Because It's A Bull MarketThese guys are assembling a large property and taking it public because, well, because it's a bull market.
I have mixed responses to news like this. On the one hand it does confirm that a silver bull market is happening...duh. On the other this kind of story is premised NOT on the fabulous untapped silver potential in their newly assembled properties but relies instead on the GREATER FOOL THEORY...which says whatever high price you pay for an investment is worth it because a greater fool than yourself will come along and pay even higher.
The article is from this weekends National Post. Cheers.
Top-tier mining team prepares for imminent launch of highly anticipated silver company
Zacatecas Mining District accounts for more than half of Mexico’s silver production
The Zacatecas Mining District accounts for 21 per cent of Mexico’s gold production and more than 53 per cent of its silver. SUPPLIED
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Long before recent market interest in silver, a well-known mining team with a track record of creating shareholder value was carefully making preparations to take their private silver company public. This well-known team of mine builders, exploration professionals and financiers are betting big on the silver market via a large 7,826-hectare (19,338-acre) property in the heart of Mexico’s legendary Zacatecas Silver District.
Silver mining in Zacatecas goes back almost 500 years following the discovery of the incredibly productive San Bernab silver lode. The Zacatecas Mining District is still a critically important centre for Mexican precious metals production, accounting for 21 per cent of the country’s gold production and more than 53 per cent of its silver. Two of the world’s largest silver mines, the Fresnillo Silver Mine, and the Peasquito Polymetallic Mine, currently operate here.
While the key players behind this venture have created incredible gains for shareholders via various gold-focused ventures in recent years, they have quietly built an impressive portfolio of silver claims in preparation for launching their private silver entity in the public domain.
Bryan Slusarchuk, a principal of this silver situation, was recently interviewed on FOX Business to comment on the “silver squeeze” now evident around the world.
“What I’ve been emphasizing on FOX and other media outlets is that these short-term moves in the price of silver are not overly important against the big picture,” he says. “What’s important is that silver had value as money a thousand years ago, is money today and will be money a thousand years from now. This inherent value coupled with fast-growing silver demand in vehicle electrification and solar panels are the important themes.”
The year 2019 saw the demand for global physical silver increase to 991.8 million ounces from 988.3 million ounces a year earlier — even as demand for silver jewellery diminished. That increase was fuelled both by industrial demand and investor appetite for silver bars and coins.
In light of that demand, the team has assembled a contiguous exploration stage property of 149 mining concessions, with a focus on aggressive resource expansion and exploration. The concession includes previously overlooked sections and an existing inferred silver resource that the company will look to confirm, expand and grow.
The exploration team is no stranger to extracting wealth from previously overlooked concessions. Slusarchuk has been involved in a number of exploration, development and production success stories in recent years as interest in gold equities grew and believes the group is now early to a market environment that will start to reward high-quality silver situations.
Team geologist Chris Wilson, a former exploration manager for Canadian mining giant Ivanhoe Mines Ltd., notes that silver mines in the region have historically exploited steeply dipping mineral veins of the “low sulphidation epithermal type” that begin to evidence precious metals such as silver at 250 to 350 metres underground. The exploration company is challenging that assumption by remodelling the mineralization of the concession as a “hybrid intermediate-low sulphidation epithermal type.”
“That indicates the likelihood of larger vertical precious metal intervals,” Wilson says. “Modelling demonstrates significant depth potential on all vein systems. For example, the Panuco vein system, for which we are in the process of finalizing a current resource estimate, is open in all directions and especially at depth.”
The El Cristo system will also be a major focus of the 2021 work program. It’s a direct strike extension of the Veta Grande vein, which has produced more than 200 million ounces of silver on adjacent concessions.
“Multiple sub-parallel veins of the El Cristo system extend for over three kilometres north-westwards on concessions held by the exploration company,” says Wilson. “Structural interpretation of high-resolution Worldview 3 satellite imagery, in conjunction with mapping of historic workings, confirms the robust exploration potential.”
The company is currently backed for initial drilling by some of the most successful mining investors in the sector. After listing on the exchange, the company plans to carry out an extensive drill program on mineralized silver-focused systems, including Panuco, Uleros, El Cristo and San Manuel-San Gil, as well as metallurgical work on the Panuco deposit.
“We intend to demonstrate our value as a destination for investors who seek to anchor a portion of their portfolios in hard mineral assets with underlying value,” says Slusarchuk.
For more information on the planned upcoming launch of the entity as a public company, please visit: www.silvercowboy.com .
This story was created by Content Works, Postmedia’s commercial content division, on behalf of Highland Contact.
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