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Silvercrest Metals Inc
Symbol C : SIL
Shares Issued 85,344,816
Close 2019-03-14 C$ 4.70
Recent Sedar Documents

Silvercrest issues updated resource estimate on Chispas

2019-03-14 10:09 ET - News Release

Mr. Eric Fier reports

SILVERCREST EXPANDS LAS CHISPAS RESOURCE: INDICATED RESOURCE: 1.0 MILLION TONNES 1,234 GPT AGEQ FOR 39.8 MILLION OZ AGEQ, INFERRED RESOURCE: 3.6 MILLION TONNES 581 GPT AGEQ FOR 68.1 MILLION OZ AGEQ

Silvercrest Metals Inc. has released an updated mineral resource estimate for the Las Chispas property, located in Sonora, Mexico, effective Feb. 8, 2019. The infill drilling program at Las Chispas has delineated an initial indicated mineral resource estimate of 1.0 million tonnes grading 6.98 grams per tonne gold and 710.6 g/t silver, or 1,234 g/t silver equivalent (AgEq; based on 75 (Ag):1 (Au), defined in the attached table), containing 39.8 million ounces of AgEq. Inferred mineral resources are estimated at 3.6 million tonnes grading 3.32 grams per tonne gold and 332.5 g/t silver, or 581 g/t AgEq, containing 68.1 million ounces of AgEq. Of the 30 known veins in the district, 10 veins were included in the updated resource estimate: Babicanora, Babicanora Hangingwall (HW), Babicanora Footwall (FW), Babicanora Norte, Babi Sur, Granaditas, Las Chispas, Giovanni (including La Blanquita and Giovanni Mini), William Tell and Luigi. For comparative purposes, please refer to the technical reports titled "Technical Report and Mineral Resource Estimate for the Las Chispas Property, Sonora, Mexico," effective Feb. 12, 2018, as amended May 9, 2018, and "Technical Report and Updated Mineral Resource Estimate for the Las Chispas Property, Sonora Mexico," effective Sept. 13, 2018.

The third mineral resource estimate is based on the following: (1) 61 additional drill holes in the Babicanora vein, including Area 51 zone, Babicanora HW and Babicanora FW, (2) infill drilling of Babicanora vein including Area 51, (3) reporting separately the Babicanora FW and Babicanora HW veins from the Babicanora vein, (4) discovery of the Babi Sur vein with 39 drill holes, (5) expansion of the Babicanora Norte Vein with 18 additional holes, and (6) a change to a minimum vein width (true) of 0.5 metre, down from 1.5 metres, which has increased the grade primarily in the Babicanora Norte vein with an estimated true width of 0.85 metre, which will be diluted when applying mining parameters as part of the upcoming preliminary economic assessment.

N. Eric Fier, CPG, PEng, and chief executive officer, remarked: "Less than three years ago we first started drilling the Las Chispas property and we are now announcing our third resource estimate, including our first indicated resource estimate. We are particularly excited about the high-grade resources delineated at the Babicanora (including HW), Babicanora FW and Babicanora Norte veins. These three adjacent veins cumulatively host indicated resources of 1.0 million tonnes grading 1,234 g/t AgEq (39.8 million ounces of AgEq). These high-grade resources are near surface and conceptually can be developed using the same underground infrastructure, which may be a key driver of the economics for the project. This third mineral resource estimate will be used to finalize the ongoing PEA planned for release in Q2 2019. The company will continue exploration with seven core drills focused on infill drilling to upgrade additional inferred resources into the indicated category and five core drills testing up to five new vein prospects in H1 2019. Silvercrest continues to move forward on two paths: 1) work on critical studies to derisk the project in order to make a construction decision by H1 2020, and 2) continue to build value with the highly successful exploration program to test the other 20 veins on the property to potentially expand the resource base."

                            SILVERCREST'S LAS CHISPAS RESOURCE SUMMARY -- FEBRUARY, 2019 
                                 
Resource category (1)(3)(4)(7)    Tonnes    Au     Ag      AgEq (2) Contained gold  Contained silver Contained AgEq (2)
                                      (M) (g/t)  (g/t)        (g/t)         ounces            ounces            ounces
                                     
September, 2018, inferred resource   4.3  3.68  347.0          623         511,500        48,298,700        86,701,200
February, 2019, resources
Indicated resource                   1.0  6.98  710.6        1,234         224,900        22,894,800        39,763,600
Inferred resource                    3.6  3.32  332.5          581         388,300        38,906,000        68,069,800
By category and location
Babicanora area (5)
Indicated resources                  1.0  6.98  710.6        1,234         224,900        22,894,800        39,763,600
Inferred resources                   1.8  5.15  448.9          835         302,300        26,349,700        49,021,900
Las Chispas area (6)
Indicated resources                    -     -      -            -               -                 -                 -
Inferred resources                   1.8  1.48  215.4          327          86,000        12,556,300        19,047,900

Notes: All numbers are rounded.
(1) Conforms to National Instrument 43-101, Companion Policy 43-101CP, and the Canadian Institution of Mining, 
Metallurgy and Petroleum 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 (U.S.) per ounce silver and
$1,225 (U.S.) per ounce gold with average metallurgical recoveries of 90 per cent silver and 95 per cent 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 g/t 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 g/t AgEq cut-off.
(5) Babicanora area includes the Babicanora, Babicanora Footwall, Babicanora Hangingwall, Babicanora Norte, Babi Sur 
and Granaditas veins.
(6) Las Chispas area includes the Las Chispas, Giovanni (including La Blanquita), William Tell, Luigi, Giovanni Mini 
veins and historical dumps. Inferred resources for the Las Chispas area remains unchanged from September, 2018.
(7) There are no known legal, political, environmental or other risks that could materially affect the potential 
development of the mineral resources.

                   BABICANORA AREA VEINS, LAS CHISPAS RESOURCE SUMMARY -- FEBRUARY, 2019       
                          
Resource category (1)(3)(4)        Tonnes     Au       Ag   AgEq (2) Contained gold  Contained silver Contained AgEq (2)
                                             g/t      g/t       g/t          ounces            ounces            ounces

By vein and category
Babicanora
Indicated resources               646,800   6.57    682.8     1,175         136,500        14,198,000        24,438,600
Inferred resources                670,300   4.56    500.0       842          98,300        10,775,800        18,145,100
(includes) shoot 51(5) indicated  280,100  10.09  1,059.8     1,816          90,900         9,543,200        16,360,700
(includes) shoot 51(5) inferred    92,000   8.54    983.8     1,625          25,300         2,912,100         4,809,600
Babicanora Norte
Indicated resources               130,500  11.57  1,180.0     2,047          48,500         4,950,900         8,590,300
Inferred resources                277,700   8.21    779.6     1,395          73,300         6,960,000        12,458,000
Babicanora FW
Indicated resources               157,000   7.49    675.5     1,237          37,800         3,411,200         6,248,500
Inferred resources                207,400   7.62    465.4     1,037          50,800         3,103,800         6,913,400
Babicanora HW 
Indicated resources                67,800   0.93    153.5       223           2,000           334,800           486,200
Inferred resources                 31,500   0.80    145.3       205             800           147,100           207,500
Babicanora Sur
Indicated resources                     -      -        -         -               -                 -                 -
Inferred resources                543,900   4.10    268.1       575          71,600         4,687,800        10,058,700
Granaditas
Indicated resources                     -      -        -         -               -                 -                 -
Inferred resources                 95,100   2.46    220.9       405           7,500           675,100         1,239,200

Notes: All numbers are rounded.
(1) Conforms to National Instrument 43-101, Companion Policy 43-101CP, and the Canadian Institution of Mining, 
Metallurgy and Petroleum 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 (U.S.) per ounce silver and
$1,225 (U.S.) per ounce gold with average metallurgical recoveries of 90 per cent silver and 95 per cent 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 g/t 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.
(5) Shoot 51 (zone) is located within the Babicanora vein.    
(6) There are no known legal, political, environmental or other risks that could materially affect the potential 
development of the mineral resources.   

Please refer to "Technical Report and Updated Mineral Resource Estimate for the Las Chispas Property, Sonora Mexico," effective Sept. 13, 2018, for detailed information on the Las Chispas area veins.

The mineral resource estimate is based on the company's phase 1, 2 and 3 exploration programs from March, 2016, to Feb. 8, 2019, and is classified as an indicated and inferred mineral resource. The effective date for the third mineral resource estimate is Feb. 8, 2019. Depending on the vein, drill sections were spaced 25 to 75 metres along strike, with intercepts on each section at 25 to 50 metres apart down dip. The most significant component of the data, collected and validated by Silvercrest between Sept. 14, 2018, and Feb. 8, 2019, are results from an additional 136 drill holes (35,035 metres). Since the start-up of the phase 1 exploration program in March, 2016, a total of 440 drill holes (117,198 metres), 8,984 (7,212 metres) underground channel samples and 2,895 dump samples have been completed and analyzed, which comprise the database up to Feb. 8, 2019. A majority of the resource is in unmined areas with only the Las Chispas and William Tell veins being partially mined out and voids (stopes) being accounted for in the resource estimation. This release uses the previously announced resource estimation for the Las Chispas area veins as noted in the attached table. Details of the drill assays, surface and underground sampling results can be found in various press releases from March 2, 2016, to Feb. 25, 2019, and available on the company's website. The resource remains open in several directions depending on which vein is considered. A technical report prepared in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects will be filed on SEDAR within 45 days.

The third mineral resource estimate is based on the following key assumptions. A specific gravity of 2.55 was used based on test work. Veins were modelled to capture mineralization grade of 150 g/t AgEq or greater. For the veins in the Babicanora area (78 per cent of the updated resource ounces), a minimum of 0.5-metre true width from drill hole intercepts was used to create vein shapes for modelling. For the Las Chispas area, the true widths are variable (one to five metres) for creating vein shapes for modelling as presented and estimated in the September, 2018, updated resource. Grade capping (top cut) of silver and gold grades is at 96.78 to 99.6 percentile depending on the vein and mineral domain. Specifically, Area 51, as part of the Babicanora vein, has a top cut at the 98 percentile with a cap of 9,740 g/t for silver and a cap of 102.2 g/t for gold. Raw data were composited to 0.5 metre for all veins. A two-metre-by-two-metre-by-two-metre block size was used for interpolation based on geological constraints and potential future mining method. Resource volumes have been constrained by the vein models. Variography, ordinary kriging and inverse distance squared (ID2) were used to create both silver and gold block models. Block models were classified into inferred and indicated resources according to appropriate criteria based on geologic constraints, sample sets and search radii.

The third mineral resource estimate is focused on an estimated 8.0 kilometres of approximately 20 known kilometres of cumulative vein strike length in the district. As planned, the company will continue the phase 3 drilling up to the end of 2019, which will focus on expansion and infill drill holes. Drilling priorities over the next nine months are: (1) continued infill drilling the Babicanora, Babicanora FW and Babicanora Norte veins for resource recategorization for upcoming preliminary feasibility study (PFS), (2) initiate definition drilling on the unnamed and La Victoria veins in the Babicanora area, (3) initiate definition drilling on the several new veins and veins to depth in the Las Chispas area, and (4) initiate definition drilling for the Chiltepin veins northeast of the Las Chispas area. The company intends to provide another updated resource estimate, with resource recategorization, and deliver a PFS in Q1 2020. There is no certainty that inferred mineral resources will be converted to the measured and indicated categories through further drilling.

Qualified assurance program and quality control measures (QA/QC)

Silvercrest has implemented QA/QC protocols including the insertion of duplicate, blank and standard samples in all drill holes and underground sampling. The samples were submitted directly to the ALS Chemex in Hermosillo, Mexico, and North Vancouver, B.C., Canada, for preparation and analysis. P. James F. Barr, PGeo, senior geologist and independent qualified person, most recently visited the Las Chispas property on Oct. 16, 2018, and between Feb. 10, 2019, and Feb. 11, 2019. Core was reviewed and independent verification samples were collected and will be reported in the technical report. Independent qualified person believes that all QA/QC work completed from February, 2018, to February, 2019, has been done to adequate standards.

Qualified person

The mineral resources for the Las Chispas property disclosed in this news release have been estimated by P. James F. Barr, PGeo, senior geologist and team lead -- geology for Tetra Tech Inc., and is independent of Silvercrest. Mr. Barr is a qualified person under National Instrument 43-101. The mineral resources have been classified in accordance with CIM definition standards for mineral resources and mineral reserves, adopted by CIM council, as amended. Mr. Barr has read and approved the contents of this press release as it pertains to the disclosed mineral resource estimate.

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 historic precious metal districts. The company's current focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico. 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.

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