Canaccord Genuity has upgraded coverage on SilverCrest Mines, which trades of the TSX Venture Exchange, under the symbol SVL
I’m Ashley Willows for InvestmentPitch.com
Canaccord Genuity has upgraded coverage on SilverCrest Mines, which trades of the TSX Venture Exchange, under the symbol SVL.
Following the filing of a NI 43-101 compliant Technical Report for the La Joya resource update, which included results from preliminary metallurgical work, analyst Nicholas Campbell reiterated his buy recommendation, maintaining his $4.50 target price, a 91% premium to the $2.35 price the day the report was issued.
Batch cleaner floatation tests indicate that the project could be amenable to a conventional floatation process to produce a copper concentrate.
Test recovery rates ranged from 81.4 to 87.7% for copper, 74.9 to 84.3 for silver, and 18.2 to 56.6% for gold.
Concentrate grades ran up to 40% copper, 4.78 grams per tonne silver and 13.1 grams per tonne gold for the near surface Manto composite that constitutes the potential starter pit, which should make for a highly marketable concentrate.
J. Scott Drever, President stated: "The significant increase of Inferred Resources at La Joya and the identification of a potential high grade starter pit have increased the attractiveness of the project. Confirmation by preliminary metallurgical test work that a high grade, copper-silver-gold concentrate, with high recoveries of copper, silver and gold can be produced is extremely important and encourages us to push forward with our Preliminary Economic Assessment to define preliminary operating and capital parameters for the project."
La Joya is one of SilverCrest’s Mexican properties (map), the others being the Cruz de Mayo, and their flagship, 100%-owned Santa Elena Mine, which is located 150 kilometres northeast of Hermosillo, in the State of Sonora, Mexico.
The Santa Elena mine is a high-grade, epithermal gold and silver deposit, with an estimated life of mine cash cost of US$8 per ounce of silver equivalent, with a 55 to 1 silver/gold ratio.
SilverCrest anticipates that the 2,500 tonnes per day facility should recover approximately 4,805,000 ounces of silver and 179,000 ounces of gold over the 6.5 year life of the open pit phase of the Santa Elena Mine.
Anaylst Nicholas Campbell stated, “While preliminary, from our perspective, these results support the viability of the La Joya project. A Preliminary Economic Assessment is expected to be completed on the higher-grade starter pit for the La Joya project in the second half of 2013. We continue to view SilverCrest as a likely consolidation target for a larget cap silver producer.”
SilverCrest currently trades at $2.21, and with 106 million shares outstanding, the company is capitalized at $234 million.
For more information please visit the company’s website www.silvercrestmines.com, or contact Fred Cooper at 1-866-691-1730 or email firstname.lastname@example.org.
For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com.
I’m Ashley …. for InvestmentPitch.com
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