• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • WORLD EDITION
      Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • WORLD EDITION
      North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Precious Metals Market
    Precious Metals News
    Precious Metals Stocks
    • Precious Metals Market
    • Precious Metals News
    • Precious Metals Stocks
    silver investing

    SilverCrest Mines Hits Milestone with Completion of Mill Commissioning

    Vivien Diniz
    Aug. 11, 2014 04:20PM PST
    Precious Metals

    SilverCrest Mines completed mill commissioning at the Santa Elena mine in Mexico, a significant milestone for the company.

    Silver-focused SilverCrest Mines (TSX:SVL) reached a major milestone this week with the completion of a three-month commissioning phase at its 3,000-tonne-per-day (tpd) mill and facility at the Santa Elena mine in Mexico. The commissioning of the mill is integral in the company’s transition from an open-pit heap leach operation to a 3,000-tpd conventional mill facility and underground operation. 

    Part of the criteria for determining the commissioning’s completion was the achievement of more than 80 percent of nameplate capacity over a reasonable period of continuous production. The fact that the company achieved average start-up recovery rates of 82-percent gold and 65-percent silver for an average mine life recovery rate of 92-percent gold and 67.5-percent silver was also taken into account, as was the completion of budgeted capital expenditures. Positive operating cash flows from expanded operations, including the mill, were also considered.

    SilverCrest highlights in today’s press release that during the commissioning period, mill feed was drawn from the leach pad reserve. The company also notes that roughly 6,000 tonnes of pad ore milled in July were graded at 0.84 grams per tonne (gpt) gold and 56.8 gpt silver. Those figures are roughly 33 percent higher for gold and 58 percent higher for silver than the originally budgeted grades of 0.63 gpt gold and 36 gpt silver. The company also states that bending higher-grade underground ore is expected to commence during the third quarter of this year.

    Haywood Securities analyst Benjamin Asuncion commented in a research note to clients that the “[c]ommissioning at Santa Elena was generally in-line with expectations and previous management guidance.” Asuncion also notes that from here, SilverCrest’s near-term milestones include the start of underground ore production, which he says should begin in August. “We currently estimate that the underground production will ramp up to ~40% of the mill feed by year-end.”

    Given the news, Haywood’s investment thesis for SilverCrest is based on the company’s “ability to unlock value from its Santa Elena mine in Sonora, Mexico, through the transition from an open-pit heap leach operation to an underground mine and mill in calendar 2014.” Asuncion also believes that the company’s other property, advanced-stage La Joya in Durango, Mexico, “provides the foundation for future potential growth.”

    Indeed, the company’s president and COO, Eric Fier, reacted positively to today’s news, noting that commissioning completion is significant as “SilverCrest Continues systematic and responsible growth.” He added that SilverCrest “will continue to adjust and optimize all the components of the facilities in efforts to achieve through-put tonnages at or above the nameplate capacity of 3,000 tpd.”

    With this major milestone now securely tucked under its belt, SilverCrest will be focusing on attaining other milestones, which include underground stope production in August and free cash flow in the third quarter of 2014.

    Haywood currently has a “hold” rating on SilverCrest Mines with a target price of $2.25. Following Monday’s news, SilverCrest was up 1.77 percent, at $2.30.

     

    Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any of the companies mentioned in this article.

    Related reading

    SilverCrest Mines’ Q2 Production Results Exceed Analyst Expectations

    silver investingtsx:svlmine lifehaywood securities
    The Conversation (0)

    Go Deeper

    AI Powered
    Copper Investing

    Nicola Mining: $51 Million Invested in 4 Assets, Market Cap $6 Million, Cash Flow Next Year

    May 2012 News Catalysts

    Latest News

    Apollo Silver Meets Top County Leaders at San Bernardino County Forum

    Heliostar Drills 88 m Grading 8.82 g/t Gold in Resource Conversion Drilling and Adds Third Drill Rig at Ana Paula

    Boundiali indicated gold resources grows by 53% in two month

    PGO to Acquire White Dam Gold Operation in South Australia

    Burbanks Drilling Returning Spectacular Grades

    More News

    Outlook Reports

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
      • Electric Vehicles
    • Agriculture
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Energy
      • Uranium
      • Oil and Gas
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Robotics
      • Crypto
      • Cleantech
    Life Science
      • Biotech
      • Cannabis
      • Pharmaceuticals

    Featured Precious Metals Stocks

    Locksley Resources

    LKY:AU

    Cobre Limited

    CBE:AU

    Prismo Metals

    PRIZ:CNX

    Anteros Metals

    ANT:CC

    Locksley Resources

    LKY:AU

    Silver47 Exploration

    AGA:CC
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES