SilverCrest Commences Construction
At Santa Elena Mine
| TSX-V: SVL |
For Immediate Release |
Dear Subscriber,
TSX-V:SVL FOR IMMEDIATE RELEASE
VANCOUVER, B.C.
October 22, 2009 - SilverCrest Mines Inc.
(the "Company") advises that major construction has commenced at its Santa Elena Project located in Sonora, Mexico.
The proposed Santa Elena mine will be an open pit heap leach operation expected to produce approximately 35,000 to 45,000 ounces of gold and 600,000 to 1,000,000 ounces of silver per year with an 8 year mine life at an average operating cash cost below US$375 per equivalent ounce of gold.
The major activities ongoing or planned for October include:
§ Construction of main site access roads to all facilities;
§ Establishing site communications network;
§ Constructing the administration building;
§ Earthworks for the preparation of the crusher installation; and
§ Breaking ground for the construction of the leach pads and ponds.
The main construction milestones include the first gold and silver pour in the second quarter of 2010 and full commercial production by the end of 2010.The following pre-construction tasks have been completed to fast-track the project:
§ Receipt of major permits with respect to operations, land, access, and water;
§ Acquisition of 100% of the property interest with no further payments or residual royalties;
§ Construction of long lead time equipment including a 3 stage crusher and Merrill Crowe recovery plant;
§ Signing of the Procurement Construction Management agreement with Sonoran Resources LLC of Somerton, Arizona;
§ Selection of major contractors for construction and mining;
§ Improvements to the six kilometre main access road from paved highway to site;
§ Completion of site water system for construction needs; and
§ Completion of earthworks for placement of site administration building and warehouse.
SRK Consulting from Denver Colorado in conjunction with consultants of a variety of disciplines, is completing an independent Feasibility Study using pit optimizations and additional data collected since March of 2009 including 11 in-fill reverse circulation drill holes (577 metres), revised capital and operating cost estimates, further work on surveying and density estimations, results from metallurgical testing of deeper intercepts, and use of the final general layout and construction schedule.
The study is anticipated in January 2010.
Results from the in-fill drilling will be announced once compilation is completed.
J.
Scott Drever, President stated: "Based on our current construction and development schedules, we should have the mine up and running in 2010.
The fine tuning that we have completed with respect to pit optimization and additional metallurgical work, as well as finalizing capital and operating cost numbers, has reinforced our assessment of the robust nature of the economics of this project.
We are proceeding at a rapid pace to production to take advantage of the current strong gold and silver prices."
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 Companys 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 Companys 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 Companys 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 Companys 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.
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