SilverCrest Mines Inc SVLC

RE: RE: RE: Buyout?

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SilverCrest Mines* (SVL : TSX-V : $1.79), Net Change: 0.02, % Change: 1.13%, Volume: 118,564

All I want from Santa...SilverCrest reported an update on the Santa Elena expansion plan and the ongoing exploration work at the La Joya project. Construction of the mill expansion at Santa Elena is expected to begin in Q4/12. Detailed engineering is expected to be completed in Q1/13 with the mill expected to begin processing material in Q1/14, in line with analyst current forecast. An Expansion Plan Pre-Feasibility Study is expected to be completed before the end of 2012. Thirteen shallow in pit drilling has confirmed a higher grade zone of mineralization within the lower part of the planned open pit. The best hole returned a 16 m interval grading 6.2 g/t gold and 102.7 g/t silver. This zone is to be incorporated into an updated mine plan for Santa Elena. Eighteen surface holes are to be drilled to further test the down dip extension of the current underground exploitable resource, with initial results expected over the next few months. Some 470 metres of underground development has been completed to date with 1,500 metres of development planned for 2012. The underground operation is expected to begin contributing roughly 1,000 tpd of higher-grade mineralization to the mill by mid-2014. Phase II drilling at La Joya continues with assay results from a further 10-15 holes expected to be reported before the end of July. The company has been testing for extensions of mineralization to the south and west, where surface sampling has indicated the potential for wider, higher-grade zones of mineralization. Forty of a planned 60-hole drill program has been completed to date. An updated resource estimate is expected before the end of 2012. The updated resource is likely to include potential tungsten, molybdenum, tin, lead and zinc mineralization at La Joya, which could provide meaningful by-product credits to the current silver-copper-gold resource. In addition, the company continues to progress metallurgical test work for the project. SVL has $35 million in cash on hand. A Bay Street analyst notes, keep in mind, the grade of the Santa Elena mine is expected to climb to 2.8 g/t gold and 100 g/t silver in 2013. This would be a phenomenal grade for the current open pit operation. To be conservative, he has incorporated a grade of only 2.5 g/t gold and 80 g/t silver into his model. With the cash on hand and cash flow from the mine, the analyst believes SVL should have sufficient funds to finance all of the company's planned exploration and development activities over the next 18 months. SVL remains one of Canaccord Genuity Mining Analyst Nicholas Campbell’s top picks in the junior mining space. SVL is trading at 2.6x 2013E CFPS and 0.29x P/NAV (5%, spot) compared with the junior average of 7.6x 2013E CFPS and 0.68x P/NAV (5%, spot).