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, 2012 is Proven and Probable reserves totaling 651,605 tonnes at a grade of 2.21 g Au/t and 30 g Ag/t. In addition to the Proven and Probable Reserves, an Inferred Mineral Resource is estimated at 998,000 tonnes at an approximate grade of 2.18 g Au/t and 28 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 in compliance with NI 43-101. Joe Campbell P. Geo. 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 of the estimate include:
Total operating costs of $US72 per metric tonne, a gold price of US$1600 and silver price of US$30;
- Metal Recoveries of 87% for gold and 60% for silver;
- Resultant cutoff grade of 1.6 grams per tonne gold equivalent, escalated by 25% to 2g/t gold equivalent due to historic shortfall of grade coming from mine;
- Mining dilution of between 10 and 30% depending on the structure; and
- Specific Gravity of 2.55.
The ratio of Probable to Proven Reserves is roughly 2.1:1 and in total there are 58,751 contained gold equivalent ounces (using a 50:1 equivalency factor). The previous reserve estimate at San Marin was compiled as of July 31, 2011 and totaled 586,318 tonnes at 2.29 g/t Au and 39 g/t silver (containing 57,866 equivalent ounces of gold). San Martin milled 308,324 tons since the last resource estimate at an average grade of 2.17g/t gold and 34 g/t silver. The proven and probable reserves outlined above are adequate for 2 additional years of production.
In comparison to the reserves estimated in 2011, this year's estimate has resulted in a modest increase in tonnage by 11% and a slight increase in equivalent ounces, both of which occurred while milling 190,000 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 43-101 report, "Reserves and Resources in the San Martin Mine, Mexico as of July 31, 2012", prepared by Joe Campbell, P. Geo., will be filed on SEDAR and will be available on the company website www.imining.com.
"We continue to find new structures and transfer resources to reserves," said Robert Eadie, Chairman of the Company. "This year we have shown that our grade estimations are better reflecting our production results."
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 43-101 and has prepared the technical information contained in this press release which has been reviewed and approved by Joe Campbell P. Geo.
ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.
Robert Eadie, Executive Chairman, Interim President and Chief Executive Officer