Vancouver, B.C. — Starcore International Mines Ltd. (the “Company”) is pleased to announce production results for the first quarter of the fiscal year started August 1, 2011 at its San Martin Mine in Queretaro, Mexico.
The 3 months production saw 75,477 tonnes milled at an average head grade of 2.35 g/t gold and 41 g/t silver resulting in the production of 6,512 gold equivalent ounces. This compared well with the 2011 budgeted production forecast of 5,201 equivalent ounces during the same time frame.
This production surplus was the result of a 9% increase in tonnage, 46% increase in silver grade and a nearly 10% increase in silver recovery above budget estimates. In addition gold grade and recovery were also 2% above budget.
Of particular importance in the first quarter production results was the contribution made by the newly discovered pilotos extensions. During this timeframe a total of 15,000 tons were produced from the pilotos area with an average grade of 4.54 g/t gold and 75 g/t silver. This tonnage has come from 1 stope and 2 development headings.
In addition to the production results the mine also received shipment of a new 3.5 cubic yard scooptram and a 16 foot single boom drill jumbo. These new machines are significant capital expenditures in addition to the addition of 4 underground man carriers, a shotcrete pump, and front end loader which were purchased and delivered earlier this calendar year. As of the end of October 2011 the mine had produced more equivalent ounces than in all of calendar year 2010.
“Production results in the first quarter of fiscal 2011-2012 show that our production planning and exploration is becoming much better at providing quality mill feed on a consistent basis,” said Robert Eadie, Executive Chairman & Chief Executive Officer of the Company. “We are gaining confidence in the deposit as indicated by the significant investment we have made to capital equipment and this is due to the newly found structures like the pilotos area. We fully expect that the SAM vein along with the newly discovered ore in the pilotos area will enable us to meet production targets in the next fiscal year.”
David Gunning, P.Eng., a director of the Company and Chief Operating Officer, is the Company’s qualified person on the project as required under NI 43-101and has prepared the technical information contained in this press release.
ON BEHALF OF STARCORE INTERNATIONAL
Signed “Robert Eadie”
Executive Chairman & Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT: Telephone: 1-604-602-4935
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936
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