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Silvercrest Metals Inc
Symbol C : SIL
Shares Issued 85,798,315
Close 2019-07-09 C$ 5.09
Recent Sedar Documents

Silvercrest samples 3.9m of 9,310g/t AgEq at Babicanora

2019-07-10 09:24 ET - News Release

Mr. Eric Fier reports

SILVERCREST ANNOUNCES HIGH-GRADE UNDERGROUND SAMPLING RESULTS FOR THE BABICANORA VEIN

Silvercrest Metals Inc. has released the first underground sampling results for the Babicanora vein at its Las Chispas project located in the state of Sonora, Mexico. On June 20, 2019, the company intersected the Babicanora vein in the high-grade Area 51 zone with the newly constructed Santa Rosa decline and proceeded with development (3.5-metre-by-3.5-metre drift) along the strike of the vein for approximately 35 metres. During this development drifting, a total of 133 channel samples were collected from blast faces, analyzed and compiled to determine the estimated average vein width and grade (see attached table). Compilation shows an average vein width in this area of 2.6 metres, which is comparable with the resource block model for this area. Compilation of underground sample results within the vein shows an uncut undiluted weighted average grade of 13.70 grams per tonne and 1,107.6 grams per tonne silver, or 2,132 grams per tonne silver equivalent. For comparison purposes, the estimated grade from the current resource block model for the mined area (undiluted but with capping applied) is 3.60 grams per tonne gold and 592 grams per tonne silver, or 863 grams per tonne silver equivalent. While the difference between the results is significant, the sampling covers a small part of the resource for the Babicanora vein and should not be considered representative. For additional information, please refer to "Technical Report and Preliminary Economic Assessment for the Las Chispas Property, Sonora, Mexico" with an effective date of May 15, 2019, and available on SEDAR.

N. Eric Fier, CPG, PEng, chief executive officer of Silvercrest, remarked: "We are pleased with these initial positive underground high-grade results but caution that they are preliminary in nature and should not be considered representative of an increase in the overall Babicanora vein resource estimation. That being said, these results represent a significant first step toward understanding the grade variability and potential upside of the deposit as we continue to derisk the project. Positive results are also supported by other work completed to date on drill hole comparisons to underground sample results, assaying methodology, specifically screen metallics as noted in the recent PEA technical report, and metallurgical test work where comparative grade increases are noted. The company plans to continue its efforts to understand the grade behaviour through additional undeground face sampling, geostatistical analysis, ongoing metallurgical testing to determine how best to apply representative grades to resource estimation for the ongoing feasibility study. We are hopeful that the information generated from this work could lead to positive adjustments to grade estimation. The company plans to continue in-vein drifting as part of a larger effort to complete approximately 1,500 to 2,000 metres of total [underground] development for the remainder of 2019."

The most significant result for this release is sample No. 194-4 NW 1.5, which channel sampled 3.9 metres (estimated true width) grading 62.66 grams per tonne gold and 4,610.2 grams per tonne silver, or 9,310 grams per tonne silver equivalent. Also noteworthy are samples 195-5 SE 1.5 at 3.5 metres grading 16.69 grams per tonne gold and 2,192.0 grams per tonne silver, or 3,444 grams per tonne silver equivalent, and 201-11 NW 0.5 at 1.8 metres grading 53.18 grams per tonne gold and 3,548.8 grams per tonne silver, or 7,537 grams per tonne silver equivalent. The attached table for this release summarizes the most significant continuous channel samples (uncut, undiluted) collected 0.5 metre and 1.5 metres above the mined floor level.

     BABICANORA VEIN, AREA 51 ZONE, UNDERGROUND CHANNEL SAMPLE RESULTS

Underground face        From       To     Interval         Au         Ag      AgEq (2)
sample No. (1)            (m)      (m)          (m)      (g/t)      (g/t)        (g/t)

194-4 NW 1.5               0      3.9          3.9      62.66   4,610.20        9,310
Includes                 0.6      1.2          0.6        336     26,435       51,635
194-4 SE 1.5               0      4.1          4.1      13.91      708.6        1,752
Includes                 0.6      1.2          0.6       41.3      2,940        6,038
Includes                 2.6      3.1          0.4       36.2        526        3,241
195-5 SE 0.5               0      3.2          3.2      12.89      799.2        1,766
Includes                   0      2.3          2.3      17.35      1,085        2,386
195-5 SE 1.5               0      3.5          3.5      16.69      2,192        3,444
Includes                   0      2.6          2.6       21.6      2,790        4,410
195-5 NW 0.5               0      2.2          2.2       5.91      767.5        1,211
Includes                 0.5      1.5            1       11.5      1,290        2,153
195-5 NW 1.5               0      2.1          2.1       3.06      580.2          809
Includes                 0.6      1.4          0.8       8.04        989        1,592
196-6 NW 0.5               0      1.7          1.7       2.62        451          648
Includes                 1.2      1.7          0.5        2.5        945        1,133
196-6 NW 1.5               0      1.9          1.9       1.56      399.6          517
196-6 and 7 SE 0.5         0      3.3          3.3       6.41      570.7        1,052
Includes                   0      0.5          0.5       0.05      1,725        1,729
196-6 and 7 SE 1.5         0      3.2          3.2      18.74      459.3        1,865
Includes                   0      1.5          1.5       38.4        520        3,400
197-7, 8 and 9 NW 0.5      0      1.5          1.5       2.46      377.9          563
196-6 NW 0.5               0      1.8          1.8       1.92      319.2          463
198-8 SE 1.5               0      3.3          3.3       1.27      388.7          484
Includes                 0.6        1          0.4       7.91        921        1,514
198-8 SE 0.5               0      2.3          2.3       2.67      252.8          453
199-9 SE 0.5               0      2.7          2.7       5.82      448.7          885
200-10 NW 1.5              0      1.4          1.4       7.04      478.6        1,006
Includes                   0      0.5          0.5      19.75      1,065        2,546
200-10 NW 0.5              0      1.7          1.7        7.2      699.7        1,240
Includes                 0.5      0.9          0.4       27.8      1,750        3,835
200-11 NW 1.5              0      2.1          2.1      14.77   1,541.90        2,650
Includes                 1.4      1.8          0.4       48.5      4,710        8,348
201-11 NW 0.5              0      1.8          1.8      53.18   3,548.80        7,537
Includes                 0.8      1.3          0.5        135      7,820       17,945
202-12 NW 0.5              0      2.5          2.5      15.27      1,426        2,571
Includes                 1.5      1.9          0.4       90.5      7,640       14,428
202-12 NW 1.5              0      1.9          1.9      10.34   1,336.10        2,014
Includes                 1.3      1.9          0.6         33      4,200        6,675
203-13 SE 1.5              0      2.9          2.9       3.74      465.5          746
Includes                 1.1      1.4          0.3       1.95      1,165        1,311
203-13 SE 0.5              0      2.5          2.5      21.73   1,230.60        2,861
Includes                   1     1.75         0.75       52.6      2,460        6,405
204-14 SE 1.5              0      2.3          2.4       4.55      612.5          953
Includes                   1      1.6          0.6       9.12        921        1,605
Weighted average without includes              2.6       13.7   1,107.60        2,132

Notes: All numbers are rounded. Results are based on a cut-off grade of 
150 grams per tonne silver equivalent with no minimum width.
(1) 194-4 NW 1.5 means 194-4 blast number, northwest drift, 1.5 metres 
above mined floor level. SE is southeast drift, 0.5 metres above mined 
floor level.
(2) AgEq is based on 75:1 (Ag: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.

All assays were completed by ALS Chemex in Hermosillo, Mexico, and North Vancouver, B.C., Canada.

The underground intersection by the decline of the Babicanora vein in the Area 51 zone has accelerated the company's understanding of the mineralization in this vein. The vein appears to have at least four phases of mineralization, including: 1) quartz veining with coarse argentite (silver sulphide), electrum and pyrargyrite; 2) quartz breccia with lesser argentite; 3) shear zone with supergene enrichment, including cerargyrite (silver oxide), clays, quartz vein fragments and calcite; and 4) adjacent stockwork quartz veining and calcite mineralization. The highest grades in the vein are found within quartz veining and shear zone mineralization. Noteworthy is the shear zone, which had low recovery in core drilling and may be part of the positive discrepancy reflected in higher grades from the initial underground sampling results. Further work is required to determine the impact of shear zone on the overall grade of the Babicanora vein. The company intends to redrill select known low-core-recovery areas with triple-tube drilling to increase core recovery of clay-rich mineralization and help determine impact on grade estimation in the Babicanora vein.

The company continues its exploration program with 14 drills operating on site today. Drilling is focused on expanding mineralization and improving the resource confidence through infill drilling to reclassify resources as reserves for the feasibility study. An additional 50,000 metres of infill and expansion drilling are planned for the remainder of 2019. Other work includes the feasibility study expected in the first half of 2020, continuing development of the Babicanora vein in the Area 51 zone, stockpiling of high-grade material, an extensive metallurgical test program, geotechnical work and permitting for project development.

The qualified person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, for this news release is N. Eric Fier, CPG, PEng, chief executive officer for Silvercrest, who has reviewed and approved its contents.

About Silvercrest Metals Inc.

Silvercrest is a Canadian precious metal 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.

We seek Safe Harbor.

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