SilverCrest Announces Further Drill Hole Results From Las Chispas Project; Confirms Discovery of the Unmined Extension of William Tell Vein
VANCOUVER, BC – September 07, 2016 - SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to announce additional drill hole results from the William Tell Vein within its Las Chispas Project located in Sonora State, Mexico. The Las Chispas Project is in a historic silver-gold mining district which presently hosts two nearby precious metal producers. Historic information indicates that of the fourteen historically reported veins at Las Chispas Project, only three veins, the Las Chispas, William Tell and Babicanora, had documented production, which occurred between 1880 and 1930. SilverCrest’s initial focus is on these three veins. To the Company’s knowledge, these three past-producing veins have not been intercepted by drilling prior to the Company's recently completed initial Phase I drilling campaign. For more information, please refer to our website at www.silvercrestmetals.com.
The William Tell Vein is approximately parallel to the Las Chispas Vein and about 120 metres apart at its midpoint. The William Tell Vein’s historical workings appear to advance on strike to a cross cutting fault and then terminate. This fault also cross cuts the Las Chispas Vein beyond which higher grades and continuity are found as previously reported (see news release dated August 2, 2016). The Company believes this fault bound corridor, in both the William Tell and Las Chispas Veins, may be a mineralizing control for a potential high grade zone in both of the vein systems. Fourof the seven William Tell drill hole intersections located within the potential high grade corridor display grade continuity greater than 400 grams per tonne (“gpt”) silver equivalent* (“AgEq”) over estimated true widths of 0.8 to 1.5 metres. Applying a 50 metre radius influence to the four drill hole intercepts, the area covers approximately 300 metres of strike (see attached figure). No historical workings were intercepted in the seven William Tell Vein drill holes.
Two previously unmapped veins were intercepted in drill holes LC16-13 and LC16-16 at the William Tell Vein which reported grades of 888 gpt AgEq* and 723 gpt AgEq* over estimated true widths of 0.9 metres and 0.8 metres, respectively (see table below). These intercepts are new vein discoveries and are interpreted to be in the footwall and hanging wall, respectively.
Dunham Craig, P.Geo., Interim CEO commented, “While we suspected the William Tell Vein would extend to the south, we are very pleased to see this discovery in an area where we did not know what the vein mineralization, location or geometry would be. The high grade continuity in four of the drill holes within the potentially mineralized corridor is very encouraging and we are eager to begin a Phase 2 drilling program as soon as possible to further delineate the strike extension and depth. In addition, the discovery of two new vein intercepts grading above 700 gpt AgEq*, combined with all of the results received to date from drilling and underground channel sampling, reiterate a possible discovery of a district-wide area play. The crew in Mexico continues to gain further access within the estimated 11.5 kilometres of historic underground workings in both the Las Chispas area and Babicanora area for mapping, sampling and future drilling program design. We expect to report on further drill results and underground activities over the coming weeks.”
The most significant William Tell Vein core drilling results for this release are 1.5 metres wide grading 2.03 gpt gold (“Au”) and 683 gpt silver (“Ag”), or 835 gpt AgEq* (see attached Figure) including 0.75 metres grading 3.8 gpt Au and 1,102 gpt Ag or 1,388 gpt AgEq* in hole LC16-03. The following table summarizes the most significant drill assay results (uncut) for the William Tell vein and the previously unidentified veins;
|William Tell Drill Hole Intercepts within Potentially High Grade Corridor > 150 gpt AgEq|
|Hole No.||From (m)||To (m)||Drilled Thickness (m)||Est. True Thickness (m)**||Au gpt||Ag gpt||AgEq* gpt|
|New Identified Vein Intercepts adjacent to the William Tell Vein|
|William Tell Drill Hole Intercepts < 150 gpt AgEq|
Note: all numbers are rounded.
*AgEq based on 75 (Ag):1 (Au) and 100% metallurgical recovery.
** All holes were drilled at angles to mineralization; true thickness is estimated based on geometry of the vein model.
All assays were completed by ALS Chemex with sample preparation in Hermosillo, Mexico and assayed in North Vancouver, BC.
Gold grades are reported from fire assay, and silver grades >100 gpt are reported from aqua regia digestion with ICP-AES finish.
As previously announced, the Company has also drilled three holes (LV-16-01, LV-16-02 and LV-16-03) in the La Victoria area, a separate mineralized showing, located 800 metres southwest of the Babicanora vein. Results from these holes have shown mineralization but with relatively low values. Future drilling for the La Victoria area will be undertaken to define the zonation of grade closer to surface and at depth.
Based on the favorable results of the Phase I surface drill program, the Company is planning a Phase II surface and underground drill program for the fall of 2016.Timing of the underground drilling program depends on the receipt of the permit application. The program will focus on the delineation of a potential bulk sample and infill drilling in preparation for a maiden resource estimate at the Las Chispas project.
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is James Barr, P.Geo, who is independent of SilverCrest and has approved its contents.
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals exploration company headquartered in Vancouver, BC, that is focused on new discoveries, value-added acquisitions and targeting production in Mexico’s historic precious metal districts. The Company is led by a proven management team in all aspects of the precious metal mining sector, including the pioneering of a responsible “phased approach” business model taking projects through discovery, finance, on time and on budget construction, and production with subsequent increased value to shareholders.
This news release contains “forward-looking statements” within the meaning of Canadian securities legislation. These include, without limitation, statements with respect to: the strategic plans, timing and expectations for the Company’s exploration, rehabilitation and drilling programs of the Las Chispas Project, including initial extraction program for bulk sample testing and preparation of an initial resource estimate; information with respect to high grade areas and size of veins projected from underground sampling results and drilling results; and the accessibility of future mining at the Las Chispas Project. Such forward‑looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: the conditions in general economic and financial markets; availability of skilled labour; timing and amount of expenditures related to rehabilitation and drilling programs; and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors including: the timing and content of work programs; results of exploration activities; the interpretation of drilling results and other geological data; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project cost overruns or unanticipated costs and expenses; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Dunham Craig, P.Geo
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