- Silver value stock Kootenay Silver has upgraded the mineral resource estimate at its La Cigarra project in Mexico with significant grade improvements
- Measured and indicated grade increased from 86 g/t to 102 g/t silver across the project’s 51.57-million-ounce resource
- Kootenay Silver is exploring one of Mexico’s largest junior portfolios of silver assets, whose high grades and established resources stand in stark contrast to the company’s stock performance
- Kootenay Silver stock has given back 50.59 per cent year-over-year and 42.07 per cent since 2019
Silver value stock Kootenay Silver (TSXV:KTN) has upgraded the mineral resource estimate at its La Cigarra project in Mexico with significant grade improvements.
The 2024 estimate, which supersedes the 2015 filing, features measured and indicated resources of 15.73 million tonnes grading 102 g/t silver, 0.07 g/t gold, 0.16 per cent lead and 0.21 per cent zinc (120 g/t silver equivalent), or approximately 51.57 million ounces of silver, 33,900 ounces of gold, 54.8 million pounds of lead and 73.5 million pounds of zinc for 60.56 million ounces silver equivalent.
Inferred mineral resources, for their part, are estimated at 3.37 million tonnes grading 102 g/t silver, 0.06 g/t gold, 0.20 per cent lead and 0.19 per cent zinc (119 g/t silver equivalent), or approximately 11 million ounces of silver, 6,000 ounces of gold, 14.8 million pounds of lead and 13.8 million pounds of zinc for 12.85 million ounces silver equivalent.
Key comparisons between La Cigarra’s 2015 and 2024 mineral resource estimates
- Measured and indicated grade increased from 86 g/t to 102 g/t silver
- Measured and indicated ounces increased from 51.47 million to 51.57 million ounces
- Measured and indicated tonnes decreased from 18.54 million to 15.73 million tonnes (measured from 3.62 to 2.08 million tonnes and indicated from 14.93 to 13.65 million tonnes)
- Inferred grade increased from 80 g/t to 102 g/t silver
- Inferred tonnes decreased from 4.45 million to 3.35 million tonnes
The 2024 estimate at the advanced exploration project benefits from a revised geological model, as well as a database of 201 surface diamond and reverse-circulation drillholes totaling 36,988 metres and 26,419 assay intervals, both of which have advanced management’s understanding of key mineral domains and the structural geometry of the deposit, and furthered Kootenay’s efforts to position itself for an expected rebound in the price of silver.
La Cigarra is in an established Mexican mining jurisdiction, and remains open along strike to the northwest and southeast, as well as down-dip, only 20-30 kilometres from the San Francisco del Oro and Santa Barbara deposits, granting it untapped growth potential beyond the new mineral resource estimate.
“The updated resource estimate for La Cigarra is part of our strategy to prepare our three resource projects – La Cigarra, Promontorio and La Negra – for advancement in a bullish silver market, while we remain focused on moving our high-grade silver project, Columba, towards a mineral resource estimate,” James McDonald, Kootenay’s president and chief executive officer, said in a statement.
The case for Kootenay’s undervaluation
Having reached a market capitalization of more than C$100 million as recently as June 2021, Kootenay’s current C$37 million figure feels irrational against its development track record to date, which includes high grades on four projects that are well-established through mineral resource estimates and/or years of expansive drilling.
Couple this track record with the ballooning silver deficit, and the metal’s essential role in electrification, and we get a robust investment thesis worth your full consideration.
Click here to read an in-depth analysis of Kootenay Silver’s operations.
Kootenay Silver is exploring one of the largest junior portfolios of silver assets in Mexico.
Kootenay Silver stock (TSXV:KTN) is up by 2.44 per cent, trading at C$0.84 per share as of 9:58 am ET. The stock has given back 50.59 per cent year-over-year and 42.07 per cent since 2019.
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