SilverCrest Metals (TSX: SIL) continues to push forward with what will be its first producing mine, the Las Chispas Project in Sonora, Mexico. The firm this morning indicated construction is currently ahead of schedule, with completion currently earmarked at 86.2% as of the end of December.
The mine itself is currently slated for completion by mid-2022, when it will begin a 1,250 tonne per day operation. The mine is expected to have an initial life estimate of 8.5 years, with an IRR of 52%. Beginning in 2023 the mine is expected to produce 12.4 million ounces of silver equivalent annually.
With construction ahead of schedule, the company suspects start-up could occur earlier in the second quarter than previously planned for. Despite advances in the schedule, 75.6% of capital costs are committed, leaving room for additional contingency.
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Development wise, underground development was been completed for a total of 17.5 kilometers to date, with mining to start in the first quarter of 2022. Power on the site however is slated for completion in the second quarter, with temporary power production currently expected to be used until the plant is connected to the operating grid. The temporary power is expected to provide sufficient energy for operation at full capacity.
Start-up and ramp-up of the Las Chispas operations are currently slated to begin in the second quarter.
SilverCrest Metals last traded at $9.74 on the TSX.
Information for this briefing was found via Sedar and SilverCrest Metals. The author has no securities or affiliations related to these organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
