SilverCrest Metals (TSX: SIL) this morning announced the purchase of its latest project, referred to as the El Picacho Property, located in Sonora, Mexico. The property, acquired for US$1.6 million, consists of 11 mining concessions covering 7,060 hectares.
The acquisition of the property first started in 2016, when SilverCrest first kicked tires on the project. Following due diligence in 2017 that involved underground channel sampling, which showed a vein with an average true width of 6.0 metres grading 13.66 g/t gold and 50.8 g/t silver, the company continued discussions to acquire the property which culminated in the purchase announced today.
The project is located 40 kilometres northeast of SilverCrest’s Las hispas Project located in the same Mexican state, with the company indicating that depending upon drilling success the new project will either be viewed as a satellite project or a standalone mine. Historically the property has been a gold and silver producer, beginning in the late 1800’s.
A total of 100 drill holes and over 15,890 metres have been drilled on the property up until 2012. Notably, Yamana Gold had the property at this time but ultimately focused on other projects. There are currently over three kilometres of underground workings on the main vein on the property, referred to as the El Picacho Vein. Over 10 kilometres of strike exist from numerous veins on the property, with the El Picacho vein even going so far as having a historic mineral resource estimate of 7.8 million ounces of silver equivalent at 677 g/t.
SilverCrest currently plans to begin conducting work on the property in the second half of 2020, beginning with mapping sampling and surveying. Once permits are obtained, the company expects to have two drill rigs on site prior to the end of the year to conduct twinning on previous historic intercepts located on site while also expanding the footprint and conducting near surface drilling.
SilverCrest Metals last traded at $12.23 on the TSX.
Information for this briefing was found via Sedar and SilverCrest Metals. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
