SilverCrest (TSXV: SIL.V) Announces Historic Las
Chispas Mine Rehabilitation and Drilling; Huasabas Project Update
Vancouver
- March 2, 2016 (Investorideas.com Newswire) SilverCrest Metals Inc. (TSXV:
$SIL.V)
("SilverCrest" or the "Company") is pleased to announce
that it has started rehabilitation of several historic silver-gold mines at its
Las Chispas Project ("Las Chispas") located in Sonora, Mexico. Las
Chispas is in a prolific mining area which includes current precious metal
producers Santa Elena Mine (operated by First Majestic Silver Corp.) and
Mercedes Mine (operated by Yamana Gold Inc.). The Company is currently
exploring the Las Chispas area to assess the potential for new economic
discoveries. All amounts are in Canadian dollars. Please refer to the Company's
website at www.silvercrestmetals.com for further information.
N.
Eric Fier , CPG, P.Eng, President & CEO stated, "Las Chispas is a very
exciting brownfields exploration story. The project area consists of a district
size target with multiple historic surface and underground mines that
reportedly produced an estimated 100 million ounces of silver and 200 thousand
ounces of gold between 1880 and 1930. Reported average production grades from
limited public information were approximately 15 grams per tonne (gpt) gold and
1,700 grams per tonne (gpt) silver over widths of 1 to 5 metres. Our initial
underground channel sampling of exposed mineralization has shown grades up to
15.1 gpt Au and 1,340 gpt Ag over 1.3 metres. To our knowledge, all mineralized
zones in the district, which include multiple epithermal veins, have not been
previously drilled. The underground rehabilitation program will help further
assess the potential for near surface deposits and deeper extensions of
mineralization. A majority of the underground workings have been inaccessible
for over 80 years, and historic records suggest several previously developed
areas were not mined due to closure around 1930. The Company is well financed
with over $6.5 million and the 2016 exploration expenditures are expected to be
in the range of $1 to $1.2 million."
In
2016, the Company plans on accessing and evaluating most of the estimated six
kilometres of historic workings at Las Chispas. Currently, about two kilometres
of these workings are easily accessible with good ground conditions. Initial
rehabilitation will take several months to complete and will consist of
cleaning and securing all underground areas, removing historic backfill and
stockpiling for possible future processing, building a ladder system to access
multiple levels, detailed mapping and sampling of accessed workings, and
implementation of overall safety protocols. Estimated cost of this initial
program is $150,000 to $200,000.
In
conjunction with underground rehabilitation, a surface drilling program of
approximately 3,000 metres is planned to begin in March 2016 , followed by a
2,000 metre underground drilling program later in the year. This initial
drilling will test; 1) near surface targets, 2) underground lateral extensions
of previously mined areas, and 3) deeper extensional targets of potential mineralization
below the historical workings. Estimated all-in cost for this initial drilling
is $1 million.
Initial
sampling (134 samples) by the Company of current accessible underground
mineralization suggests high grade potential (uncut, undiluted), with the most
significant results to date including:
Initial sampling is selective with widths of
samples limited to current underground openings (average 1.5 metres) and not by
potential actual widths of zones. Historically, some mineralized zones were
over 5 metres wide. Underground exposure of the Las Chispas Vein shows an area
with multiple veins and stockwork up to 7 metres wide. Detailed continuous
channel sampling of this area is underway to determine average continuous
grades over wider intervals.
All assays where completed by ALS Chemex in
Hermosillo, Mexico and North Vancouver, BC.
Las Chispas consists of multiple mineralized zones
containing epithermal quartz veins, quartz and calcite stockwork, and breccias
associated with rhyolitic to andesitic dikes in Tertiary volcanic tuffs.
Defined mineralized zones are based on available historical data and current
accessible workings;
1.
Las Chispas Vein: estimated 1.5 kilometres long,
300 metre depth and 1.5 metres wide,
2.
Guillermo (William) Tell Vein : estimated 1
kilometre long, 200 metre depth and 1.5 metres wide,
3.
Varela 1 & 2 Veins: each estimated at 200 to
300 metres long, 200 metre projected depth and 1.5 metres wide, and
4.
Babicanora Vein: estimated 1 kilometre long, 200
metre projected depth and 2 to 3 metres wide.
Except for the Babicanora Vein, all other veins
listed above are parallel and near vertical within a 500 metre wide
Northwest-Southeast trend. Several mineralized zones noted in historic data and
currently exposed on surface or underground were not previously mined and are
targeted for exploration.
Huasabas Project Update
As previously planned, drilling was completed at
the Company's 100% owned Huasabas property located in Sonora, Mexico .
Approximately 1,091 metres of drilling was completed in 5 core holes. Drill
results indicate the presence of a large epithermal system with up to 225
metres of drill intercepted breccias, stockwork veining and banded veins in
Tertiary volcanics. Geochemical assay results show that the near surface
mineralization is close to the top of the epithermal system with strong
Au-Ag-Ba-Sb-As-Hg anomalies. Drill results for the first 5 holes showed
multiple intercepts from 5 to 10 metres wide grading 0.1 to 0.3 gpt Au and 5 to
15 gpt Ag. Having established the presence of a large epithermal system, the
Company's next steps will be to test the system's extensions to determine the
presence of potential economic mineralization. Given the results and the
minimal holding cost for the project, the Company's current plan is to maintain
the property for future work and currently focus on its Las Chispas 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 President and CEO for SilverCrest, who has reviewed
and approved its contents.
SilverCrest Metals Inc. 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 is led by a proven management
team in all aspects of the precious metal mining sector, including the
pioneering of a responsible "phased approach" business model taking
projects from discovery, finance, on time and on budget construction, and
production with subsequent increased value to shareholders.
FORWARD-LOOKING
STATEMENTS
This
news release contains "forward-looking statements" within the meaning
of Canadian securities legislation. Such forward‑looking statements concern the
exploration, rehabilitation and drilling plans of the Las Chispas Project. 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 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.
N.
Eric Fier , CPG, P.Eng
President & CEO
SilverCrest Metals Inc.
Neither
TSX Venture Exchange nor its Regulation Services Provider (as defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE
SilverCrest Metals Inc.
Contact:
SilverCrest
Metals Inc.
Fred
Cooper, Investor Relations
Telephone:
+1 (604) 694-1730
Fax: +1 (604) 694-1761
Toll Free: 1-866-691-1730 (Canada & USA)
570
Granville Street, Suite 501, Vancouver, British Columbia V6C 3P1
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