SilverCrest Metals Inc. [SIL-TSXV; SVCMF-OTCQX] advanced Thursday August 13 after the company released more impressive drill results from its Las Chispas Project in Sonora, Mexico. Highlights include, a single drill hole (BV20-60), which established a new grade-thickness record for the property, returning 1.7 metres (intercept width) grading 634.56 g/t gold and 26,003.6 g/t silver, or 73,595 g/t AgEq.
Investors reacted to the news by sending SilverCrest shares up 2.4% or 29 cents to $12.14 on volume of 955,300 shares traded.
Drill results released on Thursday are for 48 holes, combined with 76 previously announced holes, totaling 124. The results for the Baba Vista vein demonstrate high-grade continuity and a developing high-grade zone similar to the Babicanora Vein (Area 51 zone) and Babicanora Norte Vein (Area 200 Zone).
These high-grade veins are near surface with underground development underway and are being considered for mining early in the life of the mine. The Baba Vista Vein was first discovered in February 2019 and was intersected underground for confirmation in mid-2019 while drill crews were developing the Santa Rosa decline to intersect the Babicanora Vein, Area 51 Zone.
The expanded high-grade footprint for Baba Vista is estimated at 800 metres along strike by an average of 150 metres in height.
Las Chispas is the third highest grade primary silver deposit in the world. According to a preliminary economic assessment announced in May, 2019, it is expected to produce an average of 13.7 million oz silver equivalent annually during the first four years of operations at an all-in-sustaining cost of US$4.89/oz. The initial capital expenditure is forecast at US$100.5 million.
Those estimates assume a silver price of US$16.68/oz and a gold price of US$1,269/oz.
SilverCrest is the first company to successfully drill-test the historic Las Chispas Project, a move that resulted in numerous discoveries that are being evaluated for economic viability and potential production.
An estimated 48,000 metres of drilling is planned for the second half 2020, with the focus on high-grade resource expansion. As of June 30, 2020, SilverCrest had drilled an estimated 400,000 metres in 1,480 holes.