SilverCrest Metals approved the construction of a new gold and silver mine in Mexico.
The mine will be located at the Las Chispas Property, which consists of 28 concessions, is 100% owned by the company and is located in the state of Sonora.
The Feasibility Study estimates initial capital requirements of $ 137.7 million and maintenance capital of $ 123.9 million over the life of the mine.
Prior to approval SilverCrest Metals published a feasibility study for the construction of the 1,250 tonne per day mine.
Here it is important to clarify that 25.8 million dollars are excluded from the initial capital estimate that SilverCrest Metals spent before January 1, 2021.
Startup capital relates to earthworks, construction camp Phase 1, engineering, procurement and construction contractors down payment, and long-term orders.
Also excluded from these estimates are $ 3.4 million in closing costs at the end of production.
Initial capital was increased from the preliminary economic assessment primarily due to the following: costs related to the Covid-19 pandemic, underground mining infrastructure, process plant modifications to accommodate higher grades and clay content, and the inclusion of a power line to replace the energy generated with diesel.
In addition, the maintenance capital is substantially higher than the preliminary economic assessment due to a combination of upward revisions to the amount of underground development required based on longer veins requiring more access and the applicable unit fee.
This represents the most significant change from the preliminary economic assessment in terms of capital expenditures.
SilverCrest Metals is a Canadian precious metals exploration company focused on making new discoveries and value-added acquisitions, targeting production in Mexico’s precious metals districts.
The company’s ongoing initiative is to increase its asset base by acquiring and developing substantial precious metal resources and, ultimately, operating high-grade gold and/or silver mines in Mexico.
For the past three fiscal years, SilverCrest Metals has focused on the Las Chispas exploration program.