SilverCrest (TSXV: $SIL.V)
Receives Underground Drilling and Bulk Sample Permit; Extensive Phase II
Exploration Program to Commence in November 2016
VANCOUVER, British Columbia - October 20, 2016
(Investorideas.com Newswire) SilverCrest Metals Inc. (TSXV:
$SIL.V) ("SilverCrest" or the "Company") is
pleased to announce the receipt of the underground drilling permit, including
the permission to mine a 100,000-tonne bulk sample for testing and processing
off-site. With these permits in hand, the Company is preparing to commence an
extensive Phase II exploration program at the Las Chispas Project ("Las
Chispas").
N. Eric Fier, CPG, P.Eng, CEO and President
commented, "We are very encouraged with the early success from our initial
drilling campaign at Las Chispas, which has confirmed continuity of high grades
over potential mineable thicknesses. With the underground drilling permit, we
will start drill-defining resources and preparing for a broader Phase II
exploration program. Our current focus is to systematically drill the Las
Chispas and William Tell veins in a grid pattern for resource estimation, test
vein extensions and to further explore the Babicanora area. SilverCrest's
schedule is to establish a maiden resource estimation in the first half of
2017. We see further upside in this historic silver-gold mining district with
prospective discoveries of multiple unidentified veins, and drill testing
Babicanora which is considered the largest target in the district."
SilverCrest Metals Inc. Sonora, Mexico - Las
Chispas Project - Figure 1 Las Chispas Wide Discovery Map
Summary of Phase I Exploration Program
SilverCrest's recently completed Phase I
exploration work consisted of approximately 6,400 metres of drilling in 22 core
holes. Details of the Phase I drilling results were previously announced on the
Company's news releases dated August 2, September 7 and September 14, 2016. In
summary, 19 core holes have been drilled in the Las Chispas and William Tell
veins. All drill holes intercepted quartz stockwork veinlets, veining and/or
breccia. The drilling has defined several discoveries and confirmed high grade
continuity with resultant multiple drill intercepts of greater than 2,000 grams
per tonne ("gpt") silver equivalent ("AgEq", based on 75:1
Ag:Au and 100% metallurgical recovery). The remaining 3 holes, of the 22
drilled, targeted the La Victoria area which is approximately one kilometre
southwest of the historic Babicanora Mine. The Las Chispas discoveries may be
influenced by a controlling, cross-cutting, high-grade structural corridor that
extends from the Las Chispas Vein through the William Tell Vein and southwest beyond
Babicanora. This corridor is potentially 750 metres wide (Figure 1), and high grade mineralization appears to extend
to a depth of at least 300 metres from the surface.
Some of the more significant core drilling results
for the Las Chispas Vein include 4.6 metres in true width of 4.56 gpt gold and
621.5 gpt silver, or 963 gpt AgEq, including 0.8 metres grading 18.55 gpt gold
and 2,460.0 gpt silver, or 3,851 gpt AgEq in hole LC16-05. Drill hole LC16-08
showed 7.2 metres in true width grading 2.41 gpt gold and 311.5 gpt silver, or
492 gpt AgEq, and a more recently announced drill assay from hole LC16-18
drilled 1.0 metre grading 1.55 gpt gold and 706.0 gpt silver, or 822 gpt AgEq (Figure 2).
The William Tell Vein runs parallel to the Las
Chispas Vein and is about 120 metres to the west. The Company discovered what
appears to be an unmined faulted southern extension of the William Tell Vein.
Four of seven drill holes at William Tell intersected high-grade
mineralization. The most notable core drilling results are 2.3 metres in true
width grading 1.63 gpt gold and 583.6 gpt silver, or 705 gpt AgEq, including
0.8 metre of 3.81 gpt gold and 1,102.0 gpt silver, or 1,388 gpt AgEq in hole
LC16-03 (Figure 3). Hole LC16-03 has been reinterpreted, and true
thickness has been changed from 1.5 metres, as previously announced on
September 7, 2016, to 2.3 metres. Drill hole LC16-15 showed 1.3 metres in true
width grading 1.94 gpt gold and 352.0 gpt silver, or 494 gpt AgEq.
Two new vein discoveries were made with drill holes
LC16-13 and LC16-16 near the William Tell vein. Reported grades of these new
veins were 4.79 gpt gold and 364.0 gpt silver, or 723 gpt AgEq and 6.57 gpt
gold and 395.0 gpt silver, or 888 gpt AgEq over estimated true widths of 0.8
metres and 0.9 metres, respectively.
Of the 14 historically identified veins near the
Las Chispas and William Tell veins, 12 have been located by the Company. In the
Babicanora area, five historically identified veins plus two additional veins
have been located by the Company (see Figure 1).
As of September 15, 2016, approximately 6
kilometres of 11.5 kilometres of underground workings have been rehabilitated
by the Company, with rehabilitation work continuing over the remainder of 2016.
To date, an estimated 2,055 underground rock chip/channel samples have been
collected and assayed, with 301 sample results grading above a cutoff grade of
150 gpt AgEq; averaging 4.35 gpt gold and 331.6 gpt silver or 658 gpt AgEq. In
addition to chip/channel sampling, underground backfill sampling is being completed
while removing material to gain access to the workings. Average backfill sample
results show 2.45 gpt gold and 226.3 gpt silver, or 410 gpt AgEq for the Las
Chispas Vein, 1.24 gpt gold and 212.1 gpt silver, or 305 gpt AgEq for the
William Tell Vein, and 1.88 gpt gold and 126.1 gpt silver, or 267 gpt AgEq for
the Babicanora Vein. Backfill material will be considered in the upcoming
resource estimation.
Surface dump trenching and sampling is ongoing in
easily accessible areas. Results as of September 15, 2016 from 493 samples show
potential economic material immediately available for possible processing.
Average dump grades are 1.04 gpt gold and 78.1 gpt silver, or 156 gpt AgEq with
select grades up to 4,548 gpt AgEq. Dumps will be considered in the upcoming
resource estimation.
Approximately 1.2 square kilometres of surface area
have been geologically mapped with select sampling. Surface rock sampling
results range from trace to 15.05 gpt gold and 1340.0 gpt silver or 2,469 gpt
AgEq. Further expanding surface mapping and sampling is ongoing.
Phase II Exploration Program Outlook
The Company is preparing an underground core
drilling program of 2,000 metres and a minimum surface core drill program of
6,000 metres. Phase II will commence in November 2016 and will test potential
near-surface resource areas, as well as extensional targets along trend and
below the historic workings.
Underground drilling is planned to start at
Babicanora with approximately 5 to 10 core holes to initially test the historic
mine area and multiple parallel veins. Drill access to the historic mine is
provided by a 4 metre by 4 metre portal and a 230 metre drift which intersects
the Babicanora Vein. Subsequent Phase II surface drilling is planned for
Babicanora to initially evaluate its estimated 2.5 kilometre strike length with
multiple parallel veins, stockwork and breccias (Figure 1). As with the Las
Chispas and William Tell veins, Babicanora has not been previously drilled.
Additional surface and underground drilling will be
conducted at the Las Chispas and William Tell veins where the Company recently
completed the successful Phase I program. The focus will be on infill drilling
for resource estimation and step out drilling to test the possible southern and
northern vein extensions of the Las Chispas and William Tell veins.
Phase II drilling will also include initial
drilling of other targets on the Company's concessions including the historic
Varela Mine, Espiritu Santo Mine, and Granaditas Mine (Figure 1). The Company
anticipates that this Phase II campaign will be completed by early Q2 2017,
with the results to be incorporated into a maiden resource estimate for the Las
Chispas project in late Q2 2017.
As previously reported, the underground drill
program will also focus on the delineation of a large bulk sample. A bulk
sample is a large sample, in many cases hundreds or thousands of tonnes, and is
generally a composite of material from development drifts and raises. It is also
used to define metallurgical characteristics. With continued success, the
Company expects to begin with its bulk sample in late 2017. Arrangements for
processing the bulk sample off site are required.
Other Developments
As previously reported, the first Las Chispas NI
43-101 technical report (non-resource) is currently being completed and will be
available before the end of October 2016.
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, CEO and President, who has reviewed and approved its
contents.
ABOUT THE LAS CHISPAS PROJECT
The Las Chispas Project is located in Sonora State,
Mexico, and is in a historic silver-gold mining district which presently hosts
two nearby precious metal producers. Historic information indicates that of the
nineteen historically reported veins in the Las Chispas district, only three
veins, the Las Chispas, William Tell and Babicanora, had documented high grade
production, which occurred between 1880 and 1930. SilverCrest's initial focus
is on these three veins. To the Company's knowledge, none of the historic known
veins has been drilled prior to the Company's recently completed Phase I drill
campaign. For more information, please refer to our website at www.silvercrestmetals.com.
Figures 2 & 3
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.
FORWARD-LOOKING STATEMENTS
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.
N. Eric Fier, CPG, P.Eng.
CEO and President
SilverCrest Metals Inc.
CEO and President
SilverCrest Metals Inc.
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.
Contact:
SilverCrest Metals Inc.
Fred Cooper, Investor
Relations
Telephone: +1 (604)
694-1730
Fax: +1 (604) 694-1761
Toll Free: 1-866-691-1730 (Canada & USA)
Fax: +1 (604) 694-1761
Toll Free: 1-866-691-1730 (Canada & USA)
570 Granville Street, Suite
501, Vancouver, British Columbia V6C 3P1
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