Looks like $1 share price will be delayed. Awesome quarter!
SilverCrest Mines Inc. (“SilverCrest” or the “Company”) is pleased to announce record silver and gold production results for the second quarter (“Q2”) of 2015 from its 100% owned Santa Elena Mine located in Sonora, Mexico. When Q2 production is added to Q1, Santa Elena production for the six months (“H1”) ending June 30, 2015 has reached 1,146,694 ounces of silver and 27,392 ounces of gold, or 2,973,738 silver equivalent (“AgEq”(3)) ounces. As a result of this milestone, the Company is increasing its 2015 production market guidance from a range of 4.0 to 4.4 million to a range of 4.7 to 5.1 million AgEq ounces. For additional information and to view photos and videos of the Company’s Santa Elena Mine, please visit the Company’s website at www.silvercrestmines.com.
Production Highlights of Q2 2015, vs. Q2 2014;
- Silver production record of 681,302 ounces; a 294% increase.
- Gold production record of 14,137 ounces; a 254% increase.
- AgEq(3) production record of 1,624,211 ounces; a 270% increase. (1,286,589 AgEq ounces sold; a 168% increase).
- Average mill throughput of 3,059 tonnes per day (“tpd”); in line with nominal capacity of 3,000 tpd.
- Average silver and gold recovery rates (2) of 74% and 96%, respectively.
- Bullion inventory at the end of Q2 2015 included 247,841 ounces of silver and 5,090 ounces of gold.
N. Eric Fier, CPG, P.Eng, and Chief Operating Officer, stated; “We are pleased with the strong performance in 2015 at Santa Elena, as we continue to break production records. As a result, we are increasing our 2015 production market guidance to a range of 4.7 to 5.1 million AgEq ounces. I would like to congratulate our operations management and workforce for their diligent and hard work which has resulted in four consecutive record production quarters since Q3/14. During H1 2015, we produced 2.97 million AgEq(3) ounces which is equivalent to Santa Elena’s 2014 annual production. Average recoveries for silver have increased by 23% from 60% during Q1 to 74% in Q2 with implementation of several mill operating efficiencies. We continue with exploration drifting on the higher grade El Cholugo Zone with development ore currently being milled, which partially accounts for higher than expected grades and ounces in H1 from underground mine production”.
(1) Production during Q2 2014 was only approximately 50% of the quarterly average in 2014 as a result of closing the open pit ahead of schedule, phasing out production from the heap leach operation and starting up the new processing facility. Silver and gold ounces produced in Q2 2014 include ounces recovered from the leach pad and the new processing facility.
(2) Estimated recoveries are as reported, based on calculated grade.
(3) The Silver equivalent (“AgEq”) ratio for 2015 is 66.7 and is calculated using metal prices of $1,200/oz for gold and $18/oz for silver. For consistency with, comparative periods, the AgEq ratio reported during 2014 was changed from 60:1 to 66.7:1.
During Q2 2015, the mill processed a quarterly record of 278,386 tonnes (Q1 2015: 271,392), with a daily average of 3,059 tonnes per day (Q1 2015: 3,015). The plant processed open pit and underground ore at 49% (Q1 2015: 48%) blended with 51% (Q1 2015: 52%) leach pad ore. The average grades processed during Q2 2015 for open pit and underground ore were 165.8 gpt silver (Q1 2015: 124.8) and 2.71 gpt gold (Q1 2015: 2.55). Leach pad ore grades were 43.0 gpt silver (Q1 2015: 54.8) and 0.62 gpt gold (Q1 2015: 0.85).
Mill recovery rates for Q2 2015 averaged 96% (Q1 2015: 91%) for gold and 74% (Q1 2015 – 60%) for silver. The 23% increase in silver recoveries from Q1 2015 was due to increased cyanide levels and aeration (pressurized air) into the mill leach tanks. H2 mill recovery rates are expected to be similar to Q2. The average mill feed blend was 103.3 gpt silver and 1.65 gpt gold, a 17% increase in silver and a 1% decrease in gold from Q1 2015.
The Santa Elena open pit was temporarily reopened in January 2015, and 71,394 tonnes with average grades of 142.0 gpt silver and 2.66 gpt gold were mined. The Company market guidance for 2015 which was announced on January 15, 2015 did not account for re-opening the pit, therefore, part of H1 higher production reflects this positive impact. Pit operations were shut down in April 2015, due to pit constraints. The remaining unmined 50,312 tonnes of open pit reserves will be included in underground reserves.
During Q2 2015, a daily average of 1,174 (Q1 2015: 1,080) tonnes was mined from underground which includes daily mining of two to three long hole stopes and development ore. Grade reconciliations are ongoing with volumes to date in line with the block model and grades higher than expected. SilverCrest plans in H2 to continue to improve and optimize underground stoping, and explore and develop the higher grade El Cholugo Zone (Alejandra Veins). The Company expects to achieve an underground mining rate of up to 1,500 tpd during H2, 2015. Average mill feed volume at 3,000 tpd is targeted at approximately 40% underground ore and 60% leach pad ore with no contribution from open pit ore for H2, 2015.