Starcore International Mines Ltd.: Production Update for the End of Q2
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/19/13 -- Starcore International Mines Ltd. (TSX: SAM) (the "Company") announces production results for the second quarter (January 31, 2013) of the fiscal year started August 1, 2012 at its San Martin Mine in Queretaro, Mexico.
The 3 months production saw 78,223 tonnes milled at an average head grade of 2.20 g/t gold and 17 g/t silver resulting in the production of 4,844 gold equivalent ounces. This production represents an increase in production of 948 equivalent ounces from the previous quarter.
Production stabilized during the quarter due to improved mill recoveries that averaged 79.5% for gold during Q2, peaking at 83.5% in January. Silver recovery remained relatively constant at 55% and average silver grades rose to 20 g/t during January.
Q2 and Q3 are historically difficult because of the occurrence of important holidays in Mexico that generally require the milling of surface stockpiles. The creation of these stockpiles helps to stabilize ore grades while also providing an inventory of ore to reduce labour overtime costs.
"We are pleased with our production results for the second quarter of fiscal 2012-2013, which have stabilized and are now within our budgeted numbers. We have seen very positive cash flows from the mine this quarter which will be reflected in our Q2 financial statements," said Robert Eadie, Chairman of the Company.
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.
About Starcore
Starcore is engaged in exploring, extracting and processing gold and silver through its wholly-owned subsidiary, Compania Minera Pena de Bernal, S.A. de C.V., which owns the San Martin mine in Queretaro, Mexico. The Company is a public reporting issuer on the Toronto Stock Exchange. The Company is also engaged in owning, acquiring, exploiting, exploring and evaluating mineral properties, and either joint venturing or developing these properties further. The Company has interests in properties which are exclusively located in Mexico.
ON BEHALF OF STARCORE INTERNATIONAL MINES LTD.
Robert Eadie, Executive Chairman, Interim President and Chief Executive Officer
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the planned enhanced exploration programs and the results thereof, expectations of additional available funds resulting from the renegotiation of the Loan Agreement and the use thereof, 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 or as set out in this press release; 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.
The Toronto Stock Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.
Contacts:
Starcore International Mines Ltd.
Robert Eadie
Executive Chairman, Interim President and CEO
1-604-602-4935 or Toll Free: 1-866-602-4935
1-604-602-4936 (FAX)
info@starcore.com
www.starcore.com