SilverCrest Metals Inc. [SIL-TSXV; SVCMF-OTCQX] on Tuesday June 12 released new drill results for the Granaditas Vein and the initial delineation of its high-grade footprint on the Las Chispas property in Sonora, Mexico.
SilverCrest shares were active on the news, rising 8.65% or $0.23 to $2.89 in late morning trading, Tuesday. The 52-week range is $1.05 and $2.74.
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.
SilverCrest said it has identified 23 epithermal veins on the Las Chispas property. Of the 23, only 11 have so far been drilled. They include Babicanora, Babicanora Footwall (FW), Babicanora Norte, Las Chispas, Giovanni (including the La Blanquita extension), William Tell, Varela, Granaditas, Luigi and Amatista.
Only five of these veins have been included in the maiden resource estimate for the Las Chispas property. The Babicanora Vein contains the majority of the company’s maiden resource.
The company first drilled two holes in the Granaditas Vein in 2017 and recommended drilling for early 2018. On Tuesday, the company said highlights from the latest drill results include Hole GR18-04, which intersected 1.8 metres, grading 12.14 g/t gold, and 1,440.3 g/t silver, or 2,350 g/t silver equivalent.
The company has said it will continue to focus on drilling on the Babicanora Vein to fully test the strike length and depth. With continued success on expanding the high grade footprint of the Babiconora Vein to the southeast and at depth, the company may consider constructing a 500 metre to 700 metre long decline.
The decline would intercept the Bonanza grade zone in Area 51 (which is the highest grade mineralized area of the Babicanora Vein), for direct testing and improve access to provide a platform for shorter infill and expansion drill holes.
Meanwhile, SilverCrest said it plans to drill an additional 4,000 to 5,000 metres until July, focusing on a planned updated resource estimate for the third quarter of 2018 and to complete an initial preliminary economic assessment in late 2018 and early 2019.
Other ongoing site work includes continued underground mapping and sampling on the Las Chispas Vein, drilling test wells for site water, permitting for various additional work, and review of the maiden resource model for optimization and update.