September 22, 2011
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
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
The Toronto Stock Exchange has not reviewed nor
does it accept responsibility for the adequacy or accuracy of this press
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