Silvercrest Mines Inc.: Exhibit 99.1 - Filed by newsfilecorp.com
SilverCrest Reports 58m @ 164.7 gpt Ag Eq* at La
Joya
Extends Main Mineralized Trend 500 metres
NW
| TSX-V: SVL OTCQX: STVZF |
For Immediate Release
|
VANCOUVER, BC – March 20, 2012 – SilverCrest Mines Inc.
(the “Company”) is pleased to announce the results of the first six holes of 18
Phase II core holes (approx. 8,000 metres) completed to date at its La Joya
Property in Durango, Mexico. Phase II contemplates a total of 80 holes (approx.
15,000 metres) and drilling to date has extended the Main Mineralized Trend
(“Trend”) an additional 500 meters to the northwest from the current
resource area (see attached figures). The width of the Trend averages
approximately 500 metres; narrowing to the northwest (approx. 300 metres) and
widening to the southeast (approx. 800 metres) and has been traced along strike
with drilling and surface sampling for approximately 2,500 metres. Please
reference our website at www.silvercrestmines.com
for more information, photos and figures on La Joya.
J. Scott Drever, President stated: ”In January we announced an
initial Inferred Resource on a portion of the Trend of 57.9 million tonnes
grading 28 gpt Ag, 0.18 gpt au and 0.21% Cu and containing 101.9 million ounces
Ag Equivalent*. A portion of the Phase II drilling is intended to explore the
possible expansion of this resource estimate to the northwest as well as the
southeast along the Trend and infill some of the wider spaced drill holes within
the resource area. The remainder of the program will test three targets adjacent
to the Trend which have been shown by historical drilling and sampling to host
significant Ag, Cu, Au, W, and Mo mineralization”.
The first 6 holes in Phase II and re-sampling (full) of one
historic hole LB96-04R, have partially tested the northwestern extension of the
Trend. Silver values range from 6.5 gpt to 153.5 gpt and on a silver equivalent*
basis values range from 16.9 gpt to 354.0 gpt. True thicknesses and actual depth
of mineralization from surface can be approximated from the attached cross
section. Holes LJ DD11-28, 31 and 32 are considered outside the current defined
Trend and not presented on Section A – A’. The most significant assay results
are shown in the following table and have a weighted average grade of 75.9
gpt Ag Eq* and an average thickness of 22.7 metres.
| HOLE-ID (Az, Dip) |
FROM |
TO |
LENGTH |
Ag gpt |
Cu % |
Au gpt |
Ag Eq.*gpt |
| L J
DD11-27 (180,-45) |
150.9
|
160.1
|
9.2
|
12.4
|
0.25
|
0.03
|
35.3
|
| |
187.1 |
190.1 |
3.0 |
8.5 |
0.06 |
3.57 |
192.5 |
| |
277.4 |
309.6 |
32.3 |
20.6 |
0.39 |
0.84 |
95.8 |
| Includes |
293.6 |
300.6 |
7.0 |
12.2 |
0.18 |
3.57 |
206.2 |
| |
326.5
|
341.5
|
15.0
|
6.5
|
0.13
|
0.39
|
37.2
|
| L J
DD11-28 (180,-45) |
165.5
|
179.0
|
13.5
|
7.6
|
0.10
|
0.03
|
17.7
|
| |
298.5 |
303.0 |
4.5 |
74.9 |
1.14 |
0.33 |
189.8 |
| L J
DD11-29 (180,-45) |
135.0 |
186.3 |
51.3 |
43.4 |
0.46 |
0.15 |
90.4 |
| Includes |
145.2 |
166.9 |
21.8 |
72.8 |
0.84 |
0.26 |
158.3 |
| |
360.0
|
372.0
|
12.0
|
10.0
|
0.07
|
0.02
|
16.9
|
| L J
DD11-30 (180,-45) |
68.0 |
142.5 |
74.5 |
26.3 |
0.30 |
0.19 |
61.7 |
| Includes |
76.7 |
89.3 |
12.6 |
94.1 |
0.93 |
0.28 |
188.4 |
| |
310.0
|
338.0
|
28.0
|
9.2
|
0.06
|
0.20
|
24.8
|
| |
367.0
|
377.0
|
10.0
|
9.7
|
0.07
|
0.34
|
32.5
|
| |
421.0
|
429.0
|
8.0
|
9.6
|
0.11
|
0.40
|
39.1
|
1
| L J
DD11-31 (180,-45) |
152.0 |
156.0 |
4.0 |
25.4 |
0.14 |
1.13 |
93.7 |
| L J
DD11-32 (180,-45) |
104.0
|
113.0
|
9.0
|
40.2
|
0.23
|
0.06
|
63.2
|
| LB96-04R (historic) |
158.1
|
200.0
|
41.9
|
13.0
|
0.17
|
0.14
|
34.1
|
| Includes |
186.0
|
200.0
|
14.0
|
23.4
|
0.32
|
0.15
|
58.2
|
| |
313.9 |
326.0 |
12.1 |
43.3 |
0.33 |
0.17 |
80.6 |
| |
398.0 |
456.0 |
58.0 |
64.2 |
0.88 |
0.49 |
164.7 |
| Includes |
401.7 |
424.5 |
22.8 |
153.5 |
2.12 |
0.37 |
354.0 |
| Weighted Average |
|
|
22.7
|
29.3
|
0.36
|
0.31
|
75.9
|
* Silver equivalency 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.
All sample analyses were completed by Inspectorate Exploration
& Mining Services Ltd. in Durango, Mexico and Richmond, BC or ALS Chemex in
Zacatecas and North Vancouver.
The underlying intrusive is exposed at the surface on the
southern end of the Trend and from the recent drilling, appears to be increasing
in depth at the northern end of the Trend. The best reported intercept in this
series is from a verified historical drill hole (LB96-04R) and is thought to
represent an extension of mineralized mantos that are drill-defined to the
southeast. The Company has been given access to over 8,000 metres of historic
core for validation including hole LB96-04. A portion of LB96-04 was previously
independently validated and is presented in the “Resource Estimate for the La
Joya Property, Durango, Mexico, NI 43-101 Technical Report” date February
20, 2012.
Core samples for holes L J DD12-33 to 42 are currently in the
laboratory and assays will be reported upon receipt and compilation. Also,
further assay results from splitting and sampling of historic core are being
received and compiled. Several holes contain anomalous molybdenum (Mo) and
tungsten (W) values over significant widths in skarn.
The Phase II 80 hole drill program is expected to test
approximately 2.5 kilometres of the Trend that includes at least the 8
near-vertical structures/stockwork zones, 14 near-horizontally stacked mantos
and a Contact Zone with the underlying intrusive. Based on the encouraging
results to date, additional drills are being mobilized to accelerate this Phase
II exploration program. Drilling on the southern extension of the Trend has
started. Based on Company surface mapping, sampling and historic drill hole
results, this area is thought to be potentially the highest grade area along the
Trend.
The La Joya Deposit currently has an estimated resource of:
| CATEGORY** |
CUT OFF
GRADE
(AG
EQ.* GPT) |
TONNES
(000’s) |
AG
GPT |
AU
GPT |
CU % |
CONTAINED
AG
OZ
(000’s) |
CONTAINED
AU
OZ
(000’s) |
CONTAINED
CU
LBS
(000’s) |
CONTAINED
AG EQ.
OZ*
(000’s) |
| INFERRED*** |
15 |
57,940 |
28.0 |
0.18 |
0.21 |
51,348 |
333.4 |
270,296 |
101,918 |
| 30 |
35,500 |
39.0 |
0.22 |
0.30 |
44,300 |
246.0 |
237,500 |
86,400 |
* Silver equivalency 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.
**Classified by
EBA, A Tetra Tech Company and conforms to NI 43-101, 43-101CP, and CIM
definitions for resources. All numbers are rounded. Inferred Resources have been
estimated from geological evidence and limited sampling and must be treated with
a lower level of confidence than Measured and Indicated Resources.
***
Mineralization boundaries used in the interpretation of the geological model and
resource estimates are based on cutoff grades of 15 gpt Ag Eq and 30 gpt Ag Eq
using the metal price ratios described above.
Please refer to the January 4, 2012 news release for further
details of the Inferred Resource estimate and to the La Joya NI 43-101 Technical
Report filed on www.Sedar.com
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.
2
SilverCrest Mines Inc. (TSX-V: SVL; OTCQX: STVZF)
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 150 km northeast of Hermosillo, near Banamichi in the State of Sonora,
México. 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.
| |
Contact: |
Fred Cooper |
| |
Telephone: |
(604) 694-1730 ext. 108 |
| “J. Scott
Drever” |
Fax: |
(604) 694-1761 |
| _______________________________ |
Toll Free: |
1-866-691-1730 |
| J. Scott Drever, President |
Email: |
info@silvercrestmines.com |
| SILVERCREST MINES INC. |
Website: |
www.silvercrestmines.com |
| |
Suite 501 - 570 Granville Street
|
| |
Vancouver, BC Canada V6C 3P1
|
Neither TSX Venture Exchange nor its Regulation Services
Provider (as defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
3
