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SilverCrest reports higher grades from Babicanora

SilverCrest Metals has provided the first underground sampling results for the Babicanora vein at its Las Chispas project in Sonora, Mexico.
SilverCrest reports higher grades from Babicanora SilverCrest reports higher grades from Babicanora SilverCrest reports higher grades from Babicanora SilverCrest reports higher grades from Babicanora SilverCrest reports higher grades from Babicanora

Las Chispas in Sonora, Mexico

Staff reporter

Results from channel samples taken from a drift along strike show an average vein width in this area of 2.6m with a compilation of underground sample results within the vein showing an uncut undiluted weighted average grade of 13.70 grams per tonne of gold and 1,108g/t of silver, or 2,132g/t silver-equivalent. The estimated grade from the current resource block model for the mined area (undiluted but with capping applied) is 863g/t silver-equivalent.

Sampling highlights included 3.9m grading 62.66g/t gold and 4,610g/t silver.

"We are pleased with these initial positive underground high-grade results but caution that they are preliminary in nature and should not be considered representative of an increase in the overall Babicanora vein resource estimation.

"These results represent a significant first step toward understanding the grade variability and potential upside of the deposit as we continue to de-risk the project," said CEO Eric Fier in a statement.

In June, the company intersected the vein in the high-grade Area 51 zone with the newly constructed Santa Rosa decline and developed a 3.5m by 3.5m drift along the strike of the vein for about 35m. The company plans to continue in-vein drifting as part of a larger effort to complete 1,500 to 2,000m of underground development for the remainder of 2019.

SilverCrest has 14 drills operating with a focus on expanding mineralisation and improving the resource confidence through in-fill drilling to reclassify resources as reserves for a feasibility study expected in the first half of 2020. An additional 50,000m of infill and expansion drilling are planned for the remainder of 2019.

Shares in SilverCrest Metals (TSXV:SIL) are trading at C$5.09, valuing the company at $437 million. Its share price has increased 33.6% since the start of the year.