Name of the Project
Las Chispas silver/gold project.

Location
Sonora, Mexico.

Project Owner/s
Canadian precious metals exploration company SilverCrest Metals.

Project Description
The project has initial proven and probable reserves of 3.35-million tonnes grading 4.81 g/t gold and 461 g/t.

These estimates place Las Chispas among the highest-grade primary silver projects globally. The mine plan excludes inferred resources.

A feasibility has proposed the development of a 1 250 t/d operation with an initial mine life of 8.5 years.

It is anticipated that SilverCrest will have accumulated eight months’ worth, or about 300 000 t, of mineralised material on surface when the processing plant is expected to reach nameplate capacity, providing flexibility in the early stages of production.

Underground mining will be completed using four conventional mining methods ­­–long hole (43%), cut-and-fill uppers (18%), cut-and-fill breasting (27%) and 12% resue.

Average production of silver equivalent is envisaged at 12.4-million ounces from 2023 until 2029, while gold production is estimated at 69 000 oz.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $486.3-million and an internal rate of return of 52%, with a payback of one-year.

Capital Expenditure
Initial capital expenditure is estimated at $137.7-million.

Planned Start/End Date
The processing plant will be ramped up throughout the second half of 2022.

Latest Developments
Ausenco Engineering Canada has completed construction of the Las Chispas processing plant and handed it over to SilverCrest Metals.

Other construction activities handled directly by SilverCrest, including a road, bridge, dry stack tailings facility, temporary diesel power plant and assay lab, have also been completed.

Processing plant commissioning is now under way, with the plant expected to reach commercial production in the fourth quarter, the company has said.

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 being powered by the diesel generators and the partially completed power line, providing all Las Chispas’ power requirements. 

SilverCrest anticipates a full transitioning away from the diesel generators in the second half of 2022 as Mexico’s power authority finalises 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 $137.7-million budget estimated in the feasibility study.

“Completing construction marks a significant derisking 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 the fourth quarter . . . we will continue with exploration, advancing ongoing projects in the nearby communities, and looking at ways of adding further value for our shareholders,” SiverCrest Metals CEO Eric Fier has said.

Key Contracts, Suppliers and Consultants
Ausenco Engineering Canada (mineral pro­ces­sing, recovery methods, infrastructure, environ­mental, consolidated cost estimates and econ­omic analysis); P&E (geology and mineral resources; G-Mining Services (mineral reserves, mining, mine capital and operating costs); Wood Environment & Infrastructure Solutions (tailings); Hydro-Resources (hydrology and hydrogeology); and Rockland (geotechnical).

Contact Details for Project Information
SilverCrest Metals, tel +1 604694 1730 or email info@silvercrestmetals.com.