#Mining
Stock News: SilverCrest (TSXV: $SIL.V; NYSE: $SILV) Files Mineral Resource
Technical Report on the Las Chispas Propertyy
SilverCrest (TSXV:
$SIL.V; NYSE: $SILV) Announces Exceptional Economics in Las Chispas Preliminary
Economic Assessment
- After-tax NPV (5%) of US$407 million
- After-tax IRR of 78%
- Average Annual Production of 9.6 million oz AgEq at AISC of US$7.52
per oz AgEq
- Years 1 to 4: Average Annual Production of 13.7 million oz AgEq at
AISC of US$4.89 per oz AgEq
Vancouver,
British Columbia - May 15, 2019 (Investorideas.com Newswire) SilverCrest Metals
Inc. (TSXV:
SIL.V; NYSE
American: SILV)
("SilverCrest" or the "Company") is pleased to announce the
filing of a technical report titled, "Technical Report and Mineral
Resource Estimate for the Las Chispas Property, Sonora, Mexico" (the
"Las Chispas Report"), with an effective date of February 8, 2019.
The Las Chispas Report was independently completed for the Company by Tetra
Tech Canada Inc., in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects. There are no material differences in the
Mineral Resources disclosed in the Las Chispas Report and disclosed in the
March 14, 2019 news release.
The
Las Chispas Report is available under the Company's profile on SEDAR at
www.sedar.com or on the Company's website at www.silvercrestmetals.com.
Read this in full
at https://www.investorideas.com/CO/SILV/news/2019/05151TechnicalReport-LasChispas.asp
SilverCrest Metals Inc. (TSXV:
SIL.V; NYSE
American: SILV) ("SilverCrest" or the
"Company") is pleased to announce the results of an independent
Preliminary Economic Assessment ("PEA") completed by Tetra Tech
Canada, Inc. ("Tetra Tech") for the Las Chispas project in Sonora,
Mexico. The PEA is based on the mineral resource estimate, titled
"Technical Report and Mineral Resource Estimate" for the Las Chispas
Property, Sonora, Mexico, effective February 8, 2019 and announced on March 14,
2019 (the "February 2019 Mineral Resource Estimate").
Read this news in
full at https://www.investorideas.com/CO/SILV/news/2019/05152PreliminaryEconomicAssessment-LasChispas.asp
All dollar ($) amounts in this news release are in
US dollar ($) unless otherwise indicated.
Las Chispas Preliminary Economic Assessment
Highlights (Base Case)
The following assumes a silver price of
$16.68/ounce ("oz"), a gold price of $1,269/oz and a Mexican Peso/US$
exchange rate of 20:1.
- 1,250 tonnes per day ("tpd") production rate with an
initial mine life of 8.5 years;
- Average diluted grades for silver (or "Ag") at 411.0
grams per tonne ("gpt"), gold (or "Au") at 4.05 gpt
and silver equivalent (or "AgEq"; based on 75 (Ag): 1 (Au),
defined in table below) at 714 gpt;
- Average annual production of 5,384,000 oz Ag and 55,700 oz Au, or
9.6 million oz AgEq;
- Years 1 to 4: average annual production of 7,575,000 oz Ag and
81,600 oz Au (13.7 million oz AgEq).
- Life-Of-Mine ("LOM") All-in sustaining cash costs
("AISC") of $7.52/oz AgEq;
- Years 1 to 4: AISC of $4.89/oz AgEq.
- Initial Capital Expenditure ("Capex") of $100.5 million;
- LOM Sustaining Capex of $50.3 million;
- Payback period of 9 months;
- After-tax IRR of 78%;
- After-tax NPV of $406.9 million; and
- Cumulative Undiscounted Net Free Cash Flow of $522.5 million.
N. Eric Fier, CPG, P.Eng and CEO commented:
"With an estimated after-tax NPV (5%) of more than $400 million, an
after-tax IRR of 78% and a payback period of less than one year, the economics
for Las Chispas are exceptional. The PEA has focused initial development and
production on the high-grade Babicanora, Babicanora FW and Babicanora Norte
veins, producing an average of 13.7 million ounces of silver equivalent per
year, for the first four years, at an AISC of less than $5.00/oz AgEq. This
production and cost structure have the potential to generate in excess of $100
million in annual net free cash flow at today's silver ($14.75/oz) and gold
($1,297/oz) prices. Preliminary economic results suggest that Las Chispas could
be a high-margin project, even at low metal prices. Importantly, this
assessment is a snapshot of the potential value of Las Chispas. We have been
exploring the Las Chispas district for only three years. Continued drilling
success may add significant value to the project. The resources used in the PEA
consists of 10 of 30 known veins drill-tested near-surface in the district. We
currently have 14 drill rigs running at Las Chispas, of which 6 are focused on
expanding the resource and testing new targets and 8 are completing infill
drilling for re-categorizing resources. The new decline into Area 51 is
progressing well with an anticipated intercept of the high-grade Shoot 51 in
Q2, 2019 with subsequent surface stockpiling of material grading an average of
more than 1,000 gpt AgEq. We have also identified a number of optimization
opportunities in the PEA, which we intend to evaluate as we proceed with a
Feasibility Study (or "FS") with anticipated completion in first half
of 2020."
The Company cautions that the results of the PEA
are preliminary in nature and include inferred mineral resources that are
considered too speculative geologically to have economic consideration applied
to them to be classified as mineral reserves. There is no certainty that the
results of the PEA will be realized. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
Technical and Financial Details
The PEA Base Case uses a 5% discount rate, metal
prices of $16.68/oz Ag and $1,269/oz Au (~3-year historical average) and Mexico
Peso/US$ exchange rate of 20:1. Highlights of the Base Case economic estimates
used for the PEA are as follows:
(1) AgEq
based on 75 (Ag):1 (Au), calculated using long-term silver and gold prices of
$17 per ounce silver and $1,225 per ounce gold with average metallurgical
recoveries of 90% silver and 95% gold.
(2) Includes expensed lateral development, but excludes capitalized ramp and vertical development.
(3) Contained ounces for gold and silver are estimated to include 29% indicated resources and 71% inferred resources.
(2) Includes expensed lateral development, but excludes capitalized ramp and vertical development.
(3) Contained ounces for gold and silver are estimated to include 29% indicated resources and 71% inferred resources.
The PEA presents a range of metal pricing scenarios
on after-tax basis to evaluate the economics of the project in both upside and
downside commodity price scenarios. As illustrated in the following table, the
project is very robust even at downside commodity price scenarios:
Additional sensitivities to the price of oil,
Mexican Peso, Capex, and Opex will be presented in the PEA Technical Report.
The project economics are most sensitive to precious metal prices.
Diluted Resource Estimate and Mining Method
The diluted resource estimate for the PEA is based
on both indicated and inferred resources as stated in the February 2019
Resource Estimate for the Las Chispas project. Certain mining factors have been
applied to this resource estimate, to generate diluted resources using a
conceptual mine plan for the PEA. The February 2019 Resource Estimate is
summarized below:
Notes: All
numbers are rounded
(1) Conforms to NI 43-101 and the Canadian Institution of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
(2) AgEq based on 75 (Ag):1 (Au), calculated using long-term silver and gold prices of $17 per ounce silver and $1,225 per ounce gold with average metallurgical recoveries of 90% silver and 95% gold.
(3) Bulk density has been applied to all materials as 2.55 tonnes per cubic metres.
(4) Vein resource is reported using a 150 gpt AgEq cut-off grade and minimum 0.5 m true width, Babicanora Norte, Babicanora Sur, Babicanora FW and Babicanora HW veins have been modelled to a minimum undiluted thickness of 0.5 m, Babicanora Main has been modelled to a minimum undiluted thickness of 1.5 m, and surface stockpile (historic dumps) resource is reported using a 100 gpt AgEq cut-off.
(5) There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
(1) Conforms to NI 43-101 and the Canadian Institution of Mining, Metallurgy and Petroleum ("CIM") Definition Standards on Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
(2) AgEq based on 75 (Ag):1 (Au), calculated using long-term silver and gold prices of $17 per ounce silver and $1,225 per ounce gold with average metallurgical recoveries of 90% silver and 95% gold.
(3) Bulk density has been applied to all materials as 2.55 tonnes per cubic metres.
(4) Vein resource is reported using a 150 gpt AgEq cut-off grade and minimum 0.5 m true width, Babicanora Norte, Babicanora Sur, Babicanora FW and Babicanora HW veins have been modelled to a minimum undiluted thickness of 0.5 m, Babicanora Main has been modelled to a minimum undiluted thickness of 1.5 m, and surface stockpile (historic dumps) resource is reported using a 100 gpt AgEq cut-off.
(5) There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
In this PEA, the February 2019 Resource Estimate
was used, which assumed that all mining of this resource would be completed by
the cut-and-fill method with split blasting (resue) applied in narrower stopes.
In order to maintain a throughput rate of 1,250 tpd, the development plan
requires a minimum of 11 underground working faces to initially feed the
process plant, ramping up to a peak of 15 working faces by year 5. The PEA
estimates a diluted resource of 3,861,000 tonnes grading 4.05 gpt gold and 411
gpt silver, or 714 gpt AgEq, containing 502,200 oz Au and 51,004,000 oz Ag, or
88.7 million oz AgEq using an estimated average mining dilution of 33%. The
table below summarizes the vein by vein tonnage, grade and dilution for this
diluted resource:
Notes: All
numbers are rounded
(1) Conforms to NI 43-101 and the CIM Definition Standards on Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
(2) Diluted Resource is preliminary in nature and are based on the incorporation of inferred mineral resources that are considered too speculative geologically to be classified as mineral reserves.
(3) AgEq based on 75 (Ag):1 (Au), calculated using long-term silver and gold prices of $17 per ounce silver and $1,225 per ounce gold with average metallurgical recoveries of 90% silver and 95% gold.
(4) Bulk density has been applied to all materials as 2.55 tonnes per cubic metres.
(5) Vein resource is reported using a 150 gpt AgEq cut-off grade; a minimum 0.5 m undiluted true thickness has been used for the Babicanora Norte, Babicanora Sur, Babicanora FW and Babicanora HW Veins, and a 1 to 1.5 m undiluted true thickness has been used for the Babicanora Main, Las Chispas, Giovanni and William Tell Veins.
(6) Minimum mining width is 2 m for the veins except Babicanora Norte and Babicanora Sur, which were modelled as resue mining with a minimum mining width of 1m.
(7) Stated dilution includes barren waste rock, backfill mucked with mineralized material as well as unplanned low grade material mined with resource material.
(8) Diluted resource is based on an overall 5% loss.
(9) There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
(10) The Luigi Vein is not included in the diluted resource incorporated in the mine plan of the PEA. This vein needs further review to justify economic viability.
(1) Conforms to NI 43-101 and the CIM Definition Standards on Mineral Resources and Mineral Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
(2) Diluted Resource is preliminary in nature and are based on the incorporation of inferred mineral resources that are considered too speculative geologically to be classified as mineral reserves.
(3) AgEq based on 75 (Ag):1 (Au), calculated using long-term silver and gold prices of $17 per ounce silver and $1,225 per ounce gold with average metallurgical recoveries of 90% silver and 95% gold.
(4) Bulk density has been applied to all materials as 2.55 tonnes per cubic metres.
(5) Vein resource is reported using a 150 gpt AgEq cut-off grade; a minimum 0.5 m undiluted true thickness has been used for the Babicanora Norte, Babicanora Sur, Babicanora FW and Babicanora HW Veins, and a 1 to 1.5 m undiluted true thickness has been used for the Babicanora Main, Las Chispas, Giovanni and William Tell Veins.
(6) Minimum mining width is 2 m for the veins except Babicanora Norte and Babicanora Sur, which were modelled as resue mining with a minimum mining width of 1m.
(7) Stated dilution includes barren waste rock, backfill mucked with mineralized material as well as unplanned low grade material mined with resource material.
(8) Diluted resource is based on an overall 5% loss.
(9) There are no known legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.
(10) The Luigi Vein is not included in the diluted resource incorporated in the mine plan of the PEA. This vein needs further review to justify economic viability.
Process Plant and Metallurgy
Detailed metallurgical test-work was completed from
September 2018 to March 2019 to assess potential silver and gold recoveries for
the Las Chispas project as announced in a news release dated April 18, 2019
titled "Positive Metallurgical Recoveries for Las Chispas". A
445-kilogram bulk sample was collected from 51 core hole and nine underground
samples and compiled into 15 different samples based on geo-metallurgical
domains, which were combined into three master composites (low, medium and high
grade). The best recoveries were generated from a process flowsheet that
included a gravity recovery circuit with intensive cyanidation of the gravity
concentrate and the gravity tails processed through standard leaching. The PEA
assumes this is followed by a standard counter-current-decantation milling
process with gold and silver recovered through a Merrill-Crowe circuit. The
test-work showed recoveries of 91-95% for silver and 98-99% for gold.
Additional test-work was completed on intensive leaching of gravity
concentrates which showed recoveries of 99% for both gold and silver. For the
PEA, the Company has limited the intensive leaching recovery to 90% until
further optimization work is completed. Therefore, an average recovery of 89.9%
for silver and 94.4% for gold is used in the PEA, except during the six-month
start-up period where the company further reduced the recovery by 5%. The
process plant has been designed at a nameplate capacity of 1,358 tpd with the
production schedule assuming 8% downtime over the course of a year. At 92%
operating time, the plant can support throughput of 456,000 tonnes per year or
1,250 tpd.
Initial and Sustaining Capital Cost Estimates
The PEA estimates initial capital requirements of
$100.5 million and cumulative sustaining capital of $50.3 million (see details
in the table below).
All capital, excluding 2019 sunk capital estimated
to be $7.3 million, incurred up to the end of 2021 is included in the Initial
Capital. Any capital required from 2022 and beyond is included in Sustaining
Capital. $14.8 million in contingencies have been included in the Initial
Capital which is approximately 17.2%. Sustaining Capital is expected to average
approximately $5.2 million per year with an increase in Sustaining Capital in
year 5 ($10.3 million) and year 6 ($13.7 million), primarily associated with
the increase in underground development associated with opening up and
operating the Giovanni, Las Chispas and William Tell veins over the remainder
of the mine life. The projected timing of increases in sustaining capital
expenditures in years 5 and 6 related to underground development may be pushed
further into the future with continued exploration success. See section
entitled Las Chispas Opportunities to Enhance Value below.
Operating Cost Estimates
LOM operating costs for the Las Chispas project are
estimated to average $98.66 per tonne, which includes a minimum of 5%
contingency applied to inputs (see Las Chispas PEA "Technical and
Financial Details" table above). During the start-up period, processing
and general and administrative ("G&A") costs per tonne are higher
until mill throughput ramps up to design capacity. The PEA is based on
contractor underground mining, which has an estimated LOM cost of $50.91 per
tonne milled. Processing costs are estimated at $32.61 per tonne milled, which
includes dry stack and backfill tailings management costs of $1.40 per tonne
milled. G&A costs are estimated at $15.14 per tonne milled. The processing
and G&A costs per tonne milled are based on an estimated plant operating
time of 92% over the LOM with potential to improve these unit costs with a
higher operating time or plant expansion (see section entitled Las Chispas
Opportunities to Enhance Value below).
All-In Sustaining Cash Costs per Ounce of Silver
Equivalent
AISC are estimated to be $7.52/oz AgEq produced,
based on LOM production of 81.2 million recoverable ounces AgEq. The break-down
of AISC for the Las Chispas project are as follows:
Note that the above calculation does not include
corporate G&A costs or exploration expenditures for the Las Chispas
project. These costs would be included once the project is closer production
and included in AISC/oz AgEq. Note that producing operations typically report
AISC before development capital. Excluding development capital, the PEA
outlines an AISC of $6.28 per ounce.
Las Chispas PEA Economic Analysis (Base Case)
The economic summary, including annual production,
costs and free cash flow for the Las Chispas project as estimated in the PEA
are as follows:
Note: All
numbers are rounded.
(1) "AISC" and "Net Free Cash Flow" are non-IFRS measures. Refer to the "Non-IFRS measures" section of this Press Release.
(2) Total LOM net free cash flow includes $1 million spent per year on reclamation from 2032-2035, the recovery of $10 million in working capital, and a $4.0 million reclamation bond in 2031.
(3) Royalties include Mexico Government mining royalty of 7.5% from the income on the sale of minerals extracted minus authorized deductions, and an extraordinary governmental royalty of 0.5% of the income for the sale of gold, silver and platinum by mining concession holders for environmental purposes. There are no other royalties on resources other than those imposed by law.
(1) "AISC" and "Net Free Cash Flow" are non-IFRS measures. Refer to the "Non-IFRS measures" section of this Press Release.
(2) Total LOM net free cash flow includes $1 million spent per year on reclamation from 2032-2035, the recovery of $10 million in working capital, and a $4.0 million reclamation bond in 2031.
(3) Royalties include Mexico Government mining royalty of 7.5% from the income on the sale of minerals extracted minus authorized deductions, and an extraordinary governmental royalty of 0.5% of the income for the sale of gold, silver and platinum by mining concession holders for environmental purposes. There are no other royalties on resources other than those imposed by law.
In the above economic analysis, we have applied
10-year straight line depreciation to the carrying value of development capital
costs, exclusive of fixed capital items. Fixed capital items are depreciated at
12% per year, based on applicable Mexican accounting practices. Tax loss carry
forwards are used to offset taxes in the first full year of production. After
applicable deductions, a corporate tax rate of 30% is applied to the taxable
income generated from the mine to estimate the LOM cash taxes payable.
Las Chispas Opportunities to Enhance Value
Several potential opportunities have been
identified that may significantly enhance the economic return outlined in the
PEA, including but not limited to the following:
- Exploration Potential: The
diluted resource estimated for the PEA is based on the February 2019
Mineral Resource Estimate, which includes 10 of 30 known veins on the
project. The Company currently has 14 drill rigs on site with six (6) of
those rigs dedicated to expanding resources and drill testing new targets
for potential discoveries. With success on further drilling, there are
several ways that expanded resources could improve the economics of the
project, including:
- Throughput Expansion: The
mine plan for the PEA is based on a 1,250 tpd throughput scenario, which
results in an 8.5-year mine life. Expanded resources have the potential to
justify increased mine and mill throughput. As part of the upcoming FS,
SilverCrest will evaluate the potential costs to expand the process plant
capacity to 1,500-2,000 tpd with potential benefits to unit costs for
processing and G&A with respect to economies of scale.
- Reduced Development Cost per Ounce: Babicanora Sur, Luigi, Granaditas including La Blanquita have
relatively high development costs per ounce of diluted resource. Expanding
the diluted resource for these veins would spread the relatively high
development capital over more ounces, improving economics and reducing the
AISC per ounce.
High-Grade Discovery: The grade profile for the Las Chispas project is
heavily weighted towards the first four years of production. A new high-grade
discovery could help smooth the decline in production that begins in year five
by prioritizing development of a new high-grade discovery and delaying the
development of the lower grade veins while potentially adding economies of
scale at the same time.
- PEA Excluded Resources: The
diluted resource that is incorporated into the mine plan for the PEA
excludes approximately 20 million oz AgEq that were estimated in the
February 2019 Resource Estimate, specifically, discrete mineralized zones
in the Babicanora FW, Babicanora Norte, and Sur Veins and all of the Luigi
Vein. Resources have been excluded from adjacent designed mine stopes and
discrete isolated zones which currently do not have enough critical mass
to justify the added cost of underground development for production.
SilverCrest is optimistic that by applying optimized stope designs and
follow up drilling to expand discrete zones, some excluded resources may
be included in a future mine plan.
- Mining Method: The
PEA is based on 100% cut and fill underground mining with split blasting
(resue) applied in those areas where vein widths drop to less than 1.5
metres. There are known opportunities for the Babicanora vein, in
particular, to be mined using lower cost long-hole and sub-level mining
methods in the areas where the vein averages over 3.0 metres in true
width. This could reduce mining and development costs at the beginning of
the mine life.
- Metallurgy: The
results from our metallurgical test-work suggested intensive leaching
recoveries of 99% for both gold and silver gravity concentrates. In the
PEA, the intensive leaching recoveries is set at 90%, which results in an
implied recovery of 89.9% for silver and 94.4% for gold. Test work
completed to date suggests potential for improved silver recoveries of
91-95% for silver and 98-99% for gold. SilverCrest intends to follow up
these promising results with further test work to be completed and
incorporated into the FS.
- Power Line: The PEA
assumes the use of onsite generated power using diesel fuel at $0.28/KWH
and exposes the operation to fluctuations in the price of fuel. The FS
will be contemplating the connection of the site to the national grid via
power available at an estimated cost of $0.09/KWH.
- Stockpiled Material at Start of Production: The mine schedule for the PEA assumes that during the six month
start-up period of operations, 100% of the mill throughput will be sourced
from the current surface stockpiles with an estimated 175,000 tonnes
grading 224 gpt AgEq. Once silver and gold recoveries are optimized, then
processing of higher-grade material would begin. Based on the ongoing
construction of a new decline, SilverCrest plans on underground
development in high-grade mineralization starting in H2, 2019 along with
test mining and stockpiling material from Area 51. This stockpiled material
could be up to 20,000 tonnes for 2019 with additional tonnes before
conceptual start-up. Based on the possible early high performance of the
mill, high-grade material could be processed in the first six months of
operations with improved payback and NPV.
Feasibility Study
With the PEA completed, SilverCrest is moving
forward with a Feasibility Study for Las Chispas. The Company is targeting
completion of the FS in H1, 2020 and making a production decision following the
release of a positive study. Of the 14 drill rigs currently working on site,
eight (8) of these rigs are focused on infill drilling in an effort to upgrade
inferred resources into the indicated category, for inclusion in the FS
reserves. On a related note, the exploration decline into Area 51 has been
progressing smoothly. Ground conditions have been excellent, which has allowed
the Company to advance the decline rapidly. In less than three months, the
exploration decline has been advanced to over 420 metres with a target to
intercept the high-grade Shoot 51 of the Babicanora Vein in Q2, 2019. Once
Shoot 51 is intercepted, 400 to 800 metres of mineralized development will be
completed in H2, 2019. This rapid access to high-grade mineralization will
allow us to conduct detailed feasibility work including further metallurgy,
assess geotechnical conditions, reconcile underground grades with the resource
model, complete test mining to define the optimum mining method, and determine
more accurate development costs.
The recommended budget for the Feasibility Study,
field support for the study, ongoing exploration work, and exploration decline
and development construction over the next 12 months is estimated at $17.5
million.
Tetra Tech's work to complete the PEA, demonstrates
that the Las Chispas project has robust economic potential and recommends that
SilverCrest continue developing the project with emphasis on the exploration
work required to improve confidence in inferred resources. Tetra Tech
recommends that the Feasibility Study evaluate alternate mining methods which
could have lower costs than the cut and fill method considered in the PEA.
Qualified Persons
The Independent Qualified Persons, as defined in NI
43-101 for the PEA and who have reviewed and approved the contents of this news
release are Mark Horan, M.Sc., P.Eng, P. James F. Barr, P. Geo., and Hassan
Ghaffari, M.Sc., P.Eng. from Tetra Tech.
The "Technical Report and Mineral Resource
Estimate for the Las Chispas Property, Sonora, Mexico" with an effective
of February 8, 2019, and announced on March 14, 2019, has been filed on SEDAR.
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
either 100% ownership or the rights to purchase 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
that are being evaluated for economic viability and potential production in the
future. 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 economics and
project parameters presented in the PEA, including IRR, AISC, NPV, and other
costs and economic information; possible events, conditions or financial performance
that is based on assumptions about future economic conditions and courses of
action; the strategic plans, timing, costs and expectations for the Company's
future development and exploration activities on the Las Chispas Property,
including construction of the Area 51 decline, metallurgical test,
mineralization and resource 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 and costs of
mining equipment and skilled labour; accuracy of the interpretations and
assumptions used in calculating resource estimates; operations not being
disrupted or delayed by unusual geological or technical problems; ability to
develop and finance the Las Chispas Project; 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: fluctuations in precious metals prices, price of consumed
commodities and currency markets; uncertainty as to actual capital costs,
operating costs, production and economic returns, and uncertainty that
development activities will result in profitable mining operations; risks
related to mineral resource figures being estimates based on interpretations
and assumptions which may result in less mineral production under actual
conditions than is currently estimated; 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.
NON-IFRS MEASURES
SilverCrest has included certain non-IFRS
performance measures as detailed below. In the mining industry, these are
common performance measures but may not be comparable to similar measures
presented by other issuers. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain investors use
this information to evaluate the Company's performance and ability to generate
cash flow. Accordingly, it is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
All-in Sustaining Cash Costs per Ounce of AgEq -
The Company defines AISC once in production as the sum of operating costs (as
defined and calculated above), royalty expenses, sustaining capital, corporate
expenses and reclamation cost accretion related to current operations.
Corporate expenses include general and administrative expenses, net of
transaction related costs, severance expenses for management changes and
interest income. AISC excludes growth capital, reclamation cost accretion not
related to current operations, interest expense, debt repayment and taxes.
While there is no standardized meaning of the measure across the industry, the
Company's definition conforms to the all-in sustaining cost definition as set
out by the World Gold Council in its guidance dated June 27, 2013. The World
Gold Council is a non-regulatory, non-profit organization established in 1987
whose members include global senior mining companies. The Company believes that
this measure will be useful to external users in assessing operating
performance and the ability to generate free cash flow from current operations.
Net Free Cash Flow - SilverCrest calculates net
free cash flow by deducting cash capital spending from net cash provided by
operating activities. The Company believes that this measure provides valuable
assistance to investors and analysts in evaluating the Company's ability to
generate cash flow after capital investments and build the cash resources of
the Company The most directly comparable measure prepared in accordance with
IFRS is net cash provided by operating activities less net cash used in
investing activities.
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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