Las Chispas

The Las Chispas property is located approximately 180 kilometres northeast of Hermosillo, Sonora, Mexico. The community of Arizpe (estimated population 2,000) is located approximately 12 kilometres to the north of the property. The property consists of 28 concessions totalling 1400.96 hectares. In early 2018, the Company announced an initial resource estimate for the Las Chispas property, and filed an independent NI 43-101 technical report disclosing the Las Chispas property resource estimate ( refer to Technical Report). Inferred Mineral Resources are estimated at 3.4 million tonnes grading 3.63 grams per tonne (“gpt”) gold (or “Au”) and 296 gpt silver (or “Ag”), or 568 gpt silver equivalent (“AgEq”; based on 75 (Ag):1 (Au) and 100% metallurgical recovery). The Inferred Resource Estimate contains 401,600 ounces gold and 32,675,600 ounces silver, or 62,826,100 ounces of AgEq, using a 150 gpt AgEq cut-off grade and minimum true vein width of 1.5 metres for in situ vein resources and a 100 gpt AgEq cut-off for surface stockpile resources ( refer to Mineral Resource). The results of the Company’s Phase I and II exploration programs make up the components of the data used in the initial resource estimate. The resource estimate is focused on an estimated 3.5 kilometres of approximately 12 known kilometres of cumulative vein strike length in the district.

History

In 1640, rich silver veins where discovered near Arizpe by soldiers under the command of Pedro de Perra. The property did not receive any notable exploration or production until the late 1800s. From 1880 to 1930, several mines on the property had intermittent production. From public information, approximately 100 million ounces of silver and 200,000 ounces of gold were cumulatively produced from the property. Since 1930, no significant work has been completed on the property.

Las Chispas

During the early 1980s, a local Mexican company reprocessed old waste and tailings dumps from Las Chispas. Processing was by vat leaching with no production records available.

Geology

Geologically, the Las Chispas property consists of a Late Cretaceous – Early Tertiary low sulfidation epithermal system. Host rocks are volcanic tuffs, rhyolites, agglomerates and rhyolite breccias. Andesite dykes are noted in underground workings sub-parallel to mineralized structures.

The Las Chispas Mine is known for its world-class silver mineral specimens including polybasite, stephanite, native silver and pyrargyrite. Specimens are on display in private collections and museums worldwide.

Historical Production

Mineralization occurs in 0.5 to 5 metre wide veins with adjacent stockwork and breccias trending northwest- southeast for 1 to 1.5 kilometres. Depth from surface of known mineralization is estimated at 300 metres. Main veins dip 55 to 85 degrees to the southwest. Fourteen epithermal veins have been previously defined on the property of which 3 have had notable production. The historical producing veins included Las Chispas, William Tell, and Babicanora. From public information, the Las Chispas mill production between 1908 through 1911 was approximately 25,000 tonnes grading 35 gpt gold and 4,500 gpt silver totalling an estimated 25,000 ounces of gold and 3.2 million ounces of silver. Several kilometres of underground workings exist on the property and are partially accessible.


Las Chispas area
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Babicanora area
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Exploration Programs

For 2018, the Company is focused on the following targeted work programs:

Details of drilling the Granaditas Vein, confirmed a continuous increase of the company's near surface high grade footprint on the Las Chispas Property (the “Property”) located in Sonora, Mexico. The Company first drilled two holes in the Granaditas Vein in 2017 (see news release dated October 19, 2017) and re-commenced drilling of this vein in early 2018. The compilation of these new drill holes outlines the high-grade footprint (see Figure below). This vein is parallel to the Babicanora and Babicanora Norte veins and is approximately 400 metres southeast of Area 51, which is the highest-grade mineralized area of the Babicanora Vein having average resource grades greater than 1,000 grams per tonne (“gpt”) silver equivalent.

The most significant result returned from Hole GR18-04, which intersected 1.8 metres (true width) grading 12.14 grams per tonne (“gpt”) gold and 1,440.3 gpt silver, or 2,350 gpt silver equivalent (“AgEq”, based on 75 (Ag):1 (Au) calculated using long-term silver and gold prices of US$18.50 per ounce silver and US$1,225 per ounce gold, with average metallurgical recoveries of 86.6% silver and 98.9% gold), including 0.4 metres grading 9,183 gpt AgEq.

For more details, please refer to the table under "Assays"


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The Granaditas Vein consists of southeastward plunging high-grade mineralization similar to the adjacent Babicanora and Babicanora Norte veins. Mineralization consists of a 0.5 to 1.8 metre wide banded quartz-argentite-pyrite vein, dipping at an estimated 75° southeast. Conceptually, since the vein is near the southeast extension of the highest-grade footprint of the Babicanora Vein (Area 51), shared future underground infrastructure is conceivable and convenient.

A hanging wall vein (unnamed), approximately 40 to 80 metres southeast of the Granaditas Vein, was also drill intercepted with the following initial results:

Prior to the Granaditas discovery, SilverCrest successfully delineated its 11th high-grade vein in the district.


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Metallurgy

Metallurgical testwork, including geochemical analysis, was completed by SGS Mineral Services in Durango, Mexico. Criteria for testing included standard bottle rolls using the following common processing parameters;

The following table summarizes initial metallurgical test results for Las Chispas:

Sample ID Assay Head
Au g/t
Assay Head
Ag g/t
Head Calculated
Au g/t
Head Calculated
Ag g/t
% Recovery
Gold
% Recovery
Silver
Composite 1 3.61 180.0 3.66 203.4 99.2 77.8
Composite 2 6.19 500.0 5.63 552.7 98.6 85.9
Composite 3 2.95 274.0 2.15 295.0 99.1 96.2
Average 4.25 318.0 3.81 350.3 98.9 86.6
Note: all numbers are rounded.

For further information refer to News Release of October 30, 2017


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N. Eric Fier, CPG, P.Eng., Chief Executive Officer & Director of the Company, is the Qualified Person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, responsible for the preparation of the technical information included in this website and for supervision of field activities related to the Company projects.

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