Location: 75 kilometres southeast of the city of Durango, Mexico.
Status: Development & Exploration - SilverCrest has completed its Phase II drilling program at the La Joya property.
The Phase II drill program was designed to test approximately 2.5 kilometres of the Trend which includes at least 8 near-vertical structures/stockwork zones, 14 near-horizontal, stacked mantos plus the Contact Zone which is adjacent to the underlying intrusive. Drilling on the southern extension of the Trend and Contact Zone has been completed and two of the three core drill rigs have been released. The latest drill results contained 80m of 78.8 gpt Ag, 0.31 gpt Au, 0.5% Cu (137 gpt Ag Eq*). Based on Company surface mapping, sampling and historic drill hole results, the southern area is still believed to be potentially the highest grade area along the Trend.
Phase III drill program has begun with core samples for holes L J DD12-105 to L J DD12-107 currently being logged, sampled or are in the laboratory for analyzes. This program has approximately 30 core holes and will include the 20 RVC holes uncompleted in Phase II. The next phase, planned for the first half of 2013, will further expand resources, in-fill higher grade defined areas, and test geophysical anomalies within the Company's concessions. Several holes contain anomalous molybdenum, tungsten, tin, lead and zinc values over significant widths in the skarn. Extensive metallurgical test work is underway to examine the amenability and potential metallurgical recoveries of Ag, Au, Cu, W, Mo, Sn, Zn and Pb. Metallurgical test work results will be presented in the NI43-101 Technical Report in early 2013.
The Company is currently examining the potential for a potential near-surface, higher grade, low strip open pit as a conceptual "starter pit" that will be evaluated in a Preliminary Economic Assessment in 2013.
Surface work, recent geophysics and historic drilling have outlined additional targets at La Joya with excellent potential for continued discoveries.
Cerro Coloradito:
Four additional holes were drilled on the near-surface portion of the Coloradito Target which is located approximately one kilometre west of the Trend. The Coloradito Target mineralization consists of skarning with stockwork veining and occurs adjacent to intrusive stock and dykes which are exposed at surface. Holes intercepting the Coloradito Target also contain anomalous Pb (lead), Zn (zinc), and Sn (tin).
Partial drilling of the Coloradito Target shows consistent intercepts of wide-spread tungsten (W03), molybdenum (Mo), gold (Au), and silver (Ag) mineralization from near surface to depths up to approximately 250 metres vertically. Drilling to date has identified an area of approximately 600 metre long, 200 metres wide and at least 250 metres deep starting at surface. A detail model of the Coloradito Target is being developed from drill data to provide a guide for further definition of this target which is considered a "potential large bulk tonnage tungsten-molybdenum target" and will be segregated as part of the next resource estimation.
Santo Nino:
Holes L J DD12-97 and 99 were drilled to further test the Santo Nino Target approximately 1 kilometre east of the Trend's eastern boundary. Hole 97 intercepted 27.2 metres of semi-massive sulphides grading 5.9 gpt Ag, 0.07 gpt Au, 0.48% Cu and 0.066% WO3. This hole encountered an extension of the massive sulphide mineralization (Santo Nino) reported in the discovery Hole L J DD12-74 which intercepted 35.2 metres grading 52.2 gpt Ag, 0.05 gpt Au, 1.6% Cu and 0.037% WO3. The mineralization is believed to be associated with a substantial east-west structure that cross cuts the width of the Trend mineralization to the west. Holes L J DD12-99 was located near the Santo Nino target but was off the target and intercepted no significant values.
La Esperanza:
This target is approximately 500 metres northeast of the MMT and contains an underground historic mine with geology and mineralization similar to the MMT.
SilverCrest’s updated resource estimation for the La Joya Property in Durango, Mexico. The updated Inferred Resources are summarized as (refer to tables below for details);
| • Cutoff grade of 15 gpt silver equivalent (Ag Eq*,Global Case): | 198.6 million ounces Ag Eq | |
| • Cutoff grade of 30 gpt Ag Eq (Base Case); | 159.8 million ounces Ag Eq | |
| • Cut-off grade of 60 gpt Ag Eq (High Grade Case); | 100.8 million ounces of Ag Eq | |
| • Cut-off grade of0.05% WO3; | 75.1 million pounds (35,700 tonnes) of tungsten |
The Company believes that the 60 gpt Ag Eq portion of the deposit with an estimated tonnage of 27.9 million tonnes grading 112 grams per tonne Ag Eq* constitutes a priority area to be examined as a potential “Starter Pit” for initial conceptual operations that will be examined in the Preliminary Economic Assessment (PEA) to be commenced shortly. The La Joya Property has excellent potential for additional resources with the deposits being open in most directions. Further infill and expansion drilling is recommended to increase and convert resources from Inferred to Indicated.
These resources have been independently estimated by EBA Engineering Consultants Ltd., a Tetra Tech Company utilizing Company Phase I and Phase II drill results and surface sampling programs along with independently-validated historic data. Drilling to date has been relatively widespread in the Main Mineralized Trend (MMT) as well as the independent deposits of Coloradito and Santo Nino. The MMT which includes the Phase I and II drilling areas, has a length of 2.5 kilometres and an average minimum width of over 700 metres (see attached Figures).
The La Joya resource models separate the deposits into two broad categories based on the predominant mineralogy.The first category is comprised of silver, gold and copper mineralization (AgCu Rich Zone), with lesser amounts of tungsten (WO3), molybdenum (Mo), lead (Pb), and Zinc (Zn). The second category is predominantly tungsten and molybdenum mineralization (Contact Zone) with lesser amounts of Ag, Cu, Au, Pb, and Zn. The mineralogy of these categories is often gradational and overprinted in some areas. The AgCu Rich Zone generally lies spacially above the Contact Zone and generally follows the contours of the underlying intrusive, which outcrops in several areas. The summaries of the resource estimates below show the resources attributed to each of these mineralization categories for each of the current deposits, specifically, the MMT, Santo Nino, and Coloradito.
AgCu Rich Zone Resource Summary
|
ZONE |
Ag Eq*
Cut-off gpt |
Resource
Category* |
Tonnage
(000) |
Ag
gpt |
Au
gpt |
Cu %
|
Ag Eq
gpt |
Ag Oz
(000) |
Au oz
(000) |
Cu lbs
(000) |
Ag Eq*
Oz (000) |
|
MMT
|
15
|
INFERRED
|
120,600
|
23.7
|
0.18
|
0.18
|
47.9
|
91,900
|
707.9
|
466,500
|
185,800
|
|
|
30
|
67,600
|
34.7
|
0.23
|
0.25
|
68.4
|
75,400
|
519.4
|
377,400
|
148,700
|
|
|
|
60
|
26,100
|
58.5
|
0.30
|
0.42
|
109.6
|
49,100
|
255.8
|
240,100
|
92,000
|
|
|
Santo Nino
|
15
|
6,200
|
20.4
|
0.04
|
0.49
|
64.7
|
4,000
|
8.2
|
66,800
|
12,800
|
|
|
|
30
|
3,600
|
29.2
|
0.04
|
0.75
|
96.1
|
3,400
|
5.3
|
59,400
|
11,100
|
|
|
|
60
|
1,800
|
43.1
|
0.05
|
1.20
|
149.2
|
2,500
|
2.9
|
48,300
|
8,700
|
|
|
Total
|
15
|
126,700
|
23.5
|
0.17
|
0.19
|
48.7
|
95,900
|
716.2
|
533,200
|
198,600
|
|
|
|
30
|
71,200
|
34.4
|
0.22
|
0.28
|
69.8
|
78,700
|
524.8
|
436,800
|
159,800
|
|
|
|
60
|
27,900
|
57.5
|
0.28
|
0.48
|
112.2
|
51,600
|
258.8
|
288,400
|
100,800
|
* Silver equivalency includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is incorporated until further information is available.
**Classified by EBA, A Tetra Tech Company and conforms to NI 43-101, 43-101CP, and CIM definitions for resources. All numbers are rounded.Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources. Mineralization boundaries used in the interpretation of the geological model and resource estimate are based on a cutoff grade of 15 gpt Ag Eq using the metal price ratios described above.
Contact Zone Resource Summary
|
ZONE
|
WO3 (%)*
cut-off |
Resource
Category** |
Tonnage
(,000) |
WO3 %
|
Mo %
|
WO3 lbs
(,000) |
Mo lbs
(,000) |
|
MMT
|
0.025
|
Inferred
|
60,500
|
0.053
|
0.003
|
70,500
|
4,200
|
|
|
0.050
|
Inferred
|
25,100
|
0.075
|
0.004
|
41,400
|
1,900
|
|
|
0.095
|
Inferred
|
4,400
|
0.109
|
0.002
|
10,600
|
200
|
|
Santo Nino
|
0.025
|
Inferred
|
5,200
|
0.040
|
0.008
|
4,600
|
800
|
|
|
0.050
|
Inferred
|
900
|
0.070
|
0.013
|
1,500
|
300
|
|
|
0.095
|
Inferred
|
0.750
|
0.101
|
0.011
|
2
|
0.17
|
|
Coloradito
|
0.025
|
Inferred
|
31,900
|
0.062
|
0.028
|
43,300
|
18,000
|
|
|
0.050
|
Inferred
|
18,500
|
0.079
|
0.032
|
32,300
|
11,900
|
|
|
0.095
|
Inferred
|
4,200
|
0.112
|
0.034
|
10,300
|
2,800
|
|
Total
|
0.025
|
Inferred
|
97,600
|
0.055
|
0.012
|
118,400
|
23,100
|
|
|
0.050
|
Inferred
|
44,600
|
0.076
|
0.016
|
75,100
|
14,100
|
|
|
0.095
|
Inferred
|
8,600
|
0.111
|
0.018
|
20,900
|
3,000
|
* WO3 is based on a standard calculation of tungsten (W) times 1.26. 100% metallurgical recovery is incorporated until further information is available.
**Classified by EBA, A Tetra Tech Company and conforms to NI 43-101, 43-101CP, and CIM definitions for resources. All numbers are rounded.Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources. Mineralization boundaries used in the interpretation of the geological model and resource estimate are based on a cutoff grade of 200 ppm W.
Much of the Contact Zone resource is considered to be near-surface and potentially amenable to conventional open pit mining. This zone also contains gold, silver, copper and tin (as defined by geochemistry) which may add secondary value as a result of increased metal content.
These resource estimates are based on recent and historical information collected by SilverCrest Mines and previous operators (Luismin/Goldcorp) from 1979 to present.Phase II Company drilling comprising 78 holes (25,812.65 metres), the 26 holes Phase I Company drilling (5,753.70 metres) in addition to 18 validated historic drillholes (5,907.26 metres) were included in the geological database used as source data for the estimation. Drill hole spacing for the 122 holes (37,473.61 metres) used in the resource estimation is approximately 75 metres.
Based on available data and computer modeling, the current dominant mineralization at La Joya is hosted within numerous sub-vertical, near east-west striking structurally-controlled stockwork zones. These zones are considered to be semi-continuous along strike with true widths ranging from 15 to 50 metres using a cutoff grade of 15 gpt Ag Eq. Eight near-horizontal mantos (semi-continuous disseminated stratabound sulphides) have been modeled within the resource area, which are cross-cut by the stockwork zones and considered the second dominant mineralization. The La Joya deposits are currently interpreted to host three related styles of mineralization. Please refer to News Release dated October 17, 2011 for defined types of mineralization at La Joya.
Initial metallurgical test work as reported in the first Technical Report on the property dated February 20, 2012 suggests that the La Joya deposit may be amenable to conventional flotation processes for copper concentrating with high grade silver and gold components. Significant metallurgical test work is being completed by an independent qualified lab to confirm flotation amenability and fully determine recoveries. The nearby Sabinas Mine (Penoles), which is considered to be a similar deposit style to La Joya, has been in production for many years and is currently producing at an estimated rate of 4,000 tonnes/day and shipping flotation concentrate overseas.
The La Joya Inferred Mineral Resource Estimate was completed using Gemcom GEMS modeling software and is compliant withNational Instrument 43-101 and conforms to guidelines and definitions established by the Canadian Institute of Mining and Metallurgy. The resource is based on verified information from historical and recent company sources.The Mineral Resources include block models for the Main Mineralized Trend and Santo Nino located within Cerro Sacrificio, and for Cerro Coloradito.Solid boundaries for the mineralization were interpreted using a minimum 15 Ag Eq cut-off from drill holes composites. Raw assay data was composited to 2 metres and was interpolated into a 5 metre x 5 metre x 5 metre block size model using inverse distance squared methodology with multiple mineralized domains and search ellipses.The search ellipse ranges were based on geological field observation, geostatistical analysis and iterative interpolation.Grade caps of 550 gpt Ag, 5.5 gpt Au and 6.0 % Cu were determined from histogram analysis and applied after compositing.Grade interpolation within stratabound manto mineralization utilized an anisotropic search ellipse oriented along the interpreted trend of bedding with major and semi-major axis ranges of 75 metres and a minor axis range of 40 metres.Where manto grades exceeded 120 gpt Ag, 1 gpt Au, or 1% Cu, the search ellipse was limited to major and semi-major axis ranges of 40 metres, and a minor axis range of 20 metres.Grade interpolation within sub-vertical structurally-controlled stockwork zones utilized an anisotropic ellipse oriented along the interpreted zones with major and semi-major axis ranges of 80 metres and a minor axis range of 30 metres.A minimum of 2 composites, to a maximum of 15, were required to interpolate block grades with no more than 3 composites reporting from any one drill hole in manto mineralization, or no more than 3 composites reporting from any one drill hole in the stockwork zones.Based on limited laboratory and in situ testing, a value of 3 was applied as a specific gravity for all materials in the model.Using the definitions in the CIM Definition Standards for Mineral Resources and Mineral Reserves, all Mineral Resources have been classified as being Inferred based on the number of samples used for estimation relative to the deposit area and the overall confidence in interpretation from the widely spaced drill holes for this style of deposit. Inferred Resources should not be used as the basis for evaluation of economic viability of the project. Details of these criteria will be presented in the Technical Report to be filed on SEDAR.
The independent Qualified Persons for the La Joya resource estimation who have reviewed and approved this information are James Barr., P.Geo., and Lara Reggin, P.Geo. both from the consulting firm of EBA Engineering Consultants Ltd., a Tetra Tech Company and Ting Lu, P.Eng. (for Metallurgy) from Wardrop Engineering, a Tetra Tech Company. A Technical Report is currently being prepared by the Qualified Persons and will adhere to the disclosure requirements of NI 43-101 and will be filed no later than 45 days from January 29, 2013.
The Company has entered into agreements for purchase and sale to purchase 100% of the property from local vendors for payments of US$2.68 million payable over a 3 year period plus a 2% NSR for "La Joya West" which consists of 521.6 hectares and payments of US$1.5 million payable over a 3 year period plus a 2% NSR for "La Joya East" which consists of 1103.6 hectares. To date, Property payments have been made totaling $340,000.
The La Joya Property is underlain by Cretaceous sediments along the western margin of the Mexican Mesa Central, at the transition from the Sierra Madre Occidental, along the broadly defined San Luis-Tepehuanes fault system. The fault system is commonly referred to as the Mexican Silver Belt based on the country scale distribution of silver producing mines juxtaposed along the trend. The sedimentary package at La Joya consists of the Cuesta del Cura Limestone comprised of limestone with minor chert and siltstone overlain by the younger Indidura Formation comprised of calcareous siltstone, mudstone and siliciclastics.
The La Joya Deposit is a carbonate hosted copper skarn deposit with associated silver and gold mineralization, similar in style to the Fortitude-Copper Canyon deposit in Nevada, USA, and to the Sabinas/San Martin mines in Zacatecas, Mexico. Calcsilicate skarn mineralization is found on the property as andradite garnet, pyroxene, actinolite and wollastonite and is distributed amongst three styles of mineralization recognized to exist on the property. Ag-Cu-Au mineralization is concentrated within stratiform manto-style skarn controlled along sub-horizontal bedding. Ag-Cu-Au, Pb-Zn, and W mineralization is concentrated within structurally controlled stockwork and veining related skarn. Finally, W mineralization is found within late stage retrograde skarn development along the intrusive contact.
Sulphide mineralization generally transitions from chalcopyrite-dominant in proximal skarn to bornitedominant in distal skarn. Late sub-vertical laminated quartz-calcite veins bearing freibergite and arsenopyrite cross-cut pre-existing skarn mineralization and, although related to magmatic fluids, is not considered to be related to the skarn mineralizing events. Trace amounts of oxide from meteoric weathering processes are present within the structural corridors at depth.
Previous work on the property, mainly by Luismin SA de CV, consists of a number of drill holes and surface work completed from 1985 to 2001. Surface mapping, sampling by the Company and previous drill results suggest that geology and mineralization is similar to the nearby San Martin Mine which is operated by Grupo Mexico and considered historically to be one of the largest polymetallic (Ag, Cu, Zn, Pb) producers in Mexico.
Due diligence work completed by the Company shows several near vertical veins and structures with widths up to 50 metres which cross-cut shallow-dipping mineralized manto (skarn) deposits up to 50 metres thick associated with an anticlinorium complex. Mantos appear to be mineralized near the apex of a series of anticlines. The main alteration and mineralized area appears to be approximately 2.5 kilometres in strike length, 300 to 500 metres wide and is associated with a nearby exposed intrusive stock. Geochemistry for the system is Ag-Cu-Au-Sb with sulfide mineralization consisting of tetrahedrite, bornite, and chalcopyrite. Native silver may also be present.
In late 2011 SilverCrest completed a phase I drill program. Data compilation for the Phase I drilling program and a newly received historic database has identified a large, near-surface bulk tonnage target at its La Joya. The compilation by SilverCrest has involved data and/or drill core review of 51 historic holes (14,786 metres) and 26 Company drill holes (5,716 metres) totaling 20,502 metres of drilling in 77 holes on the property.
