SilverCrest approves Las Chispas construction
Vancouver-headquartered SilverCrest Metals on Tuesday announced the results of a feasibility study for its Las Chispas project, in Sonora, Mexico, and formally approved construction of the $137.7-million project.
With the engineering, procurement and construction and underground development contracts in place, initial construction is already under way and is expected to ramp up through the first quarter of 2021.
The feasibility study outlines average production of 12.4-million silver-equivalent ounces a year from 2023 through 2029, with net free cash flow beginning in 2023. All-in sustaining costs will average $7.07/oz silver-equivalent over the 8.5-year life-of-mine.
Production will benefit from improved metallurgical recoveries for gold and silver of 97.6% and 94.3%, respectively. This compares to 94.4% for gold and 89.9% for silver reported in the preliminary economic assessment.
On an aftertax basis, Las Chispas generates a base case net present value, at a 5% discount, of $486.3-million, an internal rate of return of 52% and a payback period of one year.
The feasibility study and construction go-ahead follow within five years of drilling the first hole at Las Chispas, CEO Eric Fier pointed out.
“The study confirms what we have believed for a while, that Las Chispas is economic as a standalone operation. It is important to note that the feasibility study is just a snapshot in time. We are already working hard to increase our high-grade reserves, while simultaneously constructing the mine and process plant,” he said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...
VISIT SHOWROOM
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
