Stifel gmp
SummarySilver Tiger reported more drill results showing high grade over broad width with an ultrahigh grade core. The headline assay was 0.5m of2,063 g/t AgEq within 10.8m of 369 g/t AgEq in a hole stepping out 475m to the south of the discovery hole. We see the consistency of thesebroad zones of high grade as highly significant for the economics of a future mine. SLVR trades at too low a spot P/NAV of 0.35x. Key Points•This morning, Silver Tiger reported more high grade drill results from their 100% owned El Tigre silver project in Mexico. Assya highlightsinclude:•0.5m of 2,063 g/t AgEq within 10.8m of 369 g/t AgEq in hole 231•1.5m of 749 g/t AgEq within 21.9m of 180 g/t AgEq in hole 231•1.0m of 686 gt AgEq in hole 325•These results from the Sooy/Benjamin vein continue to show that there are broad zones of mineralization in parallel veins to thosehistorically mined as well as ultrahigh grade cores. Hole 231 stepped out south 475m south (Figure 1) along the vein swarm trend,demonstrating that the broad zones of high grade are not an anomaly but appear consistently in the Flat formation through the propertywhere the Sooy/Benjamin veins are emplaced.Impact: Slight positive•The grade and consistency of the broad mineralized zones at El Tigre is highly significant for the economics of a future mining operation,and we do not think the market yet fully appreciates this. While Silver Tiger is still proving through the drill bit how pervasive these widezones are, we are very confident that they are pervasive in the Flat formation across the property where ultrahigh grade veins are foundand will build a very attractive bulk tonnage style mine.•SLVR trades at a spot P/NAV of just 0.35x. We see exceptional value in the company at this stage of exploration and believe the El Tigredeposits will be highly attractive to a major silver producer. In contrast, SilverCrest trades at a spot P/NAV of 0.92x with a much more'difficult' orebody.