Sign up USA
Proactive Investors - Run By Investors For Investors

SilverCrest Mines reveals more drill results from Santa Elena resource expansion and conversion program

SilverCrest Mines reveals more drill results from Santa Elena resource expansion and conversion program

Vancouver-based SilverCrest Mines (CVE:SVL)(AMEX:SVLC)(NYSE MKT:SVLC) unveiled Tuesday results of more drilling at its Santa Elena mine in Sonora, Mexico, which was designed to convert resources at the project into reserves. 

The company said 79 of a planned 100 holes have been completed so far to recategorize indicated and inferred resources to probable reserves, as well as to expand current underground resources. 

So far, according to SilverCrest, the program has been successful and will help with resource confirmation and conversion, the results of which will be included in the upcoming prefeasibility study for the Santa Elena expansion project. 

Precious metal grades in the series of holes announced today ranged from 0.22 to 4.92 grams per tonne (g/t) gold, and between 28.0 to 277.4 g/t silver. Mineralized intervals ranged from 1 to 38.9 metres. 

The most notable intercepts were 30.7 metres grading 1.61 g/t gold and 169.6 g/t silver in hole SE 12-54, and 16 metres at 2.15 g/t gold and 166.9 g/t silver in hole SERC-12-36. 

The main mineralized zone at the Santa Elena deposit remains open along strike and at depth. The company has drilled two holes as part of a 15-hole program designed to potentially expand resources along strike to the east and to depth, with assay results still pending. 

Three drills are currently on site to complete the entire program by the end of 2012. Revised Santa Elena resources and reserves, along with the results of a pre-feasibility study for the expansion plan are expected in the first quarter of next year. 

The Vancouver-based company said last month that profit and revenues increased in its third quarter, with record silver production allowing it to raise its annual forecast for the year. 

Earnings were boosted by higher silver sales, and an exchange gain on a stronger Canadian dollar, partially offset by a derivative impact as well as income and a deferred tax expense. 

Cash flow from its Santa Elena operations in Mexico, a key metric in the industry, more than doubled to $10.2 million, or 11 cents per share, up from $5.03 million, or 6 cents per share, in the year-earlier period. 

Revenues rose 11 per cent to $16.7 million. SilverCrest sold 57 per cent more silver, at 152,088 ounces, in the latest period, while gold sold also grew 4 per cent, to 7,923 ounces. 

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. SilverCrest anticipates that the 2,500 tonnes per day facility should recover around 4.8 million ounces of silver and 179,000 ounces of gold over the 6.5 year life of the open pit phase of the mine. 

A three year expansion plan is underway to double metals production at the Santa Elena Mine, while exploration programs are advancing the definition of the large polymetallic deposit at the La Joya property in Durango State.

Last week, the silver producer unveiled more results from the phase II drilling at its La Joya property, which the company said extended the main mineralized trend beyond the current resource area. 

Currently, La Joya is estimated to have an inferred resource of 101.9 million ounces silver equivalent. But the company said the target size, based on the current geological model, drilling and sampling from the phase II program, suggests the possibility of resources that may be 50 to 100 per cent greater than the current estimate. 

View full SVL profile View Profile

SilverCrest Mines Timeline

Related Articles

February 27 2018
Great Panther's solid operating cashflow set to provide platform for significant growth
June 26 2017
Prospero Silver has set the drill rigs turning on its Mexican silver projects

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use