SilverCrest Mines Inc. (TSX:SVL; NYSE MKT:SVLC) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%‐owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, México. The mine is a high‐grade, epithermal silver and gold producer, with an estimated life of mine of 8 years and operating cash costs of $11 per ounce of silver equivalent (55:1 Ag:Au) for the open pit heap leach and underground mine. SilverCrest anticipates that the new 3,000 tonnes per day conventional mill facility at the Santa Elena Mine should recover an average annual rate of 1.5 million ounces of silver and 32,800 ounces of gold over the current reserve. Major expansion and construction of the 3,000 tonnes per day conventional mill facility is nearing completion and is expected to significantly increase metals production at the Santa Elena Mine (open pit and underground) in 2014 and beyond. Exploration programs continue to make new discoveries at Santa Elena and also have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State with stated resources of almost 200 million ounces of Ag equivalent.
13/03/2013Scott Drever, President of SilverCrest Mines(CVE:SVL), tells Proactive Investors that, as a low-cost producer, the company is in good shape to weather the storm until the markets turn. He also talks about expansion plans for Mexico's Santa Elena mine as well as the new reserve and resource estimates at the site, which are due in early April.
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05/01/2015Corporate Presentation December 2014 (Presentation)
05/01/2015Fact Sheet 2014 (Presentation)
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SilverCrest Mines Inc. (NYSE MKT: SVLC; TSX: SVL) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%‐owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, México. The mine is a high‐grade, epithermal silver and gold producer, with an estimated life of mine of 8 years and average operating cash costs of $11 per ounce of silver equivalent (55:1 Ag:Au). SilverCrest anticipates that the new 3,000 tonnes per day conventional mill facility at the Santa Elena Mine should recover an average annual rate of 1.5 million ounces of silver and 32,800 ounces of gold over the current reserve. Major expansion and commissioning of the 3,000 tonnes per day conventional mill facility has been completed and is expected to significantly increase metals production at the Santa Elena Mine in 2014 and beyond. Exploration programs continue to make new discoveries at Santa Elena and also have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State, Mexico.
Property Size: 3,160 ha (7,808.5 Acres)
Location: 150 kilometers northeast of Hermosillo, Sonora, Mexico.
Status: Commercial Production (since July 2011) - Anticipated production of approximately 3.3 million to 3.6 million silver equivalent ounces in 2014
• The new mill and CCD/Merrill Crowe processing plant is currently running at an average throughput of 2,500 tonnes per day. Grind size testing for optimization is ongoing which impacts throughput, recoveries and efficient operation of the dry tailings belt filters. Optimized milling rate of 3,000 tonnes per day is targeted for Q4 2014.
• Current underground ore development grades are averaging 1.72 gpt Au and 115.4 gpt Ag which is consistent with reserve estimates. Average pad ore grades in September 2014 are 0.68 gpt Au and 50.0 gpt Ag or 8% and 38% higher, respectively than budget.
• The plant is currently processing a blended mix of 30% underground development ore and 70% pad ore with an average blended grade of 1.0 gpt Au and 71.2 gpt Ag.
• Approximate mill recovery rates of 90% for gold and 68% for silver are consistent with budget target rates. It is anticipated that recoveries will increase as the mill grind size is optimized.
• For Q4 2014, monthly metal production is projected to range from 3,000 to 3,750 ounces of gold and 140,000 to 180,000 ounces of silver to achieve guidance of 3.0 to 3.3 million.
• Although behind schedule, mining the first production stope has commenced which is being developed between the 600m and 575m levels. Underground ramp access continues to be driven ahead of mine development with the bottom of the ramp currently at the 564m elevation. Completion of a ventilation raise in Q4 2014 is expected to increase operating efficiencies and improve advancement rates for both underground development and mine production.
• Total underground development to date, including ramping, lateral ore and waste development, and raise development, is approximately 6,000 metres. Six levels currently have ore and partial waste development completed in anticipation of stope production.
• With major capital expenditures completed for the 3 year long Expansion Plan, the Company anticipates generating free cash flow in Q4 2014 at current precious metal prices.
Previous work on the property, mainly by Luismin SA de CV, consists of a number of drill holes and surface work completed from 1985 to 2001. Surface mapping, sampling by the Company and previous drill results suggest that geology and mineralization is similar to the nearby San Martin Mine which is operated by Grupo Mexico and considered historically to be one of the largest polymetallic (Ag, Cu, Zn, Pb) producers in Mexico.
Due diligence work completed by the Company shows several near vertical veins and structures with widths up to 50 metres which cross-cut shallow-dipping mineralized manto (skarn) deposits up to 50 metres thick associated with an anticlinorium complex. Mantos appear to be mineralized near the apex of a series of anticlines. The main alteration and mineralized area appears to be approximately 2.5 kilometres in strike length, 300 to 500 metres wide and is associated with a nearby exposed intrusive stock. Geochemistry for the system is Ag-Cu-Au-Sb with sulfide mineralization consisting of tetrahedrite, bornite, and chalcopyrite. Native silver may also be present.
In late 2011 SilverCrest completed a phase I drill program. Data compilation for the Phase I drilling program and a newly received historic database has identified a large, near-surface bulk tonnage target at its La Joya. The compilation by SilverCrest has involved data and/or drill core review of 51 historic holes (14,786 metres) and 26 Company drill holes (5,716 metres) totaling 20,502 metres of drilling in 77 holes on the property.
Geology & Mineralization
The La Joya Property is underlain by Cretaceous sediments along the western margin of the Mexican Mesa Central, at the transition from the Sierra Madre Occidental, along the broadly defined San Luis-Tepehuanes fault system. The fault system is commonly referred to as the Mexican Silver Belt based on the country scale distribution of silver producing mines juxtaposed along the trend. The sedimentary package at La Joya consists of the Cuesta del Cura Limestone comprised of limestone with minor chert and siltstone overlain by the younger Indidura Formation comprised of calcareous siltstone, mudstone and siliciclastics.
The La Joya Deposit is a carbonate hosted copper skarn deposit with associated silver and gold mineralization, similar in style to the Fortitude-Copper Canyon deposit in Nevada, USA, and to the Sabinas/San Martin mines in Zacatecas, Mexico. Calcsilicate skarn mineralization is found on the property as andradite garnet, pyroxene, actinolite and wollastonite and is distributed amongst three styles of mineralization recognized to exist on the property. Ag-Cu-Au mineralization is concentrated within stratiform manto-style skarn controlled along sub-horizontal bedding. Ag-Cu-Au, Pb-Zn, and W mineralization is concentrated within structurally controlled stockwork and veining related skarn. Finally, W mineralization is found within late stage retrograde skarn development along the intrusive contact.
Sulphide mineralization generally transitions from chalcopyrite-dominant in proximal skarn to bornitedominant in distal skarn. Late sub-vertical laminated quartz-calcite veins bearing freibergite and arsenopyrite cross-cut pre-existing skarn mineralization and, although related to magmatic fluids, is not considered to be related to the skarn mineralizing events. Trace amounts of oxide from meteoric weathering processes are present within the structural corridors at depth.
Location: 170 kilometers northeast of Hermosillo, Sonora, Mexico.
Status: Drilling & Exploration - Approximately 45 core and RVC holes are planned to reclassify and potentially expand current NI43-101 resources.
The Company has previously drilled 47 reverse circulation and core holes on approximately 100 to 150 metre spacing and consistently intersected silver mineralization over a strike length of approximately 1.7 kilometres. These holes have confirmed a near-surface broad silver zone averaging an estimated 20 metres in thickness with grades ranging from 30.0 gpt to 111.0 gpt silver with multiple, narrower higher grade zones ranging from 489.0 gpt to 967.0 gpt silver. Based on the work to date, current resources at Cruz de Mayo are;
The results of the current drilling program along with subsequent metallurgical and environmental baseline work will be used to finalize a Pre-Feasibility Study in preparation for a MIA (Environmental Impact Assessment) for permitting and production.
The resource statements for Cruz de Mayo are based on recent information collected by SilverCrest Mines in 2006 and 2007. The most significant components of the data are the compiled results from 50 drill holes (5,096.3 metres).
The resource estimate for Cruz de Mayo was completed N. Eric Fier, CPG, P.Eng and reviewed by C. Stewart Wallis, P.Geo., independent qualified person (QP) from Scott Wilson Roscoe Postle and Associates of Toronto, Ontario. A Technical Report adhering to the disclosure requirements of NI 43-101 will be filed on SEDAR within 45 days of this release. Mr. Fier is the Chief Operating Officer and QP for the Company.
The Cruz de Mayo resource estimate is based on the following key assumptions; a cut-off of 30 gpt silver, silver grades exceeding 300 gpt were cut to 300 gpt based on log probability; raw data was composited to statistical relevant lengths of 2 metres; a 10 metre by 10 metre by 5 metre block size was used based on geological constraints and potential future mining method; variography and ordinary kriging was used to create both gold and silver block models; the interpolation method was Ordinary Kriging, performed in two passes: one using a search ellipsoid matching the variogram model and the second at a range of 90 x 90 x 50m.
The first pass was constrained to a minimum of 2 and maximum of 12 composites per block, with a maximum of 3 allowed from any one drill hole. The second pass, carried out at the larger search distance, was allowed to estimate blocks with a minimum of 1 composite, with all other search constraints kept the same; block models were classified into Indicated Resources using blocks from the first pass with a minimum of six composites and a distance to the nearest composite of 35 metres, into Inferred Resources using all blocks estimated in the second pass plus all first pass blocks not captured in the Indicated category, and a specific gravity of 2.54 based on test work. Details of these criteria will be presented in the upcoming Technical Report.
This resource estimate represents approximately 1.5 kilometres of the approximately 2.7 kilometre known strike length of the deposit. A work program at Cruz de Mayo for further expansion of the current resource with additional drilling is planned in 2008. The deposit is potentially amenable to open pit mining and standard heap leach processing. Significant potential for resource expansion exists along of the main mineralized zone and down dip.
J. SCOTT DREVER - CHIEF EXECUTIVE OFFICER AND DIRECTOR
Scott Drever has 45 years of geological expertise. He has dealt extensively with strategic planning, mergers & acquisitions, and operations for international mining corporations. Mr. Drever has served as an Executive Officer and Director of a number of public companies listed on the TSX and the TSX Venture Exchange, including Placer Dome Ltd., Blackdome Mining Corp., and Goldsource Mines Inc.
N. ERIC FIER, CPG, P.ENG - PRESIDENT, CHIEF OPERATING OFFICER AND DIRECTOR
Eric Fier has over 25 years of international experience in a senior capacity including exploration, acquisition, development and production of numerous mining projects in Chile, Brazil, Honduras, Mexico and Peru. His background includes project evaluation and management, reserve estimation and economic analysis, as well as operations management. Mr. Fier previously served as Chief Geologist with Pegasus Gold Corp., Senior Engineer and Manager with Newmont Mining Corp., and Project Manager with Eldorado Gold Corp.
BARNEY MAGNUSSON, CA - CHIEF FINANCIAL OFFICER AND DIRECTOR
Barney Magnusson has spent more than 30 years in corporate finance and public company management. He has actively been a part of management teams responsible for structuring and building rapidly expanding companies. Mr. Magnusson is a former Senior Officer and Director of six mining companies that developed, constructed or operated eight precious metal mines in North- and South America: Dayton Mines Inc. (Chile), High River Gold Mines Ltd. (Manitoba, Canada) and Brohm Resources Inc. (South Dakota, USA).
GRAHAM C. THODY, CA - NON-EXECUTIVE CHAIRMAN AND DIRECTOR
Graham Thody has spent more than 30 years in corporate finance and public company management. His focus has included audits of reporting companies, IPO's, corporate mergers & acquisitions, as well as domestic and international tax matters. Mr. Thody is a former partner of Nemeth Thody Anderson, Chartered Accountants. He is currently a director of several reporting corporations which are involved in mining exploration and development throughout North, Central and South America.
BRENT MCFARLANE - VP OPERATIONS
Brent McFarlane has over 25 years of diverse experience, including over 10 years in senior management positions in Latin America.He has managed all phases of open pit and underground mining projects and has been instrumental in leading projects through feasibility, construction, and into production.Mr. McFarlane previously worked as a project engineer with Pegasus Gold Corp, General Manager with Knight Piesold at Yanacocha, and Country Manager for Minefinders Corp. Ltd. in Mexico.
MARCIO FONSECA, P.GEO., MSC - VP CORPORATE DEVELOPMENT
Marcio Fonseca has over 20 years experience. He has served as Division Director at Macquarie Metals & Energy Capital with focus on equity and debt financing for the mining sector over the last 9 years. Prior to that, he held corporate positions in business development, project development, operations and exploration with Vale and Phelps Dodge in Latin America.
Marcio Fonseca holds a MSc in Mining Project Appraisal from Imperial College, London in a joint programme between Imperial College Department of Earth Science and Engineering and Imperial College Business School program.
TOM KEATING - VP FINANCE
Tom Keating leads SilverCrest's financial reporting team, responsible for; regulatory reporting, budgeting and internal controls. Tom joined SilverCrest Mines Inc. as the Corporate Controller in July 2009, having previously worked with PricewaterhouseCoopers LLP and Davidson and Company LLP specializing in the mining sector. Tom is a member of the Institute of Chartered Accountants of Ireland and holds a Bachelor of Computer Science degree from University College Dublin, Ireland.
BERNARD POZNANSKI, B.SC., LLB, LLM- CORPORATE SECRETARY
Bernard Poznanski has a broad legal background in corporate finance, mergers & acquisitions and securities law. He has acted for a wide variety of companies listed on the Toronto Stock Exchange, the TSX Venture Exchange, the American Stock Exchange and NASDAQ. Mr. Poznanski is one of the founding partners of Koffman, Kalef and currently heads the firm's securities group.
GEORGE W. SANDERS - DIRECTOR
George Sanders has a background spanning almost 30 years in mining and exploration finance. He previously worked as a mining analyst, a stockbroker specializing in resource issues and in managing a wide range of exploration finance activities. Mr. Sanders has held positions with Canaccord Capital Corp., Richmont Mines Inc., Consolidated Cinola Mines Ltd., and Shore Gold Inc. He is currently President and Director of Goldcliff Resource Corporation, a gold explorer focused on new discoveries is historic mining districts.
ROSS GLANVILLE, P.ENG., (B.A.SC., 1970; P.ENG, 1972; MBA, 1974; CGA, 1980) - DIRECTOR
Mr. Glanville has over forty years of resource-related experience in numerous countries, and has been involved in the exploration, financing, development, and operation of a number of mines. Mr. Glanville has specialized in valuations, fairness opinions, and litigation support, often as expert witness, related to the mining and exploration industry. He has prepared hundreds of valuations and fairness opinions for mining and exploration companies in North America, Africa, Australia, South America, Asia, and Europe. Mr. Glanville has formed public companies, listed on the Toronto Stock Exchange, the Australian Stock Exchange, NASDAQ, and the TSX Venture Exchange, and has served on the Boards of Directors of four companies with producing mines.
DUNHAM L. CRAIG, P.GEO - DIRECTOR
Dunham Craig has 26 years in the mining industry which has encompassed all aspects of mining projects and operations, progressing from exploration discovery to feasibility, financing, permitting, construction and production related to two mines. He has extensive experience in Canada, Central America and Mexico with groups such as Wheaton River Minerals Inc. and Glencairn Gold Inc. and has worked in development, construction and production in Latin America for over 15 years. In addition to his "discovery to production" experience with Wheaton River Minerals, Mr. Craig was Project, Construction & Interim Mine Manager for a 12,000 tpd gold heap leach operation in Central America. Mr. Craig is currently President and CEO of Geologix Explorations which has successfully acquired and permitted a 38,000 tpd gold/copper project in Mexico. .