SilverCrest Mines Inc.

SilverCrest Mines Inc.

November 05, 2009 05:00 ET

SilverCrest Reports Pre-Production In-Fill Drill Results at Santa Elena; 22m Grading 6.37 g/t Au and 72.7 g/t Ag

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2009) - SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL) is pleased to report that a pre-production in-fill drilling program at the Santa Elena Project located in Sonora, Mexico has been completed.

The 11 in-fill reverse circulation holes (total of 577 metres, to view attached drill plan for hole locations please click on the following link: reported below are located in the Phase I pit which represents approximately the first two years of planned metal production. The most notable intercepts of this near surface series of holes were encountered in hole SERC09-24 which intercepted 22.0 metres grading 6.37 g/t gold and 72.7 g/t silver and hole SERC09-26 with 28 metres grading 3.1 g/t gold and 115.9 g/t silver.

    Uncut Weighted Average 
Hole NumberFrom (m)To (m)Length (m)Au
(i) g/t
(i) g/t
  SERC09-22   22  30  8  5.51  116.1  7.44  446.4
  includes  26  28  2  12.85  252.0  17.05  1023.0
  SERC09-23  30  48  18  1.54  125.8  3.98  238.8
  SERC09-24  26  48  22  6.37  72.7  7.59  455.4
  includes  40  42  2  42.40  307.0  47.52  2851.2
  SERC09-25  32  54  22  3.37  54.7  4.28  256.8
  includes  36  38  2  17.65  233.0  21.53  1291.8
  SERC09-26  26  54  28  3.10  115.9  5.03  301.8
  includes  42  46  4  9.86  449.5  17.35  1041.0
  SERC09-27  4  20  16  2.44  100.4  4.11  246.6
  includes  8  10  2  9.88  63.6  10.94  656.4
  SERC09-28  2  32  30  2.43  65.9  3.53  211.8
  includes  8  10  2  16.90  482.0  24.93  1495.8
  SERC09-29  2  18  16  1.37  37.7  2.00  120.0
  SERC09-30  8  26  18  1.82  30.5  2.33  139.8
  SERC09-31  24  30  6  0.25  33.6  0.81  48.6
  SERC09-32  28  36  8  0.63  49.9  1.47  88.2

(i) Based on a silver/gold ratio of 60:1 and 100% metal recovery. Most intercepts include allowances for voids due to old underground workings of 0.5 to 4m wide. All holes drilled near-perpendicular to mineralized zone with true thicknesses shown except SERC09-26 which is an apparent thickness. Samples analyzed at ALS-Chemex in Hermosillo, Mexico and North Vancouver, BC, Canada.

These drill holes have an average true thickness of approximately 16 metres with an uncut, weighted average grade of 4.1 g/t gold equivalent which translates to high grade, low cost metal production in the first few years of the mine life. Drill results will be used to revise the Life-of-Mine Plan and update the reserve estimates in the ongoing independent Feasibility Study being completed by SRK Consulting of Denver, CO.

As announced on October 22, 2009, the open pit heap leach Santa Elena Project is under construction with anticipated first gold-silver pour expected in Q2 2010 with commercial production to occur in late 2010.

The official registration of 100% ownership in the Santa Elena Project was recently finalized which enables the Company to access the US$12 million from the gold purchase agreement with Sandstorm Resources. These monies are sufficient to complete most of the remaining construction. Final legal paperwork is being completed with Macquarie Bank Ltd. to access the additional US$12.5 million project loan facility. Further disclosure on project financing activities is forthcoming.

J. Scott Drever stated: "The results of this in-fill pre-production drilling further confirms that the initial years of production at Santa Elena will provide some extraordinarily high gold and silver grades for a heap leach operation. The higher than life of mine grades in the starter pit will assure early payout of capital, improve our rate of return on the project, and most importantly, give us substantial free cash flow in the near-term. The important milestone of official registration of 100% ownership in Santa Elena will help provide the funds necessary to complete ongoing construction to meet the Company's production goals."

N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest Mines Inc. and Qualified Person for this news release has reviewed and approved its contents.

SilverCrest Mines Inc. is a "Precious Metals Focussed" exploration and development company with a portfolio of gold & silver deposits and high grade exploration properties located in Mexico and El Salvador. This property portfolio, which includes reported indicated and inferred gold & silver resources and substantial exploration potential, provides an important base from which SilverCrest can develop its corporate objective of becoming a significant precious metals asset based company. The Company's immediate initiative is to acquire and develop substantial mineral resources and ultimately to operate multiple low cost, high grade precious metals mines.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.

Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

J. Scott Drever, President, SILVERCREST MINES INC.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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