Las Chispas

The Las Chispas property is located approximately 180 kilometres northeast of Hermosillo, Sonora, Mexico. The community of Arizpe (estimated population 2,000) is located approximately 11 kilometres to the north of the property. The property consists of 21 concessions totalling 1377.50 hectares.

History

In 1640, rich silver veins where discovered near Arizpe by soldiers under the command of Pedro de Perra. The property did not receive any notable exploration or production until the late 1800s. From 1880 to 1930, several mines on the property had intermittent production. From public information, approximately 100 million ounces of silver and 200,000 ounces of gold were cumulatively produced from the property. Since 1930, no significant work has been completed on the property.

Las Chispas

During the early 1980s, a local Mexican company reprocessed old waste and tailings dumps from Las Chispas. Processing was by vat leaching with no production records available.

Geology

Geologically, the Las Chispas property consists of a Late Cretaceous – Early Tertiary low sulfidation epithermal system. Host rocks are volcanic tuffs, rhyolites, agglomerates and rhyolite breccias. Andesite dykes are noted in underground workings sub-parallel to mineralized structures.

The Las Chispas Mine is known for its world-class silver mineral specimens including polybasite, stephanite, native silver and pyrargyrite. Specimens are on display in private collections and museums worldwide.

Historical Production

Mineralization occurs in 0.5 to 5 metre wide veins with adjacent stockwork and breccias trending northwest- southeast for 1 to 1.5 kilometres. Depth from surface of known mineralization is estimated at 300 metres. Main veins dip 55 to 85 degrees to the southwest. Fourteen epithermal veins have been previously defined on the property of which 3 have had notable production. The historical producing veins included Las Chispas, William Tell, and Babicanora. From public information, the Las Chispas mill production between 1908 through 1911 was approximately 25,000 tonnes grading 35 gpt gold and 4,500 gpt silver totalling an estimated 25,000 ounces of gold and 3.2 million ounces of silver. Several kilometres of underground workings exist on the property and are partially accessible.


Las Chispas area
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Babicanora area
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Current Work Program

Phase II Exploration Program

SilverCrest’s revised Phase II Exploration Program is anticipated to be approximately 29,000 metres, of which 25,000 metres has been drilled to-date. Combined with the Company’s Phase I Exploration Program of 6,500 metres in 2016, the Company has drilled a total estimated 35,000 metres in 141 holes covering a cumulative vein strike length of approximately 2.5 kilometres out of 12 kilometres defined to date. All of the holes drilled to date have intercepted epithermal quartz veining, stockwork veinlets, and/or breccia. For the remainder of SilverCrest’s Phase II Exploration Program, the Company plans to:

All ongoing work will be analyzed upon completion of Phase II for a maiden resource estimation in Q1 2018.

The most significant results was returned from Hole BA17-27, which intersected 4.1 metres grading 3.56 grams per tonne (“gpt”) gold and 137.0 gpt silver or 404 gpt silver equivalent (“AgEq”, based on 75 (Ag):1 (Au) and 100% metallurgical recovery). Also noteworthy is 2.9 metres grading 5.62 gpt gold and 172.7 gpt silver, or 594 gpt AgEq in Hole BA17-17. Both are step-out holes which intercepted the Babicanora Vein approximately 100 metres southeast from a previously announced step-out hole, BA17-07 (see Figures below).The following table summarizes the most significant drill intercepts (uncut, undiluted) for this release within the Babicanora area:

For more details, please refer to the table under "Assays"


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The most significant underground channel sample result on the Las Chispas 400 to 550 levels measures 35 metres along strike with an average composited true thickness of 5.0 metres grading 4.9 grams per tonne (“gpt”) gold and 632 gpt silver or 998 gpt silver equivalent (“AgEq”, based on 75 (Ag):1 (Au) and 100% metallurgical recovery). This sample is from the Las Chispas Vein located at the base of a historic pillar that is approximately 120 metres long, 25 metres high and 3.5 metres wide. Also noteworthy is 20 metres along strike with an average composited true thickness of 3 metres grading 4.0 gpt gold and 551 gpt silver, or 853 gpt AgEq in the same pillar.

For more details, please refer to the table under "Assays" .

Underground access to the Babicanora vein is via a 230-metre long 4 by 4 metre horizontal adit, which was driven by a French company during the 1860s.

Babicanora adit

 

Mineralized fill

Core review and logging at Las Chispas

Metallurgy

Metallurgical testwork, including geochemical analysis, was completed by SGS Mineral Services in Durango, Mexico. Criteria for testing included standard bottle rolls using the following common processing parameters;

The following table summarizes initial metallurgical test results for Las Chispas:

Sample ID Assay Head
Au g/t
Assay Head
Ag g/t
Head Calculated
Au g/t
Head Calculated
Ag g/t
% Recovery
Gold
% Recovery
Silver
Composite 1 3.61 180.0 3.66 203.4 99.2 77.8
Composite 2 6.19 500.0 5.63 552.7 98.6 85.9
Composite 3 2.95 274.0 2.15 295.0 99.1 96.2
Average 4.25 318.0 3.81 350.3 98.9 86.6
Note: all numbers are rounded.

For further information refer to News Release of October 30, 2017

Other Exploration work


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The Company plans to continue with step out drilling on the Babicanora Vein, subsequent drilling on other potential mineralized veins on the Property, and underground rehabilitation at the Las Chispas area. Approximately 5,000 metres of the Phase II drill program is planned for the remaining part of 2017. Besides drilling and underground work, the Company is currently accessing the extension of the Babicanora Adit to improve drill access and expand exploration work, continuing district-wide mapping and sampling, completing initial metallurgical work as well as mechanically trenching historic dumps.

N. Eric Fier, CPG, P.Eng., President and Chief Executive Officer of the Company, is the Qualified Person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, responsible for the preparation of the technical information included in this website and for supervision of field activities related to the Company projects.

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