Post by
666999 on Jan 13, 2022 9:57am
ECHELON CAPITAL PRICE TARGET $ 1.60
Drilling Intercepts New Vein & Mineralization in the Black Shale Unit: Silver Tiger reported results from two more holes drilled into the Seitz Kelly vein at the Company’s El Tigre Project. The highlight was Hole ET-21-278, which returned 0.6m of 102.1g/t Au and 120g/t Ag (from 131.7m down-hole), within 16.1m of 3.99g/t Au and 32.0g/t Ag (from 119.9m) in a newly discovered vein between Seitz Kelly and El Tigre. Importantly, the intercept came within the recently recognized Black Shale/Crackle Breccia within the Flat Formation volcanics, which also recently returned significant mineralization in Hole ET-21-271. New Vein 4 Discovery: The new vein was discovered as the Company stepped 49m East and 26m North of where Hole ET-21-264 returned the 0.5m interval of 1,097.8g/t Au and 255g/t Ag (82,827.3m AgEq) within the Black Shale Footwall Discovery zone, reported on November 9, 2021. Hole ET-21-278 was angled low enough (Exhibit 2) that it hit the new vein as drilling continued toward the Seitz Kelly vein in the lower Tabular Formation. The Company may have gotten a hint about the new vein from earlier shallower holes (i.e., Hole ET-21-268) within the Cliff Formation, too far above where ET-21-278 hit mineralization. Where There’s Smoke, There’s (Probably) Fire: The Black Shale/Crackle Breccia is turning out to be a very important horizon for mineralization, as it seems to have allowed the metal bearing fluids to form wide zones of high-grade mineralization around the veins. Further testing of the new Vein 4 and the Black Shale along strike could provide very interesting additional resource potential, as may also be the case with the recent Seitz Kelly discoveries. Maintain Speculative Buy Rating, $1.60/shr PT: Our 12-month price target is based on an insitu EV/oz estimate of SLVR’s current resources and our conceptual resource additions. SLVR trades at US$1.34/oz AgEq based on the current (mainly lower-grade El Tigre bulk gold) resource versus the US$0.91/oz peer average. If we include the 96Moz AgEq of conceptual additional resources we include in our valuation, Silver Tiger trades at just US$0.66/oz AgEq. We contend that an ~180Moz AgEq resource, at increasing grade and value coming from the Sooy, Benjamin, and now Seitz Kelly, should warrant an increased valuation to peers. An updated resource estimate incorporating drill results from 2021/2022 is potentially forthcoming toward 2022-end.