SilverCrest Metals Inc. reported that construction activities at its Las Chispas Project, located in Sonora, Mexico, at the end of the first half of 2021, were 33% complete, compared to scheduled completion of 28%. Construction has progressed well with the confined COVID-19 camp facility and earthworks have been completed. Concrete foundation work is 74% complete, plant tank construction and key infrastructure projects (powerline, road, and bridge) have commenced, underground infrastructure is ongoing, and plant detailed engineering is 90% complete. The company said construction progress has benefited from no delays due to COVID-19 or any other reason.
As far as capital spending, 60% of the $137.7 million capital cost estimate was committed, of which 35% has been spent across all capital cost scopes, in line with the budget. A significant component of the initial capital cost is the process plant, which is a fixed price Engineering, Procurement, and Construction (EPC) contract with Ausenco Engineering Canada Inc. This contract represents approximately 39% of the initial capital cost.
More than 4.6 kilometers (km) of underground development was completed in the first half of 2021 for a total of 13.1 km since underground development began in the first quarter of 2019. Access has been established in four veins or areas and 33 in-vein work fronts. The company said the combination of higher productivity, favorable ground conditions, and cost control have contributed to development costs tracking slightly under budget.
“We are extremely proud of our team and contractors who have worked together to safely set the construction on a positive path with numerous critical construction milestones completed in H1 2021,” SilverCrest COO Pierre Beaudoin said. “We are very pleased with the progress to date which includes on time and on budget construction since the formal start on February 1, 2021.
He expects approximately 80% completion of construction by the end of 2021, with plant ore commissioning expected as planned late in the second quarter of 2022.
SilverCrest accelerated underground mine development to create operational flexibility and de-risk the mine plan, resulting in an additional 1 km of development above budget completed in H1 2021. This development rate is expected to be maintained in Q3 2021 and will be re-evaluated as project construction progresses toward the peak of personnel demand in late 2021, the company said.
