Toronto-listed SilverCrest on Thursday announced the discovery of the El Muerto zone, in the north-west part of the Babicanora vein at its Las Chispas property, in Sonora, sending its shares up 15%.
El Muerto is the company's first successful attempt at intercepting high-grade precious metals deeper in the Babicanora area, suggesting potential for a new mineralised horizon in the Babicanora vein.
The best intercepts include EM20-37 at 1.5 m, grading 12.68 g/t gold and 1 723.8 g/t silver, or 2 675 g/t silver-equivalent and EM20-35 at 1 m, grading 9.46 g/t gold and 720 g/t silver, or 1 430 g/t silver-equivalent.
"The recent discovery of the El Muerto zone continues to show that Las Chispas has significant additional potential as we focus on expansion and new discoveries of high-grade mineralisation in the district. Further drilling at El Muerto, below the current Babicanora vein resource, is planned in the fourth quarter 2020 and next year,” said CEO Eric Fier.
He added that the Las Chispas feasibility study was advancing well and that it would be released in late December or early January, along with a final mill construction decision.
SilverCrest’s stock closed at C$13.59 a share, up 15% on the previous day’s closing price.