SilverCrest Mines (TSX-V: SVL)(“SilverCrest”) reported that mine construction the Santa Elena mine in Mexico is progressing “on schedule and currently under budget”.
Once developed, Santa Elena will produce silver and gold from an open pit heap leach mine. First gold/silver pour is expected “mid-year” with commercial production arriving in the fourth quarter (Q4). At full production, the mine is expected to produce approximately 35,000 ounces of gold and 600,000 ounces of silver per annum for seven years at an average cash cost of US$375 per ounce gold equivalent. Total capital cost is expected to be US$20 million.
SilverCrest reported a number of milestones this morning, including completion of a 6 kilometre access road, pouring of concrete foundations and delivery on the plastic liners for the heap leach pad.
"There are currently more than 100 Santa Elena and contractor employees on site aggressively constructing the facilities in anticipation of the first gold and silver pour within in the next 6 to 7 months,” J. Scott Drever, President stated, “We have continued to fine tune the capital and operating parameters of the project with the result that the already robust project economics continue to improve as the mine moves toward production."