10:08:21 EDT Mon 20 Sep 2021
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save
Silvercrest Metals Inc
Symbol SIL
Shares Issued 144,877,964
Close 2021-09-08 C$ 9.74
Recent Sedar Documents

Silvercrest drills 2.96 m of 3,319 g/t AgEq at Chispas

2021-09-09 07:32 ET - News Release

Mr. N. Eric Fier reports

SILVERCREST ANNOUNCES RESULTS FROM 2021 INFILL AND EXPANSION DRILLING IN THE BABICANORA AREA

Silvercrest Metals Inc.'s 2021 planned infill drilling for the Babi Vista vein, Babi Vista vein splay and Granaditas vein 1 is nearing completion. The company is continuing expansion drilling in the Babicanora area of its Las Chispas project located in Sonora, Mexico. The objective of this drilling program is to increase drill density in an area proximal to current and planned underground development. This drilling is targeting conversion of an estimated 15.4 million ounces AgEq (silver equivalent) grading 9.97 grams per tonne gold and 707.9 g/t silver, or 1,574 g/t AgEq (86.9:1 Au:Ag ratio) of inferred resources (as stated in the 2021 feasibility study) to higher confidence indicated resources to support an updated mineral reserve and life-of-mine plan (LOM) in 2022.

Highlights:

  • Infill drilling: During the first seven months of 2021, a total of 80,632 metres in 176 drill holes have been completed at Las Chispas. This includes a total of 52,035 metres in 141 infill drill holes in the Babi Vista, Splay and Granaditas veins with approximately 20 per cent of infill holes intersecting grades greater than 1,000 g/t AgEq:
    • Confirmation of targeted areas: The infill program increased estimated drill density to 25 to 35 metres (from 45 to 50 metres) over a strike length of 1.3 kilometres and successfully confirmed the grades and approximate footprint of inferred resources reported in the 2021 feasibility study.
    • Delineation of high-grade Shoot 201: Infill drilling confirmed a multikilogram-per-tonne (AgEq basis) zone now named Shoot 201 in the Splay, which surrounds the previous high-grade results in holes BV20-201, 203 and 207 (see news release dated Nov. 16, 2020). This zone has now been better defined with 11 additional holes that have an average uncapped, undiluted grade of 30.04 g/t Au and 2,429.4 g/t Ag, or 5,040 g/t AgEq, over an estimated true width (ETW) of 1.4 metres, within a high-grade footprint of approximately 100 metres by 75 metres. Shoot 201, along with the balance of the Splay and Granaditas, is currently not in the reserves or LOM and will be considered for conversion in an updated study in 2022.
  • Expansion drilling -- 16 expansion holes totalling 8,118 metres were completed in the renamed Babi Vista FW zone (multiple veins) and the Babicanora Norte HW vein:
    • Babi Vista FW vein becomes Babi Vista FW zone: A total of 18 new intercepts having an ETW of 0.57 metre grading 5.54 g/t Au and 680.2 g/t Ag, or 1,162 g/t AgEq, have expanded the Babi Vista FW vein, which is now renamed the Babi Vista FW zone to incorporate the presence of several new subparallel and semi-continuous veins between the Splay and Babicanora Norte veins.
    • Babicanora Norte HW vein: This vein has been expanded by approximately 300 metres along strike (see 2021 feasibility study). Ten new intercepts have an ETW of 0.40 metre grading 2.0 g/t Au and 260 g/t Ag, or 434 g/t AgEq.
  • Second half of 2021 focus on infill, expansion and exploration: With infill drilling complete on Babi Vista, Splay and Granaditas, the company is working to complete other infill drilling on Babicanora Norte NW while transitioning to expansion and new exploration drilling within the Babicanora area.

N. Eric Fier, CPG, PEng, chief executive officer, remarked: "Silvercrest's strategy for its infill drilling program is to efficiently use our capital to optimize the LOM through increasing confidence in high-grade inferred resource veins proximal to planned underground infrastructure. The infill program has confirmed the presence and continuity of multikilogram-per-tonne silver equivalent grades within the footprints that helped define the veins in the 2021 feasibility study. The program also confirmed discovery of Shoot 201, located in the Splay, which shows some of the highest precious metal grades at the project and is not yet considered in the Las Chispas mineral reserve. We remain focused on execution of the Las Chispas project construction and underground mine development and will evaluate the potential opportunity for in-vein drifting in the Splay and Shoot 201 to complete further technical evaluation. With the infill program nearing completion, the drilling focus will shift towards expansion and grassroots exploration work on the over 30 veins on the Las Chispas property that remain undrilled or are not yet fully tested."

The company's focus for the infill drill program to date was to target the 15.4-million-ounce AgEq inferred resources in the Babi Vista, Splay and Granaditas veins. At an average grade of greater than 1,500 g/t AgEq (uncapped and undiluted), these ounces have a grade more than 70 per cent higher than the average grade of the 2021 feasibility study mineral reserve (94.7 moz AgEq at an average grade of 879 g/t AgEq, capped and diluted). The infill drilling prioritized drilling ounces near existing infrastructure, which have the potential to further derisk and improve the current mine plan.

Infill drilling has shown that high-grade footprints (grading greater than 150 g/t AgEq) for the infilled veins are similar to previous footprints presented in the 2021 feasibility study. As mentioned in a news release dated April 15, 2021, this combined footprint for Babi Vista, Splay and Granaditas, including mineral resources and exploration high-grade intercepts, can be traced for an estimated 1.3 kilometres of strike length.

Infill drilling results show similar to improved grades for the Splay and Granaditas veins relative to the average 2021 feasibility study inferred resource silver equivalent grades:

  • For the Splay, the 2021 feasibility study inferred resource contains 13.9 moz AgEq at an average grade (capped and undiluted) of 13.00 g/t Au and 909.4 g/t Ag, or 2,039 g/t AgEq, with an ETW of 1.27 metres. Comparatively, infill holes included in this release for this vein average (uncapped and undiluted) 15.38 g/t Au and 1,282.8 g/t Ag, or 2,619 g/t AgEq, with ETW of 1.0 metre.
  • For Granaditas, the 2021 feasibility study inferred resource contains 913,000 ounces AgEq at an average grade (capped and undiluted) of 4.11 g/t Au and 295.2 g/t Ag, or 653 g/t AgEq, with ETW of 0.56 metre. Comparatively, infill holes reported in this release for this vein average (uncapped and undiluted) 3.77 g/t Au and 466.65 g/t Ag, or 794 g/t AgEq, with ETW of 1.10 metres.

A total of 18 new intercepts having an ETW of 0.57 metre grading 5.54 g/t Au and 680.2 g/t Ag, or 1,162 g/t AgEq, have expanded the Babicanora Vista FW vein, which is now renamed to the Babicanora Vista FW zone in order to incorporate the presence of several new subparallel and semi-continuous veins between Babi Vista and Babicanora Norte veins. The Babicanora Vista FW zone comprises five smaller shoots (grading greater than 150 g/t AgEq) within an overall corridor of approximately 600 metres along strike and 150 metres across strike. Additionally, the southeastern strike extension of the Babicanora Norte HW vein has been supported by 10 vein intercepts with an ETW of 0.43 metre grading 2.00 g/t Au and 260.0 g/t Ag, or 434 g/t AgEq, and a footprint (grading greater than 150 g/t AgEq) of approximately 400 metres along strike and 100 metres high. The most significant drill hole intercepts for this release are (using ETW):

  • Infill hole BV21-307: Babi Vista -- 2.96 metres grading 17.13 g/t Au and 1,830.4 g/t Ag, or 3,319 g/t AgEq;
  • Infill hole BV21-308: Splay -- 3.55 metres grading 15.83 g/t Au and 1,439.8 g/t Ag, or 2,815 g/t AgEq;
  • Expansion hole BAN21-340: Babi Vista FW zone -- 0.41 metre grading 34.40 g/t Au and 4,260.0 g/t Ag, or 7,249 g/t AgEq.

Drill intercept highlights from the infill program that are reported in this release are shown in the associated table. All grades are reported as uncapped and undiluted. Note that the same drill hole number may be shown for different veins. This is due to the same hole intercepting multiple veins.

                                       BABI VISTA SPLAY VEIN (INFILL)     
   
Hole ID           From      To  Drilled intercept    Approx. true thickness       Au          Ag    AgEq*
                   (m)     (m)                (m)                       (m)    (g/t)       (g/t)    (g/t)

BV20-207**      315.42  315.95               0.53                      0.42    10.30     1,015.0    1,910
BV21-295        261.48  262.00               0.52                      0.42     1.80       316.0      472
BV21-296        384.46  385.24               0.78                      0.62     1.00       104.0      191
BV21-299        402.37  402.90               0.53                      0.42     4.08       349.0      704
BV21-308        364.92  369.36               4.44                      3.55    15.83     1,439.8    2,815
includes        367.55  368.09               0.54                      0.43    93.60     7,750.0   15,884
BV21-313        401.22  401.74               0.52                      0.42   162.00    11,797.0   25,875
BV21-315        422.90  424.00               1.10                      0.88     1.31       100.0      214
BV21-317        314.45  315.05               0.60                      0.48    11.80     1,390.0    2,415
BV21-319        352.33  354.28               1.95                      1.56     3.97       287.6      632
BV21-324        345.73  346.82               1.09                      0.87     4.90       432.2      858
Weighted average                             1.21                      0.97    15.38     1,282.8    2,619

                        BABI VISTA MAIN VEIN (INFILL AND EXPANSION)  
                         
Hole ID         From       To  Drilled intercept  Approx. true thickness       Au          Ag    AgEq*
                 (m)      (m)                (m)                     (m)    (g/t)       (g/t)    (g/t)

BV21-300      434.20   434.88               0.68                    0.54     2.16       227.0      415
BV21-307      392.45   396.15               3.70                    2.96    17.13     1,830.4    3,319
includes      393.65   394.86               1.21                    0.97    42.30     4,490.0    8,166
BV21-316      419.00   420.05               1.05                    0.84     6.71         8.0      591
BV21-327      383.60   384.10               0.50                    0.40     7.03       609.0    1,220
BV21-331      376.73   377.95               1.22                    0.98    19.47     1,618.0    3,310
BV21-332      340.00   340.68               0.68                    0.54     1.70       129.0      277
BV21-334      406.65   407.23               0.58                    0.46     6.88       546.0    1,144
BV21-337      322.16   322.66               0.50                    0.40     4.10       336.0      692
BV21-340      337.00   337.50               0.50                    0.40     1.12       126.0      223
BAN21-337     199.55   200.35               0.80                    0.64     2.95       338.0      594
weighted average                            1.02                    0.82    10.70       991.1    1,921


                             BABI VISTA FW ZONE (INFILL AND DISCOVERY) 

                                                                  Approx.
Hole ID         From        To   Drilled intercept         true thickness        Au        Ag     AgEq*
                 (m)       (m)                 (m)                    (m)     (g/t)     (g/t)     (g/t)

BAN21-335     277.00    277.56                0.56                   0.45     20.70   3,740.0     5,539
BAN21-337     359.48    360.18                0.70                   0.56      0.91      87.4       166
BAN21-337     316.73    317.87                1.14                   0.91      3.08     287.0       555
BAN21-340     211.02    211.53                0.51                   0.41     34.40   4,260.0     7,249
BAN21-340     226.50    227.00                0.50                   0.40      4.12     448.0       806
BAN21-343     210.58    211.13                0.55                   0.44      1.09      62.8       158
BAN21-343     281.35    283.45                2.10                   1.68      4.77     432.9       847
includes      281.35    281.90                0.55                   0.44     15.55   1,385.0     2,736
BAN21-347     217.81    218.33                0.52                   0.42      2.10     216.0       398
BAN21-350     237.70    238.44                0.74                   0.59      2.35     206.0       410
BV21-299      328.25    328.80                0.55                   0.44      2.63      97.0       326
BV21-302      334.10    334.62                0.52                   0.42      3.54     315.0       623
BV21-309      346.21    347.00                0.79                   0.63      0.44     112.0       150
BV21-311      280.30    280.90                0.60                   0.48      3.50     465.0       769
BV21-319      263.40    263.92                0.52                   0.42      8.00   1,700.0     2,395
BV21-325      253.07    253.77                0.70                   0.56      5.81     503.0     1,008
BV21-332      226.87    227.40                0.53                   0.42      1.12     161.0       258
BV21-334      349.95    350.58                0.63                   0.50      8.41     792.0     1,523
BV21-338      327.72    328.32                0.60                   0.48      3.40     311.0       606
weighted average                              0.71                   0.57      5.54     680.2     1,162

                                 BABICANORA NORTE HW VEIN (EXPANSION)  
                            
Hole ID          From        To  Drilled intercept    Approx. true thickness       Au          Ag       AgEq*
                  (m)       (m)                (m)                       (m)    (g/t)       (g/t)       (g/t)

BAN21-334      402.80    403.30               0.50                      0.40     2.43       249.0         460
BAN21-335      470.54    471.12               0.58                      0.46     5.12       423.0         868
BAN21-340      381.37    381.95               0.58                      0.46     2.94       641.0         896
BAN21-347      381.95    382.42               0.47                      0.38     0.13       278.0         289
BAN21-349      356.28    356.93               0.65                      0.52     0.60       112.0         164
BAN21-350      373.22    373.81               0.59                      0.47     3.19       321.0         598
BAN21-351      387.25    387.75               0.50                      0.40     1.09        95.0         190
BAN21-352      401.55    402.05               0.50                      0.40     1.78       176.0         331
BAN21-353      401.60    402.10               0.50                      0.40     0.97        90.3         175
BV21-330       446.73    447.30               0.57                      0.46     1.33       174.0         290
weighted average                              0.54                      0.43     2.00       260.0         434

                                             GRANADITAS (INFILL)  
                                     
Hole ID          From       To  Drilled intercept   Approx. true thickness        Au          Ag     AgEq*
                  (m)      (m)                (m)                      (m)     (g/t)       (g/t)     (g/t)

BV20-218       119.60   120.44               0.84                     0.67      1.66       211.0       355
BV21-297       195.80   197.40               1.60                     1.28      1.37       227.0       346
BV21-335       222.04   226.16               4.12                     3.30      6.62       732.1     1,307
includes       223.75   224.45               0.70                     0.56     32.10     3,280.0     6,069
GR21-30        285.72   286.45               0.73                     0.58      4.52       387.0       779
GR21-33        268.16   268.66               0.50                     0.40      3.18       344.0       620
GR21-39        132.90   135.26               2.36                     1.89      3.35       539.1       829
includes       134.60   135.26               0.66                     0.53      5.98       883.0     1,402
GR21-44        316.70   317.70               1.00                     0.80      0.58       122.0       172
GR21-49        231.89   232.48               0.59                     0.47      0.77       105.0       171
GR21-51        254.00   254.70               0.70                     0.56      3.22       482.0       761
weighted average                             1.38                     1.10      3.77       466.6       794

                             UNNAMED VEIN INTERCEPTS (EXPLORATION) 
                             
Hole ID        From        To   Drilled intercept    Approx. true thickness        Au        Ag     AgEq*
                (m)       (m)                 (m)                       (m)     (g/t)     (g/t)     (g/t)

BAN21-334    453.40    453.90                0.50                      0.40     11.70   2,230.0     3,247
BAN21-340    243.06    243.58                0.52                      0.42      1.76     263.0       416
BV21-308     357.55    358.10                0.55                      0.44      2.79     351.0       593
BV21-313     467.97    468.52                0.55                      0.44      2.63     207.0       436
BV21-331     124.42    124.90                0.48                      0.38      1.31     169.0       283
GR21-30      192.76    193.33                0.57                      0.46      1.37     139.0       258
GR21-31      247.05    247.70                0.65                      0.52     13.40      26.8     1,191
GR21-38      197.58    198.10                0.52                      0.42      2.41     260.0       469
GR21-53      224.90    225.57                0.67                      0.54      2.17     273.0       462
GR21-53      225.57    226.07                0.50                      0.40      0.78     120.0       188

Notes
All numbers are rounded.
A cut-off grade (COG) of 150 g/t AgEq is applied with a minimum true width of 0.5 metre. 
The 150 g/t AgEq COG is an exploration threshold and is consistent with the 2021 feasibility study.  
Grades have not yet been subjected to grade capping, dilution and other modifying factors that will 
be required for estimation of mineral resources and reserves. 
ETW is an estimated 80 per cent of drilled intercept width,
* AgEq is based on the 2021 feasibility study mineral resource and reserve gold-to-silver ratio of 
86.9:1 calculated using $1,410 (U.S.)/oz Au and $16.60 (U.S.)/oz Ag, with average metallurgical 
recoveries of 96 per cent Au and 94 per cent Ag.
** The intercept in hole BV20-207 that was reported in the Splay vein in the 2021 feasibility study 
has been reinterpreted as part of the Babicanora Vista FW zone. This new reported intercept 
represents the previously unreported composite grade for this hole within the Splay vein.

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

The drill results also include holes: BV21-290 to BV21-294, BV21-298, BV21-299, BV21-301, BV21-303 to BV21-306, BV21-310, BV21-312, BV21-314, BV21-318, BV21-320 to BV21-323 BV21-326, BV21-328, BV21-329, BV21-333, BV21-336 and BV21-339, which intersected veining but were below the company's cut-off grade of 150 g/t AgEq.

Unnamed vein intercepts, as stated in the table, represent blind (not present at surface) veins that were intersected while drilling between or below Babi Vista, Splay, Granaditas and Babicanora Norte veins. Further drilling may show vein or zone continuity in multiple holes to suggest a new discovery.

With the planned 2021 infill drilling nearing completion, a total of 11 drills are currently active at Las Chispas in the Babicanora area including eight surface drills and three underground drills. Silvercrest's 2021 company-wide exploration program budget is $42-million (U.S.) (see news release dated Feb. 24, 2021). During the first seven months of 2021, Silvercrest has incurred an estimated $14-million for the company's drilling programs at Las Chispas and Picacho. The focus of surface drilling efforts at Las Chispas will transition from infill to expansion and new exploration targets within the Babicanora area. Once infill drilling is completed in the fourth quarter of 2021, the technical team will begin to evaluate the work necessary to potentially add these ounces into an updated mineral reserve and LOM in 2022.

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 Metals is a Canadian precious metal exploration and development 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, where it has completed a feasibility study on the Las Chispas project and is proceeding with mine construction. Start-up of production at the Las Chispas mine is targeted for mid-2022. Silvercrest is the first company to successfully drill test the historical Las Chispas property, resulting in numerous high-grade precious metal discoveries.

We seek Safe Harbor.

© 2021 Canjex Publishing Ltd. All rights reserved.