SilverCrest Metals Inc. (TSX-V:SIL) is pleased to announce an update on the underground rehabilitation program with additional assay results from underground channel sampling at its Las Chispas Project located in Sonora, Mexico. Las Chispas is in a historic silver-gold mining district which presently hosts two nearby precious metal producers. Historic information indicates that only three veins of the fourteen historically reported veins at Las Chispas have had documented production, which occurred between 1880 and 1930. SilverCrest’s initial focus is on these three veins; the Las Chispas, William Tell and Babicanora. To the Company’s knowledge, none of the known veins have ever been drilled. For more information, please refer to our website at www.silvercrestmetals.com.

N. Eric Fier, CPG, P.Eng, President & CEO remarked, “It is very encouraging to receive additional high grade results from our ongoing underground channel sampling program at Las Chispas as we continue to gain further access to historic workings. Our onsite team has safely ascended to the historic 300 level** of the Las Chispas vein with subsequent ongoing mapping and sampling. Our channel sample results on the 300 and 400 levels are showing multiple grades of plus 1 kilogram per tonne silver and up to 2.2 kilograms per tonne silver equivalent*. We are experiencing minimal challenges in accessing and rehabilitating the underground workings. Rehabilitation mainly consists of the removal and stockpiling of historic backfill material along with safely constructing ladders and bridges. We are currently surface drilling based on the expanded Phase I program with ongoing compilation of all our drill data and integration with underground results.”

Underground Rehabilitation Update

The Company continues to systemically collect channel samples at intervals of two to three metres along strike length as new areas and levels are being explored. In its news release dated June 9, 2016, the Company disclosed that it had gained access to the historic 400 level and reported results from nine initial samples. Since then, the Company has collected a total of 327 additional channel samples from multiple levels as reported below. Sampling locations and widths are restricted to historic workings which may only represent part of the mineralized vein, stockwork, or breccia. The location, true thickness and extent of mineralization is indeterminate until adequate drilling is completed.

The most significant composited sample results for this release average 1.5 metres wide at 2.4 grams per tonne (“gpt”) gold and 331.0 gpt silver, or 508.0 gpt silver equivalent (AgEq*, uncut, undiluted) over a continuous 35 metre strike length in an unmined area of breccia on the 400 level (see attached Figure and Photo). Also noteworthy is an average of 1.1 metres wide at 1.55 gpt gold and 334.9 gpt silver, or 450.9 gpt AgEq over a semi-continuous 90 metre strike length on the 300 level. From initial mapping, a majority of the 330 level appears to be in the hangingwall of the vein with the vein undulating in (high grade) and out (low grade) of the underground workings. Ongoing drilling will help test the true thickness and grade of mineralization in this area.

The following table summarizes the 20 most significant un-composited assay results (uncut, undiluted) from various levels of the Las Chispas vein only;

All assays were completed by ALS Chemex in Hermosillo, Mexico, and North Vancouver, BC.

The Company is reviewing the possibility of a controlling, cross-cutting, high grade structural corridor at the Las Chispas vein which is potentially 500 metres in length and a minimum of 300 metres in depth (see attached Figure).

To gain access to underground workings, backfill material is being removed from historical drifts and stopes. This material is being sampled, assayed, and stockpiled for potential future processing. To date, 43 representative grab samples have been collected from backfill material for Las Chispas vein and William Tell vein. Average grade of these samples is 2.45 gpt gold, 239.0 gpt silver, or 423.0 gpt AgEq with grades up to 42.20 gpt Au and 1,920.0 gpt Ag or 5,085.0 gpt AgEq.   

To date, approximately 3.5 kilometres of underground workings have been accessed with an additional 8 kilometres to be explored over the next several months. Ongoing research into previously documented information and field work on Las Chispas has been responsible for the increase in known historic underground workings from six kilometres, as previously announced on June 9, 2016, to 11.5 kilometres. The Company intends to continue with the underground rehabilitation program and reporting results for the remainder of 2016.

Drilling Update

The Company is nearing completion of its Phase I surface drill program having drilled 19 core holes with a total of approximately 5,600 metres to date. Sixteen holes have been drilled in the Las Chispas and William Tell veins, and three holes in the adjacent Babicanora area. Upon receipt of core assays, the Company will compile and integrate the drill results with the underground information, which the Company expects to start announcing in August 2016. Based on positive Phase I surface drilling results, the Company will propose a Phase II surface drill program.

With permitting near completion, the planned 2,000 metre underground drill program should commence in late Q3 or early Q4 2016. The underground drill program will focus on delineation of a potential bulk sample and infill drilling in preparation for the initial Las Chispas resource estimation.

ABOUT SILVERCREST METALS INC.

SilverCrest is a Canadian precious metals exploration 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 is led by a proven management team in all aspects of the precious metal mining sector, including the pioneering of a responsible “phased approach” business model taking projects through discovery, finance, on time and on budget construction, and production with subsequent increased value to shareholders.