Mr. N. Eric Fier reports
SILVERCREST ANNOUNCES CHANGES TO BOARD OF DIRECTORS AND PROVIDES PROJECT UPDATE
Silvercrest Metals Inc. has appointed Hannes Portmann to the board of directors, replacing George Sanders, who is retiring from the board. Silvercrest is also pleased to provide a brief update of continuing activities at the Las Chispas project.
Mr. Portmann is a mining executive with significant management and capital markets experience. Through May, 2018, he spent 10 years with New Gold Inc., ultimately serving as president and chief executive officer of the intermediate gold producer. Previously, Mr. Portmann served as executive vice-president, business development, with primary responsibilities including corporate development, investor relations, human resources and exploration. Prior to New Gold, Mr. Portmann was a member of the Merrill Lynch investment banking mining group and the assurance and advisory practices of PricewaterhouseCoopers LLP. Mr. Portmann holds a bachelor of science in mining engineering from Queen's University, and a master of management and professional accounting from the Rotman School of Management, University of Toronto.
N. Eric Fier, CPG, PEng, chief executive officer, remarked: "We would like to thank George Sanders for his leadership and guidance during the company's expansion of the Las Chispas project. His advice and strategic expertise made a significant contribution to Silvercrest's success as we navigated a challenging mining investment climate. We are happy to welcome Hannes Portmann to the board of directors. Hannes brings significant strategic planning, finance and capital markets experience to the board, which should prove invaluable as we look to build shareholder value by advancing the Las Chispas project and the company."
On Oct. 2, 2018, Silvercrest retained the services of Tetra Tech Inc., of Vancouver, B.C., to complete a preliminary economic assessment (PEA) for the Las Chispas project. The PEA will consider the conceptual economics of developing a 1,000-to-1,500-tonne-per-day underground mining operation with a countercurrent decantation facility (CCD) and Merrill Crowe recovery circuit similar to the nearby Santa Elena and Mercedes mines. The PEA is expected to be completed in Q1 2019. As part of the PEA, the company is completing expansion and infill drilling and detailed metallurgy testwork at Las Chispas. Given the high-grade nature of Las Chispas, the company is evaluating cyanidation with a possible add-on flotation circuit followed by intense leaching for greater than 1,000 grams per tonne silver equivalent material. This testwork will help determine the potential for higher silver recoveries using both cyanidation and flotation methods. Initial metallurgical testwork completed in November, 2017, showed average recoveries of 86.6 per cent for silver and 98 per cent for gold using standard cyanidation only.
Silvercrest is proceeding with the construction of an exploration decline to access the Babicanora vein, Area 51 zone. The company is finalizing its selection of contractors to construct this decline, estimated to be 500 metres long, 4.5 metres wide by 4.0 metres in height. The work will also include drifting 600 to 800 metres along the strike of vein mineralization to collect information on vein grade and width continuity, reconciliation with the resource model, geotechnical parameters and minability, and bulk sampling for additional metallurgical testwork. During the construction of the exploration decline, the company will set up drill stations to further infill drill the Area 51 zone and test for extensions at depth. The company expects to be drifting in high-grade mineralization and stockpiling of this material in the second half of 2019. As previously stated in the company's May, 2018, prospectus offering, the total estimated cost of the decline and associated exploration work is approximately $3-million (U.S.), which will be financed by the company's current cash position of approximately $12.3-million (Canadian).
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. Silvercrest is the first company to successfully drill test the historic Las Chispas project resulting in numerous discoveries.
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