Additional High Grade Underground Results At Las Chispas

 

VANCOUVER - SilverCrest Metals Inc. reported additional results from the underground channel sampling program and the commencement of a surface drilling program at its Las Chispas Project located in Sonora, Mexico. Las Chispas is in a prolific mining area with nearby precious metal producers. Historical reports indicate the presence of 14 veins in the district of which only three have been previously mined extensively in the early 1900s, but none of which appear to have been drilled.

N. Eric Fier, CPG, P.Eng, President & CEO said, "We continue to systematically complete our planned underground rehabilitation program at Las Chispas to evaluate areas of known high grade silver-gold mineralization. To date, we have accessed two kilometers of the estimated six kilometers of underground workings. Our first detailed underground channel sampling indicates continuous high grade areas that are easily accessible for potential future mining. We also commenced a surface drilling program to test extensions of known mineralized veins for potential new discoveries. For the next three months, we will be focusing on continually accessing historical underground workings to assess further high grade continuous mineralization." 

In an effort to start confirming continuity of underground high grade potential at Las Chispas, 36 continuous channel samples were collected at intervals  about every 2.1 meters across the width of the vein for approximately 75 meters. This location at the William Tell Vein is easily accessible (see attached Figure). Based on historic information, this vein has an estimated 1 kilometer strike length, can be projected to a depth of 300 meters, and has an average width of 1.5 meters.  Sample results averaged 1.1 meters of 2.4 gpt gold and 174.9 gpt silver, or 358.1 gpt silver equivalent (uncut, undiluted) over a 75 meter strike length. 

Concurrent with the underground rehabilitation, a surface drilling program of approximately 3,000 meters commenced in late March. To date, six holes have been completed for a total of 1,500 meters. This initial drill program is designed to test known mineralization, extensions of mineralization and the potential for new discoveries.  All holes have intersected quartz stockwork and veining that are currently being logged and sampled. Upon receipt of assays, the results will be announced and integrated with the underground information.

The Company has applied for a MIA (Environmental Impact Statement) for an underground drilling program of 2,000 meters to test potential near-surface resource areas and deeper extensional targets of below the historical workings. Minimal underground work is required to begin underground drilling. Depending on permitting, this program is expected to start in the second half of 2016. This permit also includes the extraction of a 100,000-tonne bulk sample for testing and processing off site.