SilverCrest Metals Inc. [SIL-TSXV; SVCMF-OTCQX] said it has received approval for the operational storage and use of explosives at the Las Chispas Project in Sonora, Mexico.
Prior to receiving the General Explosives Permit, the company said it held a temporary explosives permit for construction until late June 2019. The General Explosives Permit is valid for the life of the project, while exploring, developing or potentially producing and is subject to various standard purchase, consumption, reporting and safety provisions.
The receipt of this permit from the Secretaria de la Defensa Nacional (SEDENA) allows SilverCrest to further advance underground exploration at the Babicanora Vein in both the Santa Rosa Decline and Babicanora Historic Adit.
SilverCrest has also acquired local water rights for Las Chispas, which are transferrable to a more efficiently located operational well(s) at the company’s discretion. The company has also announced that it has exercised its last outstanding option agreement to fully acquire the remaining four of the 28 concessions at Las Chispas, thereby obtaining 100% ownership in all Las Chispas mining concessions containing vein mineral resources.
On Friday, Silvercrest shares were up 1.9% or $0.15 to $8.01. The shares are currently trading in a 52-week range of $2.85 and $8.38.
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.
The Las Chispas update comes after SilverCrest recently completed a $25 million bought deal offering of 4.3 million common shares priced at $5.85 per share. SilverCrest is backed by SSR Mining Inc. [SSRM-TSX, NASDAQ] which acquired a 9.9% stake in SilverCrest late last year via the purchase of 8.2 million common shares of the company via a private placement.
With the completion of the bought deal offering and SSR’s recent move to maintain its 9.9% stake via the purchase of 780,000 shares at $5.85 a share, SilverCrest said it now has $49 million in cash, leaving it in a robust financial position to advance the Las Chispas Project.
In a March 2019 news release, SilverCrest said infill drilling at Las Chispas has delineated an initial inferred resource of 1.0 million tonnes grading 6.98 g/t gold and 710.6 g/t silver, or 1,234 g/t silver equivalent, containing 39.8 million ounces of silver equivalent.
Inferred resources are estimated at 3.6 million tonnes, grading 3.32 g/t gold and 332.5 g/t silver, or 581 g/t silver equivalent, containing 68.1 million ounces of silver equivalent. Of the known 30 veins in the district, 10 veins were included in the updated resource estimate.