NEWS OUT THIS MORNING !!!
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13,2011) - SilverCrest Mines Inc. (TSX VENTURE:SVL) (the "Company") ispleased to report on start-up production and commissioning phaseactivities at its 100% owned Santa Elena mine located in Sonora, Mexico.Based on revised reserve estimates, mine plan and leach cycle, the openpit mine is expected to produce approximately 800,000 ounces of silverand 30,000 ounces of gold per full year of production at an estimatedlife of mine cash cost of US$8 per ounce of silver equivalent using a55:1 Ag:Au ratio on a recovered ounce basis. Based on start-upproduction for the first quarter and assuming Commercial Production(near design capacity and steady-state) is achieved by June, the mine isexpected to produce approximately 430,000 ounces of silver and 26,000ounces of gold for 2011. The most significant commissioning activitiescompleted to December 31, 2010 and March 31, 2011 are outlined below.For more information and to view production photos, please visit theCompany's website at
www.silvercrestmines.com.
Commissioning Phase Highlights: September 9, 2010 to March 31, 2011
Ore tonnes crushed 555,000
Waste tonnes mined 1,099,390
Ave. strip ratio (W:O) 2:1
Ave. mined ore grade 40.0 gpt Ag, 0.81 gpt Au
Ore tonnes to leach 555,000
Ounces to leach 597,500 Ag, 14,940 Au
Ounces poured to dore 119,598 Ag, 5,292 Au
Ounces sold 85,064 Ag, 3,266 Au
Gross proceeds US$5,348,000
Production and Commissioning Activities to December 31, 2010
Approximately336,000 tonnes of lower grade ore (includes 15,000 tonnes of old dumps)have been crushed from the open pit at a strip ratio of waste to ore ofapproximately 2:1. Mining of these lower grade tonnes (average grade of0.60 gpt Au and 40.2 gpt Ag) was necessary to provide working space forequipment in the initial cut and to create a lower angle for theultimate pit high wall for safety reasons. This lower grade material isconsidered pre-strip for the higher grade Main Zone which is now beingmined and will provide the bulk of the ore to be mined in 2011.
Thecrusher operated at near design throughput capacity of approximately2,500 tpd. There was approximately 35,000 tonnes of ore from the openpit in stockpile waiting to be crushed at the end of the year.Optimization of the various operating parameters of the crusher wasunderway in order to reach a steady state of production at designcapacity and to achieve the ultimate size reduction of ore to 100% minus3/8".
ByDecember 31, the heap leach pad held an estimated 336,500 tonnes of orecontaining approximately 360,000 ounces of silver and 6,900 ounces ofgold that were under leach.
OnSeptember 9, 2010, the Company poured its first dore bar. As ofDecember 31, 2010, 54,886 ounces of silver and 2,140 ounces of gold wereproduced as dore with a significant amount of silver and gold still insolution for processing and recovery. The Company sold 27,675 ounces ofsilver and 933 ounces of gold for gross proceeds of approximatelyUS$1,538,000. The Company delivered 187 ounces of gold under its goldstream contract with Sandstorm and delivered 746 ounces under the goldprice protection program with Macquarie Bank.
Averagecost per ounce silver equivalent (55:1 Ag:Au) during start up in 2010was US$18.40 and cost per tonne of ore processed was US$13. Since themine is currently in the commissioning phase, these costs are notrepresentative of average commercial production projections.
Production and Commissioning Activities from January 1 to March 31, 2011
Approximately220,000 tonnes of ore were crushed from the open pit at a strip ratioof waste to ore of approximately 3:1. Mining of the lower grade materialwas completed and the lower grade stock pile was processed. The highgrade ore (average quarterly grade of 1.21 gpt Au and 39.3 gpt Ag) ofthe Main zone is now being mined and will provide the bulk of the ore tobe mined in 2011. Crusher throughput averaged 2,428 tonnes per daywhich is nominally below the design throughput capacity of 2,500 tpd.Optimization of the various operating parameters of the crusher wascompleted or underway in order to reach a steady state of production atdesign capacity.
Currently,the heap leach pad holds an estimated total of 555,000 tonnes of orecontaining approximately 597,500 ounces of silver and 14,940 ounces ofgold that are under leach. In the first 90 days of the leach cycle forore on the pad, recovery was estimated at 25 to 30% recovery for goldand 10 to 15% recovery for silver. The first ore placed on the pad hasbeen under leach for approximately 200 days with estimated totalrecoveries of 35 to 45% of the gold and 20 to 30% of the silver. Theoptimum recoveries of 65 to 70% gold and 35 to 40% silver predicted bythe design metallurgical test work appear to be achievable, but finalleaching times may extend beyond the 300 day, test work leach cycle.
TheMerrill Crowe recovery unit, refinery and on-site lab were allperforming well. Optimization of cyanide concentrations, solutionvolumes and heap Ph is underway. Steady state production at designcapacities will be dependent on sufficient tonnages and grade of ore onthe pads to accommodate the required solution volumes.
Duringthe 3 month period ended March 31, 64,712 ounces of silver and 2,152ounces of gold were produced as dore with a significant amount of silverand gold still in solution for processing and recovery. The Companysold 57,390 ounces of silver and 2,333 ounces of gold for gross proceedsof approximately US$3,810,000. The Company delivered 467 ounces of goldunder its gold stream contract with Sandstorm and delivered 1,866ounces under the gold price protection program with Macquarie Bank.Project to date is cash positive accounting for budgeted work capital,operating costs and gross proceeds.
Averagecost per ounce silver equivalent (55:1 Ag:Au) during the first quarterof 2011 was US$11.30 and cost per tonne of ore processed was US$12.70which is within range of the operations budget. Since the mine iscurrently in the commissioning phase, these costs are not representativeof average commercial production projections.
To date, no lost time accidents have occurred since construction started in October 2009 with over 450,000 hours worked.
J.Scott Drever, President stated; "We are certainly pleased at this timeas to how the commissioning phase for the Santa Elena mine isprogressing. We are beginning to see the high grade ore of the Main Zonebeing stacked on the pads. Initial sales of our silver and gold willoffset the operating costs during this start up phase and will set thestage for early, free cash flow that will be utilized to implement theCompany's strategy for corporate growth."
N.Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrestMines Inc. and Qualified Person for this news release has reviewed andapproved its contents.
SilverCrest Mines Inc. (TSX VENTURE:SVL) is a Mexican precious metalsproducer with headquarters based in Vancouver, BC. SilverCrest'sflagship property is the 100%-owned Santa Elena Mine, which is located150km northeast of Hermosillo, near Banamichi in the State of Sonora,Mexico. 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 silverequivalent (55:1 Ag:Au). SilverCrest anticipates that the 2,500 tonnesper day facility should produce an average of approximately 800,000ounces of silver and 30,000 ounces of gold per full production year fromthe open-pit heap leach operation.
This news release contains forward-looking statements,which address future events and conditions, which are subject to variousrisks and uncertainties. The Company's actual results, programs andfinancial position could differ materially from those anticipated insuch forward-looking statements as a result of numerous factors, some ofwhich may be beyond the Company's control. These factors include: theavailability of funds; the timing and content of work programs; resultsof exploration activities and development of mineral properties, theinterpretation of drilling results and other geological data, theuncertainties of resource and reserve estimations, receipt and securityof mineral property titles; project cost overruns or unanticipated costsand expenses, fluctuations in metal prices; currency fluctuations; andgeneral market and industry conditions. Forward-looking statements arebased on the expectations and opinions of the Company's management onthe date the statements are made. The assumptions used in thepreparation of such statements, although considered reasonable at thetime of preparation, may prove to be imprecise and, as such, unduereliance should not be placed on forward-looking statements.
J. Scott Drever, President
SILVERCREST MINES INC