SilverCrest Metals Inc. (SILV) in a bid to accelerate its mining plans has recently acquired El Picacho Property located near its Las Chispas Project in Sonora, Mexico.
The company’s Mexico-based subsidiary Compañía Minera La Llamarada, S.A. de C.V. acquired the property from American Metal Mining, S.A. de C.V. and one of its affiliates. The total purchase price of the acquisition was $1.6 million fully paid to the selling company. This will bring in nearly 7,060 hectares of area with 100% ownership in 11 mining concessions of the property thereof to SilverCrest. In order to regularize these concessions, SilverCrest also paid the necessary government taxes.
After selling SilverCrest Mines Inc. in 2015, the company to continue its regional exploration program was in search of a new district with multiple precious metal epithermal veins. That program led the SilverCrest to consider Picacho acquisition. SilverCrest first considered Picacho in 2016, and now after 4 years of determination, SilverCrest has a new district, said N. Eric Fier, President and CEO of SilverCrest.
SilverCrest is intending utilizing the 15 years of experienced gained working locally at Las Chispas and Santa Elena to explore the potential at Picacho. For the purpose company is likely to be starting an exploration drill program before end of this year. The commencement of the program is subject to some regulatory permissions and minimal COVID-19 disruptions.
Picacho is 40 away from company’s Las Chispas Project and drilling success will decide fate of the new property. Depending on the success rate, Picacho might become a separate mine or will otherwise remain a remote project of company’s Las Chispas project which is currently under development.
The newly acquired property is historically known for production of gold and silver. The first notable production in the area occurred in late 1800 with grades greater than 15 gpt gold.