Tuesday, 17 July 2012

SilverCrest Mines hits up to 151.8 g/t AgEq at La Joya property

SilverCrest Mines (CVE:SVL) (OTCQX:STVZF) Tuesday reported results of an additional 11 holes of the phase II drill program currently underway at its polymetallic deposit at the La Joya property in Durango, Mexico.

Highlights from the results include silver values in ranging from 25.8 grams per tonne (g/t) to 246.2 g/t silver equivalent in holes along the southern extension of the trend.

"Since announcement of our initial resource in January of this year, we have drilled an additional 45 holes as a part of the second phase of drilling at La Joya and have now reported positive results for 33 holes,” said president J. Scott Drever.

“We have successfully expanded mineralization in all lateral directions along the trend with the possible expansion of the declared resource. The most recent holes confirm our interpretation that the area to the south of the declared resource appears to host the most attractive mineralized portion of the trend which in many instances begins at or near to surface.”

Additional results include hole LJ DD12-50 in the main mineralized trend, which intersected 30.5 metres of 42.7 g/t silver, 0.13 g/t gold and 043% copper and yielded a silver equivalent value of 86.5 g/t; including 8.5 g/t silver, 0.19 g/t gold and 0.09% copper, with a silver equivalent value of 25.8g/t.

Also in the main mineralized trend, hole LJ DD12-53 intersected 36.3 g/t silver, 0.10 g/t gold, 0.21% copper and a silver equivalent value of 59.3 g/t; including 96.4g/t silver, 0.16g/t gold, 0.55% copper and 151.8 g/t silver equivalent.

SilverCrest said the phase II program is comprised of 80 holes totaling approximately 15,000 metres. The company has completed 45 core holes to date of the planned 60 core and 20 holes in the program.

Importantly, the company noted that phase II drilling reported to date has extended the main mineralized trend beyond the area containing the current Inferred Resource of 101.9 million ounces silver equivalent.

The drill defined trend now extends for approximately two kilometres with an average width of approximately 700 metres.
SilverCrest said drilling on the southern extension of the trend continues with two drill rigs and a third starting this month. A reverse circulation drill is expected to be added in due course.
Based on surface mapping, sampling and historic drill hole results, the southern area is thought to be potentially the highest grade area along the trend, said the company.
Core samples for holes LJ DD12-60 to 66 are currently in the laboratory being analyzed, and the company said it is currently drilling at hole LJDD12-71 located on the southern part of the trend.
SilverCrest noted that seven additional holes were drilled on the Coloradito target, which is a separate target one kilometre to the west of the trend. The company said that the mineralization is similar to that identified in the adjacent main mineralized trend.
The company said that molybdenum values appear to be higher at Coloradito compared to La Joya where copper values are higher, which implies a different intrusive or a subsequent intrusive event with different mineralizing solutions. Coloradito holes also contain anomalous copper, lead and zinc.
SilverCrest said additional drilling will be necessary to determine the nature and extent of this potential deposit.
The phase II drill program is anticipated to be complete in August 2012 with a subsequent revision and announcement of updated resources by the fourth quarter of 2012.

The company said that extensive metallurgical test work is ongoing to review amenability and potential metallurgical recoveries and that results will be presented in the next NI 43-101 technical report also anticipated in the fourth quarter of 2012 - with a target to increase the current resource of over 100 million ounces of silver by 50 to 100 per cent.

SilverCrest Mines is a Mexican precious metals producer. Its flagship property is the 100%-owned Santa Elena Mine, which is located 150 km 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 4,805,000 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.

A three year expansion plan is underway to double metals production at the Santa Elena Mine and exploration programs are rapidly advancing the definition of a large polymetallic deposit at the La Joya property in Durango State.

Earlier this month said its Santa Elena mine expansion remains on schedule, targeting a 100 per cent increase in metal production beginning in 2014.

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