TSX: SIL | NYSE American: SILV
VANCOUVER, BC, May 10, 2022
/PRNewswire/ - SilverCrest Metals Inc. ("SilverCrest" or the
"Company") is pleased to report the Company's unaudited financial
results for the first quarter of 2022 ("Q1, 2022"). The unaudited
condensed consolidated interim financial statements and
management's discussion and analysis ("MD&A") for the three
months ended March 31, 2022 are
available under the Company's SEDAR profile on www.sedar.com or on
SilverCrest's website www.silvercrestmetals.com. All amounts herein
are presented in United States
Dollars, unless otherwise stated.
The Company's top priority is the high-grade, historic Las
Chispas mining district in Sonora,
Mexico, where it has completed a feasibility study (the
"Feasibility Study") and construction is near completion on its Las
Chispas Project. Details of the Feasibility Study, including
an updated Mineral Resource Estimate and an initial Mineral Reserve
Estimate, are provided in a technical report filed under the
Company's SEDAR profile entitled, "NI 43-101 Technical Report &
Feasibility Study on the Las Chispas Project" with an effective
date of January 4, 2021 (the
"Technical Report").
Q1, 2022 Highlights
- At the end of Q1, 2022, overall construction progress at Las
Chispas was 95.7%. Start-up of the plant remains on track for Q2,
2022, in line with the Feasibility Study for the Las Chispas
Project. Construction completion remains on track despite a decline
in labour availability in Q1, 2022 due to COVID-19, which
eliminated the schedule gains made in 2021.
- To the end of Q1, 2022, the Company has committed $114.6 million (83.2%) of the $137.7 million Feasibility Study capital cost
estimate and incurred $108.0 million.
Of the remaining capital budget to be incurred in Q2, 2022
($29.7 million), 22% ($6.3 million) is related to the Ausenco fixed
price engineering, procurement and construction ("EPC") contract
for process plant construction and 27% ($8.0
million) is unused contingency.
- During Q1, 2022, SilverCrest completed 2.0 kilometres ("km") of
underground development for a total of 19.5 km of underground
development since 2019. Unit underground development costs
continued to track slightly under budget. Two of the four mining
methods proposed in the Feasibility Study, long hole and resue,
commenced with the extraction of select stopes in the Babicanora
Main, Vista and Norte veins.
- At the end of Q1, 2022, after 2.46 million work-hours completed
since the start of construction, the Company's Lost Time Injury
Frequency Rate ("LTIFR") was 0.57 per 200,000 working hours and its
Total Recordable Injury Frequency Rate ("TRIFR") was 3.98 per
200,000 working hours. SilverCrest continues to operate a confined
camp and remains committed to its COVID-19 protocols, with more
than 20,000 PCR tests completed to the end of Q1, 2022.
- The H1, 2022 exploration focus at Las Chispas is to map and
sample unexplored areas and generate new drill targets. The updated
technical report is now targeted to be released in H1, 2023
(previously H2, 2022) which will allow for additional data from
further in-vein drifting, initial months of stoping, and
processing, and delineation drill results to be included.
- During Q1, 2022, the Company completed an estimated 10,133
metres of exploration core drilling at El
Picacho property located approximately 40 km (85 road km)
north of Las Chispas. The Company also announced additional results
from its initial drill program. Please refer to the Company's news
release dated April 13, 2022 for
further details and results.
- As at the end of Q1, 2022, SilverCrest had cash and cash
equivalents of $152.0 million and
$30.0 million remaining under a
$120.0 million project financing
facility (the "Credit Facility").
Las Chispas Expenditures
During Q1, 2022, Las Chispas expenditures recorded under mineral
property, plant and equipment totaled $21.4
million (inclusive of unpaid accrued expenditures), of which
$1.2 million was for plant and
equipment purchases, $6.1 million for
construction in progress costs, and $14.1
million for mineral property costs.
El Picacho ("Picacho")
Expenditures
The Company completed an estimated 10,133 metres of drilling at
Picacho during Q1, 2022 and incurred a total of $1.6 million for the Picacho property under
exploration and evaluation expenditures during this period. As of
March 31, 2022, the Company had
drilled an estimated cumulative 90,900 metres (373 drill holes)
since acquiring the Picacho property in Q3, 2020. As of
April 30, 2022, there were two
surface rigs active at Picacho. During Q1, 2022, the Company
announced additional results from its initial drill program. Please
refer to the Company's news release dated April 13, 2022 for further details and
results.
Financial Results
At March 31, 2022, the Company
held $152.0 million (December 31, 2021 – $176.5
million) as cash and cash equivalents and had
value-added taxes ("IVA") receivable in Mexico of $25.8
million (December 31, 2021 –
$23.3 million) and mineral property,
plant and equipment of $186.5 million
(December 31, 201 – $165.7 million).
The Company has financed its operations to date through the
issuance of common shares and debt. The Company currently has no
operations from which to derive revenues. During the three months
ended March 31, 2022, the Company
incurred a loss of $8.7 million
(three months ended March 31, 2021 –
$12.7 million) and a comprehensive
loss of $2.7 million (three months
ended March 31, 2021 – $4.0 million).
Please refer to the Company's Q1, 2022 unaudited condensed
consolidated interim financial statements and MD&A for
additional information.
ABOUT SILVERCREST METALS INC.
SilverCrest is a
Canadian precious metals exploration and development company
headquartered in Vancouver, BC,
that is focused on new discoveries, value-added acquisitions and
targeting production in Mexico's
historic precious metal districts. The Company's top priority is on
the high-grade, historic Las Chispas mining district in
Sonora, Mexico, where it has
completed a feasibility study on the Las Chispas Project and is
proceeding with mine construction. Startup of processing at the Las
Chispas Mine is targeted for Q2, 2022. SilverCrest is the first
company to successfully drill-test the historic Las Chispas
Property resulting in numerous high-grade precious metal
discoveries. The Company is led by a proven management team in all
aspects of the precious metal mining sector, including taking
projects through discovery, finance, on time and on budget
construction, and production.
FORWARD-LOOKING STATEMENTS
This news release
contains "forward-looking statements" and "forward-looking
information" (collectively "forward-looking statements") within the
meaning of applicable Canadian and United
States securities legislation. These include, without
limitation, statements with respect to: the strategic plans, timing
and expectations for the Company's construction and exploration
programs at the Las Chispas Project and the start-up of processing
at the Las Chispas Mine during Q2, 2022. Such
forward-looking statements or information are based on a number of
assumptions, which may prove to be incorrect. Assumptions have been
made regarding, among other things: impact of the COVID-19
pandemic; the reliability of mineralization estimates, mining and
development costs, the conditions in general economic and financial
markets; availability of skilled labour; timing and amount of
expenditures related to rehabilitation and drilling programs; and
effects of regulation by governmental agencies. The actual results
could differ materially from those anticipated in these
forward-looking statements as a result of risk factors including:
uncertainty as to the impact and duration of the COVID-19 pandemic;
the timing and content of work programs; results of exploration
activities; the interpretation of drilling results and other
geological data; receipt, maintenance and security of permits and
mineral property titles; environmental and other regulatory risks;
project cost overruns or unanticipated costs and expenses; and
general market and industry conditions. Forward-looking statements
are based on the expectations and opinions of the Company's
management on the date the statements are made. The assumptions
used in the preparation of such statements, although considered
reasonable at the time of preparation, may prove to be imprecise
and, as such, readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
the statements were made. The Company undertakes no obligation to
update or revise any forward-looking statements included in this
news release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by
applicable law.
N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
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SOURCE SilverCrest Metals Inc.