Post by
666999 on Oct 22, 2021 2:57am
SPROTT CAPITAL
More important than todays bonanza headline 0.5m @ 3,856g/t AgEq is the broader 7.5m interval @ 491g/t AgEq, a width that should support productive UG mining. The second key take home is strike, with step-outs 1.1km to the North (Benjamin) and South (Sooy) continuing to hit mineralization. Around 70% of pierce points reported today say >1.5m thickness, itself suitable for long-holing, but even then this lies within broader 5-10m haloes for mechanized mining. Average vein intercepts are relatively shallow, with down-the-hole average contact of mineralization at ~175m. With continued step-outs north and south from the initial discovery hole, and plans to drill Seitz Kelly on the horizon, we think Silver Tiger is still firmly in discovery mode. This before regional upside at Aguila - Protectora ~2.8km north of Benjamin, Pilares (far north), Lluvia de Oro (far south), and La Chula (exposed base-metal roots to north). As such, we maintain our BUY rating and C$1.20/t PT based on US$1.50/oz AgEq on the existing resource, and same again for a nominal 85Moz. Key price drivers remain (i) resource drilling at Sooy / Benjamin / Sietz Kelly for (ii) a maiden MRE in SCPe 1H22 ahead of (iii) continue extensional and discovery drilling, and (iv) a potential SCPe CY22 PEA. Sooy step-out delivers 0.5m @ 3,856g/t AgEq (within 7.5m @ 491g/t) Eight holes released by Silver Tiger with headline step outs 1.1km south of discovery holes hitting 0.5m @ 3,856g/t AgEq (within 7.5m @ 491g/t AgEq) in the Sooy Vein with a deeper hit in the Sooy Vein Footwall of 0.5m @ 2,132g/t AgEq (within 1.8m @ 624g/t AgEq). Additional highlights include a 1.1km step-out to the north of discovery hitting the Benjamin Vein 0.5m @ 965.3g/t AgEq (within 4.3m @155g/t AgEq). Drilling will now target the underexplored/underdeveloped Seitz Kelly Vein to the east. Why we like Silver Tiger Regionally exceptionally strong mineralisation system with historic ~100Moz @ ~2.5kg/t AgEq Existing pittable 80Moz bulk-mineralisation provides base load scale Northern extensions never systematically explored, highlights of 0.8m @ 8,326g/t AgEq Old mine only mined to 250-450m, with deeper formations mineralised elsewhere Team adept at discovering and digitising old mine records to speed drill targeting