SilverCrest rallies on Mexican high-grade news
SilverCrest Metals Inc. [SIL-TSX; SILV– NYSE] on Thursday April 15 released more impressive high-grade assays from drilling on multiple veins in the Babicanora area of its Las Chispas Project in Sonora, Mexico.
SilverCrest shares advanced on the news, rising 6.5% or $0.70 to $11.39. The shares are currently trading in a 52-week range of $16.37 and $7.84.
Results released on Thursday include additional infill and expansion drill results from the Babi Vista vein splay, Babi Vista vein, Granaditas 1 vein, Granaditas 2 vein, and adjacent hangingwall (HW) and footwall (FW) veins in the Babicanora area.
In-fill and expansion drill results reported in today’s news release represent an additional 78 holes completed since the previous news release for Babi Vista, Splay and Granaditas veins.
Significant drilling results are as follows: Splay – Hole BV21-252 intercepted an ETW of 2.27 metres grading 87.05 g/t gold and 6,469.2 g/t silver, or 14,034 g/t silver equivalent (AgEq); Granaditas 1 Vein – Hole BV20-221 intersected an ETW of 3.65 metres grading 40.42 g/t gold and 6,089.4 g/t silver or 9,602 g/t AgEq; Granaditas 1 Vein – Hole GR21-28 intersected an ETW of 0.40 metres grading 114.00 g/t gold and 78,872 g/t silver or 88,779 g/t AgEq.
Las Chispas is the third highest grade primary silver deposit in the world. The Las Chispas property is located approximately 180 km northeast of Hermosillo.
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 in the future.
In early February, 2021, the company released positive results from a feasibility study, including an updated mineral resource estimate and initial mineral reserve estimate. Initial proven and probable reserves stand at 2.35 million tonnes, grading 4.81 g/t gold and 461 g/t silver or 879 g/t AgEq, or a total of 94.7 million ounces of AgEq.
The feasibility study considers a 1,250-tonnes-per-day operation with an initial mine life of 8.5 years. The study is based on a gold price of US$1,946 per ounce and a silver price of US$27.36 an ounce.
The mine plan excludes inferred resources of 1.2 million tonnes, grading 745 g/t AgEq or 29.7 million ounces of AgEq, an estimate that includes the recently discovered Babi Vista Vein Splay.
Expansion drilling and infill drilling for BAVS is underway and targeted to be included in a revised mineral resource and reserve update in 2022.