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SilverCrest Mining (SVL.L) - latest assays from Santa Elena support our core and optimistic valuations
Comment by Objective Capital , Jun 06, 2008
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SilverCrest Mines released assays from another nine drill holes into its Santa Elena precious metals deposit in northern Mexico. Several of the latest holes yielded significant gold and silver values toward the east, and at depth. In particular, five expansion holes yielded notable results.
SilverCrest’s best assay came from a 1.9-metre interval in hole SE08-81, which returned 8.38 grams of gold and 260.0 grams of silver per tonne. Hole SE08-79 produced 1.63 grams of gold and 161.0 grams of silver per tonne over a 15.9-metre interval, and hole SE08-80 yielded assays of 3.47 grams of gold and 167.1 grams of silver per tonne over an 11.2-metre zone.
In addition to these five expansion holes, SilverCrest drilled three wildcat holes outside the area of the Main Zone. These tests yielded just trace values of gold and silver.
Hole SE08-69, completed at depth in the Main Zone produced a 2.2-metre interval averaging 34 grams of silver per tonne, with 1.4 percent zinc. This intercept, at a depth exceeding 415 metres, suggests the area exhibits typical epithermal zonation characteristics, with decreasing precious metals content accompanied by an increase in base metals.
Objective's view:
The latest assays show strong, continuous mineralisation over widths of ten to sixteen metres, with increasing silver grades, extend eastward of the current mineral resource.
These latest assays continue to support our expectation that SilverCrest will significantly upgrade its NI 43-101-compliant mineral resource calculation, as a core component of its prefeasibility study.
Santa Elena currently contains an indicated and inferred resource of 10.1 million tonnes, averaging 74 grams of silver and 2.15 grams of gold per tonne. SilverCrest’s management believes as much as eighty percent of the 7.4-million-tonne indicated resource will be upgraded to a probable reserve. This in turn will allow the company to present the economic parameters derived during the prefeasibility study.
This news is supportive of our core and optimistic valuations of C$1.38 and C$1.77 per share respectively.
