TSX: SIL | NYSE American: SILV
VANCOUVER, BC,
March 25, 2022
/PRNewswire/ - SilverCrest Metals Inc. ("SilverCrest" or the
"Company") is pleased to report the Company's audited financial
results for the year ended December 31,
2021. The audited consolidated financial statements and
management's discussion and analysis for 2021 are available under
the Company's SEDAR profile on www.sedar.com or on SilverCrest's
website www.silvercrestmetals.com. All amounts herein are presented
in United States Dollars, unless
otherwise stated.
2021 Highlights
- In Q1, 2021, the Company announced positive results from the
feasibility study for the Las Chispas Project (the "Feasibility
Study") and commenced mine construction. Details of the Feasibility
Study, including an updated Mineral Resource Estimate and an
initial Mineral Reserve Estimate, are provided in a technical
report filed under the Company's SEDAR profile entitled, "NI 43-101
Technical Report & Feasibility Study on the Las Chispas
Project" with an effective date of January
4, 2021 (the "Technical Report"). The Technical Report was
prepared by Ausenco Engineering Canada Inc. and its affiliate with
the assistance of several other independent engineering companies
and consultants.
- At the end of 2021, overall construction progress at Las
Chispas was ahead of schedule at 86.2% complete compared to a
scheduled completion of 79.3%. During 2021, the Company committed
75.2% ($103.6 million) of the
$137.7 million Feasibility Study
capital cost estimate. Of the remaining capital to be incurred in
2022, 20.7% ($8.9 million) is related
to the Ausenco fixed price engineering, procurement and
construction ("EPC") contract for process plant construction and
14.7% ($6.3 million) is unused
contingency.
- At the end of 2021, SilverCrest had completed a total of 17.5
km of underground development since 2019 at Las Chispas.
Approximately 1.8 km of additional development occurred in 2021
ahead of the Feasibility Study life of mine plan.
- At the end of 2021, after 1.9 million work-hours completed at
site, the Company's Lost Time Injury Frequency Rate ("LTIFR") was
0.63 per 200,000 working hours and its Total Recordable Injury
Frequency Rate ("TRIFR") was 4.11 per 200,000 working hours.
- SilverCrest's strict COVID-19 protocols, including its confined
camp, resulted in no delays due to COVID-19 or any other reason in
2021 and also resulted in additional benefits in productivity.
- During 2021, the Company completed 114,143 metres of core
drilling at Las Chispas, which predominantly focused on infill
drilling of resources to support conversion to indicated resources
for potential conversion to mineral reserves.
- During 2021, the Company completed an estimated 80,700 metres
of exploration core drilling at El
Picacho property located approximately 40 kilometres north
of Las Chispas. Drilling was completed to test the Picacho Main
Vein which contains an unqualified historic resource (please refer
to the news release dated February 24,
2021 for further details) and initially drill test several
other epithermal veins on the property.
- As at the end of 2021, SilverCrest had cash and cash
equivalents of $176.5 million and
$30.0 million remaining under a
$120.0 million project financing
facility (the "Credit Facility").
Las Chispas Expenditures
During 2021, Las Chispas expenditures recorded under mineral
property, plant and equipment totalled $128.1 million, of which $14.6 million was for plant and equipment
purchases, $55.5 million for
construction in progress costs, and $58.0
million for mineral property costs.
El Picacho ("Picacho")
Expenditures
The Company completed an estimated 80,700 metres of drilling at
Picacho during 2021 and incurred a total of $10.4 million for the Picacho property under
exploration and evaluation expenditures during this period. As of
December 31, 2021, the Company had
drilled an estimated cumulative 86,500 metres (331 drill holes)
since acquiring the Picacho property in Q3, 2020. As of
February 28, 2022, there was one
surface rig active at Picacho. Results for this drilling are being
compiled and will be released in H1, 2022.
Financial Results
At December 31, 2021, the Company
held $176.5 million (2020 -
$135.1 million) as cash and cash
equivalents. The primary factors that contributed to the increase
in cash and cash equivalents from 2020 to 2021 include $190.6 million generated by financing activities
net of associated costs, including the completion of a bought deal
prospectus offering on February 22,
2021, for $131.4 million, the
completion of two drawdowns on a Credit Facility totaling
$60.0 million and the exercise of
stock options for $2.8 million. These
cash inflows were primarily offset by $120.4
million paid towards mineral property, plant, and equipment.
Furthermore, the cash inflows were also offset by $32.9 million paid on the Company's operating
activities, which was primarily made up of $10.4 million incurred on the exploration program
at Picacho, $5.2 million of foreign
exchange losses, $2.5 million paid on
accounts payable and accrued liabilities and $10.7 million paid on net value-added taxes. At
December 31, 2021, the Company had
value-added taxes ("IVA") receivable in Mexico of $23.3
million (2020 – $12.2
million). The Company received aggregate IVA refunds of
$6.2 million during 2021.
The Company has financed its operations to date through the
issuance of common shares and debt. The Company currently has no
operations from which to derive revenues. During 2021, the Company
incurred a loss of $22.8 million
(2020 – $59.9 million) and a
comprehensive loss of $17.4 million
(2020 – $55.3 million).
The Qualified Person under National Instrument 43-101 Standards
of Disclosure for Mineral Projects for this news release is N.
Eric Fier, CPG, P.Eng, and CEO for
SilverCrest, who has reviewed and approved its contents.
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals exploration and
development 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's top priority is on the high-grade,
historic Las Chispas mining district in Sonora, Mexico, where it has completed a
feasibility study on the Las Chispas Project and is proceeding with
mine construction. Startup of processing at the Las Chispas Mine is
targeted for Q2, 2022. SilverCrest is the first company to
successfully drill-test the historic Las Chispas Property resulting
in numerous high-grade precious metal discoveries. The Company is
led by a proven management team in all aspects of the precious
metal mining sector, including taking projects through discovery,
finance, on time and on budget construction, and production.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" and
"forward-looking information" (collectively "forward-looking
statements") within the meaning of applicable Canadian and
United States securities
legislation. These include, without limitation, statements with
respect to: the strategic plans, timing and expectations for the
Company's construction and exploration programs at the Las Chispas
Project and the start up of processing at the Las Chispas Mine by
Q2, 2022. 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: impact of
the COVID-19 pandemic; the reliability of mineralization estimates,
mining and development costs, 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: uncertainty as to the impact and duration of the
COVID-19 pandemic; 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.
N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
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SOURCE SilverCrest Metals Inc.