Vancouver – Silvercrest Mines (SVL-V) expects that the feasibility study under way on its El Zapote project in El Salvador will incorporate new expanded resources from its recent definition drilling at the Cerro Colorado III, San Casimiro and the new Tajado deposits.
Engineering firm, SRK Consulting, has been working on the feasibility study to establish mineable reserves, optimize the process design and evaluate the economic viability of the project since last June.
Since then the company has drilled another 4,300 metres in 41 holes: 18 at Cerro Colorado and 10 at San Casimiro and 13 at Tajado.
The company is most encouraged by the results from Tajado, some 2.5 km southeast of the Cerro Colorado III deposit where plans call for another 14 to be drilled by June.
Last year’s resource still stands at 2.3 million tonnes averaging 163.4 grams silver, 0.13 grams gold and 1.35% zinc for 12 million oz. silver and 68 million pounds zinc contained. There are another 743,200 tonnes grading 95.8 grams silver and 1.44% zinc provide for 2.2 million contained oz. silver and 23.5 million lbs. zinc in the inferred category.
The resource is 77% contained in Cerro Colorado III and the remainder in the San Casimiro satellite deposit. The resources are based on drilling and trenching by previous operators and SilverCrest believes they will be expanded when results from recent drilling are incorporated.
By June, metallurgical testing being performed on samples representing low, medium and high-grade ore, for both oxide and sulphide mineralization, should be complete. The testing endeavours to optimize metal recoveries and will enable the finalization of the operating and design parameters of the processing facilities.
The company is having another look at the mine site plan in an effort to reduce the haulage distances for ore and waste rock, and is looking at ways to use the topography in the construction of the tailings dam. Geotechnical drilling is underway for pit design.
SilverCrest is looking at saving costs by purchasing used mill equipment and using contract miners; while reducing operating costs by using local labour and tapping into the regional electric power grid.
On the environmental front, SilverCrest submitted its Environmental Impact Assessment (EIA) along with an initial baseline study, to the government in January. The final feasibility study requires baseline data that covers a 1-year period which the company hopes to complete by July.
Meanwhile, the company has been dealt disappointing news in other parts of Central America. In Honduras, SilverCrest lost an appeal to resolve the cancellation of its El Ingenio exploration concession. It has put that project on hold while it tries to sort out the legal and political issues and still hopes to recoup the value of the El Ocote deposit.
And in Guatemala, the government has recently slapped a bio-reserve over the area where the company had applied for an exploration concession.
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