SILVERCREST ANNOUNCES HIGHEST-GRADE DISCOVERY TO DATE AT LAS CHISPAS, AREA 200 ZONE;
Silvercrest Metals Inc. has made a new discovery and has released additional drill results from the Babicanora Norte vein of the Las Chispas project located in the state of Sonora, Mexico. Today’s release includes results for a total of 216 holes, 65 per cent of which are infill holes and 35 per cent expansion holes, and announces the new discovery of the Babi Norte southeast faulted extension named Area 200 zone or Area 200 after the discovery drill hole BAN19-200, which intercepted 2.0 metres (true width) grading 6,418 grams per tonne (g/t) silver equivalent. With this discovery, the Babi Norte vein becomes the highest-grade vein currently known on the property.
Expansion drilling has significantly increased the strike length of the Babi Norte vein from 1.2 kilometres, as previously announced on Feb. 25, 2019, to over 2.0 kilometres. Thirty-nine of the 216 holes establish an initial high-grade footprint for area 200 of 500 metres long by 125 metres in height. Drill results for these 39 holes in Area 200 show an average estimated true width of 1.5 metres with a weighted average grade of 16.11 g/t gold (Au) and 2,166.5 g/t silver (Ag), or 3,375 g/t AgEq (uncut undiluted). Area 200 is not included in the current resource estimate. For reference, the current Babi Norte vein model includes 8.6 million ounces of AgEq indicated resources (130,500 tonnes at 11.57 g/t Au and 1,180 g/t Ag, or 2,047 g/t AgEq) and 12.5 million ounces of AgEq inferred resources (277,700 tonnes at 8.21 g/t Au and 780 g/t Ag, or 1,395 g/t AgEq) and is based on a high-grade footprint 125 metres in height and only 900 metres of the estimated 2.0-kilometre strike length. Please refer to the “Technical Report and Preliminary Economic Assessment (PEA) for the Las Chispas Property, Sonora, Mexico,” dated effective May 15, 2019, as amended July 19, 2019, available on SEDAR. Babi Norte now has a total of 274 drill holes, including Area 200, which will be part of the updated resource and initial reserve estimate for the feasibility study (FS) to be released in late first half of 2020. The cut-off date for drill data to be included in the FS is the end of February, 2020.
N. Eric Fier, CPG, PEng, and chief executive officer, remarked: “Since the high-grade discovery in January, 2018, of the Babicanora vein, Area 51 zone, the Silvercrest technical team has been systematically testing out its theory of the nature of multiples for the potential to discover parallel high-grade precious metal veins and zones similar to Area 51. With the high-grade discoveries of Las Chispas vein, Area 118, in November, 2019, and now the Babi Norte vein, Area 200, this work has proven effective. Area 200, approximately 500 metres in strike length, is now considered the highest-grade discovery to date at Las Chispas and, combined with the remaining 1.5-kilometre strike length of the vein, is the longest mineralized vein in the district, surpassing the Babicanora vein. Area 200 is proximal to the Santa Rosa decline, suggesting it could be easily accessed with minimal underground development. Congratulations to the Silvercrest team on another high-grade discovery and its ability to aggressively advance this for FS inclusion.”
The most significant results for this release are hole BAN19-274 at 1.4 metres (estimated true width) grading 90.22 g/t Au and 9,422.3 g/t Ag, or 16,189 g/t AgEq, and hole BAN19-213, which intersected 2.4 metres grading 45.71 g/t Au and 5,577.3 g/t Ag, or 9,006 g/t AgEq. Also, noteworthy is hole BAN19-243 at 1.6 metres grading 75.78 g/t Au and 7,661.9 g/t Ag, or 13,345 g/t AgEq. The associated table summarizes the most significant drill intercepts (uncut, undiluted).
BABICANORA NORTE VEIN, AREA 200 ZONE ONLY
Hole No. From To Drilled width True width Au Ag AgEq (1)
(m) (m) (m) (m) (g/t) (g/t) (g/t)
BAN19-137 118.9 119.4 0.5 0.4 91.20 12,844.5 19,684
ban19-148 154.1 154.7 0.6 0.4 4.20 373.0 688
BAN19-151 126.7 127.2 0.6 0.4 6.15 585.0 1,046
BAN19-156 143.2 144.5 1.3 1.0 10.42 1,403.8 2,186
includes 143.8 144.5 0.7 0.6 17.65 2,190.0 3,513
BAN19-170 161.4 163.3 1.9 1.6 10.06 1,962.1 2,717
includes 161.4 161.9 0.5 0.4 20.50 2,670.0 4,207
BAN19-177 100.0 100.5 0.5 0.4 5.30 1,110.0 1,508
BAN19-182 188.9 191.6 2.7 2.2 17.72 1,801.7 3,130
includes 188.9 189.8 0.9 0.8 52.00 5,270.0 9,170
BAN19-187 218.9 221.6 2.7 2.1 19.95 2,397.1 3,894
includes 220.0 221.0 1.0 0.8 55.00 5,770.0 9,895
BAN19-195 210.6 211.1 0.5 0.4 1.11 92.0 175
BAN19-200 231.5 234.0 2.5 2.0 39.27 3,472.5 6,418
includes 231.5 232.2 0.7 0.6 79.80 7,380.0 13,365
BAN19-209 214.6 215.6 1.0 0.8 8.55 2,527.5 3,169
BAN19-213 292.6 295.6 3.0 2.4 45.71 5,577.3 9,006
includes 292.6 293.4 0.8 0.7 181.50 18,048.0 31,600
BAN19-218 303.8 304.3 0.5 0.4 2.22 1,805.0 1,972
BAN19-223 314.6 316.0 1.4 1.0 21.05 3,034.2 4,613
includes 314.6 315.2 0.6 0.5 48.60 6,970.0 10,615
BAN19-227 152.9 154.4 1.4 1.2 0.55 194.6 236
BAN19-232 249.1 250.6 1.6 1.3 5.00 1,839.4 2,214
BAN19-233 268.4 268.9 0.5 0.4 4.19 423.0 737
BAN19-234 290.6 293.4 2.8 2.2 11.51 1,161.2 2,024
includes 290.7 291.2 0.5 0.4 50.80 4,500.0 8,310
BAN19-235 190.7 194.8 4.1 3.3 3.18 3,742.6 3,981
includes 192.3 193.3 1.0 0.9 0.05 6,520.0 6,524
BAN20-236 288.6 294.4 5.8 4.6 6.54 966.5 1,457
includes 290.7 291.2 0.5 0.4 50.80 4,500.0 8,310
BAN20-238 175.6 176.1 0.5 0.4 3.15 348.0 584
BAN20-239 212.2 213.4 1.2 0.9 10.79 1,514.5 2,324
BAN20-240 197.2 197.9 0.7 0.6 1.21 131.0 222
BAN20-243 253.5 255.5 2.0 1.6 75.78 7,661.9 13,345
includes 254.3 255.0 0.7 0.6 177.50 15,527.5 28,840
BAN20-245 175.4 176.0 0.6 0.5 2.55 690.0 881
BAN20-247 148.6 149.1 0.5 0.4 7.57 997.0 1,565
BAN20-251 196.3 198.1 1.8 1.4 6.31 1,208.9 1,682
includes 196.8 197.6 0.8 0.7 15.05 2,640.0 3,768
BAN20-252 296.4 297.0 0.6 0.5 39.70 4,790.0 7,768
BAN20-253 273.7 278.1 4.4 3.5 12.58 1,741.3 2,685
includes 274.5 275.3 0.8 0.6 36.90 5,110.0 7,878
BAN20-256 275.6 278.6 2.9 2.4 3.60 732.8 1,003
includes 275.6 276.1 0.5 0.4 9.65 1,375.0 2,098
BAN20-257 299.8 300.3 0.5 0.4 5.00 478.0 853
BAN20-258 279.0 284.4 5.4 4.4 6.67 1,244.3 1,744
includes 281.4 282.0 0.6 0.5 33.60 7,130.0 9,650
BAN20-259 296.8 297.3 0.5 0.4 105.00 9,630.0 17,505
BAN20-261 301.5 307.5 0.5 0.4 6.58 1,025.5 1,519
BAN20-264 264.5 265.1 0.6 0.5 0.54 130.0 171
BAN20-265 297.3 297.9 0.6 0.5 45.40 3,470.0 6,875
BAN20-268 341.5 343.9 2.4 1.9 7.84 1,007.2 1,595
includes 343.4 343.9 0.5 0.4 26.60 3,200.0 5,195
BAN20-269 326.5 327.7 1.2 1.0 5.49 734.0 1,146
BAN20-274 343.7 345.5 1.8 1.4 90.22 9,422.3 16,189
weighted average 1.5 16.11 2,166.5 3,375
BABICANORA NORTE VEIN, BABICANORA AREA
(all new significant holes greater than 1,000 g/t AgEq)
Hole No. From To Drilled width Est. true width Au Ag AgEq (1)
(m) (m) (m) (m) (g/t) (g/t) (g/t)
BAN19-102 95.5 96.0 0.5 0.4 11.90 1,790.0 2,683
BAN19-103 143.5 144.5 1.0 0.8 34.86 3,617.2 6,231
BAN19-104 212.0 213.4 1.4 1.9 6.33 833.9 1,309
BAN19-124 101.1 101.9 0.8 0.6 6.55 883.0 1,374
BAN19-129 179.7 180.2 0.5 0.4 10.30 1,640.0 2,413
BAN19-135 137.7 139.1 1.4 1.1 11.62 1,247.7 2,119
BAN19-137 118.9 119.4 0.5 0.4 91.20 12,844.5 19,684
BAN19-138 103.3 105.0 1.7 1.4 7.52 1,050.0 1,614
BAN19-151 126.7 127.2 0.5 0.4 6.15 585.0 1,046
BAN19-153 132.6 133.1 0.5 0.4 7.56 727.0 1,294
BAN19-156 143.2 144.5 1.3 1.0 10.42 1,403.8 2,186
BAN19-165 146.9 147.4 0.5 0.5 17.25 1,495.0 2,789
BAN19-166 132.9 134.6 1.7 1.3 9.66 739.4 1,464
BAN19-170 161.4 163.3 1.9 1.6 10.06 1,962.1 2,717
BAN19-178 166.5 168.5 2.0 1.7 29.11 2,663.2 4,846
BAN19-182 189.0 191.6 2.6 2.1 17.72 1,801.7 3,130
BAN19-187 218.9 221.6 2.7 2.1 19.95 2,397.1 3,894
BAN19-189 94.3 95.8 1.6 1.3 18.07 2,356.6 3,712
BAN19-192 106.4 108.0 1.6 1.2 8.02 991.3 1,593
BAN19-200 231.5 234.0 2.5 2.0 39.27 3,472.5 6,418
BAN19-209 214.6 215.6 1.0 0.8 8.55 2,527.5 3,169
BAN19-211 109.5 110.1 0.6 0.5 31.90 1,140.0 3,533
BAN19-213 292.6 295.6 3.0 2.4 45.71 5,577.3 9,006
BAN19-218 303.8 304.3 0.5 0.4 2.22 1,805.0 1,972
BAN19-223 314.6 316.0 1.4 1.0 21.05 3,034.2 4,613
BAN19-232 249.1 250.6 1.5 1.3 5.00 1,839.4 2,214
BAN19-234 290.6 293.4 2.8 2.2 11.51 1,161.2 2,024
BAN19-235 190.7 194.8 4.1 3.3 3.18 3,742.6 3,981
BAN20-236 288.6 294.4 5.8 4.6 6.54 966.5 1,457
BAN20-239 212.2 213.4 1.2 0.9 10.79 1,514.5 2,324
BAN20-243 253.5 255.5 2.0 1.6 75.78 7,661.9 13,345
BAN20-247 148.6 149.1 0.5 0.4 7.57 997.0 1,565
BAN20-251 196.3 198.1 1.8 1.5 6.31 1,208.9 1,682
BAN20-252 296.4 297.0 0.6 0.5 39.70 4,790.0 7,768
BAN20-253 273.7 278.2 4.5 3.5 12.58 1,741.3 2,685
BAN20-256 275.6 278.6 3.0 2.4 3.60 732.8 1,003
BAN20-258 279.0 284.4 5.4 4.4 6.67 1,244.3 1,744
BAN20-259 296.8 297.3 0.5 0.4 105.00 9,630.0 17,505
BAN20-261 301.5 307.5 6.0 4.8 6.58 1,025.5 1,519
BAN20-265 297.3 297.9 0.6 0.5 45.40 3,470.0 6,875
BAN20-268 341.5 343.9 2.4 1.9 7.84 1,007.2 1,595
BAN20-269 326.5 327.7 1.2 1.0 5.49 734.0 1,146
BAN20-274 343.7 345.5 1.8 1.4 90.22 9,422.3 16,189
Notes
All numbers are rounded. Based on a cut-off grade of 150 g/t AgEq with no minimum width.
(1) AgEq based on 75 (Ag):1 (Au) calculated using long-term silver and gold prices of $17 (U.S.)
per ounce silver and $1,225 (U.S.) per ounce gold, with average metallurgical recoveries of 90
per cent silver and 95 per cent gold.
All assays were completed by ALS Chemex in Hermosillo, Mexico, and North Vancouver, B.C., and Bureau Veritas (Inspectorate Ltd.) in Hermosillo, Mexico.
In summary, of the 216 newly reported holes, 115 holes were below the cut-off grade. Specifically, holes BAN19-57, 58, 61 to 63, 65, 67 to 70, 72, 73, 75, 76, 81, 82, 84 to 86, 88, 89, 91 to 93, 96, 97, 100A, 105, 106, 112, 114 to 118, 121 to 123, 125 to 128, 131 to 134, 136, 139 to 144, 149, 152, 154, 155, 157, 159, 162 to 164, 168, 169, 171 to 173, 175, 176, 179 to 181, 184 to 186, 188, 190, 191, 193, 194, 196, 197, 199, 201, 203 to 205, 208, 212, 215, 217, 220 to 222, 224, 229 to 231, and BAN20-237, 241, 242, 244, 246, 248 to 250, 254, 255, 260, 262, 263, 266 and 270 to 272 intersected veining but were below the company’s cut-off grade of 150 g/t AgEq. BAN20-267 and BAN20-273 are pending assays and will be reported when available.
While drilling for the Babi Norte vein, several intercepts were made in unnamed veins (hangingwall and footwall veins), with the most significant results below:
- BAN19-66: 0.4 metre grading 4.25 g/t Au and 716.0 g/t Ag, or 1,035 g/t AgEq;
- BAN19-71: 1.0 metre grading 1.93 g/t Au and 601.2 g/t Ag, or 746 g/t AgEq;
- BAN19-80: 0.4 metre grading 4.84 g/t Au and 800.0 g/t Ag, or 1,163 g/t AgEq;
- BAN19-95: 0.4 metre grading 17.0 g/t Au and 2,080.0 g/t Ag, or 3,359 g/t AgEq;
- BAN19-120: 0.5 metre grading 3.68 g/t Au and 591.0 g/t Ag, or 867 g/t AgEq;
- BAN19-167: 0.5 metre grading 27.10 g/t Au and 1,765 g/t Ag, or 3,798 g/t AgEq;
- BAN19-182: 0.5 metre grading 7.46 g/t Au and 704.0 g/t Ag, or 1,263 g/t AgEq;
- BAN19-225: 0.4 metre grading 9.22 g/t Au and 1,001.0 g/t Ag, or 1,692 g/t AgEq;
- BAN19-228: 0.9 metre grading 3.75 g/t Au and 460.6 g/t Ag, or 742 g/t AgEq;
- BAN20-253: 0.4 metre grading 19.45 g/t Au and 2,120 g/t Ag, or 3,579 g/t AgEq;
- BAN20-265: 0.9 metre grading 3.51 g/t Au and 622.6 g/t Ag, or 886 g/t AgEq.
Further work will be completed on these unnamed veins for possible inclusion into the continuing updated resource and FS.
The discovery of Area 200 provides a better understanding of the Las Chispas epithermal vein mineralization, which should help to refine the nature of multiples testing of the next vein targets. The Babi Norte vein and Area 200 zone are still open to depth and down plunge. Current drilling focus is on expanding Area 200 and applying similar exploration methods, which discovered Area 118 and Area 200 to the adjacent Babi Vista and unnamed Babicanora Norte HW and FW veins. Silvercrest has identified 36 veins on the Las Chispas project, with only 11 veins sufficiently drill tested to date for resource estimation and reserve consideration. The number of veins to be included in the FS is still being determined.
The company now has 19 drill rigs operating at site and allocated as follows:
- 11 rigs focused on Babi Norte, including Area 200, where several additional infill and expansion holes will be completed in Q1, 2020;
- One rig on the Babicanora and Babicanora FW veins finalizing infill holes for updated resources and reserve estimation;
- One rig on the Babi Vista vein for infill and expansion;
- Six rigs are drilling the Giovanni vein, Las Chispas vein and Area 118 for infill and expansion for inclusion in the FS.
The company has delivered the updated drill hole database as of Feb. 13, 2020, for the Babicanora area veins, excluding Babi Norte, to independent consultant, GMining Services Inc., for updated resource estimation and reserve estimation in the continuing feasibility study anticipated in late first half of 2020. The remaining data including Las Chispas area veins and Babi Norte vein will be submitted to GMining by the end of Feb. 2020.
The qualified person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier, CPG, PEng, and chief executive officer for Silvercrest, who has reviewed and approved its contents.
About Silvercrest Metals Inc.
Silvercrest is a Canadian precious metals exploration company headquartered in Vancouver, B.C., that is focused on new discoveries, value-added acquisitions and targeting production in Mexico’s historic precious metal districts. The company’s current focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico.
We seek Safe Harbor.
