SilverCrest Updates Corporate Resources
Silver Equivalent Inferred
Resources Increase 424%
VANCOUVER, B.C. January 23, 2012 � SilverCrest
Mines Inc. (the �Company� or �SilverCrest�)
is pleased to provide an updated summary of its corporate mineral resources. The Company now has reported NI 43-101 compliant resources at the Santa Elena Mine, Cruz de Mayo property and La Joya property in Mexico (see table
below). The addition of the initial La Joya Inferred Resources of 101.9 million ounces
silver equivalent resulted in corporate Inferred Resources increasing by 424% from 24.0
million to 126.0 million silver equivalent ounces. The Company�s combined Probable
and Indicated Resources
(based on US$18 per ounce
silver, US$1000 per ounce
gold, and Ag:Au at 55:1) declined
by 14.7% from 36.2 million to 30.9 million silver equivalent ounces as a result of
production at the Santa Elena Mine in 2010 and 2011.
N. Eric Fier, CPG, P.Eng. and COO for SilverCrest
stated; �This significant
increase in the Company�s
resource base is another important milestone
in its goal of becoming
a major silver and gold asset
- based company. SilverCrest�s immediate
initiatives are to continue to diligently operate its flagship Santa Elena silver
and gold mine, aggressively explore the discovery at La Joya and to further acquire and develop substantial silver-gold resources.�
SilverCrest Resource Summary
- January 2012
![s corporate resource](http://gallery.mailchimp.com/0943dabffc157ea0628e628d7/files/Table1_Jan23_12.jpg)
*based
on $1,000/oz of gold and $18/oz of silver, cut-off grade of 0.38 gpt
gold equivalent with applied metallurgical recoveries. Ag:Au is 55:1.
Estimated 1,336,000 ore
tonnes were mined at Santa Elena in 2010 and
2011 grading 1.41 gpt
Au and 46.51 gpt Ag and subtracted
from Probable Reserves.
All numbers are rounded.
Excludes potential metal inventory for leach pad re- treatment during Expansion.
**based on $1,000/oz of gold and $18/oz of silver, cut-off grade is 1.77 gpt gold equivalent with applied metallurgical recoveries. Ag:Au is 55:1.
***based on a silver cut-off grade of 30 gpt, 100%
metallurgical recovery is assumed. Ag:Au is 55:1. Refer 2007 to
Fier and Wallis Technical Report on Cruz de Mayo.
**** Based on 5 year historic metal price trends of US$24/oz silver,
US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is assumed. Silver equivalency for La Joya includes silver, gold and copper and excludes lead, zinc, molybdenum
and tungsten values. Ag:Au is
50:1, Ag:Cu is 86:1.
The Company plans an additional
6 core holes on the
Santa Elena underground deposit beginning in Q1 2012. This drilling
will further assist in delineating the existing underground resources
and potentially expand
the resources. The decline
ramp to explore and develop
the resources below the
current open pit has
been commenced and advancement
is expected to continue
throughout 2012.
Drilling is currently underway at Cruz de Mayo where 30 holes have been completed with approximately 15 to 20 holes remaining. A Pre-Feasibility Study with further metallurgical work is underway to determine the amenability of processing Cruz de Mayo material
at the conventional mill proposed for the Santa
Elena mine site.
La Joya Resource Summary (Phase
I)
On January 5,2012, the Company
announced the initial resource
estimate for its La Joya property located in Durango Mexico. The Inferred
Resource of 101.9 million ounces silver equivalent was based on 27 initial Company drill holes plus 8 verified Luismin historical drill holes. The
initial resource covers
only a portion of the 2.5 kilometre
Main Mineralized Trend and is
open latterly in all directions. The resource estimations for the 15 and 30 gpt Ag Eq.* cutoff scenarios
are illustrated on the attached
surface plan and cross sections and presented in
the following table.
![s corporate resource](http://gallery.mailchimp.com/0943dabffc157ea0628e628d7/files/Table2_Jan23_12.jpg)
*Silver equivalency for
La Joya includes silver, gold and copper and excludes lead, zinc, molybdenum
and tungsten values. Ag:Au
is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of
US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is assumed.
** Conforms to NI 43-101, 43-101CP, and current CIM definitions for resources. Resource estimation summary
presented by EBA, a Tetra
Tech Company on January
5, 2012 with a pending
NI43-101 Technical Report. All numbers are rounded.
The attached figures (Click
for Figure A -
Click for Figure B) show a 3D schematic of La
Joya with the currently defined resource area and longitudinal sections of the resource model through the
Main Mineralized Trend. The model shows the predominance of at least 9 near-surface sulfide mineralized vertical structurally-controlled
stockwork zones up to 50 metres
wide and the presences
of at least 14 near
horizontal mantos (disseminated
sulfide mineralization)
up to 30 metres thick.
In many instances the open areas shown on the figures are due to a lack
of information rather than
an established absence of mineralization.
The deposit remains
open latterly in all directions. The previous defined �Contact
Zone� requires further drilling before potential resources are applied. The two section examples show the current
computer-generated model using
15 gpt and 30 gpt Ag
Eq.* cutoffs. Doubling
the cutoff grade reduces
the contained Ag equivalent
ounces by only 15.2% which implies that higher grade material is available if required for the
potential economic viability of the deposit.
The Company has completed
8 holes of a planned
Phase II, 80 hole drilling
program that will entail approximately 15,000 metres of additional drilling which will further expand and define the current resource and test three separate targets adjacent to the Main Mineralized
Trend. Assay results
are pending. The Phase II drilling,
sampling, and metallurgical
test work to determine flotation characteristics will be completed
in 2012.
The Company believes
the deposit is potentially amenable to open pit mining with standard conventional flotation processing similar to the nearby Sabinas Mine (Penoles) which is currently
operating at an estimated
4,000 tpd and shipping concentrate
overseas. Significant potential for resource
expansion exists along
the strike length of
the Main Mineralized Trend and adjacent additional targets where historic data has indicated the presence of significant Ag-Au-Cu mineralization
(see New Release dated
Nov. 14, 2011).
Selective areas of lead, zinc, tungsten and molybdenum are also being evaluated for resource
estimation. These metals
are considered potential
by-products of any
Ag-Au-Cu mineralization production. Resource
estimations for these metals
will be reported when completed and will be incorporated in the Technical Report with the
initial resources estimate
to be filed on SEDAR.
The La Joya Property is located approximately 75 kilometres southeast of the city of Durango, Mexico. The property is located in a productive mineralized
region which currently supports several
large scale mining operations including Grupo Mexico�s San Martin
Mine, Industrias Pe�oles�
Sabinas Mine, Pan American Silver�s
La Colorada Mine and First Majestic
Silver�s La Parrilla Silver Mine. Please reference our website at www.silvercrestmines.comfor
more information, photos, a video and figures on
La Joya.
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-V: SVL) is a Mexican precious metals producer with headquarters based in
Vancouver, BC. SilverCrest�s flagship
property is the 100%-owned Santa Elena Mine, which
is located 150km northeast of Hermosillo, near
Banamichi in the State of Sonora, M�xico. 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 6.5 year
life of the open pit phase of the Santa Elena
Mine. A three year
expansion plan is underway
to double metals production at
the Santa Elena Mine and exploration programs are rapidly
advancing the definition
of a large polymetallic deposit
at the La Joya property in Durango State.
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. Such forward-looking statements concern the Company�s anticipated results and developments in the Company�s
operations in future periods,
planned exploration and development
of its properties,
plans related to its
business and other matters
that may occur in the future. These
statements relate to analyses and other information that are based on expectations of future performance, including silver and gold
production and planned work
programs. Statements concerning
reserves and mineral resource estimates may also constitute
forward-looking statements
to the extent that they involve estimates of the mineralization
that will be encountered if the property is developed and, in the case of mineral
reserves, such statements reflect the
conclusion based on certain assumptions
that the mineral deposit can be economically exploited.
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 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
to raise financing and 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; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being
subject to environmental
laws and regulations which may increase
costs of doing business
and restrict our operations; risks related to mineral properties being subject to prior unregistered agreements, transfers, or claims and other
defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy;
risks related to the Company�s status as a foreign private issuer in the United States; risks
related to all of the Company�s
properties being located in Mexico and El Salvador, including
political, economic,
social and regulatory instability;
and risks related to officers and directors becoming associated with other natural resource companies which may give rise
to conflicts of interests.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 information provided in this news release
is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of
the Company. The information contained
herein is not a
substitute for detailed investigation or analysis. No securities
commission or regulatory authority
has reviewed the accuracy
or adequacy of the information presented.
�J.
Scott Drever�
J. Scott Drever, President
For further information, please
contact:
Fred Cooper
570 Granville Street, Suite 501
Vancouver, BC V6C 3P1
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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