SilverCrest Mines (SVL : TSX-V : $2.90), Net Change: 0.01, % Change: 0.35%, Volume: 160,208
No Mexican Stand-Off Here. SilverCrest continues to keep the good news rolling, reporting drill results from the 110-hole program at the Santa Elena project in Mexico, where three drill rigs are currently operating. The results include 5 core holes and 16 RVC holes focused on: 1) Confirming tonnage and grade of the current open pit reserves, 2) Testing for further mineralization below the current open pit, 3) Testing for new mineralization in the NW highwall of the open pit, and 4) Recategorizing and expanding the current underground resources. Highlights from the infill results include Hole SERCP-9V that intercepted 52 metres grading 2.19 g/t gold and 95.5 g/t silver. From the underground, highlights include SERCH12-37 that intercepted 10 metres grading 1.3 g/t gold and 225 g/t silver, and hole SERCH12-36 that intercepted 12 metres grading 2.7 g/t gold and 187.5 g/t silver. The results indicate the potential to increase the underground resources at Santa Elena, while open pit reserve grades are expected to increase in 2013 and 2014. The company expects to release a revised resource and reserve update and a PFS for Santa Elena in Q1/13. Canaccord Genuity Mining Analyst Nicholas Campbell is bullish on the company noting that SilverCrest is positioned to generate significant cash flow over the next 12 months as the open pit operations transitions intohigher grade material with a subsequent increase in production in 2014 with the expected completion of the Santa Elena mill.