The indicated mineral resource estimate of 1 million tonnes grading 6.98 grams per tonne of gold and 710.6g/t of silver contains 39.8 million ounces of silver-equivalent. In addition, it reported an inferred mineral resource of 3.6Mt grading 3.32g/t gold and 332.5g/t silver containing 68.1Moz of silver-equivalent.
"We are particularly excited about the high-grade resources delineated at the Babicanora, Babicanora FW and Babicanora Norte veins. … These high-grade resources are near surface and conceptually can be developed using the same underground infrastructure, which may be a key driver of the economics for the project," said CEO Eric Fier in a statement.
This is the third mineral resource estimate produced by SilverCrest on the project with this latest including 10 of the 30 known veins in the district, and it will form the basis for a preliminary economic assessment planned for release in the next quarter.
The resource estimate is based on 61 additional drill holes in the Babicanora vein, infill drilling of the Babicanora vein, reporting separately the Babicanora FW and Babicanora HW veins from the Babicanora vein, discovery of the Babi Sur vein with 39 drill holes, expansion of the Babicanora Norte vein with 18 additional holes, and a change to a minimum vein width (true) of 0.5m, down from 1.5m.
Silvercrest plans to continue exploration with seven core drills focused on infill drilling to upgrade additional inferred resources into the indicated category, with five core drills testing up to five new vein prospects.
SilverCrest aims to advance the project so as to be in a position to make a construction decision during the first half of 2020 while continuing to explore the other 20 veins on the property to expand its resource base.
The resource was estimated using a US$17/oz silver price and U$1,2257oz gold price with average metallurgical recoveries of 90% silver and 95% gold.
Shares in SilverCrest (TSXV:SIL) were up 2% during early trading at C$4.84 valuing the company at $413 million. Its share price has increased 27% so far this year.