Recent drill results and their implications are
presented in a ROTH Capital Partners report.
In a June 27 research note, ROTH Capital Partners analyst Jake Sekelsky
reported that recent exploration at SilverCrest
Metals Inc.'s (SIL:TSX.V) Las Chispas in Mexico "confirms previous
expectations and sets the stage for further derisking" of the project.
Specifically, the Santa Rosa decline hit the high-grade Area 51 zone of
the Babicanora vein and the newly discovered Babi Vista vein. The Babicanora vein
was intersected within 10 meters of the existing resource model, confirming
the estimated 3.6 meter (3.6m) true width and demonstrating the potential for
Las Chispas resource expansion.
SilverCrest will follow up these events in H2/19 with bulk sampling for
metallurgical testing, obtaining geotechnical studies, stockpiling of
high-grade material and developing improved access to the Babicanora vein for
additional infill and exploration drilling.
Also at Chispas, infill drilling over 18,488m in the Area 51 zone showed
an average true width of 2.2m grading 7.1 grams per ton (7.1 g/t) gold and
752.6 g/t silver, or 1,290 g/t silver equivalent. "These results confirm
both grades and thickness outlined in the existing resource estimate
announced in Q1/19," Sekelsky wrote.
He noted, too, that the Babi Vista vein, discovered in Q2/19, could add
high-grade ounces to the existing resource base at Las Chispas in the short
term.
Sekelsky highlighted that SilverCrest is "swiftly advancing Las
Chispas towards a feasibility study," which is anticipated in H2/20. He
added that because further upside at the project likely exists, investors
should view the preliminary economic assessment as merely a basis upon which
the feasibility study can build.
ROTH has a Buy rating and a US$5.50 per share target price on SilverCrest,
whose current share price is about US$4.07.
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Disclosures from ROTH Capital Partners, SilverCrest Metals, Company
Note, June 27, 2019
Regulation Analyst Certification ("Reg AC"): The research
analyst primarily responsible for the content of this report certifies the
following under Reg AC: I hereby certify that all views expressed in this
report accurately reflect my personal views about the subject company or
companies and its or their securities. I also certify that no part of my
compensation was, is or will be, directly or indirectly, related to the
specific recommendations or views expressed in this report.
Shares of SilverCrest Metals may be subject to the Securities and
Exchange Commission's Penny Stock Rules, which may set forth sales practice
requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek
compensation for investment banking or other business relationships with the
covered companies mentioned in this report in the next three months.
