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Transcript: SilverCrest COO Eric Fier explores the La Joya silver-copper project
Surrounded by World-Class Mines
“Part of SilverCrest’s philosophy is to develop economic, viable deposits that have great infrastructure in a great location. And that’s what La Joya has, for a start.
“We’re 75 kilometres south of the city of Durango, Mexico. We’re 10 kilometres off a highway, rail line and major power line. We’re also a two-hour drive from an international airport.
“La Joya is situated in a historic and currently very prolific mining district. Across the valley from us, approximately 25 kilometres, are the La Parrilla, San Martin and Sabinas mines. These are world-class deposits. Our attempt here for exploration is to look for the same type of geologic models as these producers, which are skarn models. The geochemistry is silver, copper, potential gold, and lead and zinc.”
At the La Joya warehouse, also known as the bodega, 220 metres of core samples from Hole 22 are kept in hundreds of core boxes. The mineralization exemplifies the lithology and stratigraphy of the La Joya deposit.
“As we walk down through the hole we see a sequence of skarns and marbles.”
At 50 metres intermittent, dense mineralization is visible with the naked eye.
“At 100 metres we start seeing more contact mineralization with the local intrusive, a quartz monzonite to a quartz feldspar porphyry. It’s great looking rock, as far as the contact mineralization goes.
“As we move down, we see some structures in the samples, which is another important part of the mineralization. There are three parts of mineralization at La Joya: vertical structures which can be up to 50 metres wide; intermittent, horizontal mantos or disseminated sulphide mineralization; or beneath everything a solid bed of contact mineralization, which here appears to be about 50 metres wide.
“The grade in this hole, typical for most of the holes we see at La Joya, can be anywhere from 30 to 100 metres wide. The average grades we’re seeing is 60 to 100 grams per tonne silver [1 oz/t = 34.2857 g/t]; 0.5% to 1% copper; and a gold credit of about 0.25 to 0.5 grams per tonne. We also get an increase with lead and zinc at depth, which could be up to 1% to 2%.”
Low Hanging Gems
“The meaning of La Joya is “The Gem.” There is one area I call the low hanging fruit area, but in this case the low hanging gem.
“Within a particular hillside there are multiple mineralized mantos and skarns. We’ve counted five, currently. These are low hanging gems, because it’s right at the surface.
“In the area you can see there are old underground workings and multiple adits going right into the mantos, or skarns. Cumulatively, these five zones are anywhere from 30 to 50-metres wide. It’s great, immediate value from the perspective of a low-cost open pit.
Underground at La Joya
On a hillside with showings of multiple historic workings, Eric Fier, analyzes a 2-metre-wide exposed structure at the entrance of a mine shaft.
“Samples from here ran at about two-kilograms silver and 12.5% copper. This is just a portion of a structure that runs 300-metres long and 50 metres wide at the surface. This makes for a great opportunity for exploration, and a great opportunity for a high-grade, near-surface potential open pit.”
At a second location, a skarn mineralization runs 20 metres along the wall.
“The grade for this wall is 250 grams per tonne silver and 2% copper. It’s important to note this location is only about five metres from the surface.”
In a cavernous underground working called the galleria, it’s estimated the resource was extracted at 342 grams per tonne silver and two to four per cent copper.
“These are the kinds of values we’re seeing in the drill results for our Phase I program,” said Fier. “It’s really making La Joya a very attractive project for exploration to move SilverCrest forward.”
Phase One Drilling
“Currently we’re drilling 25 holes, or approximately 5,000 metres. And we’re just completing that Phase I program. It will test one kilometre of the two kilometre strike length of the mineralized trend, which is anywhere from 100 to 300 metres wide.
“We’re still testing the thickness, but we’re seeing anything from five to 60 metres of very good mineralization, with intercepts of up to two kilograms silver, 12 to 15 per cent copper, and a gold credit.
“Now the big picture for La Joya is [conceptual target] 50-million ounces of silver plus copper. The copper is about the same value of the silver, so if you want to call it a silver equivalency, that would be 100-million ounces silver equivalent.
“Over the next few months we’re going to be creating a resource model from which we can plan a Phase II drill program to expand the resource. I don’t anticipate will be at the 50-million ounce silver target at that point, but we will have a percentage.
“This will give us a tool to help guide us create a much larger resource for our shareholders and potential shareholders.”
This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.
Disclosure: No Positions