Post by
666999 on Apr 08, 2021 2:37pm
STIFEL GMP
Key Points • This morning, Silver Tiger released results from six holes following up on the recent Benjamin vein discovery. Drilling stepped out 25m and 50m along strike to the south of the Benjamin discovery hole (1,310 g/t AgEq over 3m) and hit both ultra high grade vein style mineralization as well as broad zones of disseminated, silver rich high grade in the Flat formation. The presence of both is very similar to the type of deposition found at the Sooy vein 1.25km meters to the southwest, and it is now looking like Benjamin is the offset continuation of the Sooy vein. • All six holes reported today hit what we see as economic grade-thicknesses of mineralization just ~125m below the surface. The company is now also assaying for base metals and finding notable amounts of lead and zinc (up to 5.5% and 17% respectively) as well as some small amounts of copper. Assay highlights include: • 520 g/t AgEq over 14.2m including 1,010 g/t AgEq over 5.6m - 25m step out • 267 g/t AgEq over 12.6m including 1,443 g/t AgEq over 2.0m - 50m step out Impact: Positive • The presence of broad, potentially bulk mineable zones of mineralization encountered at Benjamin confirms our thesis that the entire Flat formation has the potential for this style of mineralization. The Sooy and Benjamin veins have been mapped on surface over a combined strike length of almost 3km. • We expect that assays will show this type of mineralization is consistently found as drilling continues to systematically step out along these veins. The presence of high grades and broad widths at relatively shallow depths should combine to form a highly attractive open pit resource with further underground potential at depth. • Silver Tiger's stock trades at spot P/NAV of just 0.41x (vs silver developer average of 0.68x) but with a steady stream of continued positive drill results expected, we don't expect this discount to persist for long.
Investment Thesis We believe Silver Tiger has found the next major high grade silver vein system in Mexico. As the company continues to drill along strike from the historically high grade (40 oz/t) El Tigre mine, we anticipate they will continue to encounter continuous, high grade silver veins. The style of mineralization on the property also includes broad zones of 'halo' mineralization around the veins, setting the deposit up well for future economic open pit extraction. We also expect the company will find other high grade veins across their extensive property, given the presence of historic, small scale artisanal workings in favourable host lithology