SilverCrest Mines Inc.
COMPANY DATA | INTRODUCTION
| PROPERTIES IN HAND | MANAGEMENT
NEWS UPDATE | CHINESE
| Address: | 401 - 1311 Howe Street Vancouver, B.C. Canada V6Z 2P3 |
| Tel No.: | (604) 691-1730 |
| Fax No.: | (604) 691-1761 |
| Web Site: | www.silvercrestmines.com |
| Corporate Email: | info@silvercrestmines.com |
| Contact Person: | Fred Cooper |
| Position: | Investor Relations |
| Traded Market: | TSX |
| Traded Symbol: | SVL |
| Outstanding Shares: | 13,929,096 |
| Public Float: | 9,078,616 |
| 52 Week High: | $ 1.81 |
| 52 Week Low: | $ 0.30 |
| Present Price: | Click Here |
SilverCrest Mines Inc. is being positioned as a "pure silver" exploration and development company with a portfolio of high grade silver deposits located in Honduras. The Company's long term initiative is to acquire, develop and operate high grade silver mines throughout North, Central and South America. Primary targets will be silver projects that require management and operating expertise as well as additional capital to achieve accelerated development and early production.
PROPERTIES IN HAND
SilverCrest Mines Inc. owns several high grade silver deposits located in Honduras. It includes:
(1) El Ocote Property
Indicated Resources are estimated at 1.9 million tonnes grading 181 g/t silver containing 11 million ounces of silver based on a 30 g/t silver cut-off grade. Contained within this resource is a high grade portion estimated at 1 million tonnes at a grade of 282 g/t silver that is considered potentially amenable to open cut mining during the initial years of production. Inferred Resources are estimated at 1.4 million tonnes grading 118 g/t silver containing 5.2 million ounces of silver. Accordingly, the El Ocote property contains an estimated resource of 16 million ounces of silver with the potential to increase to over 20 million ounces.
The deposit is an elliptical breccia pipe that measures 160 metres by 90 metres and is defined to a depth of 100 metres from surface. Silver grades improve upwardly, from approximately 30 g/t at depth to in excess of 400 g/t near surface. The pipe forms a topographic high, making it potentially amenable to low strip ratio, open pit extraction. An initial work program of in-fill and resource expansion drilling is expected to confirm the higher grade surface, starter pit material, and provide information for metallurgical and engineering studies. The work program will transition into a feasibility study.
(2) Opoteca Property
Indicated Resources are estimated at 1.3 million tonnes grading 123 g/t silver and 0.17 g/t gold containing 5.6 million equivalent ounces of silver based on a 30 g/t silver cut off grade. Inferred Resources are estimated at 1.7 million tonnes grading 126 g/t silver and 0.10 g/t gold, containing 7.4 million equivalent ounces of silver. Accordingly, the Opoteca property contains estimated resources of 13 million ounces of silver with the potential to increase to over 20 million ounces.
This deposit is a manto-style, carbonate replacement deposit, with mineralization hosted in folded sediments and higher grade high angle faults. An oxidized horizon is measured as 800 metres long, 100 metres wide with an average thickness of 15 metres and is considered potentially amenable to open pit mining at a low strip ration. An initial work program of resource expansion drilling should advance this property to the pre-feasibility stage.
Significant potential to expand current resource based on +100 g/t soil anomaly and various rock chip recon samples.
(3) La Pochota Property
The deposit is an epithermal vein system with existing and accessible underground workings. Approximately 250 metres of exploration drifting exists with only minor stoping. Various previous operators and engineering reports show the vein ranging between 1 to 4 metres in width. The vein appears to strike along a dip slope for 600 metres and is measured down dip for 125 metres. Reported grades vary from 332 g/t to 514 g/t silver with significant gold credits. A drill program will be required to test the strike and dept extensions as well as test several parallel structures.
(4) Arena Blanca Property
The deposit is an early stage exploration project with high grade potential. The mineralization occurs in a quartz vein/shear zone hosted in granodiorite. The 5 to 6 metre wide quartz vein occurs on a dip slope and has been accessed by an adit and sampled up dip where the zone outcrops on a hilltop. Sample results from a United Nations report yield grades ranging from 1,945 g/t to 7,600 g/t silver. A modest first phase drill program will test for mineralized continuity between the adit access and the hilltop.
Resources:
| Property | Stage | Deposit Type | Suggested Mining Method | Resource Category* | Tonnes | Ag g/t | Tons | Ag oz/ton | Contained Silver Ounces |
| El Ocote | Feasibility | Epithermal Breccia Pipe | Open Pit | M & I | 1,886,000 | 180 | 2,078,938 | 5.26 | 10,938,682 |
| Inf | 1,370,000 | 117 | 1,510,151 | 3.41 | 5,153,392 | ||||
| Opoteca** | Advanced | Carbonate Hosted | Open Pit | M & I | 1,298,000 | 123 | 1,430,785 | 3.59 | 5,563,054 |
| Inf | 1,739,000 | 126 | 1,916,900 | 3.68 | 7,357,836 | ||||
| La Pochota | Intermediate | Epithermal Veins | Open Pit | Pending | |||||
| Arena Blanca | Grass Roots | Mesothermal Veins | Open Pit | Pending | |||||
|
Total Measured and Indicated Resources |
16,501,736 | ||||||||
|
Total Inferred Resources |
12,511,228 | ||||||||
|
Total |
29,012,965 | ||||||||
| * | Resources conform to National Instrument 43-101 and Companion Policy 43-101CP with resource categories conforming to definitions adopted on August 20, 2000 by the Canadian Institute of Mining, Metallurgy and Petroleum. All resources based on 30 g/t cut off grade. |
| M & I = measured and indicated resources | |
| Inf = inferred resources | |
| ** | Uses a Ag equivalent ratio of 70:1 |
| Resource estimation was completed by N. Eric Fier, CPG & Qualified Person and C. Stewart Wallis, P. Geo & Independent Qualified Person. |
MANAGEMENT
SilverCrest Mines Inc. has a strong management team with experience in different areas. The management team includes:
J. Scott Drever, President, Director
Mr. Drever has 35 years of international experience in mineral exploration and development and mining operations. Mr. Drever has served as an executive officer and director of a number of public companies listed on the TSX and the TSX Venture Exchange including the Dome Mines Group, Placer Dome Ltd., Blackdome Mining Corporation, DiamondWorks Ltd. and International Antam Resources Ltd. Mr. Drever has extensive experience with international mining corporations in corporate management, strategic planning and corporate development.
N. Eric Fier, C. P. Geo, Chief Operating Officer
Mr. Fier has over 18 years of international experience in a senior capacity including exploration, acquisition, development and production of numerous mining projects in Honduras, Mexico, Chile, Brazil and Peru. His extensive experience includes project evaluation and management, reserve estimation and economic analysis as well as operations management. Mr. Fier has been Chief Geologist with Pegasus Gold Corp., Senior Engineer and Manager with Newmont Mining Corporation and Project Manager with Eldorado Gold Corporation.
Barney Magnusson, CA, Chief Financial Officer, Director
Mr. Magnussson has been a senior officer and director of three mining companies that have developed producing mines: Dayton Mines Inc. project in Chile, High River Gold Mines Ltd. project located in Manitoba, Canada and Brohm Resources Inc. project located in South Dakota, USA. Mr. Magnusson is experienced in corporate finance and public company management and has dealt extensively with the investment community. He has often worked as part of active management teams responsible for structuring and building rapidly expanding companies.
Graham C. Thody, Director
Mr. Thody has been a Partner of Nemeth Thody Anderson, Chartered Accountants of Vancouver B.C. since 1980. Mr. Thody's practice has focused on corporate mergers and acquisitions as well as domestic and international tax issues. Mr. Thody has acted as auditor of several publicly listed companies as well as participated in the Initial Public Offering process for several corporations. He has been a Director of Pioneer Metals Corporation since 1989 and a director of UEX Corporation since its inception in late 2001.
William R. MacNeill, Director
Mr. MacNeill is the founder and Chairman of Claude Resources Inc. a TSX listed gold producer. Mr. MacNeill has an extensive background in all aspects of mineral and oil and gas exploration, development and production over a 40-year career. He has served as senior executive officer and director of several substantial publicly traded companies.
NEWS UPDATE
On April 06, 2004, SilverCrest Mines Inc. announced that it has completed its resource estimation for the recently acquired 100% owned El Zapote Project in El Salvador. Indicated resources at El Zapote are estimated at 2.29 million tonnes grading 163.4 g/t Ag, 0.13 g/t Au, 1.35% Zn, 0.36% Pb and contain 12.0 million ounces of silver based on a 34 g/t silver cut-off grade. Inferred Resource are estimated at 743,000 tonnes grading 95.8 g/t Ag, 0.12 g/t Au, 1.44% Zn, 0.37% Pb and contain 2.28 million ounces of silver. The addition of El Zapote resources has increased the Company's total Indicated Silver resources to 28.5 million ounces of silver.
On March 03, 2004, SilverCrest Mines Inc. announced that it has begun a Phase I work program on its 11,000 hectare Silver Angel Concession, located in the northern Sierra Madre Range in the State of Sonora, Mexico. The Silver Angel concession is 100% owned by the Company and has been acquired at nominal cost, involves minimal work commitments and no material third party payments.
The focal point of the Silver Angel Concession is an area of intense alteration that is approximately 8 km long by 3 km wide. The area of alteration includes major structural features that host seven past producing, high grade silver-gold mines. Documented historical sampling results showed a range of values from 9.0 to 1650 g/t silver (0.26 - 48.0 opt) and up to 4.0 g/t gold (0.12 opt).
On November 25, 2003, SilverCrest Mines Inc. announced it has negotiated a non-brokered private placement of 1,500,000 units, for gross proceeds of $1,875,000, at a price of $1.25 per unit, each unit consisting of one common share and one common share purchase warrant. The proceeds of the private placement will be used to evaluate new projects and for working capital.
On November 10, 2003, SilverCrest Mines Inc. has been informed by its drill contractor that the mobile drill rig necessary to test the Rosita Extension and the mineralized tuff cap of the EI Ocote silver project in Honduras has not yet cleared customs in Guatemala. An alternative unit is not expected to be available for at least 30 days so the planned 1500 meters of core drilling will be delayed until such time as a suitable rig becomes available.
On October 16, 2003, SilverCrest Mines Inc. announced that additional field work and review of the data of its resource model has confirmed that the newly discovered Rosita Extension extends both to the southwest and northeast, beyond the previously assumed boundaries of the El Ocote Breccia Pipe (Refer to www.silvercrestmines.com for diagrams). The El Ocote Project located in western Honduras S.A. and is owned 100% by the Company.
On September 02, 2003, SilverCrest Mines Inc. announced that it has made a significant discovery at the El Ocote Silver Project located in western Honduras S.A. The surface exploration program, in preparation for a planned 10 hole drill program, has identified a major extension to the El Ocote breccia pipe which contains previously reported resources totalling 16.2 million ounces of silver (indicated-11.0 million ounces; inferred-5.2 million ounces). Until recently, the mineralized breccia pipe was considered to be well defined by underground sampling and drilling, and had approximate dimensions of 90 metres wide x 160 metres long x 150 metres vertical extent. The discovery of the "Rosita Extension" shows the mineralized breccia extending to the southwest, well beyond the previously assumed boundary.