TSX: SIL | US NYSE: SILV
VANCOUVER, BC, May 26, 2022 /CNW/ – 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, prior to Feasibility Study Schedule*. Other construction activities managed directly by SilverCrest (road, bridge, dry tailings facility, temporary diesel power plant and analytical laboratory) were also completed.
Commissioning of the processing plant is now underway and the plant is expected to reach commercial production in the fourth quarter of 2022. Given the scale of underground development completed to date, there is a significant amount of ore stored on surface to allow for a more measured ramp-up of underground mining in the early years of production and increased operational flexibility. The feasibility study outlined a plan in which the processing plant will not be powered exclusively by materials mined underground until 2025.
Operations are currently powered by both the diesel generators and the partially completed power line, which collectively supplies all of Las Chispas’ power needs. SilverCrest plans a full diesel generator transition in the second half of 2022 as a CFE (Comision Federal de Electricidad, from Mexico power station) completes its portion of the power line.
Although the final capital expenditure incurred remains to be settled, the capital cost of the Las Chispas project is expected to be less than the US$137.7 million budget estimated in the feasibility study.
NOT Eric ProudCEO, said, “We are extremely proud to have reached this key milestone, ahead of schedule and under budget. I congratulate everyone who has been involved in the project to date and thank our stakeholders, including local communities, for their continued support. construction marks an important risk reduction milestone as we strive to become a high quality precious metals producer. With our qualified and experienced team in place, we are well positioned to work through commissioning and ramp-up. ramped up to reach commercial production in the fourth quarter of 2022. In doing so, we will continue exploration, advance ongoing projects in neighboring communities, and seek ways to add value to our shareholders. »
Pierre-BeaudoinCOO, commented, “I would like to thank the combined team of Ausenco and SilverCrest for their continued efforts over the past 17 months. The completion of the 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, under budget and ahead of schedule. I am convinced that this will be one of the highlights of their respective careers. With the transfer now complete, we are excited to move the project forward into production. It is also with great pleasure that we announce the opening of a new analytical laboratory in the neighboring community of Arizona (Sound, Mexico), which created a significant number of new local jobs that could be sustained beyond the life of the Las Chispas mine.”
* NI 43-101 Technical Report and Feasibility Study for 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, BCwhich focuses on new discoveries, value-added acquisitions and near-term production in from Mexico historical quarters of precious metals. The Company’s top priority is the historic high-grade Las Chispas mining district in Sound, Mexico, where it 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, which has led to numerous high-grade precious metal discoveries. The company is led by a management team experienced in all aspects of the precious metals mining industry, including delivering projects through discovery, financing, construction and production on time and within budget.
This press release contains “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) within the meaning of the laws of Canada and United States securities legislation. These include, but are not limited to, statements regarding: the Company’s timeline and expectations to complete commissioning and ramp-up and achieve commercial production in the fourth quarter of 2022, connection to the electrical grid at second half of 2022 and underground development to reach full capacity in 2025. These forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among others: the impact of the COVID-19 pandemic; the reliability of mineralization estimates, operating and development costs, general economic and financial market conditions; availability of skilled labour; timing and amount of expenditures related to rehabilitation and drilling programs; and the effects of regulation by government agencies. Actual results could differ materially from those anticipated in these forward-looking statements due to risk factors, including: uncertainty about the impact and duration of the COVID-19 pandemic; the schedule and content of the work programs; results of exploration activities; interpretation of drill results and other geological data; receipt, maintenance and security of mining permits and titles; environmental and other regulatory risks; project cost overruns or unforeseen costs and expenses; and general market and industry conditions. Forward-looking statements are based on the expectations and beliefs of the Company’s management as of the date the statements are made. The assumptions used in the preparation of these statements, although believed to be 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 are not valid only on the date on which the declarations were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this press release if such beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
NOT Eric ProudCPG, P.Eng.
Chief executive officer
SilverCrest Metals Inc.
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SOURCE SilverCrest Metals Inc.
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