TSX: SVL NYSE MKT: SVLC
VANCOUVER, July 13, 2015 /PRNewswire/ - SilverCrest Mines
Inc. ("SilverCrest" or the "Company") is pleased to announce record
silver and gold production results for the second quarter ("Q2") of
2015 from its 100% owned Santa Elena Mine located in Sonora, Mexico. When Q2 production is added to
Q1, Santa Elena production for the
six months ("H1") ending June 30,
2015 has reached 1,146,694 ounces of silver and 27,392
ounces of gold, or 2,973,738 silver equivalent
("AgEq"(3)) ounces. As a result
of this milestone, the Company is increasing its 2015 production
market guidance from a range of 4.0 to 4.4 million to a range of
4.7 to 5.1 million AgEq ounces. For additional information and
to view photos and videos of the Company's Santa Elena Mine, please
visit the Company's website at www.silvercrestmines.com.
Production Highlights of Q2 2015, vs. Q2 2014;
- Silver production record of 681,302 ounces; a 294%
increase.
- Gold production record of 14,137 ounces; a 254%
increase.
- AgEq(3) production record of 1,624,211 ounces; a
270% increase. (1,286,589 AgEq ounces sold; a 168%
increase).
- Average mill throughput of 3,059 tonnes per day ("tpd"); in
line with nominal capacity of 3,000 tpd.
- Average silver and gold recovery rates (2) of 74%
and 96%, respectively.
- Bullion inventory at the end of Q2 2015 included 247,841 ounces
of silver and 5,090 ounces of gold.
N. Eric Fier, CPG, P.Eng, and
Chief Operating Officer, stated; "We are pleased with the
strong performance in 2015 at Santa
Elena, as we continue to break production records. As a
result, we are increasing our 2015 production market guidance to a
range of 4.7 to 5.1 million AgEq ounces. I would like to
congratulate our operations management and workforce for their
diligent and hard work which has resulted in four consecutive
record production quarters since Q3/14. During H1 2015, we produced
2.97 million AgEq(3) ounces which is equivalent to
Santa Elena's 2014 annual
production. Average recoveries for silver have increased by 23%
from 60% during Q1 to 74% in Q2 with implementation of several mill
operating efficiencies. We continue with exploration drifting on
the higher grade El Cholugo Zone with development ore currently
being milled, which partially accounts for higher than expected
grades and ounces in H1 from underground mine production".
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Santa Elena Mine
Operating Statistics:
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Q2
2015
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Q2 2014
(1)
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%
Change
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Q1
2015
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%
Change
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Tonnes milled
(t)
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278,386
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40,122
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594%
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271,392
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3%
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Average tpd
milled
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3,059
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1,337
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129%
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3,015
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1%
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Average silver grade
processed (gpt)
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103.37
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54.15
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91%
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88.27
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17%
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Average gold grade
processed (gpt)
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1.65
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0.79
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109%
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1.66
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-1%
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Silver recovery (%)
(2)
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74%
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62%
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18%
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60%
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23%
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Gold recovery (%)
(2)
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96%
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78%
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23%
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91%
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5%
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Silver ounces
produced
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681,302
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173,000
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294%
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465,391
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46%
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Gold ounces
produced
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14,137
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3,995
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254%
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13,255
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7%
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AgEq ounces produced
(3)
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1,624,211
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439,467
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270%
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1,349,527
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20%
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Silver ounces
sold
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515,070
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163,026
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216%
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413,250
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25%
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Gold ounces
sold
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11,567
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4,743
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144%
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11,748
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-2%
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AgEq ounces sold
(3)
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1,286,589
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479,384
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168%
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1,196,842
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7%
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Ag : Au Ratio
(3)
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66.7:1
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66.7:1
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0%
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66.7:1
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0%
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(1)
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Production during Q2
2014 was only approximately 50% of the quarterly average in 2014 as
a result of closing the open pit ahead of schedule, phasing out
production from the heap leach operation and starting up the new
processing facility. Silver and gold ounces produced in Q2 2014
include ounces recovered from the leach pad and the new processing
facility.
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(2)
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Estimated recoveries
are as reported, based on calculated grade.
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(3)
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The Silver equivalent
("AgEq") ratio for 2015 is 66.7 and is calculated using metal
prices of $1,200/oz for gold and $18/oz for silver. For consistency
with, comparative periods, the AgEq ratio reported during 2014 was
changed from 60:1 to 66.7:1.
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During Q2 2015, the mill processed a quarterly record of 278,386
tonnes (Q1 2015: 271,392), with a daily average of 3,059 tonnes per
day (Q1 2015: 3,015). The plant processed open pit and underground
ore at 49% (Q1 2015: 48%) blended with 51% (Q1 2015: 52%) leach pad
ore. The average grades processed during Q2 2015 for open pit and
underground ore were 165.8 gpt silver (Q1 2015: 124.8) and 2.71 gpt
gold (Q1 2015: 2.55). Leach pad ore grades were 43.0 gpt silver (Q1
2015: 54.8) and 0.62 gpt gold (Q1 2015: 0.85).
Mill recovery rates for Q2 2015 averaged 96% (Q1 2015: 91%) for
gold and 74% (Q1 2015 – 60%) for silver. The 23% increase in silver
recoveries from Q1 2015 was due to increased cyanide levels and
aeration (pressurized air) into the mill leach tanks. H2 mill
recovery rates are expected to be similar to Q2. The average mill
feed blend was 103.3 gpt silver and 1.65 gpt gold, a 17% increase
in silver and a 1% decrease in gold from Q1 2015.
The Santa Elena open pit was
temporarily reopened in January 2015,
and 71,394 tonnes with average grades of 142.0 gpt silver and 2.66
gpt gold were mined. The Company market guidance for 2015 which was
announced on January 15, 2015 did not
account for re-opening the pit, therefore, part of H1 higher
production reflects this positive impact. Pit operations were
shut down in April 2015, due to pit
constraints. The remaining unmined 50,312 tonnes of open pit
reserves will be included in underground reserves.
During Q2 2015, a daily average of 1,174 (Q1 2015: 1,080) tonnes
was mined from underground which includes daily mining of two to
three long hole stopes and development ore. Grade reconciliations
are ongoing with volumes to date in line with the block model and
grades higher than expected. SilverCrest plans in H2 to continue to
improve and optimize underground stoping, and explore and develop
the higher grade El Cholugo Zone (Alejandra Veins). The Company
expects to achieve an underground mining rate of up to 1,500 tpd
during H2, 2015. Average mill feed volume at 3,000 tpd is targeted
at approximately 40% underground ore and 60% leach pad ore with no
contribution from open pit ore for H2, 2015.
Release of Second Quarter 2015 Financial Results and
Conference Call
SilverCrest plans to release its unaudited second quarter
financial statements and MD&A after market close on
Wednesday August 12, 2015. A
telephone conference call to discuss these results will be held at
10am PDT (1pm
EDT) on Thursday, August 13,
2015.
The Qualified Person under National Instrument 43-101 –
Standards of Disclosure for Mineral Projects for this news
release is N. Eric Fier, CPG, P.Eng,
and Chief Operating Officer for SilverCrest Mines Inc., who has
reviewed and approved its contents.
SilverCrest Mines Inc. (NYSE MKT: SVLC; TSX: SVL) is a
Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest's flagship property
is the 100%owned Santa Elena Mine, located 150 kilometres northeast
of Hermosillo, near Banamichi in the State of Sonora, Mexico. The mine is a
highgrade, epithermal silver and gold producer, with a current
reserve estimated life of mine of 8 years and average operating
cash costs of $12 per ounce of silver
equivalent (64.5:1 Ag:Au based on ounces sold). SilverCrest
anticipates the 3,000 tonnes per day conventional mill facility at
the Santa Elena Mine should recover an average of 1.6 million
ounces of silver and 33,800 ounces of gold per annum over the
current reserve life. Exploration programs continue to result in
discoveries at Santa Elena and
have advanced the definition of a large polymetallic deposit at the
La Joya property in Durango State,
Mexico.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This news release contains "forward-looking statements"
within the meaning of Canadian securities legislation and the
United States Securities Litigation Reform Act of 1995. These
include, without limitation, statements with respect to: the
economic viability of a project; strategic plans and expectations
for the development of the Company's operations and properties;
estimates of mineral reserves and mineral resources; the amount of
future production of gold and silver over any period; the amount of
expected grades and ounces of metals and minerals; expected
processing recoveries; expected cash operating costs and outflows;
life of mine; and prices of metals and minerals.
These forward-looking statements relate to analyses and other
information that are based on, without limitation, the following
estimates and assumptions: presence of and continuity of metals at
the Company's projects; cost of production and productivity levels
at the Santa Elena Mine; availability and costs of mining equipment
and skilled labour; accuracy of the interpretations and assumptions
used in calculating reserve and resource estimates; operations not
being disrupted or delayed by unusual geological or technical
problems; and ability to develop and finance projects.
Forward-looking statements are subject to a variety of known
and unknown risks, uncertainties and other factors which could
cause actual events or results to differ from those expressed or
implied by the forward-looking statements, including, without
limitation: risks related to precious and base metal price
fluctuations; risks related to the fluctuations in the price of
consumed commodities; risks related to fluctuations in the currency
markets (particularly the Mexican peso, Canadian dollar and
United States dollar); risks
related to the inherently dangerous activity of mining, including
conditions or events beyond our control, and operating or technical
difficulties in mineral exploration, development and mining
activities; uncertainty in the Company's ability fund the
exploration and development of its mineral properties; uncertainty
as to actual capital costs, operating costs, production and
economic returns, and uncertainty that development activities will
result in profitable mining operations; risks related to reserves
and mineral resource figures being estimates based on
interpretations and assumptions which may result in less mineral
production under actual conditions than is currently estimated and
to diminishing quantities or grades of mineral reserves as
properties are mined; and risks related to governmental regulations
and obtaining necessary licenses and permits.
Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in the
forward-looking statements. The Company's forward-looking
statements are based on beliefs, expectations and opinions of
management on the date the statements are made. For the reasons set
forth above, investors should not place undue reliance on
forward-looking statements. The Company undertakes no obligation to
update or revise any forward-looking statements, except as
otherwise required by applicable law.
SOURCE SilverCrest Mines Inc.