VANCOUVER - SilverCrest Metals Inc. ('SilverCrest' or the 'Company') is pleased to provide an update on construction activities at the Company's Las Chispas Project ('Las Chispas' or the 'Project') located in Sonora, Mexico.
All currency amounts herein are presented in United States Dollars, unless otherwise stated.
Highlights
Construction Ahead of Schedule - At the end of the fourth quarter of 2021 ('Q4, 2021'), overall construction progress at Las Chispas was 86.2% complete compared to a scheduled completion of 79.3%. Start-up of the plant could now be earlier in Q2, 2022 than previously expected.
Capital Costs Remain on Budget - During 2021, the Company committed 75.2% ($103.6 million) of the $137.7 million Feasibility Study capital cost estimate. A review of the capital cost estimate was completed in Q4, 2021 ('2022 Capital Forecast') and it confirmed the validity of the Feasibility Study estimate while including additional investment in a number of key areas (power, underground development, ESG). Of the remaining capital to be incurred in 2022, 20.7% is related to the Ausenco fixed price EPC contract for process plant construction and 14.7% is unused contingency.
Powerline Progressing Well, Temporary Power Plant on Site - Construction of the powerline is expected to be completed in Q2, 2022. To ensure the plant can be energized immediately upon completion, a contingency plan of utilizing rental diesel generators was identified in Q3, 2021. These diesel generators have all arrived at site and are expected to be commissioned by February 2022. Total temporary power available to the Project will be sufficient to support the mining operations, ramp-up and operation of the plant at full capacity. The Company's goal is to minimize the use of these generators and connect to the grid as soon as possible.
Underground Development Continues Ahead of Schedule - SilverCrest has completed a total of 17.5 kilometres ('km') of underground development since 2019. Approximately 1.8 km of additional development occurred in 2021 beyond the Feasibility Study life of mine ('LOM') plan. Unit underground development costs continued to track slightly under budget. Planning for stopes was initiated in Q4, 2021 with mining from stopes to start in Q1, 2022.
Site Safety Progress - At the end of 2021, after 1.9 million work-hours completed at site, the Company's Lost Time Injury Frequency Rate ('LTIFR') was 0.63 per 200,000 working hours and its Total Recordable Injury Frequency Rate ('TRIFR') was 4.11 per 200,000 working hours. In 2020, the Company voluntarily registered with Mexico's PASST, a program which defines safety standards and health and safety management plans. The initial evaluation was performed by STPS (Mexico Labour Department) as part of this program in Q4, 2021, and is expected to be completed in H1, 2022.
Strict COVID-19 Protocols Remain - SilverCrest's strict COVID-19 protocols, including its confined camp, resulted in no delays due to COVID-19 or any other reason in 2021 and also resulted in additional benefits in productivity. To date, SilverCrest has conducted more than 15,000 PCR tests and a majority of our employees (92%) and contractors (82%) are fully vaccinated. With the highly contagious Omicron variant becoming more prevalent, the Company remains committed to its COVID-19 protocols. Management expects the camp to be utilized throughout 2022 and has adjusted its 2022 budget for this inclusion. The 2022 construction schedule includes some contingency to cope with potential delays due to COVID-19.
Strong Balance Sheet Ahead of Near-Term Cash Flow - As at December 31, 2021, SilverCrest had cash and cash equivalents of $176.5 million and $30.0 million remaining available under a $120.0 million project financing facility (the 'Credit Facility'). In addition to the $43.0 million remaining capital costs remaining to be incurred in 2022, of which $8.9 million has been committed, the Company has budgeted for sustaining capital, spare parts, company-wide exploration, value added taxes ('IVA'), debt servicing, and corporate general and administrative costs. SilverCrest is well funded for plant start-up and ramp-up beginning in Q2, 2022, while still retaining the flexibility to pursue continued exploration, further optimization work and growth opportunities.
Pierre Beaudoin, COO, remarked, 'Our progress to date has been solid on all three main project development fronts. Ausenco's progress on the processing plant construction continued to impress in Q4, 2021 and now stands approximately one month ahead of schedule. The infrastructure construction managed directly by SilverCrest adjusted well to the pace of progress imposed by the process plant construction, and with contingency measures for power, will be capable of supporting the projected earlier plant start-up. Finally, our mining team reported a record year of underground development, exceeding both the expectations set in the 2021 budget and the Feasibility Study. The combined efforts of our employees and contractors in 2021 have de-risked the Project construction and paved the way for a successful production start-up in Q2, 2022.'
N. Eric Fier, CPG, P.Eng, and CEO, stated, '2021 marked an extraordinary year of efforts from our team and contractors in Mexico and Canada. The progress made throughout the year has positioned us well for Las Chispas start-up in Q2, 2022. We thank our team, contractors, and the community for their continued support. We are also pleased to be in a financial position that allows us to properly commission and ramp-up the Project while having flexibility in the budget to further de-risk the mine plan and simultaneously work on growth initiatives.'
Las Chispas Construction
After a thorough examination and re-forecasting of the budget inclusive of new work planned, the Company estimates that the initial capital cost (estimated at $137.7 million) and construction schedule (from January 1, 2021 to end of construction period projected to be in Q2, 2022) outlined in the Feasibility Study remains valid. Construction of the plant and surface infrastructure are tracking on budget and ahead of schedule. At the end of 2021, overall construction was 86.2% complete compared to scheduled completion of 79.3%. In 2021, construction progress benefited from no delays due to COVID-19 or any other reason.
Q4, 2021 constituted the peak of construction at Las Chispas and despite the holiday period and increased risk associated with COVID-19, productivity exceeded our plans. The combination of strict COVID-19 protocols within a confined camp has served the Project well. Bridge construction was completed in Q4, 2021 adding to the list of already completed infrastructure which includes, the internal power line, the camp and the access road. Other key infrastructure projects (tailings, assay lab and pumping station) are on schedule.
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. Start-up of production at the Las Chispas Mine is targeted for mid-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 production at the Las Chispas Mine by 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.
Contact:
Lindsay Bahadir
Tel: +1 (604) 694-1730
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1730
Email: info@silvercrestmetals.com
Web: www.silvercrestmetals.com
SILVERCREST METALS INC. 
