🕐13.07.11 - 15:54 Uhr
SILVERCREST DECLARES COMMERCIAL PRODUCTION AT SANTA ELENA MINE
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SilverCrest Declares Commercial Production at Santa Elena Mine;
Pours 74,678 oz of Silver and 5,476 oz of Gold in Q2 2011
TSX-V SVL
For Immediate Release
Dear Subscriber,
VANCOUVER, BRITISH COLUMBIA July 13, 2011- SilverCrest Mines Inc.
(the
"Company") (TSX VENTURE:SVL) is pleased to report it has achieved Commercial
Production at its 100% owned Santa Elena mine located in Sonora, Mexico.
Commercial Production is deemed to have commenced when management determines
that the operational commissioning 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, revenues and related expenses have
been recognized in Property Plant and Equipment as a reduction or increase
respectively to carrying values of mining assets.
Q2 of 2011 will be the
first period reported as being commercial whereby revenues and expenses will
be presented in forthcoming consolidated interim financial statements.
During 2011, which will be a partial year at full production rates, and
based on the current life of mine plan, the mine is expected to produce
approximately 430,000 ounces of silver and 26,000 ounces of gold.
The first
full year of production will be 2012 during which the mine is expected to
produce 478,000 ounces of silver and 32,000 ounces of gold.
From 2013
through 2016, there is a significant increase in recovered silver ounces of
an estimated 750,000 to 1.1 million ounces per year.
For additional
information and to view production photos, please visit the Companys
website at [2]www.silvercrestmines.com.
Links:
2.
http://www.silvercrestmines.com
The following summarizes the main highlights during the respective periods
of the Commissioning Phase of Santa Elena and the first quarterly period of
commercial production ending June 30, 2011;
Sept-Dec 2010 Jan-Mar Q1 2011 Apr-Jun Q2 2011 Total/Average
Silver ounces 54,886 64,712 74,678 194,276
Produced
Gold ounces 2,140 3,152 5,476 10,768
delivered
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 2,005 2,428 2,737 2,390
crushed per day
Average silver ore 34.77 34.07 44.02 34.39
grade (gpt)
Average gold ore 0.69 1.14 1.89 1.00
grade (gpt)
Silver ounces 285,975 239,369 352,996 878,340
delivered to pad
Gold ounces 5,325 8,006 15,269 28,600
delivered to pad
* Effective Q2, 2011, the Companys 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 Phase for the Santa Elena operations has
progressed.
All aspects of the operations are at design capacities and are
functioning as expected with the exception of the crusher.
We have
experienced a number of operating challenges with crusher operations which
have required operating times to be increased to an average of 18 hours per
day rather than the budgeted 14 hours to meet production targets.
Our
supervisory personnel have worked diligently to assure that the normal
start-up challenges were resolved and the project has reached a steady state
at design capacity.
The receipt of substantial revenues from the sale of our
silver and gold production has reduced the amount of working capital
required during start up and has set the stage for early, free cash flow
that will be utilized to implement the Companys strategy for corporate
growth."
N.
Eric Fier, CPG, P.Eng.
and Chief Operating Officer for SilverCrest Mines
Inc.
and Qualified Person for this news release has reviewed and approved
its contents.
SilverCrest Mines Inc.
(TSX VENTURE:SVL) is a Mexican precious metals
producer with headquarters based in Vancouver, BC.
SilverCrests flagship
property is the 100%-owned Santa Elena Mine, which is located 150km
northeast of Hermosillo, near Banamichi in the State of Sonora, México.
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 silver equivalent (55:1 Ag:Au).
SilverCrest anticipates that the 2,500 tonnes per day facility should
recover approximately 4,805,000 ounces of silver and 179,000 ounces of gold
over the 6.5 year life of the open pit phase of the Santa Elena Mine.
"J.
Scott Drever"
J.
Scott Drever, President
For further information, please contact:
Fred Cooper
570 Granville Street, Suite 501
Vancouver, BC V6C 3P1
Telephone: (604) 694-1730
Fax: (604) 694-1761
Email: [3]
Website: [4]www.silvercrestmines.com
Toll Free: 1-866-691-1730 (Canada & USA)
Links:
3.
mailto:
4.
http://www.silvercrestmines.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SilverCrest Mines Inc.
Copyright ©2008 | [5]
SilverCrest Mines Inc.
- 570 Granville St., Suite 501 V6C 3P1, Vancouver BC
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