TSX-V: SIL
VANCOUVER, Oct. 20, 2016 /CNW/ - SilverCrest Metals Inc.
("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."
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.
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, 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 drilling 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; precious metals prices;
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; precious metal prices
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.
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.
SOURCE SilverCrest Metals Inc.