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 ­­– longhole (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 in the second half of 2022.

Latest Developments
SilverCrest Metals has declared commercial production at its Las Chispas mine, having achieved a continuous two-month period operating the processing plant at a minimum capacity of 80%.

"We have been impressed by the early performance of the Las Chispas processing plant and continue to work to fine-tune and complete the ramp-up.  Our underground mining team also continues to ramp up the operation, with a focus on refinement of mining methods and implementation of grade control procedures,” COO Pierre Beaudoin has said.

Las Chispas has progressed from discovery to production in less than seven years.

The company aims to release an updated technical report in the first half of 2023.

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.