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One
of the most pronounced commodity bull markets of the
past decade has been for the monetary and industrial
white metal, silver. Despite periodic selling, the
price of silver has increased from near US$5.00 in 2003
to a range of US$30.00 to $50.00 during 2011. Many
analysts point to silver's dual attraction as both a
monetary precious metal and an industrial metal as an
underlying reason for this relatively strong
performance.
SilverCrest Mines Inc (TSX-V; SVL),
a
Vancouver-based Canadian junior mining corporation is
working diligently to take advantage of silver's
strength. They have achieved production at their
Santa Elena Mine located in Sonora State, Mexico and
the company plans to use the funds generated from Santa
Elena’s production, combined with a strong cash
position, to allow for an eventual doubling of
production at Santa Elena as well as continuing to
advance exploration and development of their other two
important properties; Cruz de Mayo property
located near Santa Elena and a potential large bulk
tonnage polymetallic deposit at the La Joya
property in Durango State.
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The company’s highest priority is continued
expansion at Santa Elena which achieved its
first metals pour in September 2010 and then
attained commercial production in mid-2011. At
Santa Elena, the company is focused on
increasing production and developing additional
resources near the mine site while also moving
aggressively to advance the nearby Cruz de Mayo
property into development.
Santa Elena is located some 150 Km NE of the
city of Hermosillo in Mexico’s Sonora State and
about 50 Km distant from the smaller mining
center of Cananea. The latter city has some
mining services available while Hermosillo
itself is a major mining center fully capable of
providing a wide range of mining supplies and
experienced personnel. Santa Elena is
accessible by paved roads and has an excellent
infrastructure with adequate water supplies. |
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Both
Santa Elena and Cruz de Mayo have seen mining activity
dating back to the late 19th century when
initial production took place for about 20 years until
the Mexican Revolution of 1910. During that initial
stage, several underground workings were opened and four
adits were constructed at Cruz de Mayo, one of which is
still accessible. Sporadic limited activity resumed in
the mid-20th century, but both projects then
lay dormant until SilverCrest entered the picture in
2005.
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Development work at Santa Elena since 2006 has
included surface trenching, surface sampling,
underground channel sampling, diamond drill
programs amounting to 23,000 meters over 136
holes and sampling programs from old underground
workings.
As a result of these efforts, the company was
able to establish probable reserves of 4,794,790
tonnes grading 1.81 grams per tonne (g/t) Au and
75.9 g/t Ag containing 278,560 ounces of gold
and 11,711,000 ounces of silver respectively.
Based on these reserves the company succeeded in
obtaining construction financing and, as noted,
they have now entered commercial production
using open-pit mining methods. |
SilverCrest has also been able to report underground
Indicated resources of 991,100 tonnes grading 1.83 g/t
Au and 109.1 g/t Ag, containing 58,330 ounces Au and
3,476,960 ounces Ag plus Inferred resources of 1,879,000
tonnes grading 1.53 g/t Au and 86.9 g/t Ag, containing
92.470 ounces Au and 5,250,190 ounces Ag.
These underground resources are of particular future
importance considering the company’s plans to operate
the open pit at Santa Elena from 2011 to 2017 and then
transition over to feed from underground mining
operations.
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During 2011, Santa Elena open pit heap leach (Phase 1)
is expected to produce just under 400,000 ounces of
silver and 26,000 ounces of gold with plans calling for
a gradual increase in production during 2012 to an
estimated 480,000 oz Ag and 32,000 oz Au. From 2013
through 2016, the Expansion Plan is underway with
projected production expected to gradually increase to
annual goals of 2.3 million oz Ag and 60,000 oz Au.
Company reports show Indicated resources at Cruz de Mayo
of 2,353,400 ounces of silver plus 3,800 ounces of gold
and Inferred resources of 12,967,100 ounces of silver
plus 20,000 ounces of gold. These resources are near
surface and located only 65 Km from the Santa Elena
mining facilities.
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SilverCrest is also working to advance their
newly-acquired La Joya project where exploration work
including 26 drill holes by SilverCrest and 51 holes by
previous companies (Luismin, etc.) has indicated
mineralization along a strike length of approximately
2.5 km in length and a minimum 500 meters in width.
Mineralization is occurring along a series of near
vertical veins and structures crosscutting shallow
dipping manto/skarn deposits up to 30 meters thick.
This property has the potential to be a "major
discovery" with further hopeful success through drilling
in 2012.
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The
company recently reported that recent Phase I drilling
at La Joya has identified a new "Contact Zone" style of
mineralization. Company geologists indicate the new
Contact Zone mineralization is similar to that of the
nearby World Class San Martin and Sabinas mines.
SilverCrest currently plans to have a completed NI
43-101 Technical Report with the first resource
estimation for La Joya by year-end 2011. The company
has also initiated a Phase II drill program of
approximately 80 holes totaling approximately 15,000 m
of drilling to be completed by June 2012. |
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SilverCrest is led by a management team headed by
President Scott Drever which also includes N. Eric Fier,
COO; Barney Magnusson, CFO; Brent McFarlane, VP
Operations; Jed Thomas, VP Exploration; and Dr. Salvador
Aguayo Salinas, VP Corporate Development and Mexico
Country Manager.
For
further information, contact Fred Cooper at
info@silvercrestmines.com or access the
company's website at
www.silvercrestmines.com |
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An
in-depth study will be prepared following a property
visit, now scheduled for mid-to-late December, 2011
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