SilverCrest Sets Ambitious Goals for 2024

SilverCrest Metals has released its 2024 outlook for the Las Chispas operation in Sonora, noting that its focus is on extending the life of the mine and increasing indicated resources.

The Las Chispas underground project is on track for a continuous ramp-up throughout 2024, aiming at a daily production rate exceeding 1,050t/d by year-end. “2023 marked a successful first year of commercial production, with Las Chispas exceeding its inaugural sales guidance, leading to full repayment of our debt and a US$54.4 million or 107% increase in treasury assets. Despite continued cost pressures, we are proud to be delivering sales and cost guidance that in line with our 2023 Technical Report,” said N. Eric Fier, CEO, SilverCrest Metals.

In 2024, an exploration budget ranging between US$12 and US$14 million was approved. The company plans to explore various capital allocation opportunities, including exploration, share buybacks, and expanding bullion holdings. Fier emphasized the ongoing exploration at Las Chispas, specifically focusing on converting inferred resources to indicated for reserve. In 2H24, exploration efforts will shift toward discovering, defining, and advancing Las Chispas and regional targets, aiming at extending the mine’s life.

The processing plant is set to operate at an average of 1,200t/d in 2024, except for 1Q24, when planned maintenance downtime is expected. Despite this, no adverse impact on production is anticipated for the quarter, as ore blending from the underground mine and a high-grade stockpile are expected to offset downtime. 

Cash costs are projected to range between US$9.50 and US$10.00/oz of AgEq sold, compared to the 2024 cash costs forecast in the Technical Report of US$9.80/oz of AgEq sold and the 2023 guidance of US$7.50 to US$8.50/oz of AgEq sold.  Sustaining capital expenditures are estimated to be between US$40 and US$44 million, primarily allocated to underground development and infrastructure. The 2024 guidance reflects a US$4 million improvement from the figures outlined in the Technical Report. This improvement is attributed to the optimization of the mine plan, involving a reduction in lateral and vertical development while still meeting mine ramp-up targets efficiently.