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Abra Production And Operations Update
Managing Director, Tony James commented, “The June shipment (5kt concentrate) left Geraldton last Friday as the mine continues to ramp-up. Production improvements are continuing as planned at the mine. An example is the installation of the surface remote facility allowing for production bogging to continue over shift changes and the mine’s primary pumping system has been successfully commissioned. The mine has also completed the 6m diameter primary exhaust and intake rises down to the 1,280mRL level from the surface (1,550mRL level) in preparation for installation of the second primary fan in July. Good progress has been made in June with mining in ten different stopes on the 1280mRL and 1260mRL levels. It’s very rewarding to see the high level of technology that is being applied at the Abra mine that will deliver many benefits as we continue to ramp-up production”.
Figure 1 – Vessel “Ruby Confidence” containing Abra’s June concentrate shipment at Geraldton Port bound for JV partner Toho Zinc’s Chigirishima smelter and refinery in Japan(Photo 23 June 2023).
Figure 2 –Underground remote-control loading taking place from surface remote facility at Abra (Byrnecut Mining) (Photo 23 June 2023).
Figure 3 – Fully commissioned primary pumping station underground at Abra (Photo 23 June 2023).
The Board of Directors of Galena authorised this announcement for release to the market.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Galena Mining
Overview
Galena Mining Limited (ASX:G1A, Galena) owns 60 percent of the Abra base metals mine located in the Gascoyne region of Western Australia - home to one of the largest lead and silver deposits in the world, set to produce the highest-grade, cleanest lead concentrate available globally. The company is capitalizing on its Tier 1 asset in a Tier 1 jurisdiction, strengthened by and leveraging partnerships with Japan's largest zinc and lead smelter, as well as with one of the top base metals trading firms in the world.
The company also owns 100 percent of the Jillawarra Project, which covers 76 kilometers of strike extension directly to the west of Abra. The Jillawarra Project contains several large-scale analogous exploration targets including the Woodlands Complex, Quartzite Well and Copper Chert areas.
Galena's major partnerships include Toho Zinc (TSE:5707), Japan's largest zinc and lead smelter, and IXM SA, one of the world's top three base metals trading firms. Toho provided AU$90 million project equity and has a long-term offtake agreement to purchase 40 percent of Abra's production; while IXM has entered into a 10-year take-or-pay offtake contract to purchase the remaining 60 percent.
The company's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
In November 2020, Galena put in place US$110 million in finalized debt facilities arranged by Taurus Funds Management. The facilities include a US$100-million project finance facility plus a US$10-million cost overrun facility.
The project finance facility consists of a 69-month term loan primarily to fund capital expenditures for the development of Abra. Key terms include:
- Fixed interest of 8 percent per annum on drawn amounts, payable quarterly in arrears.
- 1.125 percent net smelter return royalty.
- No mandatory hedging.
- Early repayment allowed without penalty.
- 15 quarterly repayments commencing on 31 December 2023.
The cost overrun facility is a loan to finance identified cost overruns on the project in capital expenditure and working capital. Fixed interest of 10 percent per annum applies to amounts drawn under the cost overrun facility.
The Taurus debt facilities have been fully drawn and are secured against Abra Project assets and over the shares that each of Galena and Toho own in Abra.
Company Highlights
- Positioned to realize value for shareholders:
- Abra mine construction completed in December 2022, on time and on budget.
- First in-specification concentrate shipment achieved in March 2023.
- Abra is one of the largest and cleanest lead-silver deposits in the world (high-grade, high-value concentrate 1/10th typical deleterious elements).
- Exciting exploration ground and known copper-gold mineralisation below the Abra lead-silver deposit.
- JV between Galena (60 percent) and Japan's largest zinc and lead smelter Toho Zinc (40 percent) underpins long mine life (10+ years) in an exciting new mineral province in Western Australia.
- Galena has a 10-year offtake agreement with IXM, one of the world’s largest base metals traders.
- Annual steady-state guidance:
- Mill throughput of more than 1.3 million tonnes per annum (Mtpa), producing +90,000 tonnes per annum lead and +550,000 ounces per annum silver.
- Annual average lead C1 direct cash cost of US$0.55 to US$0.65/lb.
- Annual average EBITDA (earnings before interest, taxes, depreciation, and amortization) of AU$90 million to $100 million.
- The Abra mine is located in the Gascoyne Region of Western Australia, home to one of the largest undeveloped lead deposits in the world and the highest-grade lead concentrate available, globally.
- The Abra mine carries a JORC mineral resource estimate (July 2023) of 16.2 million tons (Mt) at 7.3 percent lead and 19 grams per ton (g/t) silver in the indicated category, and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
- Abra has been named the world's lowest-cost primary lead mine by Wood Mackenzie, a leading mining research and consultancy group.
- US$110 million of project financing debt facilities from leading mining-specialist lending fund Taurus Funds Management.
- Galena's management team brings decades of experience in the mining and base metals industry and has a proven track record of success throughout all stages of exploration, from development to production.
Key Projects
Abra Mine
The Abra Mine is a 60:40 joint venture between Galena and Japanese lead producer Toho Zinc. It is a globally significant lead-silver project located in the Gascoyne region of Western Australia, between the towns of Newman and Meekatharra approximately 110 kilometers from the DeGrussa copper mine owned by Sandfire Resources (ASX:SFR).
Abra Mine Site Location
The Abra mine carries a total JORC mineral resource estimate published in July 2023 of 33.4 Mt at 7.1 percent lead and 17 g/t silver (5 percent Pb cut-off grade), which includes 0.3 Mt at 7.3 percent lead and 32 g/t silver in the measured category; 16.2 Mt at 7.3 percent lead and 19 g/t silver in the indicated category; and 16.9 Mt at 6.9 percent lead and 15 g/t silver in the inferred category.
All permits for the Abra project have been obtained from the appropriate Western Australian regulatory bodies. The project is also subject to an existing land use and heritage agreement with the Jidi Jidi Aboriginal Corporation. The Abra property is well-serviced by public roads and highways, and all the necessary infrastructure has been developed to transport lead-sulphide concentrates to the Port of Geraldton, Abra's primary export port.
Abra Processing Plant
A final investment decision to complete the Abra Project was made in June 2021 and construction was completed in December 2022, on time and on budget. Several important milestones were achieved in the March 2023 quarter, including the commissioning of the processing plant, first ore fed into the plant and first concentrate produced in January 2023.
The processing plant achieved in-specification concentrate production from the commencement of concentrate production and during the 2023 calendar year, 967,622 tons of ore was processed and 61,800 tons of lead concentrate was produced.
The company is currently undertaking detailed technical work to develop an updated production plan for 2024 production targets and guidance.
Jillawarra Project
Exploration and growth associated with the 100 percent Galena-owned Jillawarra Project covers a highly prospective elongated tenement package covering approximately 76 kilometers of continuous strike length and 508 square kilometers directly to the west of Abra.
The Jillawarra Project hosts many base metals prospects which have had limited shallow exploration work completed since the 1970s by various companies. The bulk of the exploration work was completed by Amoco, Geopeko, Apex Minerals and Abra Mining Limited. The work completed to date has identified several base metals, manganese and gold prospects, of which the Woodlands Complex, Quartzite Well, Manganese Range, Copper Chert, TP and 46-40 were subject to early-stage exploration. Most of the drilling completed within the Jillawarra Project investigated the first 100 to 200-meter depth which, based on recent knowledge of Abra, may not have reached the depths required.
The main prospective corridor within the Jillawarra Project lies within the margins of the Quartzite Well – Lyons River Fault zones which extend east-west along the entire tenement package. Also, the contact between the dolomitic sediments of Irregully Formation and the lower sedimentary unit, polymictic conglomerate, of the Kiangi Creek Formation represents an important marker for the occurrence of base metal mineralisation as seen at Abra.
The Woodlands Complex is an Australian scaled geophysical anomaly which represents a significant target area with the anomaly being 12 kilometers long and 10 kilometers wide. Limited work and technical evaluation have occurred at Woodlands which presents a great opportunity for Galena in the years to come. Ongoing geophysical and exploration drilling will occur concurrently with the development of Abra. The knowledge and understanding of Abra due to its development will provide a significant exploration advantage at Jillawarra.
Management Team
Tony James – Managing Director and CEO
Tony James is a mining engineer with over 30 years’ mine operating and project development experience predominantly in Western Australia. He also has previous experience at managing director level of three ASX-listed companies with two of those companies successfully guided through a merger and takeover process benefiting the shareholders. He has a strong mine operating background (examples being the Kanowna Belle gold mine and the Black Swan nickel mine) and a strong feasibility study / mine development background (examples being the Pillara zinc/lead mine and the Trident/Higginsville gold mine).
Adrian Byass – Non-executive Chairman
Adrian Byass has more than 25 years of experience in the mining industry both in listed and unlisted entities globally. He has served as non-executive and executive director of various listed and unlisted mining entities, which have successfully transitioned to production in bulk, precious and specialty metals around the world. He currently serves on the boards of ASX gold, base metals and lithium companies.
Neville Gardiner – Non-executive Director
Neville Gardiner has over 30 years of experience advising boards on mergers and acquisitions,
equity and debt capital markets, transaction structuring, capital allocation and complex
commercial arrangements. His career achievements include senior executive leadership
roles in Deloitte, Torridon Partners, and at Bank of America Merrill Lynch, where he spent five years as the head of its Australian Natural Resources Team. He also spent nine years with Macquarie Bank, where he had responsibility for its Western Australian Corporate Finance business and its Australian Oil and Gas Advisory business. He has a very strong experience and knowledge base associated with the resources sector in Australia.
Stewart Howe – Non-executive Director
Stewart Howe has more than 40 years of experience in the global resource industry including 18 years in mining. He was chief development officer at Zinifex, one of the world’s largest miners and smelters of lead and zinc. He led the spin-off of Zinifex’s smelters to create Nyrstar NV, and restarted the development of the Dugald River mine.
Craig Barnes – Chief Financial Officer
Craig Barnes has over 25 years of experience in senior finance and financial management within the mining industry and previously the financial services industry. He has considerable experience in project financing, mergers and acquisitions, joint ventures, treasury and implementation of accounting controls and systems.
Before joining Galena, he held the position of CFO of Paladin Energy for more than five years and was part of the team that successfully completed the company's capital restructuring in 2018. Prior to that, he was the chief financial officer of DRDGOLD (NYSE and JSE:DRD) and its affiliated subsidiaries for more than seven years.
Aida Tabakovic – Company Secretary
Aida Tabakovic has over 11 years of experience in the accounting profession, which includes financial accounting reporting, company secretarial services, ASX and ASIC compliance requirements. She has been involved in listing several junior exploration companies on the ASX and is currently company secretary for numerous ASX-listed companies
Abra Construction At 97% Complete – First Ore Stockpiled For January Processing
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) is pleased to announce that the construction progress at its Abra Base Metals Mine (“Abra” or the “Project”) has reached 97% complete as of 30 November 2022. Processing plant commissioning is progressing quickly with practical completion now expected in December 2022. Ore currently being mined from underground is being stockpiled in readiness for processing to begin in January 2023. Concentrate production will commence January 2023.
Managing Director, Tony James commented, “Record underground development in November with delivery of the first 9,000t of ore to the ROM pad along with successful plant commissioning to date puts Abra on the verge of a quick transition into production. Recruitment and other operational readiness activities are well advanced in preparation for January production”.
Figure 1 – First material being tipped into the crusher during commissioning (Photo 26 November).
Figure 2 – Crushing and screening plant commissioning (Photo 26 November).
The following link will show a short video of the Abra crusher commissioning. https://youtube.com/shorts/iSG58MiW_3o
Update on Abra Project progress
Overall progress continues as planned, with first concentrate production expected in Q1 CY2023, following ore commissioning in January 2023. Practical completion of the processing plant is now expected ahead of schedule in December 2022. The processing plant engineering, procurement and construction has reached 99% complete. Piping and electrical works have made significant progress and at the end of November were 96% and 92% complete, respectively. Mechanical items installation is almost complete at 99%.
In November, the first material was crushed and screened as part of the staged commissioning process. The crushing plant ran at design capacity and all commissioning milestones were successfully achieved. Dry commissioning also progressed in most areas of the plant including water and air services, tailings and concentrate thickening, grinding and reagents. Dry commissioning of the remaining areas will be completed in December. Water commissioning commenced in the tailings and concentrate thickening areas of the plant and the remaining areas are expected to be wet commissioned by the end of December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Abra Construction At 92% Complete – Reaches First Ore Underground
Managing Director, Tony James commented, “Reaching first ore underground is extremely rewarding for everyone involved in the project. To see for the first time what we have predicted and interpreted as the Abra orebody delivers a significant step forward for the project. Record development metres in October has taken the mine to the ore and we continue to establish key underground infrastructure with the completion of the 6m diameter surface rise that will be the primary return airway.”
Update on Abra Project progress
Overall progress continues to remain in line for Project completion, with first commercial production expected in Q1 CY2023. The processing plant engineering, procurement and construction has reached 97% complete. Structural steel has been completed in October and mechanical installations are at 96% complete. Piping at 80% and electrical at 71% complete continue to progress quickly.
Pacific Energy’s Hybrid 10MW LNG/solar power station completed full integration with the solar power supply, dry commissioning of the crushing and screening areas was completed in early November and first rock crushing is scheduled for late November. Grinding section dry and wet commissioning will commence in the second half of November and is planned for completion by mid-December. The remaining commissioning schedule is unchanged from the last update and is shown below in Table 1.
Mine decline development continued during October. A total of 311m was developed with the decline reaching 1,284mRL. October represents the highest individual development month since the first cut was fired in the portal in October 2021. The decline location is 266m vertically below the surface and is 29m vertically below the original top of the orebody (1313mRL). Underground drilling has now identified mineralisation as high as 1330mRL which is currently being reviewed for potential extraction. The 1300mRL ore access drive reached first ore in early November (See ASX announcement 14 November 2022).
The 1290mRL horizon is a significant work area for development as underground infrastructure for pumping, ventilation, second means of egress and power are all distributed from this level outwards into the development network. All this infrastructure is currently being established and will result in an increased focus on lateral development and lower decline development in the short term.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Abra Mine Reaches Ore
Managing Director, Tony James commented, “Reaching first ore underground delivers another significant step in bringing the Abra project on-line. The first cut in the portal was taken in October 2021, and now 2,949m later and 250m below surface we have reached the orebody. Special acknowledgement needs to be given to Byrnecut and the Abra mining team for achieving this milestone, and everyone involved should be very proud of what they have achieved. It’s also important to acknowledge Pacific Energy and the Abra project team for the faultless commissioning of the power station and completing the full integration of the solar system”.
First ore heading underground has been reached on the 1300mRL access drive. Project to date (PTD) underground development to this point in time was 2,949m and first ore is 250m below the surface. Figure 2 below shows the mine development completed to the end of October 2022. The second underground development Jumbo has commenced at Abra in line with multiple headings being established and underground development is expected to increase accordingly. Underground grade control drilling continues and the 6m diameter return airway shaft drilling has been completed in November through to the surface.
On 20 October, the site changed over to mains power station with the commissioning of the Pacific Energy hybrid 10MW gas/solar/BESS power station. On the 10 November the system was fully integrated with the successful integration of the 6MW solar panels. The mine and general site infrastructure is running on mains power and plant commissioning to date includes the energisation of the crushing/screening sections.
Click here for the full ASX Release
This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Galena Mining Activities Report For Quarter Ended 30 September 2022
GALENA MINING LTD. (“Galena” or the “Company”) (ASX: G1A) reports on its activities for the quarter ended 30 September 2022 (the “Quarter”), primarily focused on construction of its 60%- owned Abra Base Metals Mine (“Abra” or the “Project”) located in the Gascoyne region of Western Australia.
Highlights
- Abra Project 87% complete at end of the Quarter (14% of construction works completed during the Quarter). Project focus remains on underground access to the orebody and completion of the processing plant and remaining surface infrastructure.
- Underground development achieved 771m advance during the Quarter remaining on schedule with the decline reaching 1,300mRL. The decline is 13m below the top of the orebody and 250m below the surface.
- Overall processing plant construction has reached 93% complete. Plant engineering and drafting work is 100% complete and site construction work is 90% complete.
- All key overseas supplied equipment has arrived on site.
- Completed oversubscribed placement to raise A$17.2M.
- US$25M final debt drawdown was completed under the Taurus Debt Facilities.
- Cash balance at Quarter-end A$60.5M.
ABRA BASE METALS MINE (60%-OWNED)
Abra comprises a granted Mining Lease, M52/0776 and surrounding Exploration Licence E52/1455, together with several co-located General Purpose and Miscellaneous Leases. The Project is 100% owned by Abra Mining Pty Limited (“AMPL” the Abra Project joint-venture entity), which in turn is 60% owned by Galena, with the remainder owned by Toho Zinc Co., Ltd. (“Toho”) of Japan.
Abra is fully permitted and under construction. First production of its high-value, high-grade lead- silver concentrate is currently scheduled for the first quarter of 2023 calendar-year.
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This article includes content from Galena Mining, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Appointment of Dr Jason Berton as Non-Executive Chairman
Eastern Metals Limited (ASX: EMS) (“Eastern Metals” or “the Company”) is pleased to announce the appointment of experienced mining executive, Dr Jason Berton, as the Company’s Non-Executive Chairman. Dr Berton’s appointment follows the recent retirement of Mr Robert Duffin from the Board1.
Dr Berton has been on the Board of Eastern Metals as a Non-Executive Director since before its listing in October 2021, and is a seasoned, well-credentialled corporate director who brings extensive entrepreneurial, corporate and technical skills to the Company. He is currently the Managing Director of PolarX Ltd, where he played a major role in negotiating the acquisition of key tenements in North America, and a former Managing Director of Estrella Resources Ltd. He is also a Non-Executive Director of Lithium Plus Minerals Ltd.
Dr Berton’s honours thesis focused on the geology of the Lake Cargelligo area in New South Wales, close to the Company’s Cobar Project, and his doctorate was in structural geology. He commenced his career at the Plutonic Gold Mine in Western Australia, before moving to BHP Billiton in South Australia, where he worked on the Olympic Dam Mine expansion project. He has also previously worked with SRK, an international firm of consulting geologists, and spent two years in private equity assessing resource sector investment opportunities.
This appointment is a strategic step for the growth of Eastern Metals, and the Company will benefit from Dr Berton’s continuity as a Board member and as Chairman.
1 Eastern Metals Ltd (ASX:EMS), ASX Announcement 15 October 2024, ‘Retirement of Mr Robert Duffin as a Director’.
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This article includes content from Eastern Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Silver Tiger Announces PFS With NPV of US$222M for the Stockwork Zone of the El Tigre Silver-Gold Project, Sonora, Mexico
Silver Tiger Metals Inc. (TSXV:SLVR)(OTCQX:SLVTF) ("Silver Tiger" or the "Corporation") is pleased to announce a Preliminary Feasibility Study(" PFS") for its 100% owned, silver-gold El Tigre Project (the "Project" or "El Tigre") located in Sonora, Mexico. The PFS is focused on the conventional open pit mining economics of the Stockwork Mineralization Zone defined in the updated Mineral Resource Estimate ("MRE") (Figure 1). The updated MRE also contains an Out-of-Pit Mineral Resource that Silver Tiger plans to study in a Preliminary Economic Assessment in H1-2025.
Highlights of the PFS are as follows (all figures in US dollars unless otherwise stated):
- After-Tax net present value ("NPV") (using a discount rate of 5%) of US$222 million with an After-Tax IRR of 40.0% and Payback Period of 2.0 years (Base Case);
- 10-year mine life recovering a total of 43 million payable silver equivalent ounces ("AgEq") or 510 thousand payable gold equivalent ounces ("AuEq"), consisting of 9 million silver ounces and 408 thousand gold ounces;
- Total Project undiscounted after-tax cash flow of US$318 million;
- Initial capital costs of $86.8 million, which includes $9.3 million of contingency costs, over an expected 18-month build, expansion capital of $20.1 million in year 3 and sustaining capital costs of $6.2 million over the life of mine ("LOM");
- Average LOM operating cash costs of $973/oz AuEq, and all in sustaining costs ("AISC") of $1,214/oz AuEq or Average LOM operating cash costs of $12/oz AgEq, and all in sustaining costs ("AISC") of $14/oz AgEq;
- Average annual production of approximately 4.8 million AgEq oz or 56.7 thousand AuEq oz; and
- Three (3) years of production in the Proven category in the Phase 1 Starter Pit.
Glenn Jessome, President & CEO stated "We are very pleased with the work completed by our consultants and our technical team on the PFS for the open pit at El Tigre. The open pit delivers robust economics with an NPV of US$222 million, an initial capital expenditure of US$87 million, and a payback of 2 years with 3 years of production in the Proven category in the ‘Starter Pit using metal prices greatly discounted to the spot price." Mr. Jessome continued "This is a pivotal point for our Company as we now have a clear path forward to making a construction decision for the open pit. The open pit has good grade (48 g/t AgEq), low strip ratio (1.7:1), and wide benches (~150 m) with mineralization at surface. With such positive parameters and with our VP of Operations Francisco Albelais, a career expert in the construction of large heap leach mines in Mexico, we are confident we will be able to advance the Project very quickly." Mr. Jessome concluded "The open pit is only one component of El Tigre as we have also today delivered over 113 Mozs AgEq in the underground Mineral Resource Estimate and disclosed an Exploration Target establishing 10 to 12 million tonnes at 225 to 265 g/t AgEq for 73 to 100 Moz AgEq. This disclosed ‘near-mine' Mineral Resource and potential, when coupled with the fact that only 30% of this prolific Property has been explored, shows the value of the El Tigre Project. The Company will also continue to work on this substantial underground Mineral Resource by starting underground drilling immediately, and plan to release an underground PEA in H1-2025."
Highlights of the updated Mineral Resource
- Increased confidence in MRE, with increase of 132% in Total Measured & Indicated Silver Equivalent ("AgEq") Ounces from September 2023 MRE, with 59% increase in Measured & Indicated AgEq grade;
- Total Measured & Indicated Mineral Resource of 200 Moz AgEq grading 92 g/t AgEq contained in 68.0 million tonnes ("Mt");
- Inferred Mineral Resource of 84 Moz AgEq grading 180 g/t AgEq contained in 14.5 Mt; and
- Inclusion of Out-of-Pit Mineral Resource of 5.3 Mt Measured & Indicated Mineral Resource at grade of 255 g/t AgEq and 10.1 Mt Inferred Mineral Resource grading 216 g/t AgEq.
Preliminary Feasibility Summary
The PFS was prepared by independent consultants P&E Mining Consultants Inc. ("P&E"), with metallurgical test work completed by McClelland Laboratories, Inc. - Sparks, Nevada, process plant design and costing by D.E.N.M. Engineering Ltd., and environmental and permitting led by CIMA Mexico. Following are tables and figures showing key assumptions, results, and sensitivities.
Table 1: El Tigre PFS Key Economic Assumptions and Results
- Grades shown are LOM average process plant feed grades include only OP sources. Mining losses and external dilution of 3.7% were incorporated in the mining schedule.
- Column testing indicated both variable gold and silver recovery for the oxide material vs the previously reported non-discounted PEA (83% and 64%) at a 3/8-in crush size. In the process design and financial model for the PFS process design and financial model recoveries have been discounted by 3% for leaching in the field versus optimum conditions in the laboratory and shown accordingly. The presence of transition and sulfide zones has affected both the gold and silver recoveries and are shown as separate recoveries. These are reasonable and appropriate for use in this PFS design and economic analysis.
Figure 2: El Tigre Cash Flow Profile by Year
Figure 2 above highlights the post-tax cash flows of US$318 million associated with the El Tigre Project. The economics of the Project have been evaluated based on the base case scenario $26/oz silver price and gold price of $2,150/oz. As illustrated in the following sensitivity tables, the Project remains robust even at lower commodity prices or with higher costs (Tables 2 and 3).
Table 2 - El Tigre PFS Gold and Silver Price Sensitivities
Table 3 - El Tigre PFS Operating Cost and Capital Cost Sensitivities
Capital and Operating Costs
The El Tigre Project has been envisioned as an open pit mining operation starting at a processing rate of 7,500 tonnes per day for years 1-3 and then ramping up to 15,000 tonnes per day by year 4 after 1 year construction for ramp up in year 3.
The process plant is comprised of conventional three (3) stage crushing to an optimum -3/8 inch (10 mm) crush size. The crushed material will be conveyed and loaded on the lined pad areas. A series of pumping and piping will allow irrigation of the stacked heap material and subsequent production of pregnant solution to flow to the respective impoundment pond. The pregnant solution will be pumped to the recovery facility consisting of the Merrill - Crowe process (zinc precipitation) and refinery to produce the gold and silver dore for marketing. The process barren solution will be recycled (with NaCN addition) and pumped back to the heap for further leaching. The process plant location will be adjacent to the pad and pond infrastructure area.
Water supply to the process plant is provided by pumping from nearby Bavispe River to the process area water distribution system and high voltage grid power will be installed by the local utility to supply process and infrastructure electrical requirements. Expansion capital includes the cost to increase the process plant capacity from 7,500 tonnes per day to 15,000 tonnes per day as noted in Year 4 of operation.
Table 4 - LOM Capital Cost Estimate
Mining
Open pit mining will be contracted and carried out by drill and blast followed by conventional loading and truck haulage to the waste rock storage facilities and the process plant.
Metallurgy
A detailed metallurgical test program was carried out by McClelland Laboratories, Inc., Sparks, Nevada on six (6) El Tigre starter pit samples. The program included crushing, coarse bottle rolls, and column testing at both 80% passing 3/8 inch and 1/2 inch (10 and 12 mm) crush size for five (5) of the six samples. One low grade sample was only crushed to 80% passing 1-1/2 inch (38 mm) as an indication of low grade leachability. The leach samples comprised of drill core sample representing the starter pit and during the testing process it became apparent that the presence of transition and sulfide zones are in the starter pit thus affecting the base design recoveries. This variable test program (column and coarse bottle roll) estimated oxide average gold and silver respective metallurgical recoveries of 86% Au and 48% Ag at the 3/8 inch (10 mm) crush. The transition and sulfide zones had estimated recoveries of 59% Au and 43% Ag. Further percolation testing also confirmed no requirement for agglomeration of the crushed material is required prior to loading on the leach pad.
Mineral Resource Estimate
The basis for the PFS is the Mineral Resource Estimate completed by P&E for the El Tigre Project located in Sonora State, Mexico, which has an effective date of October 22, 2024, with an NI 43-101 Technical Report to be filed within 45 days of this news release. A summary of the Mineral Resource Estimate is provided in Table 5.
Table 5 - Updated Mineral Resource Estimate October 2024
- Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
- The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
- The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
- Historically mined areas were depleted from the Mineral Resource model.
- Prices used are US$2,000/oz Au, US$25/oz Ag, US$4.00/lb Cu, US$0.95 lb Pb and US$1.25/lb Zn.
- The pit-constrained AuEq respective oxide and sulfide cut-off grades of 0.10 and 0.15 g/t were derived from 40% Ag and 83% Au oxide process recovery, 40% Ag and 56% Au sulfide process recovery, US$5.25/tonne process and G&A cost. The constraining pit optimization parameters were $2.00/t mining cost and 45-degree pit slopes. Regarding recoveries, the PFS recovery for Ag in oxide material was increased to 45% after a more detailed study was complete after the MRE was finalized.
- The out-of-pit AuEq cut-off grade of 1.50 g/t was derived 93% Ag and 89% Au process recovery, US$28/tonne process and G&A cost, and a $60/tonne mining cost. The out-of-pit Mineral Resource grade blocks were quantified above the 1.50 g/t AuEq cut-off, below the constraining pit shell and within the constraining mineralized wireframes. Out-of-Pit Mineral Resources are restricted to the El Tigre Main Veins, which exhibit historical continuity and reasonable potential for extraction by cut and fill and long hole mining methods.
- The Low-Grade Stockpile AuEq cut-off grade of 0.54 g/t was derived from 85% Ag and 85% Au recovery US$28/tonne process and G&A cost, and a $2/tonne mining cost.
- The Tailings AuEq cut-off grade of 0.55 g/t was derived from 82% Ag and 83% Au process recovery, US$28.72/tonne process and G&A cost.
- AgEq and AuEq were calculated at an Ag/Au ratio of 166:1 (oxide) and 122:1 (sulfide) for pit-constrained Mineral Resources.
- AgEq and AuEq were calculated at an Ag/Au ratio of 77:1 for out-of-pit Mineral Resources.
- AgEq and AuEq were calculated at an Ag/Au ratio of 80:1 for Low-Grade Stockpile Mineral Resources.
- AgEq and AuEq were calculated at an Ag/Au ratio of 79:1 for Tailings Mineral Resources
- Totals may not sum due to rounding.
Mineral Resource Estimate Methodology - El Tigre Project
The El Tigre Project includes the El Tigre Veins, El Tigre Tailings and the El Tigre Low-Grade Stockpile.
The databases used for this Mineral Resource update contain a total of 20,149 collar records that contribute directly to the Mineral Resource Estimate and includes collar, survey, assay, lithology and bulk density data. Assay data includes Au g/t, Ag g/t, Cu %, Pb % and Zn % grades. The drilling extends approximately five km along strike.
P&E Mining Consultants Inc. ("P&E") collaborated with Silver Tiger personnel to develop the mineralization models, grade estimates, and reporting criteria for the Mineral Resources at El Tigre. Mineralized domains were initially developed by Silver Tiger and were reviewed and modified by P&E. A total of twenty-seven individual mineralized domains have been identified through drilling and surface sampling. Interpreted mineralization wireframes were developed by Silver Tiger geologists for the El Tigre Veins based on logged drill hole lithology, assay grades and historical records. Silver Tiger identified continuous zones of mineralization from assay grades equal to or greater than 0.30 g/t AuEq with observed continuity along strike and down-dip, using a calculated Ag:Au equivalent factor of 75:1. The selected intervals include lower grade material where necessary to maintain wireframe continuity between drill holes.
P&E developed mineralized domains for the El Tigre Low-Grade Stockpile and the El Tigre Tailings based on lithological logging and LiDAR surface topography.
Assay samples were composited to either 1.00 m or 1.50 m for the vein domains. No compositing was used for the Low-Grade Stockpiles and Tailings models. Composites were capped prior to grade estimation based on the analysis of individual composite log-probability distributions.
A total of 5,542 bulk density values were taken by Silver Tiger from drill hole core. Mineralized bulk density values were assigned for each of the El Tigre Main Veins based on the median vein measurement. For the El Tigre North Veins, a bulk density of 2.65 t/m 3 was assigned for the veins and a value of 2.42 t/m 3 was assigned for the Protectora Halo. For the Low-Grade Stockpile a value of 1.60 t/m 3 was assigned, and for the Tailings a value of 1.39 t/m 3 was used based on 37 nuclear density measurements.
Vein block grades for gold and silver were estimated by Inverse Distance Cubed ("ID3") interpolation of capped composites using a minimum of four and a maximum of twelve composites. Vein block grades for copper, lead and zinc were estimated by Inverse Distance Squared ("ID2") interpolation of capped composites using a minimum of four and a maximum of twelve composites.
Nearest-Neighbour grade interpolation was used for the Low-Grade Stockpiles, and for the Tailings, block grades were estimated by ID2 estimation of capped assays using a minimum of four and a maximum of twelve samples.
For the El Tigre Main Veins, blocks within 30 m of three or more drill holes/channels were classified as Measured Mineral Resources, and blocks within 60 m of three or more drill holes/channels were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
For the North Veins, blocks interpolated by at least two drill holes within 50 m were classified as Indicated Mineral Resources. Blocks interpolated by at least one drill hole within a maximum distance of 200 m were classified as Inferred Mineral Resources.
For the Low-Grade Stockpiles, blocks within 15 m of two or more drill holes were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
For the Tailings, blocks within 30 m of three or more auger or core drill holes were classified as Measured Mineral Resources. Blocks within 60 m of two or more auger/drill holes/pits or trenches were classified as Indicated Mineral Resources. All additional estimated blocks were classified as Inferred Mineral Resources.
P&E considers that the block model Mineral Resource Estimates and Mineral Resource classification represent a reasonable estimation of the global mineral resources for the El Tigre Project with regard to compliance with generally accepted industry standards and guidelines, the methodology used for estimation, the classification criteria used and the actual implementation of the methodology in terms of Mineral Resource estimation and reporting. The Mineral Resources have been estimated in conformity with the requirements of the CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines as required by the Canadian Securities Administrators' National Instrument 43-101. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Table 6: AuEq Cut-off Sensitivities - ET Pit-Constrained Mineral Resource
Table 7: AuEq Cut-off Sensitivities - ET Out-of-Pit Mineral Resource
Exploration Potential
Exploration potential at the El Tigre Project is substantial with prospective areas for exploration both down dip and along strike with the disclosed Exploration Target establishing 10 to 12 million tonnes at 225 to 265 g/t AgEq for 73 to 100 Moz AgEq.
Figure 3-Exploration Potential released October 2024
Surface Rights Agreement
The Company owns royalty-free, 100% of the 6,238 hectares land-package encompassing the footprint of proposed mining operation with no Ejido presence. In addition, the Company controls 28,414 hectares of Concessions to conduct exploration along a 25 km strike length of the Sierra Madres.
Underground Preliminary Economic Assessment
The Company will also continue to work on this substantial, permitted underground Mineral Resource Estimate and advance this towards a Preliminary Economic Assessment by H1-2025. The Measured and Indicated Out-of-Pit Mineral Resource at El Tigre is 44 Moz AgEq grading 255 g/t AgEq contained in 5.3 Mt and the Inferred Mineral Resource is 70 Moz AgEq grading 216 g/t AgEq contained in 10.1 Mt.
Qualified Persons
Mineral Resource Estimate: Dave Duncan P. Geo. VP Exploration of Silver Tiger, Charles Spath P.Geo., VP of Technical Services of Silver Tiger, and Fred Brown, P.Geo RM-SME Senior Associate Geologist of P&E Mining Consultants, and Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
Preliminary Feasibility Study: Andrew Bradfield P. Eng of P&E Mining Consultants, Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants and David J. Salari, P. Eng. of D.E.N.M. Engineering Ltd are the Qualified Persons as defined under National Instrument 43-101. All Qualified Persons have reviewed and approved the scientific and technical information in this press release.
A Technical Report is being prepared on the Preliminary Feasibility Study in accordance with National Instrument 43-101 ("NI-43-101"), and will be available on the Company's website and SEDAR within 45 days of the date of this news release. The effective date of this Preliminary Feasibility Study is October 22, 2024.
VRIFY Slide Deck and 3D Presentation - Silver Tiger's El Tigre Project
VRIFY is a platform being used by companies to communicate with investors using 360° virtual tours of remote mining assets, 3D models and interactive presentations. VRIFY can be accessed by website and with the VRIFY iOS and Android apps.
Access the Silver Tiger Metals Inc. Company Profile on VRIFY at: https://vrify.com
The VRIFY Slide Deck and 3D Presentation for Silver Tiger Metals Inc. can be viewed at: https://vrify.com/explore/decks/492 and on the Corporation's website at: www.silvertigermetals.com.
About Silver Tiger and the El Tigre Historic Mine District
Silver Tiger Metals Inc. is a Canadian company whose management has more than 25 years' experience discovering, financing and building large epithermal silver projects in Mexico. Silver Tiger's 100% owned 28,414 hectare Historic El Tigre Mining District is located in Sonora, Mexico. Principled environmental, social and governance practices are core priorities at Silver Tiger.
The El Tigre historic mine district is located in Sonora, Mexico and lies at the northern end of the Sierra Madre silver and gold belt which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end. In 1896, gold was first discovered on the property in the Gold Hill area and mining started with the Brown Shaft in 1903. The focus soon changed to mining high-grade silver veins in the area with production coming from 3 parallel veins the El Tigre Vein, the Seitz Kelley Vein and the Sooy Vein. Underground mining on the middle El Tigre Vein extended 1,450 metres along strike and was mined on 14 levels to a depth of approximately 450 metres. The Seitz Kelley Vein was mined along strike for 1 kilometre to a depth of approximately 200 metres. The Sooy Vein was only mined along strike for 250 metres to a depth of approximately 150 metres. Mining abruptly stopped on all 3 of these veins when the price of silver collapsed to less than 20¢ per ounce with the onset of the Great Depression. By the time the mine closed in 1930, it is reported to have produced a total of 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tons (Craig, 2012). The average grade mined during this period was over 2 kilograms silver equivalent per ton.
For further information, please contact:
Glenn Jessome
President and CEO
902 492 0298
jessome@silvertigermetals.com
CAUTIONARY STATEMENT:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, Mineral Resources and Reserves, the ability to convert Inferred Mineral Resources to Indicated Mineral Resources, the ability to complete future drilling programs and infill sampling, the ability to extend Mineral Resource blocks, the similarity of mineralization at El Tigre to Delores, Santa Elena and Chispas, exploration results, and future plans and objectives of Silver Tiger, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements are frequently characterized by words such as "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", "goals", "objective" and "outlook" and other similar words. Although Silver Tiger believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Silver Tiger's expectations include risks and uncertainties related to exploration, development, operations, commodity prices and global financial volatility, risk and uncertainties of operating in a foreign jurisdiction as well as additional risks described from time to time in the filings made by Silver Tiger with securities regulators.
September 2024 Quarterly Activities Report
New targets identified at Browns Reef, the commencement of drilling, and co-funding grant awarded for IP survey at Arunta
Eastern Metals Limited (ASX: EMS) (“Eastern Metals” or “the Company”) is pleased to present its Quarterly Report for the period ending 30 September 2024.
HIGHLIGHTS
Cobar Project, NSW
- Reverse Circulation (RC) drilling completed to test the new, high priority ‘Kelpie Hill’ and ‘Windmill Dam’ targets at the Cobar Project.
- Diamond tails completed on two RC holes, one each at Kelpie Hill and Windmill Dam.
- Diamond hole at Evergreen completed to test for an extension of the mineralisation along strike to the north.
- Planning underway for an Induced Polarisation (IP) survey to ‘see through’ the younger Tertiary basalt cover, potentially highlighting new target areas for drilling.
Arunta Project, NT
- Induced Polarisation (IP) survey completed at the Arunta Project to generate drill targets along strike from the existing Home of Bullion deposit.
- The area offers strong potential for the discovery of additional high-grade, structurally controlled Volcanogenic Massive Sulphide-style lodes along a magnetic high trend.
- Results from the IP survey will assist with prioritising targets for future drilling.
- Survey supported by a co-funding grant for up to $100,000 through the NT’s Geophysics and Drilling Collaborations Program, Round 17, under the ‘Innovative Targeting’ category.
- Eastern Metals was successful in its application for the Australian Government's Junior Minerals Exploration Incentive scheme, receiving an allocation of $910,750 in refundable tax offsets and franking credits that are available for potential distribution to Eligible Shareholders for the 2024-25 income tax year.
Eastern Metals CEO, Ley Kingdom, said: “The September Quarter has been a busy period for Eastern Metals, with exploration programs underway at both our Cobar Project in NSW and Arunta Project in the Northern Territory.
“RC drilling at the Cobar Project commenced in early August, initially targeting the new Kelpie Hill and Windmill Dam targets, both of which lie along the highly prospective Woorara Fault and returned strongly anomalous copper, lead, zinc and silver results from rock chip sampling.
“Drilling at Cobar next moved to the high-grade Evergreen prospect, where previous drilling has returned intercepts including 13m @ 5.4% Zn, 2.3% Pb, 0.14% Cu, 11.5g/t Ag and 0.9g/t Au from 225m.
“At the Arunta Project, an Induced Polarisation survey commenced in mid-September, with results expected to enhance our understanding of the geologically complex Home of Bullion deposit and assess the potential for new discoveries within the Bullion Schist host rock along strike from the deposit.
“We look forward to another busy period at both Cobar and Arunta during the December 2024 Quarter.”
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This article includes content from Eastern Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Spectacular High-Grade Hits Continue to Extend Mineralisation Outside Resource
Latest results to underpin the Resource update proposed for next quarter
Andean Silver Limited (ASX: ASL) is pleased to announce further spectacular drilling results which will form part of the next Resource update at its Cerro Bayo Silver-Gold Project in Chile.
- Latest drilling has delivered more bonanza-grade intersections, continuing to expand the Pegaso 7 and Cristal extensions of mineralisation at Cerro Bayo
- New drill assays from Pegaso 7 include:
- 3.2m @ 864g/t AgEq (511g/t Ag & 4.3g/t Au)
- Incl. 1.4m @ 1,871g/t AgEq (1,140g/t Ag and 8.8g/t Au)
- 5.2m @ 259g/t AgEq (115g/t Ag & 1.7g/t Au)
- Incl. 1.5m @ 582g/t AgEq (235g/t Ag & 4.2g/t Au)
- 0.4m @ 1,683g/t AgEq (1,099g/t Ag & 7.0g/t Au)
- 3.2m @ 864g/t AgEq (511g/t Ag & 4.3g/t Au)
- At Cristal, drilling has defined the target horizon of mineralisation to an ~80m vertical extent that incorporates previous bonanza-grade veins observed on surface
- New drill assays from Cristal include:
- 4.5m @ 584g/t AgEq (380g/t Ag & 2.5g/t Au)
- 2.6m @ 600g/t AgEq (120g/t Ag & 5.8g/t Au)
- 3.4m @ 478g/t AgEq (13g/t Ag & 5.6g/t Au)
- Incl. 1.2m @ 1,252g/t AgEq (27g/t Ag & 14.8g/t Au)
- Drilling also continues to define a large halo surrounding the Cristal veins with results of:
- 153.8m @ 62g/t AgEq (8g/t Ag & 0.6g/t Au)
- A third drill rig to be mobilised to site in November to begin targeting extensions of the main lodes within the Laguna Verde Mine Complex at Cerro Bayo
Andean Chief Executive Tim Laneyrie said: “These are spectacular results, not just because of the bonanza grades but also because of the significant extensions they add to the known mineralisation.
“These results also provide more evidence of the compelling exploration upside at Cerro Bayo with the mineralisation still open in so many areas and vast vein systems yet to be tested.
“Our ongoing drilling at both the Pegaso 7 and Cristal targets has yielded impressive results, further refining our geological model of the high-grade mineralisation controls. These findings not only underscore the quality of the mineralisation but also enhance our understanding of the core high-grade zones within the Pegaso 7 veining corridor.
“Similarly, our initial shallow drilling at the Cristal target, being the first in 10 years, has been equally encouraging, highlighting key lithological controls to the high-grade mineralisation currently defined over an approximately 80m vertical interval. This aligns with previous interpretations of super high- grade veins throughout the Cristal project.
“To further capitalise on this momentum, we are mobilising a third drill rig to the site in November. This will target the main lodes within the Laguna Verde Mine Complex through extensional drilling.
“This strategic expansion of our drilling program is aimed at maximising our discovery rate and driving substantial resource growth”.
Figure 1. Hole CBD164 showing mineralised intercept 4.5m @ 584g/t AgEq from 7.1m at the Cristal West structure.
Drilling and Exploration Update
The drilling at Pegaso 7 and Cristal continues to expand and refine the key mineralising controls within the broader systems. The current drill rig at Cristal has a further 1,200m of drilling planned as part of the initial scout drilling program and is targeting 40m above the previous drill fan. Pegaso 7 drilling has a further 3,500m of drilling remaining on the current program.
Cristal Prospect
The main Cristal structures have been intercepted up to 80m below the outcropping veins (Figure 2) within the prospective Temer Formation. The Cristal Prospect is interpreted to represent a highly prospective juncture of a number of major district scale structures (Figure 4) that control the mineralised orientations at the LVMC including the Coyita, Dagny, Yasna deposits and resource areas.
The current drilling at Cristal is ~40m above the previously drilled central structure. This drilling has intercepted a previous unknown part of the Cristal West structure (see Figures 1 and 3) sitting ~5m below the surface and below the historic Cristal west underground workings. This vein extension was unknown as it has been covered by a 1m thick backfill layer for >20 years.
Click here for the full ASX Release
This article includes content from Andean Silver, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
46% Antimony (Sb) & 1,022 g/t Silver Assay Results at the Mojave Project
Locksley Resources Limited (ASX:LKY) (“Locksley” or “the Company”) is pleased to announce high-grade antimony grades up to 46% Sb from the recent rock chip sampling program. Eighteen (18) rock chips returned grades in excess of 1.4% Sb with eight (8) returning grades over 17% Sb. Since mid-2023, Locksley Resources has completed four surface sampling programs, mainly focused on detecting rare earth minerals at the Mojave Project, CA, located 45 minutes from Las Vegas. The most recent surface sampling program focused on the Desert Antimony Mine and potential for high-grade antimony mineralisation to be present along strike of the historically mined mineralised structures in an east-west and north-south direction. The sampling program revealed polymetallic mineralisation along strike of the mineralised structures suggesting a zoned reduced intrusive related system (RIRS).
Highlights:
- Extremely high-grade rock chip assays up to 46% antimony received
- 8 rock chip assays returned values over 17% antimony with over 18 of the returned assays over 1.4% antimony
- High-grade antimony is represented by historic workings developed on the quartz-calcite-stibnite veins
- Drill targeting and drilling approval application being prepared for submission to the Bureau of Land Management, alongside the Plan of Operations & Environmental Assessment Plan
- Antimony is listed as a critical mineral by the U.S. Department of Interior as it is used in a wide variety of military, energy, industrial and consumer applications
- U.S. has very limited domestic mined sources of Antimony and China has restricted export of antimony
- Funding opportunities for exploration through the Department of Défense (DoD) is being investigated with the next solicitation for funding through the Défense Industrial Base Consortium (DIBC) being considered
Figure 1: Desert Antimony Mine Area
The Company is preparing drilling targets post receiving the recent high-grade antimony results and has commenced work to submit a drilling approval application to the U.S. Bureau of Land Management, which includes a comprehensive Plan of Operations and Environmental Assessment Plan. As antimony is designated a critical mineral by the U.S. Department of Interior, due to its widespread use in military, energy, industrial, and consumer sectors, domestic supply is crucial for national security and economic stability. With China recently restricting global exports, the U.S. faces a significant supply gap, highlighting the importance Locksley’s antimony asset could play if it can be commercialised. The Company is exploring funding opportunities through the Department of Defense, with particular interest in the next Defense Industrial Base Consortium (DIBC) solicitation to support the advancement of the Mojave Desert Antimony project.
Locksley Resources Limited Managing Director, Steve Woodham commented:
“The high-grade results from the follow-up sampling around the Desert Antimony Mine have exceeded expectations and highlights how well mineralised the property is, and not just for REEs. The surface strike length based on the recent high-grade results looks to be over 400m which has us very encouraged and looking forward to commencing a drill program post receiving the necessary approvals”.
We certainly look forward to sharing the outcomes of this review and unlocking value for our shareholders.”
Click here for the full ASX Release
This article includes content from Locksley Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
5 Silver Stocks With Dividends (Updated 2024)
Silver is a notoriously volatile metal capable of wide price swings in either direction.
However, the metal is also seen by many as a safe-haven investment and a hedge against inflation. While investing in silver bullion is one popular method for gaining exposure, silver-mining companies offer another route.
Silver-mining companies with strong balance sheets and experienced management teams are able to capitalize on high silver prices and weather the storm of low silver prices. Some of the most profitable silver-mining companies are even able to offer investors dividends, which may be appealing for those who are in it for the long haul.
Dividends are especially attractive in the often-unstable mining sector because they give investors a degree of security — if a company pays a dividend, it generally feels that it has the cash to do so, and believes it will have the ongoing profits it needs to keep those payments coming.
There are several dividend-paying silver stocks for investors to choose from. The companies below are ordered by dividend yield, and all data is current as of October 24, 2024.
1. Pan American Silver (TSX:PAAS,NYSE:PAAS)
TSX market cap: C$12.84 billion
NYSE market cap: US$9.19 billion
Dividend yield: 1.54 percent
Founded by Ross Beaty in 1994, Pan American Silver currently operates four primary silver mines, which are located in Mexico, Peru, Bolivia and Argentina. It also has a portfolio of gold mines that also contribute silver production.
Last year, Pan American Silver completed the successful acquisition of Yamana Gold, bringing the latter's four producing Latin American precious metals assets into Pan American's portfolio.
The company’s 2023 silver production came in at 20.4 million ounces alongside 882,900 ounces of gold. For Q1 and Q2 of this year, output reached a combined total of 9.58 million ounces of silver and 225,700 ounces of gold. Production is expected to increase in the second half of the year.
The highest dividend Pan American has ever paid is US$0.125 per share, and it was able to pay a dividend of that amount a noteworthy nine times in a row between March 18, 2013, and March 13, 2015. The silver stock paid its most recent quarterly dividend on August 30, 2024, at US$0.10 per share.
2. Fresnillo (LSE:FRES,OTC Pink:FNLPF)
LSE market cap:GBP 3.82 billion
Dividend yield: 1.11 percent
Major miner Fresnillo bills itself as the world’s leading primary silver producer and a significant gold producer. Its precious metals operations are all located in Mexico, include the Fresnillo mine, which is the largest primary silver mine in the world. It also holds a portfolio of exploration prospects in the country and silver streaming contracts.
Fresnillo's attributable output from its mines for the full 2023 year came to 53.5 million ounces of silver and 610,600 ounces of gold. The company's reported mine production for the the first three quarters of the year comes to 41 million ounces of silver and 427,631 ounces of gold.
This silver stock pays two dividends per year, and its dividend policy takes business profitability and underlying earnings growth into account, as well as capital requirements and cash flow. Dividends from the company are paid in pounds sterling unless shareholders elect to be paid in US dollars. Fresnillo paid its 2024 interim dividend of 5.0063 pence, or US$0.064, on September 17, 2024.
3. Wheaton Precious Metals (TSX:WPM,NYSE:WPM)
TSX market cap: C$42.34 billion
NYSE market cap: US$30.45 billion
Dividend yield: 0.88 percent
Wheaton Precious Metals is a well-known name in the silver space largely because of its business model — it is the world’s biggest precious metals streaming company.
Streaming companies operate differently from miners, making upfront payments to a variety of metals companies in order to gain the right to purchase all or a portion of their metal production at a low, fixed cost.
The company currently has streaming agreements in place for 18 operating mines and 27 development-stage projects. It is interested in companies operating in politically stable jurisdictions, and states that its value should rise with the price of silver and gold. As a result, Wheaton sees itself offering investors multiple benefits while reducing many of the downside risks that traditional miners face.
Wheaton has paid out a dividend US$0.15 per share three times so far in 2024, with the latest on September 4, 2024.
4. Silvercorp Metals (TSX:SVM,NYSE:SVM)
TSX market cap: C$1.43 billion
NYSE market cap: US$1.02 billion
Dividend yield: 0.52 percent
Silvercorp Metals operates the Gaocheng and Ying silver-mining operations in China, and is focused on acquiring and growing underdeveloped projects with high upside.
Its 2024 fiscal year silver equivalent production came in at approximately 6.8 million ounces, down 2 percent from the previous year. The company has reported a total of 3.4 million ounces of silver equivalent production over the first and second quarters of its fiscal year 2025.
Silvercorp offers shareholders a semiannual dividend, which it states is “based on a number of factors including commodity prices, market conditions, financial results, cash flows from operations, expected cash requirements and other relevant factors.” Its most recent dividend was paid on June 27, 2024, at a rate of US$0.0125 per share.
5. Hecla Mining (NYSE:HL)
NYSE market cap: US$4.4 billion
Dividend yield: 0.45 percent
Last on this list of silver stocks that pay dividends is Hecla Mining, the largest primary silver producer in the US and Canada and the third largest in the world. The oldest precious metals miner in North America, Hecla owns the Greens Creek and Lucky Friday silver mines in Alaska and Idaho, US, and the Keno Hill mine in the Yukon, Canada.
It also operates the Casa Berardi gold-silver mine in Québec, Canada.
With the acquisition of Alexco Resource in 2022, Hecla gained its position in the Keno Hill silver district, which has Canada's highest-grade silver reserves. The following year, Hecla acquired ATAC Resources, giving it control of the Rackla and Connaught properties in the Yukon.
Hecla reported 2023 production of 14.3 million ounces of silver and 151,259 ounces of gold. As for 2024, the company produced a combined 8.65 million ounces of silver and 74,822 ounces of gold through the first two quarters. The Keno Hill mine is currently ramping up to commercial production.
Hecla pays an annual minimum common stock dividend, distributing it on a quarterly basis. The silver stock also pays a silver-price-linked common stock dividend based on the company’s average realized silver price for the preceding quarter.
On September 5, 2024, Hecla paid out a quarterly cash dividend of $0.01375 per share of common stock ($0.00375 per share for the minimum dividend component plus $0.01 per share for the silver-linked component). Then, on September 16, it paid a quarterly cash dividend of $0.875 per share of preferred stock.
FAQs for silver dividend stocks
What are dividend stocks?
Dividend stocks regularly pay a sum of money to a class of shareholders out of the company's earnings. To qualify for a dividend payout, an investor must have owned the stock on the ex-dividend date.
Dividends are often issued as cash payments sent to a shareholder’s brokerage account, but can also be issued as stock or discounts on share purchases.
How to invest in dividend stocks?
Contact your broker to learn more about how to take advantage of companies offering dividend programs. Some dividend stocks may also offer a dividend reinvestment program, allowing shareholders to automatically buy new shares with their dividends, either commission-free or at a reduced cost.
How much do dividend stocks pay?
A company's board of directors is responsible for setting a dividend policy and will determine the size of the dividend payout based on the firm's long-term revenue outlook.
The size of an individual shareholder's dividend payout depends on the number of shares owned in that company. For example, if an investor owned 1,000 shares of Wheaton Precious Metals, which is currently paying a dividend of US$0.15 per share, they would get US$150 every quarter — or US$600 annually.
What Silver ETFs pay dividends?
There are no physical backed Silver ETFs with dividends. However, ETFs that track dividend-paying silver stocks such as those listed above may offer the potential for dividend income. A few examples of are Global X Silver Miners ETF (ARCA:SIL), and IShares MSCI Global Silver Miners ETF (BATS:SLVP).
This is an updated version of an article originally published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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