SilverCrest Reports Further Continuous High Grade Underground Results At Las Chispas; Extends Surface Drilling Program
VANCOUVER, BC – June 9, 2016 - SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to report on additional results from the ongoing underground channel sampling program and extension of its surface drilling program at its Las Chispas Project (“Las Chispas”) located in Sonora, Mexico. Las Chispas is a historic silver-gold district with over six kilometres of existing underground workings, which apparently were not previously drilled before their acquisition by the Company. The project is in a prolific mining area which currently hosts two nearby precious metal operations. Only three veins (Las Chispas, William Tell and Babicanora) of the fourteen historically reported veins on the Las Chispas Property have been previously mined extensively during the early 1900’s. SilverCrest’s initial focus is on these three veins. For more information, please refer to our website at www.silvercrestmetals.com.
N. Eric Fier, CPG, P.Eng, President & CEO commented, “We are pleased with the results received to date from the underground rehabilitation program and early indications of mineralization in core from the surface drilling program at Las Chispas. On April 27, 2016, the SilverCrest team safely ascended to the 400 level of the Las Chispas vein and started the first systematic channel sampling in over 90 years. We are sampling underground areas that are easily accessible in our efforts to confirm high grade continuity at Las Chispas, while targeting areas for potential resource estimation and future bulk sampling. Based on our initial success, we have elected to expand the surface drill program to further test extensions of mineralization. The Company is well financed with $5.6 million in the cash to cover all intended exploration expenditures in 2016.”
Underground Rehabilitation Update
Since the Company’s news release dated April 28, 2016, the Company has systemically collected an additional 87 continuous channel samples at 2 to 3 metre intervals from the William Tell and Las Chispas veins. The most significant sample results averaged 0.8 metres of 2.61 grams per tonne (“gpt”) gold and 203.7 gpt silver, or 399.5 gpt silver equivalent (“AgEq”, based on 75:1 Au:Ag) (uncut, undiluted) over a 70 metre strike length on the northern extension of the William Tell vein (see attached Figure). The Company also expanded the William Tell vein from a strike length of 75 metres, as previously reported on April 28, 2016, to 85 metres. The additional 10 metre length averaged 1.1 metres of 1.68 gpt gold and 197.7 gpt silver, or 324.1 gpt AgEq (uncut, undiluted). Further results are pending, and additional sampling is being completed in this area.
The Company also successfully gained access to the Las Chispas historic 400 level and collected its first continuous channel samples in this area. It appears that this area has not been systematically sampled for over 90 years. Results from 9 initial samples at this level averaged 1.2 metres of 1.1 gpt gold and 171.6 gpt silver, or 250.4 gpt AgEq (uncut, undiluted) over a 15 metre strike length. Further sampling is ongoing on this level for potential strike length additions.
The following table summarizes the most significant assays of the 87 sample results;
|Au gpt||Ag gpt||AgEq gpt*|
|William Tell North – 220 Level**||Channel||0.7||7.8||1,160.0||1,742.0|
|William Tell South – 600 Level||Channel||0.6||1.4||262.0||368.5|
|Las Chispas - 400 Level||Channel||0.7||2.4||304.0||484.7|
|U/G backfill sampling||Grab||n/a||1.3||252.3||349.8|
*AgEq based on 75:1 Au:Ag; all numbers are rounded
** Level number is based on historical mine level in feet (not metres) from collar of historic shaft
All assays were completed by ALS Chemex in Hermosillo, Mexico, and North Vancouver, BC.
To date, approximately three kilometres of underground workings have been accessed with an additional three kilometres to be explored over the next several months.
The underground sampled 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.
The 3,000-metre surface drill program, previously announced on April 28, 2016, has now been extended to 5,000 metres. To date, 15 holes have been completed for a total of approximately 3,700 metres. All holes have intersected quartz stockwork and veining which are strong indications that the core is mineralized. Upon receipt of core assays, the results will be compiled, integrated with all of the underground information and announced in a timely manner.
The Company is also awaiting a MIA (Environmental Impact Statement) for an underground drilling program of 2,000 metres as stated in an earlier news release. Subject to permitting, the underground drill program is expected to commence in the second half of 2016. The permit will include permission to mine a 100,000-tonne bulk sample for testing and processing off site.
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; 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)
Email: [email protected]
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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