Silvercrest Metals Inc. [SIL-TSX; SILV-NYSE American] announced the discovery of the El Muerto Zone in the northwest part of the Babicanora vein at its 100%-owned Las Chispas property in Sonora, Mexico. El Muerto is the company’s first successful attempt at intercepting high-grade precious metals deeper in the Babicanora area, suggesting potential for a new mineralized horizon in the Babicanora vein.
The current drill program has been focused on expanding high-grade mineralization for known veins and testing targets for possible new precious metal discoveries. Results released today are for 45 holes with 11,350 metres drilled within El Muerto.
Silvercrest continues to intersect high-grade mineralization with the discovery of El Muerto. Best intercepts include hole EM20-37 that returned 1.5 metres (estimated true width) grading 12.68 g/t gold and 1,723.8 g/t silver, or 2,675 g/t silver equivalent (AgEq);
EM20-35 returned 1.0 metre (estimated true width) grading 9.46 g/t gold and 720.0 g/t silver, or 1,430 g/t AgEq.
El Muerto is estimated to have an average high-grade footprint of 500 metres along strike and is 100 to 200 metres below the current resource in the Babicanora vein, demonstrating the potential for high-grade mineralization in a new lower horizon. The weighted average (true width, uncut and undiluted) of these drill results to date is 1.1 metres grading 5.27 g/t gold and 389.2 g/t silver, or 784 g/t AgEq. El Muerto will be included in the updated resource that will be issued with the continuing feasibility study.
Eric Fier, CPG, PEng and CEO, remarked: “Our exploration team is doing an exceptional job under strict COVID-19 protocols. The recent discovery of the El Muerto Zone continues to show that Las Chispas has significant additional potential as we focus on expansion and new discoveries of high-grade mineralization in the district. Further drilling at El Muerto, below the current Babicanora vein resource, is planned in Q4 2020 and next year.
“Our Las Chispas operations team is also doing an excellent job as site work continues, including: underground drifting, stockpiling of high-grade mineralization, building the warehouse and administration office, expanding the site quarantined camp, and installation of site water and electrical systems. The feasibility study is advancing well with an anticipated release in late December, 2020, or early January, 2021, along with a final mill construction decision.”
Silvercrest has five surface core drills running at Las Chispas. Expansion drilling is planned to continue through Q4 2020 and into 2021.
In November 5 trading, SilverCrest shares gained $1.36, or 11.5%, to $13.16 on a volume of 5,2-3,000 shares traded.