A significant mining reserve - SilverCrest converted 73 percent of its indicated mineral resource at Santa Elena to a reserve. The project now contains a probable reserve of 6.54 million tonnes, averaging 1.61 grams of gold and 56.7 grams of silver per tonne.
Cost projections remain modest - SilverCrest anticipates a Santa Elena mine will cost US$20.0m, including provisions for contingencies and working capital. The cash operating costs of the mine are projected at US$328 per once of gold equivalent.
A mid-scale open-pit mine is envisaged - SilverCrest envisages an open-pit heap-leach mine will process 2,500 tonnes of ore per day. The mine would produce 30,000 ounces of gold and 500,000 ounces of silver per year, over an eight-year life.
SilverCrest projects significant cash flow and a high rate of return - the prefeasibility study projects an average net, pre-tax cash flow of US$10m per year with its base-case assumptions. The base-case assumptions result in a pre-tax internal rate of return of 100.5 percent.
