Silvercrest Mines Inc (SVL)

[mick]

excerpt/ SilverCrest Mines Inc. (TSX:SVL) (NYSE MKT: SVLC) is pleased to announce that it has filed a Technical Report prepared in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") titled,

"Update to Santa Elena Pre-Feasibility Study, Sonora, Mexico " (the "UPFS"), for its operating Santa Elena mine.


Mining Stocks News: SilverCrest (TSX: SVL) (NYSE MKT: SVLC) Announces Update to Santa Elena Pre-Feasibility Study; Pre-Tax Base Case NPV (5%) of $144 Million, Replaces Reserves and Renews 8 Year Mine Life

Vancouver, BC - April 1, 2015 (Investorideas.com Mining Stocks Newswire) SilverCrest Mines Inc. (TSX:SVL) (NYSE MKT: SVLC) is pleased to announce that it has filed a Technical Report prepared in compliance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") titled, "Update to Santa Elena Pre-Feasibility Study, Sonora, Mexico " (the "UPFS"), for its operating Santa Elena mine.

The UPFS updates the Santa Elena Pre-Feasibility Study and Open Pit Resource Update, dated effective April 30, 2013 , as amended March 4, 2014 (the "2013 PFS"). Summaries of the updated Reserves and Resources, Life of Mine Plan ("LOMP"), operating costs, sustaining capital costs and project economics are presented in tables below.

All dollar amounts are expressed in U.S. dollars unless otherwise specified. The effective date of this Technical Report is December 31, 2014 and is available on the Company's website, http://www.silvercrestmines.com and under the Company's profile on SEDAR at www.sedar.com.


The Base Case economic analyses use a range of metal prices per ounce for gold and silver. For gold prices, the range is defined as $1,250 (2015), $1,275 (2016) and $1,300 (2017 - 2022) and for silver prices the range is defined as $18 (2015), $19 (2016), $20 (2017) and $21 (2018 - 2022).

On this basis, the following economic highlights for a continued 8 year mine life beginning January 2015 are:

•Total operating revenue of $555 million from estimated sales of 12.6 million ounces of silver and 270,700 ounces of gold.

•Total operating costs of $349 million.

•Estimated cash operating costs averaging $11.59 per silver equivalent ("AgEq") ounce (Ag:Au average ratio of 64.5:1 based on sold ounces for LOMP).

•Total sustaining capital costs of $31 million including LOMP underground drilling programs and 2015 surface exploration expenditures.

•Total pre-tax undiscounted cash flow of $163 million including estimated closure cost deductions of $6 million.

•Pre-tax Base Case pre-tax NPV (5%) of $144 million.

•Post-tax Base Case post-tax NPV (5%) of $119 million.

Metal price sensitivities were completed including spot price as $1,193 /oz Au and $16.16 /oz Ag (representing spot price in December, 2014) which showed a pre-tax NPV (DCF @ 5%) of $84.3 million.


J. Scott Drever, Chief Executive Officer, stated; "We are extremely pleased with the results of the reserve and economic update for the Santa Elena mine.

The study confirms our expectations that the transition from the open pit heap leach operation to a conventional mill and underground operation represents a very attractive project with robust economics even at current reduced metal prices.

The renewal of an 8 year mine life gives SilverCrest a strong corporate cash flow that provides a solid foundation for continued systematic and aggressive growth. We look forward to a year of continuing operational and financial improvements in 2015 with expansion of our annual metals production at Santa Elena."



MINERAL RESERVES AND RESOURCE ESTIMATES AT DECEMBER 31, 2014

Update to Mineral Reserve and Resource are shown in the table below. Only Indicated Resources were used in estimating the Mineral Reserves related to the UPFS mine plan, schedule and economic analyses.

In summary, Total updated Probable Reserves at Santa Elena are 7.45 million tonnes grading 1.23 gpt Au and 78.4 gpt Ag, containing 295,000 ounces of gold and 18.76 million ounces of silver.

This represents an overall minimal decrease of 10% in contained gold and 5% in contained silver over previous Probable Reserves stated in the 2013 PFS even after reserve depletion by mining and decreased metal prices. Updated Indicated Resources (exclusive of Probable Reserves) are estimated at 1.12 million tonnes grading 1.39 gpt Au and 89.7 gpt Ag, containing 50,000 ounces of gold and 3.22 million ounces of silver.

This represents a 57% decrease in contained gold ounces and 59% decrease in contained silver ounces over previous Indicated Resources. Updated Inferred Resources are estimated at 0.56 million tonnes grading 1.69 gpt Au and 106.5 gpt Ag, containing 31 thousand ounces of gold and 1.9 million ounces of silver.

This represents a 57% decrease in contained gold ounces and 74% decrease in contained silver ounces. The differences in UPFS Reserves and Resources from the 2013 PFS are based on:

•A minimal decrease of overall Probable Reserves even after mining depletion over the last 1¾ years and changes in metal price (cut off grade analysis) from the 2013 PFS of $1,450 per ounce of gold to $1,300 and from $28 per ounce of silver to $19.50 .

•Underground Probable Reserves have increased 8% in contained ounces of gold and 8% in contained ounces of silver subsequent to the 2013 PFS and 2014 underground mining depletion.

•Newly-defined El Cholugo underground Probable Reserve of an estimated 252,000 tonnes grading 2.58 gpt Au and 147.0 gpt Ag. This high grade zone is immediately adjacent to current underground development and has been exposed on several levels for easy access and planned mining in 2016.

This zone is open in most directions and is a 2015 priority for further resource expansion with potential for conversion to reserves.

•An 85% decrease in open pit Probable Reserves due to depletion from mining from April, 2013 and some transfer to underground reserves. Open pit was shut down in April, 2014 and reopened in January, 2015.

•An 18% increase in leach pad Probable Reserves with continuation of open pit mining in 2013 and 2014 and partial leaching (300 day leach cycle) of ore.

•Indicated and Inferred Resources decreased based on conversion to Reserves, lower base case metal prices, updated geological modelling with detailed infill drilling, and changes in geostatistical parameters (smaller search radius) based on more exploration and production data, including infill drilling data generated in 2013 and 2014.

•Reserve replacement for a renewal of an 8 year mine life, even after mining depletion from 2013 and 2014.