Name of the Project
Las Chispas gold/silver project.

Location
The project is located in Sonora, Mexico.

Project Owner/s
SilverCrest Metals.

Project Description
A preliminary economic assessment (PEA) on the Las Chispas project has suggested that it could be a high-margin project, even at low metal prices.

The PEA has focused initial development and production on the high-grade Babicanora, Babicanora FW and Babicanora Norte veins.

The project envisages a 1 250 t/d production rate with an initial mine life of 8.5 years. Average production is estimated at 5.38-million ounces a year of silver and 55 700 oz/y of gold, or 9.6-million ounces of silver equivalent.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PEA estimates an after-tax net present value, at a 5% discount rate, of $406.9-million and an internal rate of return of 78%, with a payback of about nine months.

Capital Expenditure
Initial capital expenditure is estimated at $100.5-million.

Planned Start/End Date
Not stated.

Latest Developments
SilverCrest has announced that it will restart exploration and development work at its Las Chispas project by mid-May using strict Covid-19 protocols.

CEO Eric Fier says operations will resume in a staged approach.

SilverCrest has also announced in-fill and expansion drill results for the Babi Vista vein at Las Chispas. These holes were drilled before the company's suspension of activities, owing to Covid-19.

The results have expanded the size of the high-grade footprint for the Babi Vista vein, and continue to show higher-grade vein mineralisation at depth, including hole BV20-39 with 1.8 m grading 11 148 g/t silver-equivalent..

Based on 42 holes drilled to date, the updated high-grade footprint is about 400 m along vein strike and 200 m in height grading (uncut undiluted) 20.26 g/t gold and 1 590.0 g/t silver, or 3 110 g/t silver-equivalent over an average true width of 1 m, and open in most directions.

Within this footprint is a defined 1 000 g/t silver-equivalent footprint, which includes 12 drill holes, estimated to be 300 m long and 75 m in height, averaging an uncut undiluted grade of 27.83 g/t gold and 2 178.8 g/t silver, or 4 266 g/t silver-equivalent over an average true width of 1.2 m.

Babi Vista was discovered in 2019 while constructing the Santa Rosa decline to intercept the Babicanora Vein in the Area 51 zone.

With the schedule delays caused by Covid-19's global impact, resource estimation for the ongoing feasibility study has been pushed for completion to the fourth quarter of 2020, which allows for additional drill results, including Babi Vista, to be added to the study.

This additional time should better define the Babi Vista vein and help in mine design and schedule by accelerating this conveniently located (access through the decline) high-grade vein early in the mine life.

Key Contracts and Suppliers
Tetra Tech Canada (PEA).

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