TSX: SIL | NYSE American: SILV
VANCOUVER, BC, May 12, 2021 /PRNewswire/ - SilverCrest Metals
Inc. ("SilverCrest" or the "Company") is pleased to report the
Company's unaudited financial results for the three months ended
March 31, 2021, and an update on
construction and exploration activities at the Company's Las
Chispas Project ("Las Chispas") located in Sonora, Mexico. The unaudited condensed
consolidated interim financial statements and management's
discussion and analysis for the three months ended March 31, 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.
Highlights – Q1 2021 and Subsequent Events
- On February 2, 2021, the Company
announced positive results from a feasibility study (the
"Feasibility Study") for the Las Chispas Project. 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 (together as "Ausenco") with the assistance of
several other independent engineering companies and
consultants.
- The Company estimates that the initial capital cost (estimated
at $137.7 million) and construction
schedule (from January 1, 2021 to end
of construction projected to be in H1, 2022) outlined in the
Feasibility Study for the Las Chispas Project, remain valid.
- Overall, the Project is on schedule and on budget. As of
March 31, 2021, the construction
progress estimate was 14.3% (Q1 2021 target of 10.9%) and aggregate
construction costs of $27.7 million
(or 20.1% of $137.7 million) were
recorded under mineral property, plant and equipment. These costs
include certain payment advances to vendors for which the related
construction at Las Chispas may not have been completed as of
March 31, 2021. Construction
activities included; mobilization of the Ausenco Team on-site,
concrete work on foundations, completion of mechanically stabilized
earth ("MSE") wall for crusher installation, procurement of major
long lead equipment, underground development progress, and
improvement of underground ventilation.
- During Q1, 2021, the Company completed 33,382 metres of in-fill
and expansion drilling, and 2.0 kilometres of underground decline
development including in-vein drifting. The Company also stockpiled
an additional estimated 18,000 tonnes of mineralized material at
grades estimated to be in-line with the Las Chispas Feasibility
Study Mineral Reserve Estimate.
- On February 22, 2021, the
Company, using its base shelf prospectus previously filed on
June 9, 2020, completed a bought deal
prospectus offering of a total of 15,007,500 common shares at a
price of $9.20 per common share for
gross proceeds of $138.1
million.
- As at April 30, 2021, SilverCrest
is well funded with cash and cash equivalents of $218.0 million and $90.0
million available under a Credit Facility.
COVID-19 Update
The Company continues to adjust to the unprecedented COVID-19
conditions. In May 2020, the Company
installed a fully confined temporary camp with a capacity for 160
essential persons to continue its exploration, underground
development, and construction of early works with the objective of
limiting potential exposure of personnel and nearby communities to
the virus. Before entering the confined camp, all persons are
tested for COVID-19 (rRT-PCR test) and following receipt of
negative tests, are transported to site using strict health and
safety protocols. Once on site, all appropriate COVID-19 related
protocols are enforced. As of March 31,
2021, the Company incurred approximately $5.9 million of cumulative expenditures related
to COVID-19, the majority of which were for the construction and
operation of the new fully confined camp at Las Chispas and for
providing assistance with medical needs in the local communities.
During Q1, 2021, the Company completed Phase 1 (320 rooms)
construction of the new 520 single occupancy room camp and expects
the construction to be completed in Q2, 2021.
Las Chispas
During Q1, 2021, the Company completed 33,382 metres of
drilling. As of March 31, 2021, the
Company had drilled an estimated cumulative 508,213 metres (1,891
drill holes) since inception of the Las Chispas Project.
During Q1, 2021, the Company completed approximately 2.0
kilometres of underground decline and lateral drifting, including
717 metres of in-vein drifting, and stockpiled an additional
estimated 18,000 tonnes of mineralized material at grades estimated
to be in-line with the Las Chispas Feasibility Study Mineral
Reserve Estimate. By the end of March, 2021, cumulatively, the
Company had completed approximately 10.9 kilometres of underground
workings, including 2.1 kilometres of in-vein drifting.
For 2021, the Company has budgeted to incur approximately
$113.7 million of the estimated
initial capital costs of $137.7
million (see Technical Report). Overall, the Las Chispas
Project construction is on schedule and on budget. During Q1, 2021,
the construction progress estimate was 14.3% (compared to Q1, 2021
target of 10.9%) and aggregate construction costs of $27.7 million (or 20.1% of $137.7 millions) were recorded under mineral
property, plant and equipment. The Company's Q1, 2021 progress on
its 2021 planned construction and development activities are as
follows:
2021 Planned
construction
|
Q1
Progress
|
Completion of
detailed engineering;
|
Detailed engineering
has been progressing well and is expected to be substantially
completed during Q2, 2021.
|
Advancing process
plant construction;
|
Mobilized Ausenco
team on-site, awarded the majority of procurement orders,
substantially completed earthworks, and initiated concrete work in
the grinding, leaching and counter-current decantation ("CCD")
areas.
|
Start of construction
of electrical grid powerline;
|
Completed the
right-of-way contracts, signed contract with Comisión Federal de
Electricidad ("CFE") and presented detailed engineering to
CFE.
|
Upgrade of main
access road and bridge construction;
|
Initiated work on
both the access road and the bridge.
|
An additional 6,800
metres of underground development;
|
Completed 1,298
metres of waste development and 717 metres of in-vein
drifting.
|
Underground
infrastructure work and stockpile growth; and
|
Progressed planning
on underground infrastructure, installed twin surface ventilation
fans in the Babi Main area and stockpiled additional mineralized
material.
|
Commencement of
tailings facility construction.
|
Finalized contract
and commenced detailed engineering.
|
Las Chispas Expenditures
During Q1, 2021, the Company recorded $12.1 million under mineral properties for the
Las Chispas Project, which primarily consisted of:
- decline construction and underground working of $5.2 million;
- drilling expenses of $2.8
million;
- salaries and remuneration of $1.0
million; and
- field and administrative costs of $1.8
million.
The Company also recorded additions, during Q1, 2021, of
$21.1 million for cumulative
expenditures of $50.0 million under
construction in progress related to the Las Chispas Project.
El Picacho
The Company completed 18,237 metres of drilling at Picacho
during Q1, 2021 and incurred a total of $2.0
million for the Picacho property under exploration and
evaluation expenditures. As of March 31,
2021, the Company had drilled an estimated cumulative 24,059
metres (84 drill holes) since acquiring the Picacho property in
2020.
Financial Results
At March 31, 2021, the Company
held $226.0 million as cash and cash
equivalents. The primary factors that contributed to the increase
in cash and cash equivalents from December
31, 2020 to March 31, 2021
include $131.2 million generated by
financing activities net of associated costs, including the
completion of a bought deal prospectus offering on February 22, 2021, for $138.1 million and the exercise of stock options.
These cash inflows were offset by $30.8
million paid towards mineral property, plant, and equipment.
Furthermore, the cash inflows were also offset by $11.7 million paid on the Company's operating
activities, which was primarily made up of $2.0 million incurred on the exploration program
at Picacho, $3.2 million paid on
accounts payable and accrued liabilities and $3.1 million paid on net value-added taxes.
During the three months ended March 31,
2021, comprehensive loss was $12.7
million (Q1, 2020 – $12.4
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 production at the Las
Chispas Mine is targeted for mid-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 exploration programs at the Las
Chispas Project and the Picacho Property and the start up of
production at the Las Chispas Mine by mid-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, 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.