SVL Announces Record Annual & 4th Quarter Production in 2013https://finance.yahoo.com/news/silvercrest-announces-record-annual-4th-130000306.html SilverCrest Announces Record Annual and 4th Quarter Production in 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 16, 2014) - SilverCrest Mines Inc. (TSX VENTURE:SVL)(NYSE MKT:SVLC)(NYSE Amex:SVLC) (the "Company") is pleased to announce record production of 2.66 million ounces AgEq(1) for 2013 and record production of 796,751 ounces AgEq(1) for Q4 2013 from its 100% owned Santa Elena Mine located in Sonora, Mexico. All dollar amounts are expressed in U.S. dollars unless otherwise specified.
2013 Operating Highlights (Compared to 2012)
- Produced 779,026 ounces of silver, up 34%
- Produced 31,099 ounces of gold, down 6%.
- Produced 2.66million AgEq(1)ounces in 2013, up 12%
- Silver and gold ore grade (gpt) loaded on pad up 52% and 13% respectively
- Average strip ratio (waste to ore) reduced from 4.25:1 to 2.56:1, a 40% decrease
N. Eric Fier, President and COO stated; "2013 was another successful year and marked SilverCrest's second full year in commercial production. Management congratulates our operating team for their valuable contributions and for delivering on their commitments. Santa Elena surpassed production guidance which was revised upwards during the year and produced 2.66 million AgEq(1) ounces in 2013. Moving forward in 2014, SilverCrest will continue to focus on delivering strong operating results and optimizing our operating cash flow as we complete the Santa Elena Expansion and increase production to approximately 3.3 million to 3.6 million AgEq(1) ounces. Management will continue to focus on improving cash flows by reducing costs and increasing productivity where possible to offset the current precious metals prices. Operating cash costs are expected to range from $8.50 to $9.25 AgEq(1) ounce in 2014. Further details on market guidance will be presented in the upcoming annual financial report."
During the fourth quarter of 2013, the Santa Elena mine produced a record 228,787 silver ounces almost 50% more than the same quarter in 2012. Silver production continues to set quarterly records due to improvement in recoveries and higher grade ore loaded on the leach pad. Gold production of 9,218 ounces was 18% above the same quarter in 2012. Open pit tonnes and grades have continued to reconcile closely with the resource model and mine plan and all aspects of operations continue to function well.
| Santa Elena Mine Operating Highlights | | 2013 | | 2012 | | %
Change | | Q4
2013 | | Q4
2012 | | %
Change |
| Silver ounces produced | | 779,026 | | 579,609 | | 34% | | 228,787 | | 153,863 | | 49% |
| Gold ounces produced | | 31,099 | | 33,004 | | -6% | | 9,218 | | 7,831 | | 18% |
| AgEq ounces produced (1) | | 2,661,979 | | 2,371,755 | | 12% | | 796,751 | | 588,948 | | 35% |
| | | | | | | | | | | | | |
| Silver ounces sold | | 751,633 | | 588,312 | | 28% | | 208,200 | | 171,714 | | 21% |
| Gold ounces sold | | 30,487 | | 34,834 | | -12% | | 8,220 | | 8,444 | | -3% |
| AgEq ounces sold (1) | | 2,595,716 | | 2,477,623 | | 5% | | 714,678 | | 640,856 | | 12% |
| | | | | | | | | | | | | |
| Tonnes ore mined | | 1,076,421 | | 1,092,305 | | -1% | | 248,725 | | 301,295 | | -17% |
| Tonnes waste mined | | 2,753,025 | | 4,640,700 | | -41% | | 405,616 | | 924,927 | | -56% |
| Waste / ore ratio | | 2.56 | | 4.25 | | -40% | | 1.63 | | 3.07 | | -47% |
| Ore tonnes crushed | | 1,081,159 | | 1,157,226 | | -7% | | 263,097 | | 308,693 | | -15% |
| Average ore tonnes crushed per day | | 2,962 | | 3,162 | | -6% | | 2,860 | | 3,355 | | -15% |
| Average silver ore grade (gpt) loaded on pad | | 72.90 | | 47.95 | | 52% | | 81.58 | | 59.59 | | 37% |
| Average gold ore grade (gpt) loaded on pad | | 1.61 | | 1.43 | | 13% | | 1.82 | | 1.42 | | 28% |
| Silver ounces delivered to pad | | 2,533,883 | | 1,784,118 | | 42% | | 690,104 | | 591,441 | | 17% |
| Gold ounces delivered to pad | | 56,093 | | 53,296 | | 5% | | 15,363 | | 14,089 | | 9% |
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| Ag : Au Ratio (1) | | 60.5:1 | | 54.3:1 | | 12% | | 61.6:1 | | 55.6:1 | | 11% |
| (1) Silver equivalent ("AgEq") ounces consist of the number of ounces of silver production/sold plus the number of ounces of gold production/sold multiplied by the ratio of the spot gold price to the spot silver price at the quarter end dates for financial reporting. All numbers are rounded. |
2013 Construction and Expansion Plan Progress
- The 3,000 tpd mill and Counter Current Decantation / Merrill Crowe ("CCD/MC processing") plant is approximately 90% physically complete. The current construction activities are focused on piping and electrical work for all mill components. Please refer to www.silvercrestmines.com for detailed construction photos
- The mill is now scheduled to start up late Q1 2014, due to a one month delay in receiving the ball mill
- Total underground development progressed to 2,265 metres: lateral development of 805 metres and main decline ramp to 1,460 metres in length as of December 31, 2013
- A 1,500 metre underground drill program was completed to assist with detailed design of initial production stopes. Mining of these stopes is anticipated in the second half of 2014
- The Company is targeting commissioning of the plant in the second quarter of 2014. The Initial mill feed will be from the open pit, transitioning to an underground and heap leach pad ore mix in the third quarter of 2014
2014 Capital Expenditure Budget
The following represents the estimated 2014 Capital Expenditure Budget:
| Santa Elena Expansion Capital | | 2014 estimated expenditures |
| Mill Facility (1) | | $14 million |
| Underground Mine Development | | $ 5 million |
| Underground Mine Equipment | | $ 7 million |
| Total | | $26 million |
| (1) $10 million is carried over from 2013 approved budget. |
| |
| |
| Exploration | | 2014 estimated expenditures |
| Santa Elena - Surface and Underground Resource Expansion Drilling | | $1.5 million |
| Sonora - Exploration Projects 30/60 Km Existing Operations - Initial Drilling | | $1.5 million |
| La Joya Project - Infill Drilling | | $1.0 million |
| La Joya Project - Acquisition Payments | | $1.8 million |
| Total | | $5.8 million |
| Exploration expenditures may be adjusted throughout the year depending on success. |
2014 Exploration Program
In 2014, the Company will continue to focus its exploration efforts through organic growth on; 1) surface and underground drilling at Santa Elena for potential resource expansion and further reserve definition, 2) the 30/60 kilometre program surrounding the Santa Elena Mine to identify additional resources including the recently optioned Ermitano Property and, 3) in-fill drilling with subsequent metallurgical studies at La Joya to upgrade current resources to a Pre-Feasibility level.
Upcoming Conference:
SilverCrest's President & COO, N. Eric Fier, will be attending the Vancouver Resource Investment Conference held at the Vancouver Convention Centre on January 19-20, 2014. Management looks forward to meeting its shareholders and interested parties at booth #1310. Further information is available at: https://cambridgehouse.com/event/vancouver-resource-investment-conference-2014The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projectsfor this News Release is N. Eric Fier, CPG, P.Eng, President and Chief Operating Officer for SilverCrest Mines Inc., who has reviewed and approved its contents.