Production is here !!
SilverCrest Declares Commercial Production at Santa Elena Mine; Pours 74,678 oz of Silver and 5,476 oz of Gold in Q2 2011
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 13, 2011) -SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL) is pleased toreport it has achieved Commercial Production at its 100% owned SantaElena mine located in Sonora, Mexico. Commercial Production is deemed tohave commenced when management determines that the operationalcommissioning of the mine shows:
- a significant portion of mining, crushing, plant operating capacity has been achieved;
- all facilities are operating at a steady state of production; and
- a pre-determined, reasonable period of operating time has passed.
Prior to achieving commercial production, revenuesand related expenses have been recognized in Property Plant andEquipment as a reduction or increase respectively to carrying values ofmining assets. Q2 of 2011 will be the first period reported as beingcommercial whereby revenues and expenses will be presented inforthcoming consolidated interim financial statements.
During 2011, which will be a partial year at fullproduction rates, and based on the current life of mine plan, the mineis expected to produce approximately 430,000 ounces of silver and 26,000ounces of gold. The first full year of production will be 2012 duringwhich the mine is expected to produce 478,000 ounces of silver and32,000 ounces of gold. From 2013 through 2016, there is a significantincrease in recovered silver ounces of an estimated 750,000 to 1.1million ounces per year. For additional information and to viewproduction photos, please visit the Company's website at www.silvercrestmines.com.
The following summarizes the main highlights duringthe respective periods of the Commissioning Phase of Santa Elena and thefirst quarterly period of commercial production ending June 30, 2011;
|
Sept-Dec
2010 |
Jan-Mar
Q1 2011 |
Apr-Jun
Q2 2011 |
Total /
Average |
| Silver ounces produced |
54,886 |
64,712 |
74,678 |
194,276 |
| Gold ounces produced |
2,140 |
3,152 |
5,476 |
10,768 |
|
|
|
|
- |
| Silver ounces sold * |
27,536 |
75,638 |
76,221 |
179,395 |
| Gold ounces sold * |
933 |
3,259 |
5,202 |
9,394 |
|
|
|
|
|
| Ore tonnes crushed |
244,627 |
218,527 |
249,054 |
712,208 |
| Average ore tonnes crushed per day |
2,005 |
2,428 |
2,737 |
2,390 |
|
|
|
|
|
| Average silver ore grade (gpt) |
34.77 |
34.07 |
44.02 |
34.39 |
| Average gold ore grade (gpt) |
0.69 |
1.14 |
1.89 |
1.00 |
|
|
|
|
|
| Silver ounces delivered to pad |
285,975 |
239,369 |
352,996 |
878,340 |
| Gold ounces delivered to pad |
5,325 |
8,006 |
15,269 |
28,600 |
| * Effective Q2, 2011, the Company's accounting policy is to record ounces sold when they are delivered to the refiner. |
-
The crusher is currently operating above daily designed throughput of 2,500 tpd with an average of 2,583 tpd for the period January through June 2011 and an average of 2,737 tpd during Q2, 2011.
-
Estimated initial silver recovery of 21% and gold recovery of 38% are consistent with budgeted numbers of 24% for silver and 41% for gold during the Commissioning Phase. Projected total metal recoveries of 35 to 40% silver and 65 to 70% gold which are based on a 300 day leach cycle appear to be achievable. The average time under leach for the Main Zone higher grade ore is currently at 60 days.
-
The Main Zone is now being mined and leached with leach recovery times similar to the extensive Metcon metallurgical testing and bulk column test work. In June high grade ore being delivered from the Main Zone to the pad averaged approximately 53.35 gpt Ag and 1.97 gpt Au and the overall grade of the ore on the pad has increased from 40.35 gpt Ag and 0.60 gpt Au in January to 41.28 gpt Ag and 1.03gpt Au at the end of June.
-
Metal production has increased steadily from 64,712 ounces of silver and 3,152 ounces of gold in Q1 to 74,678 ounces of silver and 5,476 ounces of gold in Q2, 2011.
-
Loan payments of US$1.3 million and US$800,000 were made from production revenues to Macquarie Bank Limited on March 31, 2011 and June 30, 2011, respectively, Loan obligations of US$5.6 million remain for fiscal 2011. As of June 30, 7,515 ounces of gold had been delivered in to the Macquarie gold price protection program.
-
1,879 ounces have been delivered to Sandstorm under the gold stream agreement to the end of Q2, 2011.
-
No lost time accidents since construction started in 2009 with over 560,000 hours worked.
-
The Company currently has approximately $34.5 million in cash.
J. Scott Drever, President stated;"We are certainly pleased at this time as to how the Commissioning Phasefor the Santa Elena operations has progressed. All aspects of theoperations are at design capacities and are functioning as expected withthe exception of the crusher. We have experienced a number of operatingchallenges with crusher operations which have required operating timesto be increased to an average of 18 hours per day rather than thebudgeted 14 hours to meet production targets. Our supervisory personnelhave worked diligently to assure that the normal start-up challengeswere resolved and the project has reached a steady state at designcapacity. The receipt of substantial revenues from the sale of oursilver and gold production has reduced the amount of working capitalrequired during start up and has set the stage for early, free cash flowthat will be utilized to implement the Company's strategy for corporategrowth."
N. Eric Fier, CPG, P.Eng. and Chief Operating Officerfor SilverCrest Mines Inc. and Qualified Person for this news releasehas reviewed and approved its contents.
SilverCrest Mines Inc. (TSX VENTURE:SVL) isa Mexican precious metals producer with headquarters based inVancouver, BC. SilverCrest's flagship property is the 100%-owned SantaElena Mine, which is located 150km northeast of Hermosillo, nearBanamichi in the State of Sonora, México. The mine is a high-grade,epithermal gold and silver producer, with an estimated life of mine cashcost of US$8 per ounce of silver equivalent (55:1 Ag:Au). SilverCrestanticipates that the 2,500 tonnes per day facility should recoverapproximately 4,805,000 ounces of silver and 179,000 ounces of gold overthe 6.5 year life of the open pit phase of the Santa Elena Mine.
This news release contains forward-lookingstatements, which address future events and conditions, which aresubject to various risks and uncertainties. The Company's actualresults, programs and financial position could differ materially fromthose anticipated in such forward-looking statements as a result ofnumerous factors, some of which may be beyond the Company's control.These factors include: the availability of funds; the timing and contentof work programs; results of exploration activities and development ofmineral properties, the interpretation of drilling results and othergeological data, the uncertainties of resource and reserve estimations,receipt and security of mineral property titles; project cost overrunsor unanticipated costs and expenses, fluctuations in metal prices;currency fluctuations; and general market and industry conditions.Forward-looking statements are based on the expectations and opinions ofthe Company's management on the date the statements are made. Theassumptions used in the preparation of such statements, althoughconsidered reasonable at the time of preparation, may prove to beimprecise and, as such, undue reliance should not be placed onforward-looking statements.
J. Scott Drever, President
SILVERCREST MINES INC.