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Silvercrest Mines Inc. (TSXV:SVL)

SilverCrest Continues to Expand Main Zone at Santa Elena, Mexico

 

VANCOUVER, B.C. April 8, 2008 – SilverCrest Mines Inc. (the “Company”) is pleased to report results for the next series of core holes of an “expanded” Phase II  drill program at its Santa Elena Project located in northern Mexico.  The Santa Elena Project is located approximately 150 kilometres northeast of Hermosillo, Sonora, Mexico and is easily accessible with excellent local infrastructure. The Company has the right to acquire a 100% interest in the property.

The most notable intercepts of this series of holes were encountered in SE08-70, which intercepted 21 metres (68.88 feet) grading 1.41 gpt gold and 109.53 gpt silver and in SE08-75, which intercepted 11.4 metres (37.39 feet) grading 2.83 gpt gold and 150.15 gpt silver. Overall, the results for expansion drilling continue to show strong, continuous gold and silver values over widths of 11 to 21 metres as drilling moves east and to depth. Average width of the Main Zone in the eastern area is approximately 15 metres and is similar to the rest of the deposit. The Main Zone has been traced on surface for approximately 1300 metres and has been encountered in drill holes to a vertical depth of more than 500 metres.

The Company’s current NI 43-101 compliant resource is based on 40 drill holes and the on-going drill program is currently drilling hole SE08–81.  Including the holes reported below, the Company has provided results for 75 holes. The 16 core holes reported below (see attached drill plan for hole locations) are part of the current program to in-fill and expand the recently reported NI 43-101 Indicated and Inferred Resources (see news release dated November 15, 2007) for the project. The detailed results are shown below:

Santa Elena Main Zone

Weighted Average Grades

Drill
Hole

From
(m)

To
(m)

Interval
(m)

Interval
(ft)

Au
gpt

Ag
gpt

Au
gpt equiv*

Ag
gpt equiv*

Note


SE07-59

38.8

40

1.2

7.51

1.91

15.9

2,22

111.4

In-fill

SE07-60

25.5

37.5

12.0

39.36

0.73

22.45

1.18

59.35

In-fill

SE07-61

47.3

54.7

7.4

24.37

0.22

15.18

0.52

26.40

In-fill

SE07-62

85.0

106.0

21.0

68.88

1.71

83.62

3.38

169.23

Expansion

includes

88.0

100.0

12.0

39.36

2.68

129.10

5.26

263.47

Expansion

includes

91.0

100.0

9.0

29.52

3.23

147.86

6.18

309.36

Expansion

SE07-64

55.5

61.4

5.9

19.35

0.41

26.18

0.93

46.79

Expansion

SE07-65

167.0

179.0

12.0

39.36

1.37

108.07

3.53

176.90

Expansion

SE08-68

308.4

329

20.6

67.37

0.26

23.23

0.72

36.23

Expansion

SE08-70

257.0

278.0

21.0

68.88

1.41

109.53

3.60

180.17

Expansion

includes

274.2

278.0

3.8

12.46

5.16

342.72

12.02

601.00

Expansion

SE08-72

263.9

284.6

20.7

67.89

1.08

123.15

3.54

177.25

Expansion

includes

263.9

276.9

13.0

42.64

1.51

180.33

5.11

255.88

Expansion

SE08-73

226.3

240.6

14.3

46.90

1.60

151.74

4.63

231.79

Expansion

includes

226.3

230.0

3.7

12.13

3.25

390.00

11.05

552.50

Expansion

SE08-75

202.4

213.8

11.4

37.39

2.83

150.15

5.84

292.15

Expansion

includes

209.4

213.8

4.34

14.23

5.12

294.66

11.01

550.85

Expansion

*Conversions are based on a ratio of 1:50 Au:Ag and assume 100% metal recovery. All numbers are rounded.

Holes SE07-62 through SE08-75 are considered “expansion” holes and are outside the boundaries of the current resource estimates shown in the table below. These holes are being incorporated into a new resource model with revised resource estimates expected to be announced in the second quarter of 2008. No significant faulting or displacement of the Main Zone has been identified to date. The expansion drilling has identified a high grade zone of gold and silver values, plunging to the southeast, with lower grade values above and below the higher grade zone. Grades range from approximately 1.4 to 5.1 gpt gold and 109.5 to 342.7 gpt silver. Gold values appear to be relatively consistent within this range while silver grades appear to be increasing to the east and to depth.

Hole SE08-63 and SE08-64 intercepted the eastern extension of Main Zone near surface. The zone is approximately 30m wide and is anomalous in Au, Ag, Ba, and Sb. This is fairly typical of the upper levels of high level, epithermal mineralization in stockwork veining.. The down dip extension of the Main Zone approximately 175 metres below SR08-63 was intercepted in hole SE08-72, and returned 20.7m of 1.08 gpt Au and 123.15 gpt Ag.  The Main Zone still remains open to the east and to depth and will be further tested with the remaining 10 to 15 holes of the Phase II drill program.

Hole SE08-69 intercepted silver-lead-zinc mineralization at a vertical depth of approximately 525 metres with most assays still pending. This is the first hole to depth that has intercepted any appreciable amount of base metals.

Hole SE08-71 was drilled in the Footwall Zone immediately adjacent to the Santa Elena Main Zone and showed minimal gold and silver values. The Footwall Zone consists mainly of quartz stockwork in shears and structures that are generally perpendicular to the Main Zone. There has been sufficient drilling in the Foot Wall Zone for it to be included in the next resource estimate as it would likely be mined as a part of any proposed initial open pit.

Drill holes SE07-66, SE08-67 and SE08-74 were drilled outside the Main Zone area to test geophysical targets. Results for these holes show no significant values, however, large breccia zones with substantial pyrite (5%-40%) were encountered that may be indicative of a nearby mineralized system. The geophysical signatures of the anomalies are quite similar to that exhibited by the Main Zone and are quite extensive. Additional exploration will be required to determine if potentially economic metal values can be identified.

All samples were analyzed at ALS-Chemex Labs in Hermosillo, Mexico and North Vancouver, BC, Canada.

The most recent resource estimate for Santa Elena is shown in the table below:

Santa Elena Silver and Gold Resources

Property

Resource Category¹

Tonnes

Ag
gpt

Au
gpt

Tons

Ag
opt

Au
Opt

Contained Silver Ounces

Contained Gold Ounces

Santa Elena²

Indicated

7,378,300

74.20

1.81

8,133,200

2.16

0.053

17,600,900

428,700

 

Inferred

2,608,000

73.06

1.37

2,874,800

2.13

0.040

6,125,700

114,800

1 Conforms to NI 43-101, 43101CP and current CIM definitions for resources. All numbers are rounded. Measured resources included in Indicated.

2    Cutoff grade is 30 gpt Ag equivalent (0.5 gpt Au equivalent).

Detailed results for the drilling, surface and underground sampling related to the resource calculation can be found in numerous press releases filed on SEDAR (sedar.com) or on the Company’s web site (www.silvercrestmines.com).

J. Scott Drever, President stated; “We continue to be impressed with the continuity, predictability and strength of the Main Zone. Using our geological model we are able to predict projected intersections within a few metres. Based on this predictability we have contracted a reverse circulation drill that will enable us to pre-collar a number of deeper holes and then core the zone intersection with the core drill that is on site. This will speed the process of exploration while reducing overall costs significantly. Meanwhile, we have essentially concluded the technical and economic aspects of our pre-feasibility study and are in the process of having it vetted by independent Qualified Persons. The Environmental Impact Study that is required for permit applications for a potential open pit, heap leach operation is complete and is expected to be filed in the next few weeks.”

N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest Mines Inc. and Qualified Person for this news release has reviewed and approved its contents.

SilverCrest Mines Inc. is a “Silver Focused” exploration and development company with a portfolio of high grade silver deposits and exploration properties located in Mexico and El Salvador. This property portfolio, which includes reported indicated and inferred silver resources and substantial exploration potential, provides an important base from which SilverCrest can develop its corporate objective of becoming a significant silver asset based company. The Company’s immediate initiative is to acquire and develop substantial silver resources and ultimately to operate high grade silver mines throughout North, Central and South America.


This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company’s 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 Company’s 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 Company’s 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.

On Behalf of the Board of Directors of

SilverCrest Mines Inc.

“J. Scott Drever

 

J. Scott Drever, President

For further information, please contact:

Fred Cooper

1311 Howe Street, Suite 405

Vancouver, BC V6Z 2P3

Telephone: (604) 691-1730  

Fax:  (604) 691-1761

Email: info@silvercrestmines.com

Website: www.silvercrestmines.com

SilverCrest Updates Progress at the Santa Elena Project, Mexico-Preliminary Feasibility Study Nearing Completion

 

VANCOUVER, BRITISH COLUMBIA--(Feb. 21, 2008) - SilverCrest Mines Inc. (the "Company") (TSX VENTURE:SVL) is pleased to announce that all phases of work on the Company's Preliminary Feasibility Study at the Santa Elena Project are near completion. The Santa Elena Project is located approximately 150 kilometres northeast of Hermosillo, Sonora, Mexico and is easily accessible with excellent local infrastructure. The Company has the right to acquire a 100% interest in the Santa Elena property.

The principal activities related to the Preliminary Feasibility Study (PFS) that are either completed or near completion are as follows:

- An up-dated NI 43-101 resource estimation was filed in January (see press release dated January 15, 2008). This new resource was based on the results of 40 drill holes and considerable underground sampling and is the basis for reserve estimation in the PFS. The results of the new estimate increased indicated gold ounces by 150% and indicated silver ounces by 300%. As a result of the up-grading of the resource categories from inferred to indicated resources, the contained gold ounces in the inferred category were reduced by 28% and silver ounces were reduced by 30%. However, the combined silver equivalent resources for the Main Zone have increased by 70% overall (see resource table below).

- Essentially all data required for the PFS has been collected and compiled and is under final review by qualified persons before release. The most significant elements that are being finalized and confirmed are as follows:

- Extensive column-percolation testing from representative bulk samples of the deposit shows gold recoveries of 65% to 70% and silver recoveries of 33% to 37% over a 90 day period. Consumption of both cyanide and lime are low which should be reflected in a low cost per tonne for processing. Leach time is considered good with over 50% of the recoverable metals retrieved within 20 days. The results of these tests confirm that the deposit is amenable to heap leaching. All metallurgical test work was completed by SGS Group's certified lab in Durango, Mexico.

- Optimization of open pit computer modeling carried out by independent consultants has conceptualized a low cost open pit heap leach operation that will convert 80% to 90% of the current indicated resources to proven and probable reserves.

- General site plans, detailed mine plans and facility drawings have been completed by Sol Y Adobe Ingenieros Asociados S.A. de C.V. Quotes from operators and equipment suppliers have been obtained for mining costs and major equipment. Economic models have been developed and project sensitivities have been run.

- Environmental baseline work has been completed by an independent Mexican environmental consultant and has not identified any significant deterrents to the development of the project. Permitting is on-going with the submission of an application for operations to the Mexican government anticipated during this quarter.

- A Land Occupation Agreement was signed in November, 2007 with the communal land owners of the project area. This agreement provides access rights to the area for exploration, development and exploitation over a 20 year lease period. Strong community support exists and further discussions are underway regarding project water supplies, access roads, employment, and community services.

- An EPCM contract (engineering, procurement, construction, management) for the project is being negotiated.

- A Land Use Change Permit application has been submitted to the federal government for approval anticipated during this quarter.

- A full Environmental Impact Study and Risk Analysis are near completion and are expected to be submitted to the governmental authorities in March, 2008. This submission is the second stage for approval for a mine operating permit and usually requires 4 to 6 months for government review and approval.

In addition to the work related to the Preliminary Feasibility Study the Company has two core rigs operating to continue expanding the known resources of the Main zone and to begin testing newly defined adjacent exploration targets. The drill program is currently drilling hole SE08-71. Results of 10 additional holes are yet to be reported in the near future. Conclusions and inferences from the continued exploration work are as follows:

- Gold and silver mineralization of the Main Zone is drill-defined and relatively consistent over a minimum distance of approximately 1,000 metres with an average width of 15 metres and extends to a depth of more than 500 metres down dip. The surface trace of the Main Zone is now approximately 1,300 metres.

- A high grade zone (greater than 50 gram-metres/tonne gold equivalent or 3000 gram-metres silver equivalent) within the broader Main Zone mineralization has been identified that is at least 800 metres long, approximately 150 metres in height and averages approximately 25 metres wide in recent intercepts (to view attached long section please click on the following link: http://media3.marketwire.com/docs/0221svl.pdf).

- Resources are currently being defined in the Main Zone that may be amenable to underground mining. This would potentially enable the proposed open pit heap leach operation to transition into an underground mining operation utilizing a conventional mill.

- Reconnaissance work and geophysical surveys have defined several nearby exploration targets that have excellent potential to discover mineralized zones similar to the Main Zone.

Exploration drilling continues with the addition of another core drill supplied by Intercore Perforaconies S.A. de C.V. The addition of a reverse circulation (RC) drill is anticipated for March, 2008. A budget for 2008 drilling has been proposed for approximately 4,000 metres of core and 6,000 metres of RC. The ongoing expanded Phase II drill program is expected to expand the current resource estimate to the east, to depth, and further test the Footwall Zone. A revised independent resource and reserve estimation is anticipated for the second quarter of 2008 which should include the results of an additional 35 to 40 drill holes.

--------------------------------------------------------------------------- Contained Contained Contained Ounces Ounces Ounces Classification Tonnes g/t Au g/t Ag Au Ag Equiv. Ag --------------------------------------------------------------------------- Indicated 7,378,300 1.81 74.20 428,700 17,600,900 43,327,100 Inferred 2,608,000 1.37 73.06 114,800 6,125,700 13,016,700 --------------------------------------------------------------------------- 1 Conforms to NI 43-101, 43101CP and current CIM definitions for resources. All numbers are rounded. 2 Cut-off grade is 30 gpt Ag equivalent (0.5 gpt Au equivalent). 3 Conversion of gold to silver based on 60:1 silver to gold ratio, assumes 100% metal recovery.

J. Scott Drever, president of SilverCrest, stated; "We are now very confident about the nature and minimum size of the Main Zone deposit and are becoming more confident about its mineability as the preliminary feasibility progresses. We have used a gold price of US$600 per ounce and a silver price of US$10 per ounce for our base case economics and all preliminary indications are that we potentially have the makings of a very robust project at Santa Elena. The team of people we have assembled to carry out the permitting and engineering design all have extensive experience in this type of operation and are working well together to finalize all aspects of the development plan. We are anxious to finalize the Preliminary Feasibility Study so that we can move forward with the next stages of the program."

The Qualified Person for this news release is N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest Mines Inc. who has reviewed and approved this release.

The Company also wishes to announce that the agreement with Scott F. Gibson & Company Inc. ("SGC") announced on January 7, 2008 to act as marketing and investor relations consultant has been cancelled by mutual agreement of the parties. The incentive stock option granted under the agreement has been cancelled and returned to the option pool available for grant under the Company's option plan.

SilverCrest Mines Inc. is a "Silver Focused" exploration and development company with a portfolio of high grade silver deposits and exploration properties located in Mexico and El Salvador. This property portfolio, which includes reported indicated and inferred silver resources and substantial exploration potential, provides an important base from which SilverCrest can develop its corporate objective of becoming a significant silver asset based company. The Company's immediate initiative is to acquire and develop substantial silver resources and ultimately to operate high grade silver mines throughout North, Central and South America.

This news release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's 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 Company's 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 Company's 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.

On Behalf of the Board of Directors of SilverCrest Mines Inc.

J. Scott Drever, President


The TSX-Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
CONTACT INFORMATION:

SilverCrest Mines Inc.
Fred Cooper
(604) 691-1730
Fax: (604) 691-1761
Email: info@silvercrestmines.com
Website: www.silvercrestmines.com