#Mining Stock News:
#SilverCrest (TSX: $SIL.TO; NYSE: $SILV) Announces Positive Reconciliation
Results for Babicanora Vein, Weighted Average Mined Grade of 2,284 gpt AgEq
including;
2.8 Metres at 15,409 gpt AgEq
4.3 Metres at 7,023 gpt AgEq
3.5 Metres at 6,632 gpt AgEq
Vancouver, British Columbia - October 16, 2019
(Investorideas.com Newswire) SilverCrest Metals Inc. (TSX:
SIL.TO; NYSE
American: SILV) ("SilverCrest" or the
"Company") is pleased to announce underground ("U/G" )
high-grade vein sampling results showing positive reconciliation compared to
the resource model for the Babicanora Vein, in Area 51, of the Las Chispas
Project ("Las Chispas") located in the state of Sonora, Mexico.
Read this in full at https://www.investorideas.com/CO/SILV/news/2019/10161PositiveReconciliation-BabicanoraVein.asp
Reconciliation results between the actual mined
vein and the resource model from the U/G mining of the Babicanora Vein along
the first 180-metres of vein strike length, or approximately 20% of the
mineralized length in Area 51, are shown in the highlights below (see attached
Figures).
Highlights of Babicanora Vein Reconciliation
(Estimates)
·
Weighted average grade of U/G sampling results in
vein: 14.89 gpt Au and 1168.0 gpt Ag, or 2,284 gpt AgEq
·
Estimated grade (cut) of actual mined Babicanora
Vein: 15.18 gpt Au and 1071.0 gpt Ag, or 2,209 gpt AgEq
·
Feb. 2019 resource modelled grade (cut) for mined
area: 4.48 gpt Au and 556.2 gpt Ag, or 892 gpt AgEq
·
AgEq* grade percent difference between actual
versus model: +147.7%
·
Estimated tonnage of the actual mined Babicanora
Vein: 4,170
·
Feb. 2019 resource modelled tonnage for mined area:
6,226
·
Tonnage percent difference between actual versus
model: -33.0%
·
Estimated actual AgEq contained ounces within the
mined area: 299,000
·
Feb. 2019 resource modelled AgEq contained ounces
in mined area: 179,000
·
AgEq ounce difference between actual versus model:
+65.7%
·
Estimated cut & diluted actual mined &
stockpiled: 7,431 tonnes grading 8.62 gpt Au and 613.4 gpt Ag, or 1,259 gpt
AgEq for 301,000 AgEq Ounces
·
Cumulative surface stockpiles (new Babicanora Vein
and Historic): 182,000 tonnes grading 1.68 gpt Au and 139 gpt Ag, or 264 gpt
AgEq for 1,546,000 AgEq Ounces
The positive difference in the actual mined vein
and the resource model is based on: 1) the presence of a high-grade clay shear
zone within the vein that was not recovered in core drilling during
exploration; 2) 25 metre long high-grade portion (3.5 metres wide grading of
5,680 gpt AgEq) of the mined vein that was not intersected in previous
exploration drilling; 3) overall, there is more consistency in the
quartz-argentite portion of the vein then previously modelled; and 4) less
tonnes or vein width means higher grade mineralization which is typical in
narrow epithermal-type veins. The 33% decrease in vein resource modeled tonnes
(undiluted) based on vein width is noted. In a few areas during drift
(development), the vein was only partially mined and future additional
excavation may be warranted, after further work. Also noted are high-grade
splays trending into the hangingwall and footwall of the Babicanora Vein which
may justify excavation after further work. Tonnages and grades will be further
reconciled as excavation continues.
A total of 725 U/G channel sample results were used
for reconciliation in this news release. Reconciliation results are to be
considered only an indication for potential increased grades in the Babicanora
Vein and may not be representative of the entire vein. Further work is required
to fully understand the grade reconciliation impact. Please see news release
dated July 10, 2019 for U/G sampling results of the first 35 metres of vein
development used in reconciliation. For the February 2019 resource estimate
referred to above including historic stockpiles, please see the technical
report titled "Technical Report and Preliminary Economic Assessment for
the Las Chispas Property, Sonora, Mexico", dated effective May 15, 2019,
as amended July 19, 2019 (the "PEA"). The PEA is available on SEDAR
(www.sedar.com) and the Company's website (www.silvercrestmetals.com).
N. Eric Fier, CPG, P.Eng, and CEO, remarked,
"There is nothing better for exploring and de-risking a mineral deposit
then having easy U/G access to a wide, steeply dipping, high-grade silver-gold
vein like the Babicanora Vein in Area 51. Systematic detailed sampling and mapping
of U/G blast faces for tracking mined volumes, grades and reconciliation with
the resource model shows our continued conservative nature in estimating
grades. Although the positive 147.7% difference in grade may not be
representative for all of the Babicanora Vein, we do see indications of more
very high-grade mineralization on the next mining level 1111, 15 metres above
the current level 1096. We will continue with vein development on multiple
mining levels (15 metres spacing) and stockpiling this mined material for
inspection, feasibility work and potential future processing. Approximately 400
to 600 more metres of vein development are planned for 2019 with a stockpiling
target of 25,000 to 30,000 tonnes of high-grade material containing 800,000 to
1 million AgEq ounces."
The most significant U/G sample result for this
release is B217-SE, which intersected 2.8 metres (estimated true width) grading
94.52 grams per tonne ("gpt") gold (or "Au") and 8,319.8
gpt silver (or "Ag"), or 15,409 gpt silver equivalent (or
"AgEq", based on assumptions defined in table below). Also noteworthy
are samples B210-SE at 4.3 metres grading 51.50 gpt Au and 3,160.6 gpt Ag, or
7,023 gpt AgEq, and B216-SE at 3.5 metres grading 25.27 gpt Au and 4,737.4 gpt
Ag, or 6,632 gpt AgEq. The following table summarizes the most significant
drill intercepts (uncut, undiluted) with composites above 1,000 gpt AgEq for
this release (see attached Figures for all sample results at 1.5 metres above
drift floor);
Babicanora Vein, Level 1096, Underground Channel
Sample Composite Results:
Note: All numbers are rounded. Composites based on
a cutoff grade of 150 gpt AgEq.
Composite are approximate true widths. Sample
results stated in table are only from 1.5 metres above the drift floor. Sample results
in the block model for reconciliation also include samples from 0.5 metres
above floor and on the back (roof) of the drift.
* AgEq based on 75 (Ag):1 (Au) calculated using
long-term silver and gold prices of US$17 per ounce silver and US$1,225 per
ounce gold, with average metallurgical recoveries of 90% silver and 95% gold.
All assays were completed by ALS Chemex in
Hermosillo, Mexico, and North Vancouver, BC, Canada.
The highest-grade U/G results from 52 channel
samples show an average grade of 36.2 gpt Au and 2,966.3 gpt Ag, or 5,680 gpt
AgEq, which are located in a continuous 3.5 metres wide by 25 metre vein strike
length (see attached Figures). This zone was not previously drilled and is
considered a high-grade shoot, which requires further work to determine
orientation and overall impact to resources. Startup of multiple level
development will assist with 3D orientation of mineralization and
multi-kilogram per tonne high-grade footprints.
The high-grade clay shear zone located within the
Babicanora Vein that was not recovered during core drilling is found to pinch
(<0.1 metre) and swell (>1 metre) along the entire excavated vein
development. Select samples of shear zone clays show grades of 400 to 2,200 gpt
AgEq. Core loss of this high-grade zone has been noted in more areas of the
Babicanora Vein and U/G triple-tube core drilling for better recovery is
planned in Q4, 2019 to further determine the overall impact to resources.
Modelling for average tonnes and grade of the mined
vein with a cut-off grade of 150 gpt AgEq and total diluted material (mined
vein and waste rock) was completed using Leapfrog and Gemcom computer-modelling
software. Reported numbers in this news release are exclusively from the 4
metre wide by 3.5 metre high excavated drift, approximately 180 metre along
vein strike. No interpolation for impact of increased grades has been completed
on the surrounding area of the drift. The same geostatistical methods,
including top-cuts, were applied to actual mined and stockpile estimates as the
February 2019 resource estimate and PEA.
As part of the ongoing reconciliation program, G
Mining Services Inc. ("G Mining"), the Company's independent QP for
the feasibility study, has recommended a test program to review the use of four
acid digest and metallic screen analysis standard assay methodologies. Previous
preliminary testing of metallic screen analysis on duplicate core samples, as
presented in the PEA, suggests an increase in silver grades of 10 to 15%.
Results from further confirmatory work will be
announced, once completed. Note that all of the assays included in this press
release are based on the same standard assay methodology and certified lab used
in the calculation of the previous resource estimate.
The Company continues to systematically and
aggressively work at Las Chispas with 18 drills (16 surface and 2 U/G)
currently operating to complete approximately 80 holes for 30,000 metres by the
end of 2019. Drilling will consist of in-fill and expansion drilling as well as
process plant site condemnation drilling. In addition, SilverCrest has six
underground face excavations open to operate. To date the Las Chispas U/G
development includes:
·
650 metres completed for the Santa Rosa Decline to
intersect the Babicanora Vein, and beyond;
·
275 metres completed for the Babicanora Norte Ramp
(also uses the Santa Rosa Decline);
·
15 metres completed for the Babicanora Central
(Historic) Adit;
·
250 metres completed for level 1096 in Babicanora
Vein;
·
50 metres completed for level 1111 in Babicanora
Vein; and
·
240 metres of various other development including
access for level 1081 in Babicanora Vein.
Feasibility work is ongoing and includes:
·
Geotechnical study to support plant site foundation
design and layout;
·
U/G rock mechanics to support mining method, ground
support and backfill requirements;
·
Re-design of PEA stopes by G Mining is ongoing and
suggests the potential to capture a portion of PEA isolated ounces not used in
economics for the feasibility study;
·
Metallurgical test work to support metallurgical
recoveries and plant site design; and
·
Hydro-geology studies including the completion of
pump tests to prove the water resources. Initial estimate suggests that ample
water is available.
As U/G development and drilling progresses, the Company
anticipates to announce further reconciliation results before the end of the
year and over 100 drill holes in the lab awaiting assay results to be compiled
and released in Q4, 2019.
The Qualified Person under National Instrument
43-101 Standards of Disclosure for Mineral Projects for this news release is N.
Eric Fier, CPG, P.Eng, and CEO for SilverCrest, who has reviewed and approved
its contents.
Conference Call
SilverCrest will host a conference call today,
October 16, at 7:00am PDT/10:00am EDT. Participants may dial in to the call
using the numbers below (no access code is needed):
·
Toll Free Canada/US: 1-800-319-4610
·
International: 1-604-638-5340
·
The conference call will be available for playback
until October 30, 2019 by dialing 1-800-319-6413 (toll free Canada/US) or
+1-604-638-9010 (international), quoting access code 3762.
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals
exploration company headquartered in Vancouver, BC, that is focused on new
discoveries, value-added acquisitions and targeting production in Mexico's
historic precious metal districts. The Company's current focus is on the high-grade,
historic Las Chispas mining district in Sonora, Mexico. The Las Chispas Project
consists of 28 mineral concessions, of which the Company has 100% ownership of
where all the resources are located. SilverCrest is the first company to
successfully drill-test the historic Las Chispas Project resulting in numerous
discoveries. The Company is led by a proven management team in all aspects of
the precious metal mining sector, including taking projects through discovery,
finance, on time and on budget construction, and production.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking
statements" within the meaning of Canadian securities legislation. These
include, without limitation, statements with respect to: the strategic plans,
timing and expectations for the Company's exploration and drilling programs of
the Las Chispas Property, including construction of the Area 51 decline,
metallurgical test, mineralization estimates and grades for drill intercepts,
permitting for various work, and optimizing and updating the Company's resource
model and preparing a feasibility study; information with respect to high grade
areas and size of veins projected from underground sampling results and
drilling results; and the accessibility of future mining at the Las Chispas
Property. Such forward-looking statements or information are based on a number
of assumptions, which may prove to be incorrect. Assumptions have been made
regarding, among other things: the reliability of mineralization estimates, the
conditions in general economic and financial markets; availability of skilled
labour; timing and amount of expenditures related to rehabilitation and
drilling programs; and effects of regulation by governmental agencies. The
actual results could differ materially from those anticipated in these
forward-looking statements as a result of risk factors including: the timing
and content of work programs; results of exploration activities; the
interpretation of drilling results and other geological data; receipt,
maintenance and security of permits and mineral property titles; environmental
and other regulatory risks; project cost overruns or unanticipated costs and
expenses; and general market and industry conditions. Forward-looking
statements are based on the expectations and opinions of the Company's
management on the date the statements are made. The assumptions used in the
preparation of such statements, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only
as of the date the statements were made. The Company undertakes no obligation
to update or revise any forward-looking statements included in this news
release if these beliefs, estimates and opinions or other circumstances should
change, except as otherwise required by applicable law.
Figure 1: Underground Sampling of Babicanora Vein,
Area 51 Zone, Santa Rosa Decline, Level 1096
Figure 2: Long Section (Inclined) of Area 51 Zone,
Babicanora Vein Las Chispas Property, Looking Southwest
Figure 3: Babicanora Vein Geology & Sample
Locations Plan Map 1096 Level, Samples 1.5m above floor, October 2019
Figure 4: Cross Section of Blast #217, AgEq Block
Model Comparison for Babicanora Vein Reconciliation (Looking Northwest)
Figure 5: Babicanora Vein, Underground Level 1096,
Blast #217, Face Mapping and Sampling (Looking Southeast)
N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
Chief Executive Officer
SilverCrest Metals Inc.
For Further Information:
SilverCrest Metals Inc.
Contact: Jacy Zerb, Investor Relations Manager
Telephone: +1 (604) 694-1730
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1730 (Canada & USA)
Email: info@silvercrestmetals.com
Website: www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Contact: Jacy Zerb, Investor Relations Manager
Telephone: +1 (604) 694-1730
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1730 (Canada & USA)
Email: info@silvercrestmetals.com
Website: www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
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