Vancouver, B.C. - Starcore International Mines Ltd. (the “Company”) is pleased to announce results for a recently completed Reserve estimate for its San Martin Mine in Queretaro, Mexico.
The result of the estimate, effective as of July 31, 2013, is Proven Reserves of 334,271 tonnes grading 2.40 g/t gold and 25 g/t silver and Probable Reserves of 371,727 tonnes grading 2.61 g/t gold and 22 g/t silver. In combination, Proven and Probable reserves total 705,998 tonnes at a grade of 2.53 g Au/t and 23.6 g Ag/t. In addition to the Proven and Probable Reserves, an Inferred Mineral Resource is estimated at 1,005,000 tonnes at an approximate grade of 2.17 g Au/t and 20 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.
In addition to these reserves, some material known to be hosted in carbonaceous limestone has been omitted from the above total. This material requires some modifications in the plant to obtain typical recoveries. The company is investigating options for treatment of this type of mineralization.
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. These methods and parameters used in preparing the estimate, and known legal, political, environmental or other risks that could affect the exploitation of the reserves and resources, are set out in detail in the technical report that will be filed on SEDAR
The estimate was prepared by mine staff in compliance with NI 43-101. David R. Gunning, P. Eng., who is a qualified person as defined by NI 43-101, has verified all information used for the estimate.
The most important assumptions used as the basis for the estimate include:
- total operating costs of $US70 per metric tonne,
- a gold price of US$ 1300 per ounce, and silver price of US$22 per ounce,
- metal recoveries of 87% for gold and 50% for silver,
- resultant cutoff grade of 2.0 grams per tonne gold equivalent,
- mining dilution of between 10 and 30% depending on the structure, and
- Specific Gravity of 2.6.
The ratio of Probable to Proven Reserves is roughly 1.4:1 and in total there is 66,520 contained gold equivalent ounces (using a 60:1 equivalency factor). The previous independent reserve estimate at San Martin was compiled as of July 31, 2012 and totaled 651,605 tonnes at 2.21 g/t Au and 30 g/t silver (containing 58,751 equivalent ounces of gold). The 2012 total of 651,605 tonnes consisted of 218,007 tonnes proven and 433,598 tonnes of probable reserves. The 2012 inferred resource was 998,000 tonnes grading 2.18g/t gold and 27 g/t silver.
San Martin milled 307,342 tonnes since the last resource estimate at an average grade of 2.35g/t gold and 21 g/t silver. The proven and probable reserves outlined above are adequate for two additional years of production.
In comparison to the reserves estimated in 2012, this year’s estimate has resulted in a modest increase in tonnage by 8% and a similar increase in equivalent ounces, both of which occurred while milling 263,000 tonnes from the reserve area. When put in perspective, the mine exploration team is more than replacing the reserves on a year by year basis.
The report “Reserves and Resources in the San Martin Mine, Mexico as of July 31, 2013” prepared by David R. Gunning, P. Eng., will be filed on SEDAR and will be available on the company website www.starcore.com.
“We continue to maintain two years of reserves while mining 300,000 tonnes per year,” said Robert Eadie, President and CEO of the Company. “We are very pleased with the deposit and the team exploring it.”
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”
Robert Eadie, Executive Chairman, Interim President and
Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT ROBERT EADIE
Toll Free: 1-866-602-4935 / Facsimile: 1-604-602-4936
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, and the expectation that the identification of new structures will result in the identification of additional reserves, are forward-looking statements. Although Starcore believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in the price of gold and general economic, market or business conditions, that there are no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to or loss of equipment, whether as a result of natural occurrences including flooding, political changes, title issues, intervention by local landowners, loss of permits, or environmental concerns or otherwise; and the Company does not change its development and exploration plans; that the exchange rate between the Canadian dollar, Mexican peso and the United States dollar remain consistent with current levels; that prices for gold and silver remain consistent with the Company’s expectations; that prices for key mining supplies, including labour costs and consumables, remain consistent with the Company’s current expectations; that production meets expectations; that the Company identifies higher grade veins in sufficient quantities of minable ore; that the geology in as yet to be identified structures are as expected; Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward looking statements are subject to a number of risk, including those set out in Starcore’s Annual Information Form and annual Management Discussion & Analysis in Canada available on the SEDAR website at www.sedar.com. Starcore does not undertake any obligation to release publicly any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not place undue reliance on forward looking statements.