Tuesday, 20 March 2012

SilverCrest extends main trend at La Joya 500 metres to the northwest of current resource

Precious metals producer SilverCrest Mines (CVE:SVL)(OTCQX:STVZF) unveiled Tuesday the results of the first six, phase two drill holes from 18 completed to date at its La Joya property in Durango, Mexico, extending the main mineralized trend 500 metres northwest.
The 18 core holes totalled roughly 8,000 metres of drilling, with the entire phase two program consisting of a planned total of 80 holes, or around 15,000 metres.
The company said that drilling so far has indeed extended the main trend an additional 500 metres northwest of the current resource area.
The width of the trend averages around 500 metres, narrowing to the northwest and widening to the southeast, and has been traced along strike for roughly 2,500 metres.
In January, the company announced an initial inferred resource on a portion of the trend of 57.9 million tonnes grading 28 grams per tonne (g/t) silver, 0.18 g/t gold and 0.21% copper, containing 101.9 million ounces of silver equivalent.
"A portion of the Phase II drilling is intended to explore the possible expansion of this resource estimate to the northwest as well as the southeast along the Trend and infill some of the wider spaced drill holes within the resource area," said president J. Scott Drever.
"The remainder of the program will test three targets adjacent to the Trend which have been shown by historical drilling and sampling to host significant Ag, Cu, Au, W, and Mo mineralization."
The first six holes in the phase two program reported today partially tested the northwestern extension of the main mineralized trend. Silver values ranged from 6.5 to 153.5 g/t, while silver equivalent values ranged from 16.9 to 354.0 g/t.
Notables holes included 32.3 metres of 95.8 g/t silver equivalent in hole L J DD11-27, and 51.3 metres of 90.4 g/t silver equivalent in hole L J DD11-29, including 21.8 metres of 158.3 g/t silver equivalent.
In addition, the full re-sampling of one historic  hole LB96-04R yielded an interval of 58.0 metres of  164.7 g/t silver equivalent, including 22.8  metres of 354 g/t silver equivalent. SilverCrest said it has been given access to more than 8,000 metres of historic core for validation, including hole LB96-04R.
All the holes reported Tuesday had a weighted average grade of 75.9 g/t silver equivalent and an average thickness of 22.7 metres.
The company said the underlying intrusive is exposed at the surface on the southern end of the trend and from the recent drilling, appears to be increasing in depth at the northern end of the trend.
Several holes contain anomalous molybdenum and tungsten values over significant widths in skarn, SilverCrest added.
The phase two program is expected to test approximately 2.5 kilometres of the main trend. Based on the results so far, additional drills are being mobilized to accelerate the drilling campaign, the company said.
The southern extension of the trend is thought to be potentially the highest grade area along the trend.
SilverCrest Mines is a Mexican precious metals producer, with its flagship property being the Santa Elena mine, located 150 kilometres northeast of Hermosillo, near Banamichi in the State of Sonora, Mexico.
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. SilverCrest anticipates that the 2,500 tonnes per day facility should recover approximately 4.8 million ounces of silver and 179,000 ounces of gold over the 6.5 year life of the open pit phase at the Santa Elena mine.
The company has plans to double metals production at Santa Elena.

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