TSX: SIL | NYSE American: SILV
VANCOUVER, BC, May 26, 2022
/PRNewswire/ - SilverCrest Metals Inc. ("SilverCrest" or the
"Company") is pleased to announce that Ausenco Engineering Canada
Inc. ("Ausenco") has completed construction and handed over the Las
Chispas processing plant to SilverCrest, ahead of the Feasibility
Study* schedule. Other construction activities handled directly by
SilverCrest (road, bridge, dry stack tailings facility, temporary
diesel power plant and assay lab) have also been completed.
Processing plant commissioning is now underway with the plant
expected to reach commercial production in Q4, 2022. Given the
extensive amount of underground development completed to date,
there is a significant amount of stockpiled ore on surface to allow
for a more measured ramp-up of underground mining over the first
few years of production and increased operational flexibility. The
Feasibility Study outlined a plan in which the process plant will
not be fed exclusively from underground mined material until
2025.
Operations are currently being powered by both the diesel
generators and the partially completed power line, which
collectively is providing all of the Las Chispas power
requirements. SilverCrest anticipates fully transitioning away from
the diesel generators in H2, 2022 as CFE (Comision Federal de
Electricidad, Mexico's power
authority) finalizes its portion of the power line.
While the final capital costs incurred remain to be settled, the
capital cost of the Las Chispas Project is anticipated to be below
the US$137.7 million budget estimated
in the Feasibility Study.
N. Eric Fier, CEO, remarked, "We
are extremely proud to achieve this key milestone, ahead of
schedule and under budget. I commend all who have been involved in
the project to date and thank our stakeholders, including local
communities, for their continued support. Completing construction
marks a significant de-risking step as we move towards becoming a
high-grade precious metal producer. With our skilled and
experienced team in place, we are well positioned to work through
commissioning and ramp-up to achieve commercial production in Q4,
2022. While doing so, we will continue with exploration, advancing
ongoing projects in the nearby communities, and looking at ways to
add further value for our shareholders."
Pierre Beaudoin, COO, commented,
"I would like to thank the combined team of Ausenco and SilverCrest
for their continued efforts over the past 17 months. Completing
construction during the COVID-19 pandemic has tested everyone's
resilience and it is with great satisfaction that I congratulate
them for accomplishing an incredible trio of successes: No major
accidents, below budget and ahead of schedule. I am convinced that
this will be amongst the highlights of their respective careers.
With handover now complete, we are excited to take the project
forward into production. It is also with great pleasure to
announce that we have opened a new assay lab in the nearby
community of Arizpe (Sonora, Mexico), which has created a
significant number of new local jobs that may be sustained beyond
the mine life of Las Chispas."
* NI 43-101 Technical Report & Feasibility Study on the
Las Chispas Project dated January 4,
2021 ("Feasibility Study").
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
near-term 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 construction of its Las Chispas Project and is proceeding
with commissioning. 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 timing and expectations
of the Company completing commissioning and ramp up and achieving
commercial production in Q4, 2022, connection to the power grid in
H2, 2022, and underground development to reach full capacity in
2025. 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.