SilverCrest Reports Additional High Grade Underground Sampling Results at Las Chispas
VANCOUVER, BC – July 19, 2016 - SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to announce an update on the underground rehabilitation program with additional assay results from underground channel sampling at its Las Chispas Project (“Las Chispas”) located in Sonora, Mexico. Las Chispas is in a historic silver-gold mining district which presently hosts two nearby precious metal producers. Historic information indicates that only three veins of the fourteen historically reported veins at Las Chispas have had documented production, which occurred between 1880 and 1930. SilverCrest’s initial focus is on these three veins; the Las Chispas, William Tell and Babicanora. To the Company’s knowledge, none of the known veins have ever been drilled. For more information, please refer to our website at www.silvercrestmetals.com.
N. Eric Fier, CPG, P.Eng, President & CEO remarked, “It is very encouraging to receive additional high grade results from our ongoing underground channel sampling program at Las Chispas as we continue to gain further access to historic workings. Our onsite team has safely ascended to the historic 300 level** of the Las Chispas vein with subsequent ongoing mapping and sampling. Our channel sample results on the 300 and 400 levels are showing multiple grades of plus 1 kilogram per tonne silver and up to 2.2 kilograms per tonne silver equivalent*. We are experiencing minimal challenges in accessing and rehabilitating the underground workings. Rehabilitation mainly consists of the removal and stockpiling of historic backfill material along with safely constructing ladders and bridges. We are currently surface drilling based on the expanded Phase I program with ongoing compilation of all our drill data and integration with underground results.”
Underground Rehabilitation Update
The Company continues to systemically collect channel samples at intervals of two to three metres along strike length as new areas and levels are being explored. In its news release dated June 9, 2016, the Company disclosed that it had gained access to the historic 400 level and reported results from nine initial samples. Since then, the Company has collected a total of 327 additional channel samples from multiple levels as reported below. Sampling locations and widths are restricted to historic workings which may only represent part of the mineralized vein, stockwork, or breccia. The location, true thickness and extent of mineralization is indeterminate until adequate drilling is completed.
The most significant composited sample results for this release average 1.5 metres wide at 2.4 grams per tonne (“gpt”) gold and 331.0 gpt silver, or 508.0 gpt silver equivalent (AgEq*, uncut, undiluted) over a continuous 35 metre strike length in an unmined area of breccia on the 400 level (see attached Figure and Photo). Also noteworthy is an average of 1.1 metres wide at 1.55 gpt gold and 334.9 gpt silver, or 450.9 gpt AgEq over a semi-continuous 90 metre strike length on the 300 level. From initial mapping, a majority of the 330 level appears to be in the hangingwall of the vein with the vein undulating in (high grade) and out (low grade) of the underground workings. Ongoing drilling will help test the true thickness and grade of mineralization in this area.
The following table summarizes the 20 most significant un-composited assay results (uncut, undiluted) from various levels of the Las Chispas vein only;
|Au (gpt)||Ag (gpt)||AgEq* (gpt)|
|300 Level **||Channel||0.6||7.99||867.0||1,466.3|
*AgEq based on 75:1 Au:Ag and 100% metallurgical recovery.
** Level number is based on historical mine level in feet (not metres) from surface collar of historic shaft.
*** The underground sample width of mineralization may not be indicative of the true width of mineralization. Sampling widths are constrained by access to open faces. Ongoing and planned drilling may suggest wider mineralized zones.
All assays were completed by ALS Chemex in Hermosillo, Mexico, and North Vancouver, BC.
The Company is reviewing the possibility of a controlling, cross-cutting, high grade structural corridor at the Las Chispas vein which is potentially 500 metres in length and a minimum of 300 metres in depth (see attached Figure).
To gain access to underground workings, backfill material is being removed from historical drifts and stopes. This material is being sampled, assayed, and stockpiled for potential future processing. To date, 43 representative grab samples have been collected from backfill material for Las Chispas vein and William Tell vein. Average grade of these samples is 2.45 gpt gold, 239.0 gpt silver, or 423.0 gpt AgEq with grades up to 42.20 gpt Au and 1,920.0 gpt Ag or 5,085.0 gpt AgEq.
To date, approximately 3.5 kilometres of underground workings have been accessed with an additional 8 kilometres to be explored over the next several months. Ongoing research into previously documented information and field work on Las Chispas has been responsible for the increase in known historic underground workings from six kilometres, as previously announced on June 9, 2016, to 11.5 kilometres. The Company intends to continue with the underground rehabilitation program and reporting results for the remainder of 2016.
The Company is nearing completion of its Phase I surface drill program having drilled 19 core holes with a total of approximately 5,600 metres to date. Sixteen holes have been drilled in the Las Chispas and William Tell veins, and three holes in the adjacent Babicanora area. Upon receipt of core assays, the Company will compile and integrate the drill results with the underground information, which the Company expects to start announcing in August 2016. Based on positive Phase I surface drilling results, the Company will propose a Phase II surface drill program.
With permitting near completion, the planned 2,000 metre underground drill program should commence in late Q3 or early Q4 2016. The underground drill program will focus on delineation of a potential bulk sample and infill drilling in preparation for the initial Las Chispas resource estimation.
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.
ABOUT SILVERCREST METALS INC.
SilverCrest 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 through discovery, finance, on time and on budget construction, and production with subsequent increased value to shareholders.
This news release contains “forward-looking statements” within the meaning of Canadian securities legislation. These include, without limitation, statements with respect to: the strategic plans, timing and expectations for the Company’s exploration, rehabilitation and drilling programs of the Las Chispas Project, including initial extraction program for bulk sample testing and preparation of an initial resource estimate; information with respect to high grade areas and size of veins projected from underground sampling results; and the accessibility of future mining at 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.
|For Further Information:
SilverCrest Metals Inc.
Contact: 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
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.
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