VANCOUVER, BRITISH
COLUMBIA--(Marketwire - April 8, 2010) - SilverCrest Mines Inc. (TSX
VENTURE:SVL) (the
"Company") is pleased to report that mine construction activities at its 100%
owned Santa Elena mine located in Sonora, Mexico are progressing on schedule
for a mid-year first metal pour and are currently under budget. Santa Elena
will be a high grade gold and silver, open pit heap leach mine that is
scheduled to reach commercial production in the fourth quarter of this year.
The estimated capital cost of the fully financed project is US$20.0 million and
the 2,500 tonne per day facility is expected to produce approximately 35,000
ounces of gold and 600,000 ounces of silver per year over an 8 year mine life
at an estimated life of mine cash cost of less than US$375 per ounce
of gold & gold equivalent. The Santa Elena project is fully financed
and major site preparation has been underway since October, 2009. The most
significant construction activities that have been completed or are underway
are outlined below. For more information, please visit www.sedar.com to view
the August 11, 2008 "Technical Report on the Pre-Feasibility Study for the
Santa Elena Project, Sonora, Mexico" completed by Scott Wilson Roscoe Postle
Assoc. Inc. and the Company's website at www.silvercrestmines.com to view
construction photos.
Construction Activities
- Earthworks and concrete foundations for the
production facilities including the crusher site, maintenance shop, warehouse
and administrative offices are near completion. Supervision of EPCM work
continues under the direction of Sonoran Resources of Somerton, AZ.
- The Phase I leach pad has been completed and is
being prepared for initial ore loading. This first stage leach pad is approximately
71,500 square metres and will accommodate the first 3 years of ore production.
Site Quality Assurance and Control for the impervious clay base and
installation of the 80 mil plastic liner for the pad is being supervised by
Vector Engineering of Golden, CO.
- Pre-stripping of the Santa Elena ore deposit where
initial mining will take place has commenced with the waste rock being utilized
to build the foundation for the coarse ore stock pile and ramp access to the
crusher.
- Barren, Pregnant and Emergency ponds for the
various solutions are under construction and are expected to be completed in
April.
- The three stage crusher has been delivered to site
and will be assembled in April with initial crushing and loading of ore on the
pads expected to commence in May.
- The Merrill Crowe recovery unit is in transport to
site with the foundation completed and the building including the onsite
laboratory is under construction.
- All power generators are on site and being
installed and will be tested in April and May.
- To date, no lost time accidents or incidents have
occurred during construction with over 100,000 hours worked.
- Community involvement by the Company continues to
be paramount with the establishment of a local non-profit organization and
preparation to start community development projects once commercial production
is underway. Community support for the mine continues to be strong.
J. Scott Drever, President stated;
"We are certainly pleased at this time as to how the construction and
preparation for the commencement of mining are progressing. Our contractors and
supervisory personnel are working diligently and efficiently to assure that the
project progresses on time and on budget. We have commenced securing the team
of professionals that will be responsible for the daily operations so that the
transition from construction to full mine and metal production is seamless. We
are convinced that the low strip ratio and higher grades in the initial years
of mining will provide an accelerated payback of the capital cost and loan
facility and will set the stage for early, free cash flow that will be utilized
to implement the Company's strategy for corporate growth."
In addition to the development of
the current mining operations at Santa Elena, the Company is assessing the
potential for resource and future production expansion. This assessment
includes exploration of additional parallel zones to the Main Zone, further
expansion and possible development of the current underground resources,
potential re-treatment of the heaps with conventional milling, and the
feasibility of processing the nearby Cruz de Mayo silver deposit at the Santa
Elena facilities. The Company believes that, collectively, these developments
could significantly raise annual production rates at the Santa Elena facilities
and increase mine life. Further studies are required to demonstrate that the
Company's additional resources are economically viable.
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 Focused"
exploration and development company with a portfolio of gold and silver
deposits and high grade exploration properties located in Mexico and El
Salvador. This property portfolio, which includes reported, probable reserves
as well as indicated and inferred gold and 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.