Marking the first time in over a decade it has reached this price, silver recently broke a key resistance of $30 per ounce. Significantly, this is reminiscent of past bull runs as the last time this happened, in 2011, silver quickly rose to nearly $50 per ounce. (Source: https://www.fxstreet.com/analysis/silver-shines-in-the-precious-metals-market-202406051824)
Having shifted from a precious metal to an industrial one, silver's price has been fueled by its significant increase in industrial demand due to growing use of green energy technologies.
With demand having outstripped supply of the third consecutive year in 2023, the opportunity is clear and Colombia's new leftist president hopes to take advantage of it with his support for the energy transition and the potential for silver production to contribute to it.
The Path to 100 Million Ounces
One notable company in poised to benefit from Colombia's sights being on silver is Outcrop Silver & Gold (OCG.v OCGSF) and its Santa Ana Project.
Santa Ana is one of the highest grade silver projects globally, with approximately 37M ounces, a grade of 73% silver and unique minerology allowing for a high 93% silver recovery by floatation making it economically viable even at today's silver price.
It is very hard to find a comparable project that has an indicated silver resource as large as Santa Ana, making this is a very rare project.
With its 2024 drill program strategy designed to underscore the scalability of the project, OCG is on track for significant resource expansion by leveraging their technical expertise and deep understanding of the region's geology to unlock the full value of the high-grade silver project.
Believed to be the next "lithium" due to underestimated supply and demand issues, silver provides a clear opportunity and, with a range of experienced mining executives on the team, OCG has a solid foundation, clear strategy, and significant drilling plans for the next year amid this dynamic market.
For more information, refer to Outcrop Silver & Gold's (OCG.v OCGSF) latest presentation at Deutsche Goldmesse discussing the Santa Ana Mine: https://www.youtube.com/watch?v=Jh_Gcw5rIaw
Posted on Behalf of Outcrop Silver & Gold Corporation.