VANCOUVER, BC – February 2, 2021 - SilverCrest Metals Inc. (“SilverCrest” or the “Company”) is pleased to announce positive results from a Feasibility Study (the “Feasibility Study”) for the Las Chispas Project (“Las Chispas” or the “Project”) in Sonora, Mexico. Details of the Feasibility Study, including an updated Mineral Resource Estimate and an initial Mineral Reserve Estimate, are provided in a technical report filed under the Company’s SEDAR profile entitled, “NI 43-101 Technical Report & Feasibility Study on the Las Chispas Project” with an effective date of January 4, 2021 (the “Technical Report”). The Technical Report has been prepared by Ausenco Engineering Canada Inc (“Ausenco”) with the assistance of several other independent engineering companies and consultants.

Highlights:

All dollar ($) figures are presented in US dollars unless otherwise stated. Base Case metal prices used in this analysis are $1,500 per gold (“Au”) ounce (“oz”) and $19.00 per silver (“Ag”) oz. These prices are based on long-term consensus average prices. A silver equivalent (“AgEq”)1 ratio of 86.9:1 (Au:Ag) applies throughout this news release to Mineral Resources and Reserves, production and all-in sustaining cost (“AISC”) per oz. Net free cash flow and AISC are non-IFRS measures. Refer to the Non-IFRS measures section of this news release.
•Robust Economics – The Feasibility Study considers a 1,250 tonne-per-day (“tpd”) operation, with an initial mine life of 8.5 years. On an after-tax basis, Las Chispas generates a Base Case NPV(5%) of $486.3 million (“M”), IRR of 52%, and a payback period of 1.0 year. Using spot prices on the effective date of the Technical Report ($1,946/oz Au and $27.36/oz Ag) the after-tax NPV(5%) is $802.5 M, IRR is 74% and payback period is 0.7 year.
•High-Grade Updated Mineral Resource and Initial Reserve Estimate – Initial Proven and Probable Reserves (3.35 M tonnes, grading 4.81 gpt Au and 461 gpt Ag, or 879 gpt AgEq) total 94.7 Moz AgEq (Table 3). These estimates place Las Chispas amongst the highest-grade primary silver projects globally2. The mine plan excludes Inferred Resources (1.2 M tonnes grading 745 gpt AgEq totaling 29.7 M oz AgEq), which includes the recently discovered high-grade Babi Vista Vein Splay (“BAVS”) (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.
•Enhanced Near Term Production Profile – The Feasibility Study outlines average annual production of 12.4 Moz AgEq from 2023 through 2029, with net free cash flow beginning in 2023. Production will benefit from improved metallurgical recoveries for Au and Ag of 97.6% and 94.3%, respectively. This compares to 94.4% for Au and 89.9% for Ag reported in the Preliminary Economic Assessment (“PEA”), titled, “Technical Report and Mineral Resource Estimate for the Las Chispas Property, Sonora, Mexico”, effective date of May 15, 2019, as amended July 19, 2019. Commissioning of the processing plant is targeted for Q2 2022 with ramp-up through H2 2022. It is anticipated that SilverCrest will have accumulated 8 months (~300,000 tonnes) of mineralized material on surface when the processing plant is expected to reach nameplate capacity of 1,250 tpd, providing flexibility in the early stages of production.
•Lowest Quartile AISC – 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, positions Las Chispas amongst the lowest quartile AISC globally3.
•Strong Capital Position, Formal Construction Decision – With the completion of the Feasibility Study, SilverCrest’s Board of Directors has formally approved construction of the Project. The Company currently has $125 M in cash as of January 31, 2021 and $90 M currently available under its credit facility. Orders for critical long lead items have been placed and all permits required to begin process plant construction are in hand.
•Opportunities to Grow and Optimize – Given that Las Chispas has been advanced through the Feasibility Study stage within only five (5) years of its discovery, numerous opportunities remain for growth and optimization. The most significant opportunities are the potential to expand and convert Mineral Resources, particularly for BAVS, Granaditas, Babi Vista and Babicanora Norte veins, and the El Muerto Zone, all of which are close to the planned underground development. Other notable opportunities include optimization of the LOM grade profile and potential acceleration of the mine ramp-up.

Pierre Beaudoin, COO, remarked, “The Las Chispas Feasibility Study defines a project with robust economics and potential for further improvements during operations. With our EPC Contract and underground development contracts in place, initial construction is already underway and is expected to ramp up through Q1, 2021. Our on-site team has been integral in advancing the study and operating successfully under challenging conditions. The recent achievement of completing more than 9,000 metres of underground mine development while surpassing one million man-hours without a Lost-Time Injury is a testament to our work force diligence to get the job done and continued commitment towards a strong health and safety culture. We thank the team for the outstanding efforts during a challenging year.”

N. Eric Fier, CPG, P.Eng and CEO commented: “We are thrilled to have completed a robust Feasibility Study within five years of drilling the first hole at Las Chispas. The Feasibility Study confirms what we have believed for a while, that Las Chispas is economic as a stand-alone 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. We are excited about the extensive opportunities that remain to grow and optimize Las Chispas. We are greatly appreciative of our employees, partners in the community, contractors and our shareholders, who together have supported us to achieve this important milestone safely, quickly and in a very capital efficient manner. While there is a lot of hard work ahead of us, we look forward to making the shift to production and cash flow which we expect will finance our continued growth.”

Further details on the Feasibility Study are presented below.

Table 1: Feasibility Study Overview

Las Chispas Feasibility Study Summary (Base Case)
Throughput (tpd) 1,250
Mine Life (years) 8.5
Reserves Proven & Probable (kt) 3,351

Average Diluted Au Grade (gpt) 4.81
Average Diluted Ag Grade (gpt) 461
Average Diluted AgEq Grade (gpt) 879

Contained Au koz 518.1
Contained Ag koz 49,679
Contained AgEq koz 94,704
Average Au Metallurgical Recovery 97.6%
Average Ag Metallurgical Recovery 94.3%

Payable Au koz (LOM) 502.8
Payable Ag koz (LOM) 46,559
Total AgEq koz 90,271

Average Annual Production (LOM)
Au koz 56.0
Ag koz 5,181
AgEq koz 10,044

Average Annual Production (2023-2029)
Au koz 69.0
Ag koz 6,360
AgEq(1) koz 12,354

Mining Cost ($/t) 71.40
Process Cost ($/t) 31.69
G&A Cost ($/t) 15.40
Total Operating Cost ($/t) 118.49
Initial Capital Cost ($ M) 137.7
LOM Sustaining Capital Cost ($ M) 123.9
Closure costs ($ M) 3.4

AISC ($/oz AgEq) LOM $7.07
AISC ($/oz AgEq) 2023-2029 $6.68

Au Price ($/oz) $1,500
Silver Price ($/oz) $19.00
Post-Tax IRR 52%
Post-Tax NPV (5%, $ M) $486.3
Undiscounted LOM net free cash flow ($ M) $656.4
Payback period (years) 1.0

Figure 1: Post-tax Cash Flow Profile
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