Stonecap Securities keeps SilverCrest Mines at "Outperform"

Stonecap Securities has kept its "Outperform" rating on SilverCrest Mines (CVE:SLV) after the precious metals producer provided a progress on expansion plans at its Santa Elena mine in Mexico.

The capital markets firm also maintained its target price at $3.75.

Last week, SilverCrest said its Santa Elena mine expansion remains on schedule, targeting a 100 per cent increase in metal production beginning in 2014. The silver miner also said that it anticipates a resource update for its La Joya exploration-stage
property in Durango, Mexico by the fourth quarter of 2012.

"SilverCrest remains on track with its plan to double annual production to around 4 million ounces silver equivalent at Santa Elena by 2014," Stonecap analyst Christos Doulis said in a note.

"The expected resource update at La Joya in Q4 could also act as a major catalyst for SilverCrest shares."
In a project update, SilverCrest said that expansion activities for its flagship Santa Elena mine in Mexico continue, with construction of a proposed 3,000 tonne per day CCD processing plant scheduled to start in the fourth quarter.

SilverCrest noted that detailed engineering for the entire facility should be completed by the first quarter of 2013, with a target to begin milling ore from the open pit by January 2014.

Underground decline work continues, and SilverCrest said it anticipates an initial production rate of 1,000 tonnes per day starting in mid-2014.