SilverCrest Mining (SVL.L) - three advanced precious metal projects in Mexico and El Salvador Full Report by Objective Capital , Feb 26, 2008(login for full report) Questions?
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Key Points:
Real silver prices are at their highest levels in twenty years
Silver continues a rally that began late in 2001 at US$4 per ounce and
the price currently tops US$16 per ounce, its highest level since after the
Bunker-Hunt bubble burst in 1980. In real terms, the current price also is
at a level not experienced since the early 1980s. Gold is also several years
into a bull market that began early in 2002, reaching an all-time high of over
US$900 per ounce earlier this year.
The Santa Elena project hosts a significant silver and gold resource
SilverCrest’s top project is the Santa Elena property in Sonora, northwestern
Mexico. The property has been an intermittent producer of high-grade silver
since the late 1800s and the company has delineated a significant NI 43-101
compliant indicated and inferred mineral resource of nearly ten million tonnes,
grading 74 grams of silver and 1.5 grams of gold per tonne, for over 56 million
ounces of silver and silver equivalent.
A prefeasibility study at Santa Elena is nearly complete
SilverCrest commenced a comprehensive prefeasibility study into a Santa Elena
mine late in 2006 and the report is due for completion shortly. The company
anticipates a production decision early in 2008. The deposit is potentially
amenable to standard heap leach processing techniques and partial open
pit mining.
SilverCrest has a second advanced project nearby with an established silver resource
SilverCrest also has a significant silver resource on its Cruz de Mayo property,
which lies immediately north-east of Santa Elena. The deposit contains a
largely inferred mineral resource of 7.1 million tonnes, grading 66 grams
of silver per tonne, indicating a resource of over 15 million ounces of
silver. A new phase of drilling is planned this year to expand and upgrade
the resource.
A silver-zinc resource at El Zapote offers further upside
The El Zapote deposit in El Salvador hosts a NI 43-101 compliant indicated
and inferred mineral resource of approximately 3.0 million tonnes, grading
150 grams of silver per tonne and 1.2 percent zinc, with modest quantities of
gold. Further exploration is planned, subject to permitting approvals.
A management team with extensive exploration and development experience
SilverCrest’s management, led by Scott Drever, Eric Fier and Barney
Magnusson, has extensive experience in all aspects of international
mineral exploration and development, including projects in Mexico and
Central America.
