SilverCrest Reports More High Grade Underground Sampling Results at Las Chispas; Multiple Sample Results Greater than 2,500 gpt AgEq*
VANCOUVER, BC – August 18, 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. This news release reports on the sampling assay results of the William Tell vein. For more information on Las Chispas and recent channel sampling and drill results, please refer to our website at www.silvercrestmetals.com.
N. Eric Fier, CPG, P.Eng, President & CEO commented, “We continue to expand our high grade footprint at Las Chispas with the latest results from the ongoing underground rehabilitation and channel sampling program as we continue to gain further access to historic workings. Our onsite team has safely descended to the historic 650 level** of the William Tell vein with subsequent ongoing mapping and sampling. Our channel sample results on the 650 level are showing sub interval bonanza grades in excess of 2,500 grams per tonne silver equivalent (AgEq)*over 0.20 metre to 1.12 metre widths.
The William Tell vein is located approximately 120 metres west of the Las Chispas vein and is easily accessible by shared access to both veins. The William Tell vein has had less historical production than the Las Chispas vein, for reasons which we believe are due to a fault displacement which resulted in the previous operator mining out only a fraction of the in situ mineralization. Our Phase I drilling program appears to have intercepted the unmined faulted extension of the William Tell vein. Additional drilling will be required to confirm this and determine the extent, if any, of the intercepted mineralization.”
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 releases dated April 28th and June 09, 2016, the Company disclosed that it had gained access to the historic 600 level at William Tell and reported results from 79 channel samples. Since then, the Company has collected a total of 39 additional channel samples on the 650 and 450 levels (see attached Figure and Photo). 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 at the William Tell vein.
The most significant composited sample results for the William Tell South 650 level average 1.12 metres wide at 3.23 grams per tonne (“gpt”) gold and 518 gpt silver, or 760 gpt silver equivalent (AgEq*, uncut, undiluted) over a continuous 21 metre strike length in a developed but unmined area on the 650 level. The most significant un-composited sampling for the William Tell North 450 level averages 2.13m wide at 5.7 gpt gold and 257.7 gpt silver, or 685 gpt silver equivalent (AgEq*, uncut, undiluted) over a continuous 30 metre strike length. Further drilling will help test the true thickness and grade of mineralization in both these areas.
The following table summarizes the 20 most significant composited and un-composited assay results (uncut, undiluted) from the 450 and 650 levels of the William Tell vein that are above a 500 gpt AgEq cutoff;
|William Tell 450 & 650 Level Channel Sampling >500gpt AgEq|
|Mineralized Area||Sample Type||Width*** (m)||Au (gpt)||Ag (gpt)||AgEq* (gpt)|
|William Tell South 650 level||Channel||0.94||1.78||477||610|
|William Tell North 450 Level||Channel||1.50||0.16||2,170||2,182|
*AgEq based on 75(Ag):1(Au) 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 that extends from the Las Chispas vein through the William Tell vein which is potentially 500 metres in length and a minimum of 300 metres in depth (see attached Figure).
To date, approximately 4 kilometres of underground workings have been accessed with an additional 7.5 kilometres to be opened and explored over the next several months. The Company intends to continue with the underground rehabilitation program and reporting results for the remainder of 2016.
The Company has completed its Phase I surface drill program having drilled 22 core holes for a total of approximately 6,400 metres. A combined 19 holes have been drilled in Las Chispas and William Tell veins, and three holes have been drilled in the La Victoria area located near the Babicanora vein. Upon receipt of further core assays, the Company will compile and integrate the drill results with the underground information, which the Company expects to announce over the next several weeks. Based on positive Phase I surface drilling results, the Company will propose a Phase II surface drill program.
Dependent on permitting 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; 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.
|Dunham L. Craig, P.Geo.
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.
Email Sign Up