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Cruz de Mayo

Location: 170 kilometers northeast of Hermosillo, Sonora, Mexico.
Status: Drilling & Exploration - Approximately 45 core and RVC holes are planned to reclassify and potentially expand current NI43-101 resources.

Resource Expansion

Cruz de Mayo Surface Map PlanThe Expansion Project contemplates the installation of a conventional milling and processing facility at the nearby Santa Elena mine. The facility will utilize mill feed from the Santa Elena open pit (Phase I), the Santa Elena underground (Phase II), and re-treatment of the material on the heap leach pads to recover residual silver and gold values (Phase IV). The Cruz de Mayo silver deposit (Phase III) is being considered for development with lower grade mineralization conceptually treated on site as a heap leach operation with the potential to ship high grade mineralization to the nearby Santa Elena proposed processing facility. For details, please refer to the Company's filings on www.sedar.com to review the NI43-101 "Reserve Update for the Santa Elena Open Pit and Preliminary Assessment for the Santa Elena and Cruz de Mayo Expansion Project".

Overview

The Company has previously drilled 47 reverse circulation and core holes on approximately 100 to 150 metre spacing and consistently intersected silver mineralization over a strike length of approximately 1.7 kilometres. These holes have confirmed a near-surface broad silver zone averaging an estimated 20 metres in thickness with grades ranging from 30.0 gpt to 111.0 gpt silver with multiple, narrower higher grade zones ranging from 489.0 gpt to 967.0 gpt silver. Based on the work to date, current resources at Cruz de Mayo are;


CATEGORY

TONNES

AU GPT

AG GPT

CONTAINED AU OZ

CONTAINED AG OZ

INDICATED*

1,141,000

0.06

64.2

2,300

2,353,400

INFERRED*

6,065,000

0.07

66.5

13,300

12,967,100

* based on a silver cut-off grade of 30 gpt as presented in the 2007 Fier and Stewart Technical Report.

The results of the current drilling program along with subsequent metallurgical and environmental baseline work will be used to finalize a Pre-Feasibility Study in preparation for a MIA (Environmental Impact Assessment) for permitting and production.

The resource statements for Cruz de Mayo are based on recent information collected by SilverCrest Mines in 2006 and 2007. The most significant components of the data are the compiled results from 50 drill holes (5,096.3 metres).
The resource estimate for Cruz de Mayo was completed N. Eric Fier, CPG, P.Eng and reviewed by C. Stewart Wallis, P.Geo., independent qualified person (QP) from Scott Wilson Roscoe Postle and Associates of Toronto, Ontario. A Technical Report adhering to the disclosure requirements of NI 43-101 will be filed on SEDAR within 45 days of this release. Mr. Fier is the Chief Operating Officer and QP for the Company.

The Cruz de Mayo resource estimate is based on the following key assumptions; a cut-off of 30 gpt silver, silver grades exceeding 300 gpt were cut to 300 gpt based on log probability; raw data was composited to statistical relevant lengths of 2 metres; a 10 metre by 10 metre by 5 metre block size was used based on geological constraints and potential future mining method; variography and ordinary kriging was used to create both gold and silver block models; the interpolation method was Ordinary Kriging, performed in two passes: one using a search ellipsoid matching the variogram model and the second at a range of 90 x 90 x 50m.

The first pass was constrained to a minimum of 2 and maximum of 12 composites per block, with a maximum of 3 allowed from any one drill hole. The second pass, carried out at the larger search distance, was allowed to estimate blocks with a minimum of 1 composite, with all other search constraints kept the same; block models were classified into Indicated Resources using blocks from the first pass with a minimum of six composites and a distance to the nearest composite of 35 metres, into Inferred Resources using all blocks estimated in the second pass plus all first pass blocks not captured in the Indicated category, and a specific gravity of 2.54 based on test work. Details of these criteria will be presented in the upcoming Technical Report.

This resource estimate represents approximately 1.5 kilometres of the approximately 2.7 kilometre known strike length of the deposit. A work program at Cruz de Mayo for further expansion of the current resource with additional drilling is planned in 2008. The deposit is potentially amenable to open pit mining and standard heap leach processing. Significant potential for resource expansion exists along of the main mineralized zone and down dip.

Geology & Mineralization

 

Cruz de MayoCruz de Mayo is located in the Basin and Range Province, which is part of the Sonora Desert subprovince. The region is near the Proterozoic rifted continental margin of the North American plate, which was the site of deposition of a thick sequence of shallow marine shelf carbonate and siliclastic rocks. Subduction of the Farallon Plate beneath the North American Plate during Jurassic time resulted in continental volcanism. In late Jurassic time, a northwest-trending rift basin formed which was the site of sedimentation and felsic and intermediate volcanism.

Locally, the primary rock types are early Tertiary andesite and rhyolite flows which exhibit propylitic to silicic alteration. The main mineralized zone is a cross-cutting structure trending approximately east-west and dipping about 45° to the south. Alteration is widespread and pervasive with significant silicification, kaolinization and chloritization. Gangue minerals consist of quartz, calcite, chlorite and fluorite.

The Cruz de Mayo main mineralized zone consists of quartz veining, quartz veinlets and stockwork, banded quartz, and vuggy quartz associated with northwest trending structures cross-cutting the volcanic units, with rhyolite the preferred host. This fractured zone is approximately 2.5 km in length with a width of 200 m. The deposit occurs as a series of quartz veins and stockworks typical of volcanic dome low-sulphidation deposits found in the Sierra Madres and elsewhere in the world, such as Silver Standard Resources Pitarrilla deposit in Durango, Mexico. These deposits form in predominantly felsic sub-aerial volcanic complexes in extensional and strike-slip structural regimes.

History

During the late 19th to early 20th century, an unnamed company operated the Cruz de Mayo mine until it was abandoned at the onset of national instability due to the Mexican Revolution of 1910. During this period, underground development work was completed including four adits (Uno, Dos, Tres and Cuatro) for a total of approximately 600 m of excavation.

Verbal accounts from local sources indicate that some small scale mining was undertaken on the Cruz de Mayo property between 1945 and 1970. Unofficial reports suggest that approximately 5,000 tonnes of ore mined from the Cruz de May Deposit were shipped to the nearby La Caridad smelter for flux at a grade of 0.5 g/t gold and 150 g/t silver. No official records exist of this and no old tailings remain onsite.

During the 1970’s and 1980’s, Tormex Development Inc. (Tormex) of Toronto, Canada, drilled 16 core holes on the property in two programs. The first program consisted of five holes totalling 419.7 m and the second program consisted of 11 holes totalling 452.2 m.

The property has been dormant since the early 1990’s. Underground channel sampling was completed by Minera Looker in the early 1990’s and consisted of approximately 60 samples in Adit Dos.

In April of 2005, SilverCrest purchased the Cruz de Mayo 2 concession, which covers the Cruz de Mayo Deposit, for approximately $10,000 from Mineral Cascabel, S.A. de C.V., a Mexican geological consulting company along with all available historic data. SilverCrest has conducted exploration work on the property since 2005.