October 20, 2014
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, 2014 is Proven and
Probable reserves totaling 486,586 tonnes at a grade of 2.31 g Au/t and
18.5 g Ag/t. In addition to the Proven and Probable Reserves an
Inferred Mineral Resource is estimated at 898,000 tonnes at an
approximate grade of 2.15 g Au/t and 24 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 these
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 narrower vein hosted ores.
The estimate was prepared by mine staff in compliance with NI 43-101.
Joseph W. Campbell P. Geo., an Independent Qualified Person, and David
R. Gunning P. Eng. who is a qualified person as defined by NI 43-101
have verified all information used for the estimate.
The most important assumptions used as the basis of the estimate include:
- Total operating costs of $US74 per metric tonne a gold price of US$1,250 and silver price of US$19.23,
- Metal Recoveries of 86% for gold and 52% for silver,
- Resultant cutoff grade of 2.2 grams per tonne gold equivalent (compared to 2.0 grams in the prior year),
- Mining dilution of between 10% and 30% depending on the structure,
- Specific Gravity of 2.6.
The ratio of Probable to Proven Reserve tonnage is roughly 1.7:1 and in
total there are 40,600 contained gold equivalent ounces (using a 65:1
equivalency factor). The previous reserve estimate at San Martin was
compiled as of July 31, 2013 and totaled 705,998 tonnes at 2.53 g/t Au
and 23.6 g/t silver (containing 66,520 equivalent ounces of gold). San
Martin milled 308,610 tons since the last resource estimate at an
average grade of 2.55g/t gold and 24.2 g/t silver. The proven and
probable reserves outlined above are adequate for 1.5 additional years
In comparison to the reserves estimated in 2013, this year’s estimate
has resulted in a decrease in tonnage and in equivalent ounces both of
which occurred while milling 253,000 tonnes from the reserve area. When
put in perspective the mine replaced 30% of the reserves mined during
the year despite increasing the cutoff grade by 10%.
The report will be filed on SEDAR and will be available on the company’s website www.starcore.com.
“We continue to find new structures and transfer resources to reserves,”
said Robert Eadie, Chairman of the Company. “We are beginning our
expanded step-out exploration program this fall in the Cerro Azul area
and we continue to explore from the underground structures in the mine
of over 1,000 meters per month.”
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 that has been reviewed by Joseph Campbell P. Geo.
ON BEHALF OF STARCORE INTERNATIONAL
Signed “Robert Eadie”
Robert Eadie, Executive Chairman, President & CEO
FOR FURTHER INFORMATION PLEASE CONTACT:
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
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 risks, 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.
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