SilverCrest Metals Inc. [SIL-TSXV; SVCMF-OTCQX] said Wednesday September 19 that it has updated its mineral resource estimate for the Las Chispas property in Sonora, Mexico.
The company is now looking ahead to a further resource update and a Preliminary Economic Assessment (PEA) due in the first quarter of 2019. In keeping with that plan, the company plans to continue exploration drilling with six to eight core drills running up to the first quarter of 2019.
In Wednesday’s press release, the company said inferred mineral resources are estimated at 4.3 million tonnes, grading 3.68 g/t gold and 347 g/t silver, or 623 g/t silver equivalent. The inferred resource estimate includes 511,800 ounces of gold and 48.3 million ounces of silver, or 86.7 million ounces of silver equivalent, using a 150 g/t silver equivalent cut-off grade and minimum true vein width of approximately 1.5 metres.
SilverCrest shares advanced on the news, gaining 3.55% to $3.21 in afternoon trading on Wednesday.
The Las Chispas property is located approximately 180 km northeast of Hermosillo. It consists of 28 concessions totalling 1,400 hectares.
Between 1880 and 1930, several mines on the property are thought to have yielded approximately 100 million ounces of silver and 200,000 ounces of gold.
In early 2018, the company tabled an initial resource estimate for the property, saying it contains an inferred mineral resource of 3.4 million tonnes, grading 3.63 g/t gold and 296 g/t silver, or 568 g/t silver equivalent. The inferred resource contains 401,600 ounces of gold and 32.7 million ounces of silver, or 62.8 million ounces of silver equivalent.
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, which in turn is focused on an estimated 3.5 km of approximately 12 known km of cumulative vein strike length in the district.
On Wednesday, the company said the combination of the Area 51 Zone (Babicanora vein) and adjacent Babicanora Norte Vein hosts a combined inferred resource of 1.6 million tonnes grading 6.97 g/t gold and 568 g/t silver or 1,091 g/t silver equivalent. That includes 56.3 million ounces of silver equivalent.
Of the 30 veins in the district, eight were used for the updated resource estimate. They are Babicanora, (including Area 51 Zone), Babicanora Norte, Granaditas, Las Chispas, Giovanni (including La Banquita), William Tell and Luigi.
Highlights from the update resources, include a 38% increase silver equivalent ounces from 62.8 million to 86.7 million ounces of silver equivalent, and a 26% increase in tonnes from 3.4 million to 4.3 million.
The new estimate is based on 24 additional drill holes in the Babicanora vein, including Area 51 and the Babicanora footwall vein, and expansion of the Area 51 high-grade footprint from approximately 500 to 800 metres, splitting the Babicanora vein into three separate domains for statistical analysis and top cutting, the discovery of the Babicanora Norte vein with 40 drill holes, discovery of the Granaditas veins with 21 drill holes, discovery of the Luigi vein with 22 drill holes, and expansion drilling of three additional drill holes into the Giovanni vein.