Vancouver, B.C. - Starcore International Mines Ltd. (the “Company”) is pleased to announce results of a recently completed reserve estimate for its San Martin Mine in Queretaro, Mexico.
The result of the estimate is Proven and Probable Reserves totaling 586,318 tonnes at a grade of 2.29 g Au/t and 39 g Ag/t. In addition to the Proven and Probable Reserves, an Inferred Mineral Resource is estimated at 1.31 million tonnes at an approximate grade of 2.37 g Au/t and 27 g Ag/t. Inferred Mineral Resources are not known to the same degree of certainty as Mineral Reserves and do not have demonstrated economic viability.
The reserve estimate is based on the methods used for the last 14 years by Luismin, Goldcorp and Starcore at the mine and modified over the past few years to try to account for changes in dilution due to the increased reliance on Tronco ores.
The estimate was prepared by mine staff under the direction of Starcore’s COO, David R. Gunning, P. Eng., a qualified person under National Instrument 43-101 (“NI 43 101”), and was independently verified by Joe Campbell, P. Geo.
The most important assumptions used as the basis of the estimate include:
- o Total mining costs of $US65 per metric tonne a gold price of US$ 1200 and silver price of US$24;
o Metal Recoveries of 87% for gold and 60% for silver;
o Resultant cutoff grade of 2 grams per tonne gold equivalent;
o Mining dilution of between 10 and 25% depending on the structure; and
o Specific Gravity of 2.55.
The ratio of Probable to Proven Reserves is roughly 2.3:1 and in total there are 57,866 contained gold equivalent ounces (using a 50:1 equivalency factor). San Martin milled 288,500 tons since the last resource estimate at an average grade of 2.08g/t gold and 36 g/t silver. The proven and probable reserves outlined above represent at least two years of production to San Martin’s mine life.
In comparison to the reserves estimated in 2010, this year’s estimate has resulted in a 31% increase in tonnage and a 28% increase in equivalent ounces, both of which occurred while milling 290,000 tonnes from the reserve area. Many of these additional reserves are in the recently discovered SAM vein and pilotos areas of the mine (see news releases dated May 4, 2011 and July 18, 2011). When put in perspective, Starcore’s mine exploration team is not just replacing, but also increasing the reserves on a year by year basis.
The report, Reserves and Resources in the San Martin, Mexico as of July 31, 2011 by David R. Gunning P. Eng. and Joe Campbell P. Geo. has been filed on SEDAR and will be available on the Company’s website www.starcore.com.
“We are very pleased with how our exploration team has continued to find new structures, enabling us to transfer resources to the reserves category,” said Robert Eadie, Chairman of the Company. “This year, we have endeavoured to quantify reserves in areas which were producing tonnage but were difficult to call reserves due to the rules of estimation in place. This should result in a reserve which much better predicts our production.”
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 which has been reviewed and approved by Joe Campbell, P. Geo., an independent consultant to the Company.
ON BEHALF OF STARCORE INTERNATIONAL
Signed “Robert Eadie”
Robert Eadie, CEO & Director
FOR FURTHER INFORMATION PLEASE CONTACT: CEO
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936
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