SilverCrest Metals- Las Chispas is a Gold Mine

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#1 Mon, Nov 16, 2020 - 7:18pm
silverseeker
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SilverCrest Metals- Las Chispas is a Gold Mine

SilverCrest continues to hit mind bending intercepts within the densely nested network of vein structures.

Record breaking drill results

If you convert hole BV-20-201 into Au Eq grams/ton; you get 814 grams/ton over 2.4 meters; which is over 26 ounces per ton Gold equivalent... If this were a maiden hole, there would be no context; but taken along with the hundreds of holes they are punching into this extensive vein system; the grade, consistency and extent of this resource is turning into a multi decade bonanza deposit.

A grain of sand in the gearbox of tyranny

Mon, Nov 23, 2020 - 9:51am
DogoMaster
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Allocation

Silver seeker,

if you had to rate the attractiveness today of the various companies you update this board on , how would you allocate an investment today % wise. Silvercrest, Karora , First Magestic etc.

Thank you also for the many excellent posts.

Wed, Nov 25, 2020 - 2:27pm DogoMaster
silverseeker
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Good question DogoMaster

I am not an investment advisor, please dyodd; the market is not rewarding fair valuations on many of the best stocks; and as a sector, they may languish for longer than you are patient. My personal view is that sector rotation alone will eventually lift the best names in this sector several multiples current valuations... but I cannot predict when.

That out of the way; each investor's allocation spread can be very different... are you retired or young with rising income? I'm about a decade from retirement, have no debts to worry about; so my personal allocation is relatively low speculation; into about a dozen names on average... I have been adding shares of Silvercrest, AG, and Karora over the last few weeks; and if I were buying more today; Nov 25th; my allocation suggestion would be 40% Karora, 30% AG, and 30% SILV. MAG and Sibanye-Stillwater(SBSW) are great swing trading vehicles, as they are often above/below fair value, and range widely on a weekly basis with low risk.

If you don't already hold several other names, or if you are willing to speculate more on the exploration side... there are quite a range of opportunities in the sector; some of which have HIGH share floats... so be careful and selective.

Just the tip of the iceberg above... many professional traders lurk on TFMR; so take your time and dig deep!

A grain of sand in the gearbox of tyranny

Thu, Dec 10, 2020 - 11:52am
silverseeker
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Feasibility Study due Dec 2020

Or Jan 2021.
This will be a milestone report with resource updates and construction decision. Based on the large collection of very high grade drill results reported since their Feb 2019 resource update; the size and NAV of the project could raise some eyebrows amongst major mining cos and institutions. As example; the last update mentions there is now 47k tons of ore stockpiled from initial development stopes grading over 7 g/ton AU and over 1100 g/ton Ag Eq... This is a very high grade mine with enormous gearing to the Silver price... if Oil prices skyrocket, a lot of bulk tonnage ore remains non-economic even at higher Silver prices, while this deposit is littered with 1000 g/ ton ore.

A grain of sand in the gearbox of tyranny

Mon, Jan 4, 2021 - 3:03pm
silverseeker
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Feasibility Study results targeted for late January 2021

Jan 4th press release:

SilverCrest Announces US$120 Million Project Financing Facility and US$76.5 Million Fixed Price EPC Contract for Construction of Process Plant

Highlights:

Project Finance Facility

  • US$120 million Facility with a total cost of capital of approximately 10% (refer to details below);
  • Facility does not require mandatory hedging, cash sweeps, offtakes, production linked payments or equity issuances as part of its structure;
  • US$30 million of the Facility has been drawn, and subsequent drawdowns are available upon satisfaction of certain customary conditions precedent. Drawdowns are not tied to any construction milestones;
  • Facility has a four-year term with a 20-month availability period if 50% of the Facility is drawn or committed to be drawn within six months (June 30, 2021) and 75% of the Facility is drawn within 12 months (December 31, 2021);
  • Up to US$30 million of the Facility can be used for exploration and regional acquisitions; and
  • US$90 million remaining on the Facility, plus estimated cash at year-end of US$135 million, will provide a substantial component of funding for construction, exploration and regional growth initiatives.

EPC Contract

  • Lump sum turnkey price of US$76.5 million will include construction of a 1,250 tonne per day process plant at Las Chispas;
  • Execution of Ausenco's scope of work will begin in February 2021, and commissioning of the process plant is targeted for Q2 2022, with production ramp-up starting in Q3 2022;

Imminent construction ramp; with Feasibility Study coming at month end. I can't wait to see the IRR on this project, and I am happy to see they are not diluting shares to fund the construction. I think the Gold credits are going to make this mine a huge cash flow machine... so they are funding via debt vs. shares.

A grain of sand in the gearbox of tyranny

Thu, Feb 4, 2021 - 2:50pm
Guy Fawkes
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Feasibility Study is out

Fri, Feb 5, 2021 - 5:17pm Guy Fawkes
silverseeker
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I was just prepping a post!

Hello Guy;

This project is on par with MAG Silver's Juanicipio Project; though not yet as large in bulk tonnage. It appears to now rank as top '5' or top '3' highest grade Silver deposits in the world.

Even with that; "This report does NOT include Inferred Resources from the newly discovered Babi Vista Vein Splay (211,400 tonnes grading 2,039 gpt AgEq totaling 13.9 Moz AgEq). Expansion and infill drilling for BAVS is underway and targeted to be included in a revised Mineral Resource and Reserve update in 2022."

So, just off the initial main veins included in this report; and at base case metals prices "The Feasibility Study outlines average annual production of 12.4 Moz AgEq from 2023 through 2029," and "Average project-level life of mine (“LOM”) AISC of $7.07/oz AgEq, and $6.68/oz AgEq over seven (7) full years of production. *

*Not including any of the 2,039 g/t AgEq grade tonnage...*

If Oil prices spike to $100 a barrel in a few years; this mine is only moving fairly small tonnage of ore for 12 million ounce production @ over 28 ounces/ton of Ag/Eq; not including the super high grade stuff!

I like sure things... and this is a high grade Gold Mine flying under a Silver Banner. Share float is still low; and because the ore is so rich; the plant they propose ($137 million capex) isn't going to cause much share dilution, considering they already have $125 million in cash...

Lastly; this is important: " It is anticipated that SilverCrest will have accumulated approximately 300,000 tonnes of mineralized material on surface when the processing plant is expected to reach nameplate capacity, providing flexibility in the early stages of production. This ramp-up profile lowers the risk of start-up and minimizes sustaining capital investment at the outset of the production."

If you have followed many mining companies; you know they almost always do a late stage development financing to carry the project into steady state positive cash flow... this team is very thoroughly planning for a quick ramp up; and I think we end up with < 150 million share float; and one of the lowest AISC Silver mines on the planet. Just the initial Bobi Vista Vein ore added into the present totals; and that extends mine life over 10 years' and they can blend this super high grade to capitalize when Silver Prices are high or hold in reserve if Silver prices are low.

Incredibly; there are many more veins discovered, but not yet delineated to add tonnage... this is a very long term core hold.

A grain of sand in the gearbox of tyranny

Sun, Feb 14, 2021 - 10:20am
silverseeker
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Well... that didn't take long!

If you have followed many mining companies; you know they almost always do a late stage development financing to carry the project into steady state positive cash flow...

I have been mulling over this press release for a couple of days... wondering why the company would choose to offer shares at a discount; especially since they already have construction financing in place.

If I speak to their IR and they allow me to copy their response; I will post it here. My speculation is that the veins not included in the feasibility report were consistently exceeding the reserve grade in the study... so they want this cash to continue full scale drilling; adding to the 43-101 reserve grade; and fully fleshing out the 10+ year mine plan. It makes sense; as they are going to spend $10s of millions in the next several months on plant design and equipment... so they want to have a full picture to optimize the blends; phasing of stope development; etc.

There is a lot of very low grade Silver in uneconomic deposits around the world... but there are very few High Grade Silver mines like Las Chispas; that will still be highly profitable at $100+/ barrel oil.

I will be buying SILV on any dip.

A grain of sand in the gearbox of tyranny

Tue, Feb 23, 2021 - 11:24am
silverseeker
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Sprott, Inc files Schedule 13G; discloses position in SILV

I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Sprott Inc.

(4)CITIZENSHIP OR PLACE OF ORGANIZATION
Toronto, Ontario

(9)AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
8,112,571

(11)PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.28%

A decent little chunk!

A grain of sand in the gearbox of tyranny