#Mining Stock News: #SilverCrest
(TSX: $SIL.TO; NYSE: $SILV) Announces Best Drill Hole to Date; 8.6 Metres (True
Width) at 7,873 gpt AgEq, Newly Defined Area 118 Zone
Vancouver, British Columbia - November 21, 2019
(Investorideas.com Newswire) SilverCrest Metals Inc. (TSX:
SIL.TO; NYSE
American: SILV) ("SilverCrest" or the
"Company") is pleased to announce additional expansion drill results
for the Las Chispas Property (the "Property") located in Sonora,
Mexico. The current drill program on the Las Chispas and Giovanni veins is
designed to expand high-grade precious metal mineralization by stepping out
from historic underground workings along the down plunging mineralized trend
towards intact and previously unmined areas (see attached Figures). Today's
release includes results for six new holes and 17 previously announced holes
totaling 23 holes.
Thirteen of these 23 holes establish an initial
high-grade footprint for this newly defined high-grade zone within a lower
horizon of the Las Chispas and Giovanni veins. Hole LC19-118 establishes a new
record for the Property returning 8.6 metres grading 7,873 gpt AgEq. This
result is particularly impressive given that it is the first intercept of this
magnitude returned from the Las Chispas Area, and it is outside the current
resource estimate (see 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).
This newly defined high-grade zone has been named
Area 118 zone ("Area 118") after the discovery hole LC19-118. The
approximate high-grade footprint of Area 118 is 300 metres along strike by 125
metres in height and includes two adjacent and intersecting veins, Las Chispas
and Giovanni. The weighted average (true width, uncut and undiluted grades) of
the defined initial high-grade footprint in this zone is 1.6 metres grading
16.54 gpt gold (or "Au") and 1,837.3 gpt silver (or "Ag"),
or 3,078 gpt silver equivalent ("AgEq", based on assumptions defined
in table below). The weighted average of these 13 holes (see table below) is
dominated by discovery hole LC19-118, and in-fill drilling is required to fully
understand the estimated widths and grades of this zone. Previously, hole
BA18-122 in the Babicanora Area was the best intercept on the Property
returning an impressive 9.3-metre wide (true width) intercept grading 6,336 gpt
AgEq (see news release date January 9, 2019). Despite a limited amount of
exploration work done in Area 118 to date, these results outline the potential
to delineate a new high-grade resource.
N. Eric Fier, CPG, P.Eng, and CEO, remarked,
"After prioritizing in-fill drilling for the better part of 2019, our team
is excited to resume focusing on resource expansion with the announcement of
drill hole LC19-118. We are particularly excited that this record hole was
drilled in the Las Chispas Area which until now has been a secondary priority
relative to the high-grade mineralization delineated in the Babicanora Area.
SilverCrest began drilling this district less than four years ago, and this
recent discovery shows that there remains significant untested potential to add
high-grade resources in the district. High-grade mineralization in Area 118
also suggests potential to extend the high-grade conceptual production profile
as outlined in the first five years of the PEA. Given the value adding
potential, we will attempt to include this work for reserve estimation in the
ongoing feasibility study expected in Q2, 2020. With a substantial backlog of
in-fill and expansion holes in the lab along with a 17-rig drill program, we
look forward to a constant news flow on an ongoing basis."
The Las Chispas and Giovanni veins are presented
together in this release. At depth, these veins appear to be within metres of
each other and intersect. Hole LC19-118 appears to be within a dilating
high-grade shoot (see attached Figures) which is a typical feature of epithermal
veins and similar to what we see elsewhere on the Property. These high-grade
dilating shoots were historically mined uptrend from this new discovery and can
be visually observed today within the Company's rehabilitated underground
workings. True widths of the dilating shoots are up to ten metres wide and tend
to occur near vein intersections. Since the Las Chispas and Giovanni veins are
near parallel and intersecting down plunge, drilling of the veins can be
intercepted in the same drill hole allowing for greater efficiency as presented
in the table below.
The most significant result for this release is
hole LC19-118, which intersected 8.6 metres (estimated true width) grading
44.30 gpt Au and 4,551.3 gpt Ag, or 7,873 gpt AgEq. Also noteworthy is hole
LC19-123 at 5.5 metres grading 3.54 gpt Au and 615.5 gpt Ag, or 881 gpt AgEq.
The following table summarizes the most significant drill intercepts (uncut,
undiluted) for this release within Area 118 including previously reported drill
results, which helps define this zone and its weighted average grade, as
follows:
Las Chispas and Giovanni Veins
Note: All numbers are rounded. Based on a cutoff
grade of 150 gpt AgEq.
*Holes consist of 10 previously announced holes before declaring the newly defined Area 118 zone and three newly announced holes (LC19-117, 118 and 123) above cutoff grade. A total of 13 holes used for the newly defined high-grade footprint.
**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.
Three new holes, LC19-110, 116 and 119, intersected
veining in Area 118, but were below the Company's cutoff grade of 150 gpt AgEq.
Seven previously announced holes in the newly defined Area 118 that were below
cutoff grade are LC17-52, LC18-76, LC19-84, 91, 93, 98, and 104. Holes
LC19-109, 112 to 115, and LC19-120 to 122 are off trend of Area 118 and will
reported separately in due course.
Historically, the Las Chispas Vein had the largest
recorded production in the district with approximately 40 million ounce of
silver and 200,000 to 300,000 ounces of gold. Historic grade from various
public domain references is estimated for gold at 15 gpt and silver at 1,700
gpt, or 2,825 gpt AgEq. A majority of historic production for the Las Chispas
Vein occurred between 1880 to 1920 on 10 levels, every 100 feet in depth with
over 10 kilometres in development. A qualified person has not done sufficient
work to classify the historical estimate as current mineral resources or
mineral reserves; and the Company is not treating the historical estimate as
current mineral resources or mineral reserves.
SilverCrest rehabilitated over 80% of these working
between spring 2016 to fall of 2018 (see attached Figures). During the
Company's rehabilitation, mapping and over 7,000 underground samples were
analyzed. This detailed work gave the Company a unique understanding of the
district's mineralized system for high-grade exploration targeting including
the recent down plunge discovery leading to multi-kilogram per tonne drill hole
intercepts. The lower 800' to 900' (feet from surface) levels of the mined area
showed discrete high-grade zones with massive argentite and rarely seen
crystalline pyrargyrite, both silver sulfides.
The Company believes that Area 118 is similar to
what was historically mined on the lower historic levels, which is also
supported by similar average grades and the vibrant pyrargyrite crystals and
argentite that can be seen in the core (see attached Figures). The Las Chispas
Vein currently has an inferred resource of 171,000 tonnes grading 520 gpt AgEq
for 2.86 million ounces AgEq and the adjacent Giovanni Vein, which was not
historically mined, has an inferred resource of 686,600 tonnes grading 349 gpt
AgEq for 7.7 million ounces AgEq. Please refer to the PEA for detailed results.
There are currently 17 core drills operating at Las
Chispas; 16 surface and one underground. This includes 12 rigs completing
in-fill and known vein expansion holes in the Babicanora Area, and four rigs
working on new vein targets in the Las Chispas Area.
Approximately 75 holes for 25,000 metres remain to
be completed for 2019, of which 20 to 25 holes (6,000 metres) are for the Las
Chispas Area veins. An updated resource estimate, potentially including Area
118, is expected in Q2, 2020, along with the results of the ongoing feasibility
study for the project.
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.
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 Property resulting in numerous
high-grade precious metal 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: Las Chispas Area Plan Map with Area 118 November 2019
Figure 2: Long Section (Inclined) of Las Chispas Vein
Looking Northeast (Historic Workings in Pink)
Figure 3: Long Section (Inclined) of Giovanni Vein
Looking Northeast
Figure 4: Long Section (Inclined) of Area 118
Looking Northeast (Insert)
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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