SilverCrest Metals Inc. (AMEX:SILV) Q3 2023 Earnings Call Transcript

Chris Ritchie: Or expanded. There you go. So we got, as I said in the talk there, and it’s in the news release, Garrett, $10 million. We spent just under $3 million of that so far to get to Q1. We’re really focused on inferred resources that didn’t get converted they indicated and considered for reserve conversion for the updated tech report. So it’s to get through that. Get some new reserves back into the pipeline that’s near infrastructure. And as we’re doing that, we’ll be spending money at Las Chispas to look at the 23 kilometers of weather vein that’s underexplored. So we’re seeing some interesting things right now. Cross my fingers, hope we can get some news out on Exploration 4 at the end of the year, we’ll see.

Garrett Goggin: What area looks most prospective to you guys?

Chris Ritchie: Areas as far as in Las Chispas?

Garrett Goggin: Yes.

Chris Ritchie: Okay. We’re working – as you’re familiar with the map, we call it the treasure map. We’re working on [Babi Sewell] 30 which is in the South, and some extension of that. We’re looking to depth now for the Babicanora Main Vein going to depth. We’re also quite encouraged is what we’re seeing in the Las Chispas area. If you recall, we haven’t been back to Las Chispas since the 2020. So it’s been pretty much on the shelf working on the technical report and doing the infield drilling, mostly around Babicanora. There’s some new opportunities that we’re seeing at Los Chispas. We’ll see how they come to fruition.

Garrett Goggin: Okay. And my last question. How many faces do you have working now and where is the ore primarily coming from?

Chris Ritchie: All the time, we maintain between 12 and 16 faces. And our limit at this point is certainly not the faces, but more of our drilling capacity, which we’re working actively with contractors to expand.

Garrett Goggin: Okay. And then where is the ore primarily coming from? Which veins?

Chris Ritchie: Mainly in Babicanora, Babi Norte, and Babi Vista.

Garrett Goggin: Okay. Good. Thank you, guys.

Operator: Your next question comes from [Matthew Roefer with Malate].

Unidentified Analyst: Hi, Chris, Eric, and Pierre. Congrats on the quarter. Well done. As a long-term shareholder since 2018, this is why I wanted to be involved with the project. So it seems like it’s finally coming to fruition with the asset throwing off a significant amount of cash. So I’m pleased with that. I wanted to follow-up with some of the previous questions on exploration. So we had a 13% reduction, roughly 10 million ounces from the TR, if I’m not mistaken. Obviously myself and my investors are excited that you’re getting back to growth mode. And Eric, I like that you said your favorite thing is exploration. That warms my heart. I wanted to ask about these 23 kilometers of veins. I’m just trying to, again, understand.

There’s – back in 2019 or 2020, there was a new section of the property, newly defined section of the property. I believe it was called 118. Is that part of the logistics section that you have not really spent too much time on over the last few years in terms of exploration? Or is that 118 a different part of the property?

Chris Ritchie: 118 zone is part of the Las Chispas main vein. Okay. So it’s – below the underground workings. We’re just starting back in that area right now to do further exploration. We’re just returning after four years of being over in the Babicanora area.

Unidentified Analyst: And how many rigs or drills are being utilized at the moment on the property?

Chris Ritchie: At the end of the quarter, Q3, I’ll speak to that we had between 7 to 8, I got one rig floating there because it likes to do operational work too. So it jumps from exploration. So at the end of day at Q3, we had 7 to 8 drills.