SilverCrest Mines Inc. (TSX:SVL,NYSEMKT:SVLC) announced that it’s filed an NI 43-101 compliant update to the prefeasibility study for its Mexico-based Santa Elena project.
SilverCrest Mines Inc. (TSX:SVL,NYSEMKT:SVLC) announced that it’s filed an NI 43-101 compliant update to the prefeasibility study for its Mexico-based Santa Elena project. Specifically, it updates a prefeasibility study and open-pit resource update for the project released in April 2013 and then amended in March 2014.
As quoted in the press release:
The Base Case economic analyses use a range of metal prices per ounce for gold and silver. For gold prices, the range is defined as $1,250 (2015), $1,275 (2016) and $1,300 (2017 – 2022) and for silver prices the range is defined as $18 (2015), $19 (2016), $20 (2017) and $21 (2018 – 2022). On this basis, the following economic highlights for a continued 8 year mine life beginning January 2015 are:
- Total operating revenue of $555 million from estimated sales of 12.6 million ounces of silver and 270,700 ounces of gold.
- Total operating costs of $349 million.
- Estimated cash operating costs averaging $11.59 per silver equivalent (‘AgEq’) ounce (Ag:Au average ratio of 64.5:1 based on sold ounces for LOMP).
- Total sustaining capital costs of $31 million including LOMP underground drilling programs and 2015 surface exploration expenditures.
- Total pre-tax undiscounted cash flow of $163 million including estimated closure cost deductions of $6 million.
- Pre-tax Base Case pre-tax NPV (5%) of $144 million.
- Post-tax Base Case post-tax NPV (5%) of $119 million.
Metal price sensitivities were completed including spot price as $1,193/oz Au and $16.16/oz Ag (representing spot price in December, 2014) which showed a pre-tax NPV (DCF @ 5%) of $84.3 million.
J. Scott Drever, CEO of SilverCrest, commented:
We are extremely pleased with the results of the reserve and economic update for the Santa Elena mine. The study confirms our expectations that the transition from the open pit heap leach operation to a conventional mill and underground operation represents a very attractive project with robust economics even at current reduced metal prices. The renewal of an 8 year mine life gives SilverCrest a strong corporate cash flow that provides a solid foundation for continued systematic and aggressive growth. We look forward to a year of continuing operational and financial improvements in 2015 with expansion of our annual metals production at Santa Elena.