SilverCrest trades up after announcing a 424 percent increase in silver equivalent inferred resources
SilverCrest Mines (CVE:SVL), a gold and silver miner operating in Mexico, announced today that the inferred resources at its La Joya property increased by 424% from 24.0 million to 126.0 million silver equivalent ounces.
SilverCrest is trading 6.22% higher at $2.39 a share on Monday morning trading. The full news release is on MarketWatch.
However, 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.
The company believes the La Joya 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.
"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," said N. Eric Fier, CPG, P.Eng. and COO for SilverCrest.
"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."