Silvercrest Metals (TSXV: SIL; NYSE: SILV) has discovered the Babi Sur silver-gold vein on its Las Chispas property in Sonora, Mexico, through recent drilling.
The company intersected high grade silver and gold mineralization along a 1.5 km strike length at Babi Sur. The vein sits parallel to the project’s Babicanora vein, about 300 metres away. The company has now found six high grade veins at Las Chispas, all parallel to Babicanora and on average 150 metres apart.
The company intends to include Babi Sur in an upcoming resource update for Las Chispas. The resource will include at least nine of the 30 veins Silvercrest has identified in the district so far; the current resource includes eight of the 30 veins.
The company currently has 12 drill rigs at Las Chispas; five trying to expand the resource at Babi Sur and seven infilling Babicanora. The company has plans to drill four more untested veins in the area.
Highlights from the latest drilling at Babi Sur include: 2.2 metres grading 18.78 grams gold per tonne and 2,147.3 grams silver, or 3,565 grams silver equivalent, from 230 metres downhole as well as 2.2 metres at 4.63 grams gold and 208.8 grams silver, or 556 grams silver, from 147 metres downhole.
The company has assayed 39 holes from Babi Sur so far. It has intercepts the vein’s high grade footprint with 14 holes.
The company intends to drill 30,000 to 40,000 metres at Las Chipas in the first half of 2019. It plans to table an updated resource for the project in the first half of the year and a preliminary economic assessment shortly after.
Shares of Silvercrest are currently valued at $4.75 with a 52-week range of $2.03 to $4.99. The company has a $403 million market capitalization.
This story first appeared at The Northern Miner.