during 4.805.000 day tonnage production from the Santa Elena Mine during the 179.000 day mining phase. Currently, a three-year expansion program plan is being devised to double metal production at the Santa Elena Mine. The ongoing exploration programs to define a large polymetal deposit on the La Joya property in Durango state are progressing rapidly.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Securities Litigation Reform Act of 1995. Such forward-looking statements relate to the Company's anticipated results and developments in the Company's future operations, the planned exploration and development of the respective properties, and plans for business operations and other matters that may arise in the future. These statements are for analyzes and other information based on expectations of future performance. These include silver and gold production and planned work programs. Statements on reserves and mineral resource estimates may also be forward-looking statements to the extent that they include the estimates of mineralization found in the development of the mineral property. In the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the resource deposits can be promoted in an economically viable manner.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from those that are explicitly or implicitly referred to in the forward-looking statements. These include, but are not limited to: risks associated with precious metal and base metal price fluctuations; Risks associated with current currency fluctuations (notably the Mexican peso, Canadian dollar and US dollar); Risks associated with the typical pitfalls of mining (including circumstances and events beyond our control), operational and technical difficulties in resource exploration, development and production activities; Uncertainties in raising funds and financing exploration and development on the properties; Uncertainties in actual investment costs, operating costs, production costs and economic returns; the uncertainty as to whether the development activities will lead to a profitable mining operation; Risks associated with data on reserves and mineral resources (since these are based on estimates and assumptions and actual production levels may be lower than current estimates at the given conditions and the mineral reserves may be lower as a result of mining on the properties; Risks associated with government regulations and the obtaining of the necessary licenses and permits; risks associated with the business that is subject to environmental laws and regulations (which may increase the cost of doing business and restrict our operations), risks associated with mineral properties are bound to previously unregistered agreements, transfers or any legal claims; risks associated with insufficient coverage or Liability refusal by the insurance; Risks in connection with litigation; Risks with regard to the world economy; Risks related to the status of the company as a foreign private issuer in the United States; Risks associated with all of the Company's properties in Mexico and El Salvador (including political, economic, social and regulatory instability); and risks related to the involvement of directors and executives in other commodity companies, which could lead to conflicts of interest. Should one or more of these risks and uncertainties materialize or the underlying assumptions prove incorrect, then actual results may differ materially from those described in the forward-looking statements. The forward-looking statements of the Company are based on the opinions, expectations and assumptions of management at the time these statements are made. For the reasons mentioned above, investors should not rely unconditionally on forward-looking statements.
The information contained in this news release does not constitute a comprehensive documentation of all facts and developments relating to the company. It should be read in conjunction with all other published company records. The information contained herein does not replace detailed research or analysis. The adequacy or accuracy of this information has not been tested by any securities commission or regulatory authority.
"J. Scott Drever "
J. Scott Drever, President
SILVERCREST MINES INC.
Contact Person:
Fred cooper
Phone: (604) 694-1730 DW 108
Fax: (604) 694-1761
toll-free number: 1-866-691-1730
Email: ppgad@pucrs.br
Website: www.silvercrestmines.com
Suite 501 - 570 Granville Street
Vancouver, BC Canada V6C 3P1
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
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