OUTLOOK FOR 2013
For 2013, SilverCrest's immediate focus is to continue to efficiently operate its flagship Santa Elena low cost open pit silver and gold mine, complete the construction of a new 3,000 tonne per day mill facility on schedule and on budget, announce the revised Santa Elena Resources, Reserves and Life of Mine Plan ("LOMP") and to rapidly advance the delineation of a large polymetallic deposit at the La Joya Property by completing a Preliminary Economic Assessment ("PEA") and further definition drilling of the 198 million ounce silver equivalent resource. Specific corporate targets are as follows:
Santa Elena Open Pit Production Targets
-- Estimated annual production of 625,000 ounces of silver and 33,000 ounces of gold (2.4 million ounces of silver equivalent, Ag:Au 55:1).-- Estimated annual operating costs of $20.7 million.-- Estimated cash operating cost of $8.50 per ounce silver equivalent sold (Ag:Au 55:1).-- Estimated operational sustaining capital expenditure of $1.0 million.
Santa Elena Expansion Targets
-- Complete construction of new conventional 3,000 tpd CCD processing facility on schedule (Q1-2014) and on budget ($53.2 million).-- Complete underground development of main ramp that will enable physical access to ore underground for direct mill feed commencing in H2-2014. Budget for 2013 is $7.8 million.-- Complete Pre-Feasibility Study on the Expansion Plan (mill, underground and re-processing leach pad material) including Resource, Reserve and LOMP revisions for filing in Q2-2013.-- Complete Detailed Engineering on the Expansion Plan in Q2-2013.-- Complete surface drilling of approximately 15,000 metres to expand additional resources - Capital assigned for 2013 is $3.2 million.
La Joya Project Targets
-- File Updated Resource Estimate NI43-101 Technical Report in Q1 2013.-- Complete and File a PEA NI43-101 Technical Report evaluating the high grade portion of the deposit as a potential "Starter" Pit.-- Complete Phase III drilling program of approximately 80 holes: core (60) and reverse circulation (20) drill holes for in-fill and expansion of current resources. Budget for 2013 is $6 million.-- Complete final staged payments under the La Joya agreements to acquire 100 % of the mineral concessions under agreement for purchase and sale.-- Continue to explore the Coloradito, La Esperanza and Santo Nino targets which are adjacent to the Main Mineralized Trend.-- Explore newly defined geophysical targets; La Paloma and El Pino within the current land position.
The Qualified Person under National Instrument (NI 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. (TSX VENTURE: SVL)(NYSE MKT: SVLC) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest's flagship property is the 100%-owned Santa Elena Mine, 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 (55:1 Ag: Au). 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 life of the current open pit at the Santa Elena Mine. A three year Expansion Plan is well underway to double metals production at the Santa Elena Mine (open pit, underground and re-processing leach pad). Exploration programs have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State where current reported Inferred Resources are 198 million silver equivalent ounces.