SilverCrest Las Chispas Project Construction Remains on Schedule and Budget


SilverCrest Las Chispas Project Construction Remains on Schedule and Budget

TSX: SIL | NYSE American: SILV

VANCOUVER, BC, Oct. 26, 2021 /PRNewswire/ – SilverCrest Metals Inc. (“SilverCrest” or the “Agency”) is joyful To current an replace on enhancement movements On The company’s Las Chispas Enterprise (“Las Chispas” or the “Enterprise”) located in Sonora, Mexico. All foreign money quantitys herein are launched in Usa Dollars, till fullly differentwise said.

SilverCrest Las Chispas Enterprise Construction Reprimarys on Schedule and Price range (CNW Group/SilverCrest Metals Inc.)


  • Construction Reprimarys on Schedule – At The prime of the third quarter of 2021 (“Q3, 2021”), genperiodl enhancement progress at Las Chispas was 54% full As in contrast with an genperiodl scheduled completion of 48%. Construction proceedd to progress properly Inside the quarter with The primary entry road, plant detailed engineering, and concrete work now full, bridge enhancement 88% full, plant enhancement 49% full, powerline 47% full, and beneathground infrastructure ongoing. Construction progress proceedd To revenue from no delays As a Outcome of of COVID-19 or One extra set off.

  • Capital Spfinish Monitoring Well In the direction of Price range – By way of Q3, 2021, 68% of the $137.7 million Feasibility Research* capital value estimate was dedicated, of which 57% has been incurred throughout all capital value scopes, in-line with budget. At The prime of Q3, 2021, roughly $59.0 million in capital stays to be incurred through feeing. Pretty A pair of key infrastructure duties At the second are full or nearing completion, restricting value inflation hazard.

  • Underground Development Forward of Schedule– With beneathground enhancement ahead of schedule On The prime of H1, 2021, enhancement prices proceedd to progress properly in Q3, 2021 for An complete of 15.7 km fulld since beneathground enhancement started in Q1, 2019. Unit beneathground mining prices proceed To hint Barely under budget and enhancement metres stay properly ahead (1.6 km) of the Feasibility Research budget, yr So far.

  • Website Safety Reprimarys Key Precedence – At The prime of Q3, 2021, after 1.33 million work-hours fulld at site, The company’s misplaced time damage (“LTI”) frequency price was 0.60. COVID-19 hazard mitigation efforts proceedd successabsolutely Inside the quarter with An further 4,800 COVID-19 look ats fulld and positivity prices staying low. The Agency furtherly participated in An space vaccination program To enrich the fedperiodl program. This native program permited for full vaccination of 220 staff and contractors and first dose vaccination of An further 110 staff and contractors.

  • Funded for Construction, Shut to-Time period Cash Circulate – As at September 30, 2021, SilverCrest had money and money equals of $199.0 million and $60.0 million staying beneath a $120.0 million project financing facility (the “Credit rating Facility”). As quickly as absolutely opperiodtional and using Base Case metallic prices ($1,500/OuncesAu and $19.00/OuncesAg), That are roughly 17% and 22% (respectively) under current prices, the Feasibility Research estimated after-tax project free money flow Of roughly $160.0 million in 2023 and an estimated common of $110.0 million per yr from 2023 to 2029. With Greater than 80% of the preliminary capital prices anticipated to be dedicated by The prime of 2021, SilverCrest expects to be properly funded for feeing and ramp-up in 2022, the placeas nonetheless retaining The pliability to pursue proceedd exploration, further optimization work and progress alternatives.
    * NI 43-101 Technical Report & Feasibility Research on The Las Chispas Enterprise dated January 4, 2021 (“Feasibility Research”)

Pierre Beaudoin, COO, remarked, “Our group and contractors, fueled by their success So far, proceed to make regular progress in safely advancing The enhancement of the Las Chispas Enterprise. As a Outcome of the Enterprise passes its midway mark of The enhancement timeline and capital spfinish, enhancement will get into its peak interval, and We’re growing our Confacetr the opperiodtional readiness plan in preparation for plant feeing (anticipated in Q2, 2022) and manufacturing ramp-up through H2, 2022. In parallel, our Confacetr hazard mitigation will proceed and embrace the proceedd construct of the on-floor stockpile and the development of beneathground enhancement. The enhancement group proceeds To focus on attaining roughly 80% completion of genperiodl enhancement progress by The prime of 2021, with plant ore feeing anticipated as deliberate in Q2, 2022”.

N. Eric Fier, CPG, P.Eng, and CEO, said, “The excellent efforts from our group and contractors in Mexico and Canada proceedd in Q3, 2021 with nodesk progress being made on a Quantity of key spaces of the Enterprise collectively with The tactic plant, the entry road, powerline, and the bridge. Las Chispas Enterprise enhancement stays on time and budget and our strong working capital place permits us to progress our progress and optimization plans the placeas de-hazarding in parallel”.

Las Chispas Construction
The Agency estimates thOn the preliminary capital value (estimated at $137.7 million) and enhancement schedule (from January 1, 2021 To finish of enhancement interval projected to be in Q2, 2022) outlined Inside the Feasibility Research stays legitimate. Construction of the plant and floor infrastructure is tracking on schedule and budget. At The prime of Q3, 2021, genperiodl enhancement was 54% full As in contrast with scheduled completion of 48%. Construction progress has benefited from no delays As a Outcome of of COVID-19 or One extra set off.

At The prime of Q3, 2021 Greater than $93.7 million (or 68% of The complete capital value estimate) was dedicated, of which an estimated $79.0 million (or 57% of The complete capital value estimate) has been incurred on enhancement throughout all capital value scopes (course of plant, beneathground enhancement and infrastructure, floor infrastructure, and proprietor’s prices).

Construction has proceedd to progress properly with detailed engineering, earthworks, road enhancement, and concrete 100% full and, key infrastructure tasks (powerline and bridge) properly superior. The Agency’s Q3, 2021 progress on its deliberate enhancement and enhancement movements are as follows and shown in Figures 1-9 hooked up:



Q3, 2021 Progress

Plant Detailed


Plant detailed engineering is full.

Process Plant

On Schedule

Concrete work has now been fulld, the metallic, mechanical, piping (SMP) contract is properly beneathway. All SAG Mill factors have been acquired or are in transit and set up Shall start in This fall, 2021.

The electrical and instrumentation (EI) contract has been signaled and the administration group has mobilized to site.

On September 30, 2021, There have been 230 staff progressing the fullly different contracts for The tacticing plant. The plant enhancement movements will attain their peak in This fall, 2021 with an estimated 330 staff all through This period.

Ausenco is progressing properly with most contracts and the plant supply nonetheless deliberate for Q2, 2022. Commissioning discussions have started between SilverCrest and Ausenco.

Electrical Grid
Powerline (81 km)

Construction on

The enhancement of the powerline is progressing as deliberate For every parts (CFE and SilverCrest). The energization of the powerline will, however, be pushed from Q1, 2022 to Q2, 2022 As a Outcome of of procurement delays Inside the Harmonic Filter/Power Problem Correction methods.

The Enterprise group has been Engaged on a contingency plan for energization, which has been put into movement. The plant Is predicted to be energized via short-term diesel genperiodtors ahead of the feeing interval. The performance of this short-term rental system (5 MW) Shall be enough to power The complete course of plant, However It is anticipated That it will opeprice for a restricted interval at a frmovement of its final performance. The service supplier has been chosen and the contract negotiations are properly beneathway.

Standing of powerline enhancement:

CFE (27.0 km – refurbishment of current infrastructure)

All of the supplies has now been acquired collectively with cables and poles. SilverCrest expects CFE completion in Q1, 2022.

SilverCrest (54.0 km – new infrastructure)

The completion of the SilverCrest part of the powerline May even be anticipated in Q1, 2022. Section 1 (9 km) has attained 92% completion, Section 2 (18.0 km) has attained 46% completion, and Section 3 (27.0 km) has attained 43% completion.


Forward of Schedule

The Tetuachi bridge enhancement has progressed properly all through Q3, 2021. This enhancement has attained 88% completion and It’s now anticipated to be fulld in This fall, 2021, ahead of schedule and the plant start-up.

Confined Camp


Construction of 513 single occupancy rooms, kitchen, and leisure amenities To be used all through enhancement To Scale again COVID-19 and scheduling hazards was fulld in H1, 2021.

Access Road

Accomplished Forward
of Schedule

Construction of the entry road was fulld ahead of schedule all through Q3, 2021.


Forward of Schedule

During Q3, 2021, complete beneathground enhancement fulld On the project attained 15.7 km and in 2021 is now 1.6 km ahead of the Feasibility Research Lifetime of mine (LOM) plan.

Infrastructure and
Stockpile Growth

On Schedule

Detailed engineering of the beneathground infrastructure (electrical, air flow, emergency preparedness and providers) proceedd to progress. Stockpiles enhance by an estimated 6,000 tonnes of minperiodlized supplies at grades estimated to be in-line with the Feasibility Research Minperiodl Reserve.

Tailings Facility

(Dry Stack)

On Schedule

Detailed engineering has been fulld with further geotechnical look at work. Construction of the dry stack tailings facility started in October 2021.

Assay Lab

On Schedule

Construction of the assay lab facility Inside the close by (est. 14 km) group of Arizpe started in Q3, 2021 and procurement of lab gear has been initiated. The enhancement has attained 40% and the lab Is predicted to be feeed in Q1, 2022 ahead of plant start-up.

Underground Development
Since beneathground enhancement commenced in Q1, 2019, ahead of The discharge of our preliminary financial study, An complete of 15.7 km of beneathground enhancement has now been fulld On the Enterprise. In-vein drifting now completes 3.0 km and entry has been established in 4 (4) veins or spaces and 44 in-vein work fronts. The Agency accelepriced beneathground mine enhancement for the first three quarters of 2021 to create opperiodtional flexibility and de-hazard the mine plan, Ensuing in An further 1.6 km of enhancement (above the Feasibility Research budget) fulld yr So far. As deliberate, The event price Is predicted To Scale again in This fall, 2021, as Enterprise enhancement progresses towards The peak of particular personnel demand. During Q3, 2021, enhancement prices proceedd To hint Barely under the budgeted unit value per metre. Underground enhancement prices stayed beneath budget regardless of The further metreage largely Due to timing of funds on beneathground infrastructure.

An estimated 6,000 tonnes have been placeed on the stockpile Inside the quarter with estimated grades in-line with the Feasibility Research Minperiodl Reserves. The Feasibility Research manufacturing profile embraces course ofing from the historic decrease grade stockpiles (162,600 tonnes) and recently developed pre-manufacturing stockpiles Initially of the mine life, offering upfront supplies for optimizing The tactic plant, flexibility, and hazard discount all through ramp-up. The decrease grade historic stockpiles Shall be a key factor for reducing ramp-up hazard as They are going to be used preliminaryly as blfinishing supplies to fee and ramp-up The tactic plant and as needed through The prime of 2024, permitting for a extra measured ramp-up of the beneathground mining price.

By way ofout Q3, 2021, discussions proceedd Virtually about awarding a 5-yr contract for beneathground mining. A contractor has been chosen and final negotiations and gear selection are Inside The tactic of being fulld. The contract will embrace versatile phrases Virtually Regarding the mining price To permit for alternatives recognized through The proceedd optimization work to be pursued. SilverCrest has attained a preliminary settlement with the contractor to make the most of battery opepriced gear for a portion of the mining fleet required for slfinisher veins using the resue mining method. The Agency expects to signal The mannequin new mining contract in This fall, 2021.

Optimization Research
Optimization work is ongoing for the mine designal and schedule. The outcomes of this work Shall be embraced in a Useful resource and Reserve replace deliberate for 2022. Forward Of these efforts being finalized, modifications to the preliminary Feasibility Research mine plan have been carried out through the course of 2021 To reinformationrce opperiodtional flexibility, emergency preparedness, air flow and potential early entry to the Babi Vista Splay and Granaditas veins. As such, On The prime of Q3, 2021, beneathground enhancement attained The world of Babi-Vista Splay Vein and has been halted till completion of the Useful resource and Reserve Estimate. As quickly as this estimate is full, The company will decide the financials and budget to further develop this space. The Babi Vista Splay Vein presently hosts an Inferred Minperiodl Useful resource completeing 211,400 tonnes at A imply grade of 13.00 gpt gold (“Au”) and 909.0 gpt silver (“Ag”), or 2,039 gpt silver equal (“AgEq”, using 86.9:1 Au:Ag) containing 88.3 kOuncesAu and 6.2 million OuncesAg, or 13.9 million OuncesAgEq. The majority of Las Chispas drill program in 2021 was to infill this space ahead of any potential beneathground enhancement.

On The tacticing facet, the legitimateation of metalliclurgical end outcomes is progressing properly, and recurrentative samples of all uncovered beneathground veins are presently being look ated. This further metalliclurgical look ating Is Concentrating on enhancing The company’s information of the clay content material in numerous veins To Guarantee course of plant efficiency (collectively with settling and filtration), to further de-hazard, and to optimize in preparation for the ramp-up interval.

Safety, COVID-19, and Community
Safety is On A daily basis a prime priority for SilverCrest and The company has made vital progress to assist A primary safety audit (anticipated in This fall, 2021) by Mexican authorities to legitimateate its progress on its Well being and Safety Management Systems and Requirements. At The prime of Q3, 2021 The company’s LTI frequency price stood at 0.60 and its complete recordable damage frequency price (“TRIFR”) stood at 3.91.

The Agency’s COVID-19 prevention measures proceed to be essential for enhancement at Las Chispas. COVID-19 hazard mitigation efforts proceedd successabsolutely in Q3, 2021 with Greater than 4,800 rRt-PCR look ats fulld. Using speedy antigen look ats has been disproceedd all through Q3, 2021 in favor of the extra right rRt-PCR look ats. In complete, since Might 2020, SilverCrest has fulld Greater than 11,000 COVID-19 rRt-PCR look ats. Positivity prices Earlier to site entry stayed low in Q3, 2021. Although no critical occurrences have been recorded at site, subsequent to quarter finish, a cluster of COVID infections was recorded On The company’s satellite tv for pc offsite camp. The Agency has taken The relevant measures collectively with further look ating of all staff and contractors, short-term closure of this satellite tv for pc off-site camp, in depth cleansing, and consider of key protocols. The primary enhancement camp stays absolutely opperiodtional and, at this level, There’s not a anticipated influence to The enhancement camp or associated ongoing work. SilverCrest’s unique schedule embraced contingency Inside the case of a COVID-19 outbreak, and this stays unused.

The Agency furtherly participated in An space vaccination program To enrich the fedperiodl program. This native program permited for full vaccination of 220 staff and contractors and first dose vaccination of An further 110 staff and contractors.

To further enhance The company’s COVID-19 measures, The company has partnered and invested in An space licensed laboratory facility In a place to conducting Greater than 300 rRT-PCR look ats per day when absolutely opperiodtional. This partnership has permited The company to have most properly-appreciated entry, pricing and quick flip-round time which is benefiting each The enhancement course of and the group. This facility was feeed in Q3, 2021 and is now absolutely opperiodtional.

There are presently 806 staff lively On the Enterprise (collectively with on-site and off-obligation particular personnel) with 15% sourced regionally, 50% from Sonora, and 99% from Mexico. During enhancement in 2021, The company has engaged 13 native companies and is developing An space geochemical assay lab. The assay lab is Inside the close by (14 km) group of Arizpe and Is predicted To current full-time employment of 20 to 30 people. As quickly as absolutely opperiodtional, the Las Chispas Mine Might have roughly 400 to 450 full-time staff and contractors. The Agency May even be progressing work associated to the influences of potential local climate change For every Las Chispas and Area people. The preliminary end outcomes for the bodily hazard evaluation portion of the work associated to The obligation Strain for Climate Related Monetary Disclosures (“TCFD”) are anticipated in 2022 Together with a water stewardship plan Which will embrace and confacetr the findings of the TCFD knowledge.

Funded for Construction, Shut to-Time period Cash Circulate
As at September 30, 2021, SilverCrest had money and money equals of $199.0 million and $60.0 million staying beneath its $120.0 million Credit rating Facility. To restrict hazard and enhance flexibility, SilverCrest expects to drawdown A minimal of 75% of the Credit rating Facility by The prime of 2021, in-line with the agreed drawdown schedule. This will permit The company To take care of availability of the staying $30.0 million through August 2022, all through ramp-up of the plant through H2, 2022. As of September 30, 2021, roughly $59.0 million of preliminary capital stays to be incurred Earlier to feeing. Alongside with the preliminary capital prices, SilverCrest has budgeted for company G&A, exploration, worth added taxes, working capital and a minimal money stability through ramp-up.

The Certified Person beneath Nationwide Instrument 43-101 Requirements of Disclosure for Minperiodl Enterprises for this information launch is N. Eric Fier, CPG, P.Eng, and CEO for SilverCrest, who has considered and apshowd its content materials.

SilverCrest is a Canadian useful metallics exploration and enhancement company headquartered in Vancouver, BC, That is focused on new discoveries, worth-added acquisitions and targeting manufacturing in Mexico’s historic useful metallic districts. The Agency’s prime priority is on the extreme-grade, historic Las Chispas mining district in Sonora, Mexico, the place it has fulld a feasibility study on the Las Chispas Enterprise and is persevering with with mine enhancement. Startup of manufacturing On the Las Chispas Mine is focused for mid-2022. SilverCrest is the first company to successabsolutely drill-look at the historic Las Chispas Property Ensuing in numerous extreme-grade useful metallic discoveries. The Agency is led by a confirmed administration group in all facets of The useful metallic mining sector, collectively with taking tasks through discovery, finance, on time and on budget enhancement, and manufacturing.

Forward-Wanting STATEMENTS
This information launch incompanys “forward-looking statements” and “forward-looking information” (collectively “forward-looking statements”) Infacet the which Stpricegy of relevant Canadian and Usa securities legal guidelines. These embrace, with out restrictation, statements with respect to: the stpricegic plans, timing and expectations for The company’s enhancement and exploration packages On the Las Chispas Enterprise and The Begin of manufacturing On the Las Chispas Mine by mid-2022. Such forward looking statements or information are based mostly on a Quantity of assumptions, Which may show to be inright. Assumptions have been made relating to, amongst fullly different issues: influence of the COVID-19 pandemic; the reliability of minperiodlization estimates, mining and enhancement prices, the circumstances Usually financial and financial markets; availability of expert labour; timing and quantity of expfinishitures associated to rehabilitation and drilling packages; and end outcomes of regulation by governmental enterprisees. The exact end outcomes might differ suppliesly from these anticipated Inside these forward-looking statements Due to hazard factors collectively with: uncertainty as to the influence and interval of the COVID-19 pandemic; the timing and content material Of labor packages; end outcomes of exploration movements; the interpretation of drilling end outcomes and fullly different geological knowledge; receipt, upkeep and security of permits and minperiodl property titles; environmental and fullly different regulatory hazards; project value overruns or unanticipated prices and funds; and widespread market and enterprise circumstances. Forward-looking statements are based mostly on the expectations and opinions of The company’s administration on the date the statements are made. The assumptions used Inside the preparation of such statements, although confacetred affordable On the time of preparation, may show to be imexact and, as such, readers are cautioned To not place undue reliance on these forward-looking statements, which converse solely as of the date the statements have been made. The Agency beneathtakes no obligation to replace or revise any forward-looking statements embraced On this information launch if these beliefs, estimates and opinions or fullly different circumstances ought to change, besides as fullly differentwise required by relevant regulation.

N. Eric Fier, CPG, P.Eng
Chief Authorities Officer
SilverCrest Metals Inc

SilverCrest Metals Inc. Emblem (CNW Group/SilverCrest Metals Inc.)


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