SilverCrest Mines BUY, Fair Value and Risk Rating Lowered

August 20 00:00 2011

New York, August 20 – ( – Analyst Siddharth Rajeev of Fundamental Corp maintains his BUY rating on SilverCrest Mines (TSXV: SVL). The fair value has been reduced from C$2.84 to C$2.61.

In a research note published yesterday, the analyst mentions that SilverCrest Mines has started commercial production at Santa Elena on July 13, 2001. The company also announced positive results from its Preliminary Assessment on its expansion project. The company also reported encouraging results from its newly acquired La Joya project which is located 75 km southeast of Durango, Mexico, the analyst says. Fundamental Research Corp has lowered the risk rating for SilverCrest Mines from 5 (Highly Speculative) to 4 (Speculative) as the company has achieved commercial production. The analyst says that he is extremely pleased to see SilverCrest Mines’ ability to increase production, while the commercial production is achieved on the expected timeframe.

SilverCrest Mines is currently undergoing a 25 hole (5,000 m) drilling program. The company’s goal from this program is to “confirm some of the historical results as well as verify the company’s interpretation of its geological model and to establish continuity of the mineralized mantos within the skarn deposit both along strike and laterally across the apex of a prominent anticlinal axis.”

The revision in the fair value is to reflect the share dilution associated with the recent financing, higher than expected CAPEX, Fundamental Research adds.