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Silvercrest Metals Inc
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Close 2018-01-22 C$ 1.93
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Silvercrest Metals summarizes 2017 work at Las Chispas

2018-01-22 11:21 ET - News Release

Mr. Eric Fier reports

SILVERCREST SUMMARIZES SUCCESSFUL 2017 AND PROVIDES OUTLOOK FOR 2018

Silvercrest Metals Inc. has provided a summary of its 2017 results and 2018 outlook for its Las Chispas property located in Sonora, Mexico.

N. Eric Fier, CPG, PEng, chief executive officer of Silvercrest, remarked: "Two thousand seventeen was a very successful year for Silvercrest with multiple high-grade discoveries at Las Chispas. We have now drilled over 40,000 metres in the district with our current focus on increasing the high-grade footprints of the Babicanora, Las Chispas and Giovanni veins in preparation for the upcoming maiden resource in Q1. The Babicanora vein will be the largest contributor to the resource with an impressive high-grade precious metal footprint of over 1.0 kilometre in strike length. Even with our aggressive exploration program in 2017, we have only partially drill tested 3.5 kilometres of the known 12 cumulative kilometres (19 epithermal veins) in known vein strike length. After the announcement of the maiden resource in Q1 2018, we hope to continue to add value through further infill and expansion drilling, complete an updated resource in H2 [the second half] of this year, and complete a preliminary economic assessment (PEA) in H2 as well. Lastly, I would like to thank all of our shareholders and communities for their continuing support, and we are looking forward to another exciting year for the company."

2017 highlights and discoveries to date

In 2017, Silvercrest drilled 32,822 metres in 125 drill holes at Las Chispas. Up to the end of 2017, the company has drilled a total of 41,418 metres in 157 drill holes. The Las Chispas database now consists of 293 drill hole intercepts, above a cut-off of 150 grams per tonne silver equivalent (based on 75:1 (silver:gold) and 100-per-cent metallurgical recovery), with a weighted average grade of 908 grams per tonne silver equivalent and uncomposited length of 0.9 metre. Drilling has resulted in multiple discoveries and demonstrated strong vein continuity of high-grade mineralization along strike and to depth. The discoveries and achievements are highlighted herein, with a summary of the 15 most significant drill intercepts shown in the attached table:

  • Babicanora vein: Drilling suggests an estimated true width of 3.0 metres to 3.5 metres, a high-grade footprint length of over 1.0 kilometre and a precious metal zone of 125 metres to 175 metres high. Numerous bonanza-grade drill intercepts were encountered, and the vein remains open along strike and to depth. Hole BA17-51 intercepted 3.1 metres grading 40.45 grams per tonne gold and 5,375.2 grams per tonne silver (or 8,409 grams per tonne silver equivalent). This hole, along with others in the area, has discovered a bonanza-grade zone which is now called Area 51. Area 51 is currently 250 metres along vein strike, approximate 100 metres high with an average true width of 2.8 metres and open. The average uncut grade from five drill holes previously reported in Area 51 is 17.74 grams per tonne gold and 1,894.0 grams per tonne silver (or 3,225 grams per tonne silver equivalent).
  • Babicanora Footwall (FW) vein: Drilling suggests an estimated true width of 1.5 metres with a strike length of 1.0 kilometre. High-grade intercepts have been encountered in this vein, which lies within 20 metres to 30 metres off the main Babicanora vein.
  • Giovanni vein: Subparallel to the Las Chispas vein with only minor historical workings. The vein has an estimated true width of 2.0 metres with high-grade drill intercepts over a 250-metre strike length to a depth of 200 metres from surface. The vein remains open along strike and to depth.
  • La Blanquita vein: A possible Giovanni extension, the vein is located approximately 500 metres along a south strike from Giovanni. High-grade mineralization was intersected in holes LC17-60 (2.1 metres grading 641 grams per tonne silver equivalent) and LC17-61 (1.6 metres grading 695 grams per tonne silver equivalent).
  • Las Chispas vein: Underground workings at the Las Chispas vein are extensive, with over 10 of the known 11.5 kilometres rehabilitated by the company. Ground conditions are excellent and several high-grade pillars remain intact and readily accessible. Drilling results (for example, hole LC17-45 intercepted 1.9 metres grading 8,803 grams per tonne silver equivalent) and systematic underground channel sampling of these pillars and surrounding area show accessible intact bonanza-grade mineralization.
  • Granaditas and Amethyst veins: Two holes intersected the Granaditas vein over 0.5 metre to 1.7 metres in true widths, returning grades of 174 grams per tonne to 462 grams per tonne silver equivalent and anomalous grades of base metals. Drilling the Amethyst vein intersected near-surface high-grade mineralization approximately 200 metres southwest of the Babicanora vein with one intersection returning 2.0 metres of 307 grams per tonne silver equivalent.
  • Tajo Chico vein: The Tajo Chico vein is a high-grade splay of the Las Chispas vein and underground drilling intercepted the unmined high-grade extension returning 6.3 metres grading of 1.97 grams per tonne gold and 241.4 grams per tonne silver (or 389 grams per tonne silver equivalent) from LCU17-04.
  • Historical dumps: The company commenced testing of historical dumps (estimated 150,000 to 200,000 tonnes) in the district through a program of trenching, auger drilling, grab samples and survey. Silvercrest expects to finish the testing program in early 2018 for inclusion in the maiden resource estimate.
  • High initial metallurgical recoveries: Based on the same CCD-Merrill Crowe plant specifications at the nearby Santa Elena mine (25 kilometres south of Las Chispas), Silvercrest tested representative composited materials with an average head grade of 3.81 grams per tonne gold and 350.3 grams per tonne silver (or 636 grams per tonne silver equivalent), which showed 98.9-per-cent recoveries for gold and 86.6-per-cent recoveries for silver.
  • Secured surface rights and access to Las Chispas: With the purchase of a 2,500-hectare ranch, the company now owns approximately 50 per cent of the surface rights for the Las Chispas. The remaining surface rights are secured under 20-year leases with a nominal annual fee.

               LAS CHISPAS PROJECT -- TOP 15 COMPOSITED 
                 DRILL INTERCEPTS, UNCUT AND UNDILUTED
  
Hole       From     To   Length      Au        Ag    AgEq      AgEq   
             (m)    (m)      (m)   (g/t)     (g/t)   (g/t)  (oz/ton)

BA17-51   265.9   269.2     3.1   40.45   5,375.2   8,409       245 
LC17-45   159.6   161.9     1.9   50.56   5,018.8   8,803       257 
BA17-43   324.4   328.0     3.2   26.95   1,493.6   3,515       103 
LC17-72   115.0   119.0     4.0   18.61     696.2   2,092        61
BA17-46     6.5     8.1     1.2   54.20   2,020.7   6,086       178  
BA17-49   324.3   326.5     2.0   18.20   1,791.4   3,158        92  
UB17-05     7.7    14.5     6.1    4.84     383.0     746        22 
LC17-65   243.0   244.5     1.5   13.22   2,006.7   2,999        87 
LC16-05   167.0   172.0     4.6    4.56     621.0     963        28 
BA17-47   268.5   272.0     3.2    4.96     859.1   1,231        36  
UB17-09    70.2    77.8     7.6    4.08     196.1     502        15  
LC16-08   171.0   182.0     7.2    2.41     311.5     492        14 
BA17-31   313.7   317.5     3.8    5.65     451.5     875        26  
LC17-68   106.0   108.0     2.0    5.85   1,191.5   1,630        48 
BA17-33   225.7   228.9     3.1    5.08     570.5     951        28 
WAG                         3.6   12.24   1,106.8   2,025        59 

Note: The 15 composited drill intercepts listed herein are a 
subset of 293 uncomposited intercepts with a weighted average 
grade of 5.1 grams per tonne gold and 525.3 grams per tonne, 
or 908 grams per tonne silver equivalent* (uncut and undiluted)
over and average width of 0.9 metre.
* Silver equivalent is based on 75:1 (silver:gold) and 
100-per-cent metallurgical recovery.

2018 outlook:

  • Maiden resource estimate Q1 2018: Targeting the release of a maiden resource estimate in Q1 2018, it will consist of at least five of the 19 known veins at Las Chispas -- the Babicanora, Babicanora Footwall, Giovanni, Las Chispas and William Tell veins. The historical dumps will also be included in the estimate.
  • District-scale potential: Nineteen epithermal veins are confirmed to date in the Las Chispas district, nine of which have been partially drilled. All nine veins drill intercepted high-grade (over 600 grams per tonne silver equivalent) silver-gold mineralization. To date, Silvercrest has traced 12 kilometres of cumulative vein strike length, of which 3.5 kilometres have been partially drilled. With further success, additional drilling will be completed for most of the year.
  • Babicanora vein and area are 2018 focus: The Babicanora vein drill tested over 1.0 kilometre of vein strike length with a surface strike length of 3.2 kilometres. The company will continue to focus drilling on the Babicanora vein to fully test the strike length and depth. With continued success on expanding the high-grade footprint of the Babicanora vein to the southeast and at depth, the company may consider constructing a 500-metre-to-700-metre-long decline in 2018. The decline would intercept the bonanza-grade zone in Area 51 for direct testing and improve access to provide a platform for shorter infill and expansion drill holes.
  • New vein discoveries: Ten of the 19 veins identified on the Las Chispas district have yet to be drill tested. In the first half of 2018, besides further expansion of veins with imminent resources, Silvercrest plans to drill test the Amethyst, Babi Sur and La Victoria veins, as well as the Las Chispas vein extension to the southeast.
  • Bulk sample: The company is permitted for a 100,000-tonne bulk sample to be processed off-site. Discussions will continue with surrounding mines in 2018 for a possible bulk sample from Las Chispas to assist with economic studies and potential early cash flow.
  • Environmental and hydrology baseline studies: With a successful maiden resource, studies will be initiated for longer-term permitting requirements.
  • Updated resource and PEA H2 2018: During the first half of 2018, Silvercrest plans to drill an additional 10,000 to 15,000 metres, focusing on a planned update resource and completed PEA in the second half of 2018.

The qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, for this news release is Mr. Fier, who has reviewed and approved its contents.

About Silvercrest Metals Inc.

Silvercrest is a Canadian precious metals exploration company headquartered in Vancouver, B.C., that is focused on new discoveries, value-added acquisitions and targeting production in Mexico's historical precious metal districts. The company's current focus is on the high-grade, historical Las Chispas mining district in Sonora, Mexico. Silvercrest is the first company to successfully drill test the historical Las Chispas project, resulting in numerous discoveries.

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