SilverCrest or Alexco?"We've got one of the highest grade assets in the world,probably top two or three highest grade assets in the world." SilverCrest President Chris Ritchie.
SilverCrest boasts being "One of the highest grade primary silver projects in the world." Feb 2021 presentation P. 13
After hearing this in his oral presentation today and reading their latest presentation I compared SIL vs. AXU.
Fistoff,SilverCrest derives half their revenues from gold.They do not own a primary silver project.
Secondly,SilverCrest's Ag and AgEq grades are both lower than that of Alexco.
furthermore,Bermingham Deep is exceptionally high grade being drill defined right now and being added to the resource this year.
Moreover,Alexco are a 75% + silver revenue generator. SilverCrest will have 50% revenues from silver.
AXU $3.25
142 m shares issued
153.5 m shares fully diluted
Cash:$23m -and shipping concentrates since January.
2.5-3 m oz Ag production expected in 2021
4 m oz Ag annual production in Q3/21
30.5 m oz Ag Probable @ 805 g/t Ag and 1133 g/t Ag Eq (Ag + 2.98% Pb, + 4.13% Zn)
+ 74 m oz indicated
Now drilling 25,000m in a major discovery at Bermingham Deep
w/grades up to 3,583 g/t
SIL.TO $10.25
144.5 m shares issued
151.1 m shares fully diluted
Cash:$125m
SilverCrest needs $138m of initial capital to begin production.
Estimated to begin limited production H2 /2022
P+P 94.7 m oz Ag Eq@ 1,091 AgEq
M+I+I 137.8 m oz Ag Eq
Silver Crest does not PRESENT their silver values,alone, as Alexco does.
However,Alexco's silver resource is bolstered 28.2% when adding their lead and zinc.
Alexco's 30.5 m oz silver resource becomes an Ag Eq resource count of 39.1 m oz.
Alexco's inferred count then becomes 94.9 m oz.
232.5 m oz Ag Eq total count for SIL
134 m oz Ag Eq total count for AXU
AXU have made a major discovery they are now drilling and a new RC expected Q4/21.
SIL is estimating 12.4 m oz Ag Eq annual production @ $7.07 AISC (2023-2029 production years ONLY)
AXU is estimating 4 m oz Ag annual production @ $11.94 AISC
To sum it up:
Alexco are drilling out a major discovery which,if successful,could add 50 moz Ag + to their LOM.
Alexco (or any company that acquires ALEXCO) will absorb MMG's Keno east mineralization.
The ultimate size of the Keno Hill district is unknown but will certainly rival Silver Crest's Las Chispas.
Alexco's Keno Hill is in a tier one jurisdiction while SilverCrest is in Mexico.
Alexco are in production shipping concentrate and full production is one quarter away.
Silver Crest have not even begun to build and are not fully financed to complete construction.
Alexco is in production generating revenues,have higher grades,is in a tier one jurisdiction and their resource is to grow significantly by the drillbit this year.
Keno East is available to purchase and MMG have already made significant discoveries.Keno East drilling and discovery enhances the value of AXU/MMG as an acquisition.
SilverCrest is not fully funded to complete construction for initial production.
Half of SIL's production is silver.
Alexco's production is more than 75% silver.In a market where silver becomes revalued to the upside AXU is a primary silver generating producer.
Alexco is less than one third the sp of Silver Crest.
The Bermingham Deep discovery being drilled is described by Clynt as being "... a significant discovery.The grades are on average 70-75 ounces per tonne silver."
"There will be a lot of holes that are going to be drilled in this discovery to try and figure out what it is so...
and I fully expect that some of those holes are going to be pretty,pretty,pretty impressive."