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Thursday, 27 September 2012
SilverCrest Mines reveals results from La Joya that extend mineralization beyond current resource
Vancouver-based SilverCrest Mines (CVE:SVL)(NYSE MKT:SVLC)(AMEX:SVLC) unveiled Thursday results from 15 more drill holes and from surface sampling at its La Joya property in Durango, Mexico, which the company says continue to support a large tonnage silver deposit model.
"Since announcing the Inferred Resource of more than 100 million ounces Ag Eq. at La Joya, we have completed an additional 64 core holes in the expanded Phase II program of 70 core and 20 RVC holes," said president J. Scott Drever.
"The drill results continue to support our large tonnage silver deposit model and the extensive surface sampling in conjunction with certain drill holes support the concept of a potentially higher grade, open pit concept.
"The remaining drill holes will be directed to establishing additional resources and a basis for a conceptual open pit evaluation."
SilverCrest said that based on the current geologic model, drilling and sampling from the phase I and II programs, "it is reasonable that the recently discovered mineralized systems could potentially result in a 50 to 100 per cent increase in current inferred mineral resources."
Indeed, the phase II drill campaign was expanded by 10 holes for a total of 90, or 20,000 metres, with drilling so far having extended the main mineralized trend beyond the area containing the current inferred resource of 101.9 million silver equivalent ounces, SilverCrest said.
New drill roads exposed high grade surface mineralization, the miner said, with silver equivalent values in this series of core holes and surface channel samples ranging from 11.0 grams per tonne (g/t) to 200.3 g/t, with intervals from 8.9 to 305 metres.
The company said drilling and surface sampling showed a distinct zone of metals, both vertically and laterally, that has created a silver, gold and copper zone along the main portion of the main trend, and a near-surface tungsten, copper and gold zone on the southwest portion.
Five of the 15 drill holes reported today tested the southern extension of the trend, while 10 focused on the delineation of the Contact zone - which is considered a potential large, bulk tonnage tungsten target - and on the new Santo Nino discovery. Notable results included 157 metres at 94.1 g/t silver equivalent in hole LJ DD12-65.
The company also said the surface channel sampling helped define the potential for a near-surface, higher grade silver-gold-copper mineralization in the central and southern areas of the trend, with up to 99 metres grading 187.6 g/t silver equivalent.
Channel sampling along new access roads in the Contact zone also showed tungsten mineralization up to 305 metres grading 0.063% tungsten, with anomalous grades of gold, copper and silver.
Drilling and surface sampling at La Joya has now extended the main trend to roughly 2.5 kilometres, the silver miner said, with an average width of around 700 metres.
Drilling continues on the southern extension of the main trend, and on the Contact zone, with three core rigs, while a reverse circulation drill is expected to be added next month.
Core drilling is anticipated to be wrapped up in October, with an updated resource to be announced in the fourth quarter.
SilverCrest is looking to examine the potential for a near-surface, higher grade, low-strip, open pit as a starter pit in the upcoming preliminary economic assessment report for the project, the company said, adding that metallurgical testwork is also underway.
The Mexican precious metals producer's flagship property is the 100 per cent-owned Santa Elena Mine 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.
The company 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 site.