- SilverCrest Metals (SIL), via its subsidiary Compañía Minera La Llamarada, has completed its acquisition of the El Picacho property in Sonora, Mexico
- The company acquired 100 per cent of 11 mining concessions on the property from Mexico-based American Metal Mining for a total of C$2.1 million
- El Picacho is a historic gold and silver producer, with first noted production beginning in the late 1800s at grades in excess of 15 grams per tonne of gold
- The property is located roughly 40 kilometres northeast of SilverCrest’s Las Cispas Project and may be considered as either a stand-alone mine or a satellite asset
- SilverCrest Metals (SIL) is currently down 2.86 per cent and is trading at $11.88 per share
SilverCrest Metals (SIL), via its subsidiary Compañía Minera La Llamarada, has completed its acquisition of the El Picacho property in Sonora, Mexico.
Under the terms of the agreement, the Vancouver-based company acquired the property from Mexico-based American Metal Mining for a total of C$2.1 million.
Located roughly 40 kilometres northeast of SilverCrest’s Las Chispas Project, the El Picacho property may be considered as either a stand-alone mine or a satellite project for additional mill feed to Las Chispas, which is currently under development.
However, the company noted that this is dependent on the success of future drill programs.
Comprised of 11 mining concessions over a total of 7,060 hectares, El Picacho is a historic gold and silver producer with the first record production dating back to the late 1800s. While no verifiable mining numbers are available, the grades of production are thought to have exceeded 15 grams per tonne of gold.
The project has seen a number of different operators over the last 30 years, most notably Yamana Gold. Prior to 2012, a total of 100 holes were drilled at the El Picacho property, with all but one intercept in the El Picacho Vein reaching below historic mine workings in intact ground.
SilverCrest also noted in today’s release that more than three kilometres of near-surface underground workings at the El Picacho Vein are accessible via a four-metre by four-metre decline, which exposes the partially developed mineralised vein.
N. Eric Fier, CEO of SilverCrest Metals, said the company first looked at acquiring the El Picacho property in 2016 as a continuation of its regional exploration program.
“We plan on using our 15 years of local experience gained at Santa Elena and Las Chispas to unlock the potential at Picacho.
“The company anticipates starting an exploration drill program at Picacho before the end of the year, subject to permitting and minimal disruptions from COVID-19,” he added.
SilverCrest Metals (SIL) is currently down 2.86 per cent and is trading at $11.88 per share at 1:10pm EDT.