Friday 21 December 2012

SilverCrest Mines extends mineralization further beyond current resource at La Joya


SilverCrest Mines (CVE:SVL)(NYSE MKT:SVLC)(AMEX:SVLC) announced Friday the final drill results from the phase II drilling program its La Joya property in Durango, Mexico, extending mineralization beyond the area of its current resource estimate. 
A new resource estimate is expected in the next several weeks, the silver miner said. 
Eight of the 15 holes reported today continued to test the southern extension of the main mineralized trend, with the remaining 7 holes focused on the delineation of the Coloradito and Santo Nino targets.
Silver values in this series of core holes along the main trend and targets ranged from 1.9 to 176.0 grams per tonne (g/t), while silver equivalent based values ranged from 14.1 to 411.5 g/t. 
Mineralized intervals ranged from 7.1 to 251 metres, the company said. 
SilverCrest noted that drilling results reported from the phase II program so far have extended the main trend beyond the area containing the current inferred resource of 101.9 million ounces of silver equivalent. 
The trend has been extended to around 2.5 kilometres with an average width of around 700 metres. 
At the Coloradito target, located around one kilometre west of the main trend, drilling to date has identified an area of around 600 metre long, 200 metres wide and at least 250 metres deep starting at surface. A detailed model of the target is being developed, the company said, to provide a better guide for what is considered to be a "potential large bulk tonnage tungsten-molybdenum target". 
Meanwhile, at the Santo Nino target, around one kilometre east of the main trend's eastern boundary, hole 97 intercepted 27.2 metres of semi-massive sulphides grading 5.9 g/t silver, 0.07 g/t gold, 0.48% copper and 0.066% tungsten. 
The company said the mineralization at this target is believed to be associated with a "substantial east-west structure" that cross cuts the width of the main trend mineralization to the west. 
Based on company surface mapping, sampling and historic drill hole results, SilverCrest said that the southern area is still believed to be potentially the highest grade area along the main trend.
The company is currently looking at the potential for a near-surface, higher grade, low strip open pit as a conceptual "starter pit" that will be evaluated in a preliminary economic assessment for the project next year. 
 The phase III drill program, which has already started, will include 30 core holes.  The next phase, planned for the first half of 2013, will further expand resources, in-fill higher grade defined areas, and test geophysical anomalies within the company's concessions. 
SilverCrest said that the target size of the La Joya mineralization based on work completed so far suggests the possibility of resources that may be 50 to 100 per cent greater than the current resources. 
A three year expansion plan is underway to double metals production at the company's Santa Elena mine, while exploration programs are advancing the definition of the large polymetallic deposit at the La Joya property in Durango.
The Vancouver-based company said last month that profit and revenues increased in its third quarter, with record silver production allowing it to raise its annual forecast for the year. 

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