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Silver Crown Royalties is a revenue-generating silver-only royalty company offering shareholders an economically and ecologically efficient investment. The company has two current sources of revenue (Gold Mountain and Pilar Gold) and continues to build on this foundation, targeting additional operational silver-producing projects.
As a pure-play silver equity company, Silver Crown offers organic growth, exploration upside and dividend payments using a business model that includes acquiring a guaranteed amount of silver delivered as by-product from mining operations, paying a dividend to shareholders, and keeping all excess cash in silver bullion.
“An investment in Silver Crown is a protection against currency devaluation,” says Peter Bures, founder, chairman and CEO of Silver Crown.
Silver Crown is led by board members, founders and advisors with hundreds of years of collective experience in world renowned international brokerage, royalty, fund management and mining companies.
Company Highlights
- Silver Crown Royalties is a unique investment opportunity in the financial sector, focused on generating consistent and growing income sources through its expanding portfolio of silver mining royalty interests.
- Silver Crown is continuing to advance a number of royalty acquisition opportunities and progress towards its public listing in Q3 2024.
- Silver Crown offers shareholders both an economically and ecologically efficient investment. Since the silver that the company invests in is typically a byproduct of metal mining, it has no discernible mining cost or environmental impact.
- The company is looking all over the world for projects that have silver as a byproduct and aims to unlock the value of those operations for both its partners and shareholders.
This Silver Crown Royalties profile is part of a paid investor education campaign.*
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Shallow High-Grade Gold Zone Intersected at Kelpie Hill – Cobar Project, NSW
- Reconnaissance drilling completed at two new targets, Kelpie Hill and Windmill Dam, and at the advanced Evergreen prospect within the 100%-owned Cobar Project in NSW.
- Assay results received for three Reverse Circulation percussion (RC) holes completed at Kelpie Hill, with hole KHRC001 intersecting significant high-grade gold plus base metal mineralisation:
- 7m @ 4.3g/t Au, 2.7g/t Ag, 0.3% Pb from 50m and 1m @ 4.17g/t Au, 2.7g/t Ag from 82m
- Holes KHRC002 and 003 intersected anomalous base metals, and were extended as diamond tails into the primary sulphide zone, returning intercepts of up to:
- 3.05m @ 3.9% Zn, 2% Pb, 29.5g/t Ag from 298.5 and 0.5m @ 7.2% Zn, 2.4% Pb from 299m
- Assays pending for two holes completed at Windmill Dam and Evergreen.
- Induced Polarisation (IP) survey due to commence in the coming weeks. Results from the IP survey will help define and prioritise targets for immediate, follow-up drill testing.
The Company has completed drilling at its two new targets, Kelpie Hill and Windmill Dam, as well as drilling at the more advanced Evergreen prospect (refer to Figure 1). Assays results have so far been received for three (3) holes at Kelpie Hill, where hole KHCRC001 returned an intercept of 7 metres at an average grade of 4.3g/t Au (incl. 1m at 8.56g/t Au) in the weathered, oxidised zone of the Preston Formation, along with silver and base metals. Refer to Table 1 for a summary of significant intercepts.
Base metal results were also returned from the other two holes, including deeper base metal zones in the primary (sulphide zone) of hole KHRCDD003. Assay results from drilling at Windmill Dam and Evergreen are still pending. In light of these highly encouraging results, the Company is finalising the design of an Induced Polarisation (IP) survey, which is due to commence in the coming weeks. Results from the IP survey will help define and prioritise targets for follow-up drill testing.
Eastern Metals’ Chief Executive Officer Ley Kingdom said: “While the high-grade gold zone intersected in the first hole was somewhat of a surprise, given that this was primarily a base metals target, intersecting significant mineralisation is an exciting development for any exploration team. While we are still in the process of evaluating the results and working out the geological context and significance of what we have seen in the first three holes at Kelpie Hill, the key takeaway for investors is that this is a highly complex, mineralised system which offers enormous discovery potential, particularly when considering how little drilling has been done. With results pending from the remaining holes, and an IP survey starting shortly, it’s definitely a case of ‘watch this space!’”.
Figure 1: Location of EL6321 (Browns Reef) and the Kelpie Hill, Windmill Dam & Evergreen prospects.
Kelpie Hill Prospect, Browns Reef (EL6321)
Three Reverse Circulation percussion (“RC”) holes were completed at the Kelpie Hill prospect for 560 metres. Two of the holes (KHRC001 and KHRC002) directly targeted a strong lead-arsenic soil geochemical anomaly, while the third (KHRC003) was drilled as a pre-collar for a planned diamond tail (KHRCDD003) to intersect the target zone at greater depth (see Figure 2).
Figure 2: Cross-section of Kelpie Hill drill-holes KHRC001, KHRC002 and KHRCDD003 showing significant intercepts including 7m @ 4.3g/t gold (Au) from 50m downhole.
All three holes intersected anomalous lead-zinc gossanous ironstones, with KHRCDD003 also intersecting primary sulphides below the depth of oxidation. Diamond cored HQ “tails” were drilled to extend holes KHRC002 and KHRC003.
The 50-56 metre interval was logged by the site geologist as “massive red haematitic ironstone, gossanous” in the weathered oxidised zone of the Preston Formation to the west of the interpreted Woorara Fault, a large regional scale structure on the Preston-Clements contact. Refer to Figure 3.
Significant intercepts for KHRC001 include:
- 7m @ 4.3g/t Au, 2.7g/t Ag, 0.3% Pb from 50m, including:
- 1m @ 8.56g/t Au from 51m
- 1m @ 4.17g/t Au, 2.7g/t Ag from 82m
- 5m @ 3.45g/t Ag, 0.35% Zn from 103m, including:
- 1m @ 8.3g/t Ag from 106m
Figure 3: Kelpie Hill plan view of drillholes KHRC001, KHRC002 and KHRCDD003 with Pb soil contours, and interpreted faults.
Hole KHRC002 was extended as hole KHRCDD002 with a diamond cored tail from 197 metres to 201.35 metres; however, this hole was abandoned due to drilling complications and did not reach the planned target depth into the Clements Formation on the eastern side of the target zone.
The oxide zone interval 169 to 197 metres is strongly lead anomalous, with the interval 175.5 to 197 metres logged by the site geologist as “strongly silica altered ex-shale and sandstone, often highly ferruginous to gossanous, limonite and haematite stain, pits ex-sulphide, quartz veins”.
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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 Price Update: Q3 2024 in Review
How did the silver price perform in Q3?
Silver started the third quarter at US$29.46 on July 1 and had surged above US$31 by the middle of the month.
The precious metal's increase came alongside renewed speculation that the Fed would cut rates in July. However, backed by another strong US jobs report, the central bank left rates unchanged.
Against that backdrop, the price of silver began to fall and by July 30 had reached US$29.04.
The silver price sank to a quarterly low of US$26.65 on August 7, even as speculation about a rate cut in September took hold among market participants. The retreat, which mirrored a dip in the gold price as investors looked to take profits, was short-lived, and by mid-month the white metal was once again trading above the US$29 mark.
Silver price, Q3 2024.
Chart via Trading Economics.
Silver reached US$30.14 on August 27 after remarks from Fed Chair Jerome Powell at his annual address at the Jackson Hole Economic Symposium. His dovish statements were the clearest indication yet of an upcoming rate cut.
September started with silver in a slide. It bottomed out on September 6 at US$27.93, but saw a reversal after August's US jobs report fell short of expectations and boosted expectations of a larger rate cut.
This provided tailwinds for silver, which broke through the US$30 level before the Fed slashed rates by 50 basis points at its September meeting. Silver climbed to its quarterly high of US$32.15 on September 24.
Industrial demand still a key silver price driver
Silver is valued as a precious metal, but is also driven by industrial demand, particularly photovoltaics.
According to the Silver Institute, silver demand for solar power has more than doubled in the past five years, rising from 74.9 million ounces in 2019 to a forecast 232 million ounces by the end of this year.
India in particular has become a major factor in global photovoltaics market, and has been one of the largest silver consumers in 2024. The country reportedly imported 4,554 metric tons of silver during the first half of the year, putting it on pace to double the 3,625 metric tons of silver it imported in 2023.
In April, India reintroduced a requirement for major photovoltaics projects in the country to use domestically sourced panels. The requirements were put on hold for the 2023 fiscal year due to insufficient domestic manufacturing. Their return has led to a ramp up in Indian photovoltaics production and an increased need for silver.
Additionally, TopCon cells, which have higher efficiency, but require 50 percent more silver content, have begun to dominate the photovoltaics market, contributing to an increasing strain on the supply of silver.
Speaking to the Investing News Network (INN), Peter Krauth, editor of Silver Stock Investor, noted that in addition to increasing demand from India’s photovoltaics sector, the government has changed import duties.
“One important development was when India decided to reduce import duties on gold and silver from 15 percent to 6 percent. That led to a second surge of imports into that country,” he said.
Overall, the silver market remains in a deficit. The Silver Institute is forecasting that demand from all sectors will rise to 1.22 billion ounces in 2024, while mine supply will reach just over 1 billion ounces.
Given that difference, why hasn’t the silver price seen a bigger run?
Part of the reason is that aboveground reserves are being drawn down. However, Krauth believes market participants are only just realizing that the deficit situation isn’t going away any time soon.
“Supply has been flat for a decade. Mine supply peaked eight years ago. Demand has grown to 20 percent above annual supply since 2020. The main reason prices haven’t exploded is that silver consumers have been able to tap stockpiles of 'secondary inventories' at major futures exchanges and exchange-traded funds," he explained.
"That may have 12 to 18 months before running out."
M&A activity increasing as silver price rises
As the silver price rises higher, M&A activity in the sector is strengthening.
First Majestic Silver (TSX:AG,NYSE:AG) announced on September 5 that it plans to purchase all of the issued and outstanding shares of Gatos Silver (TSX:GATO,NYSE:GATO) in a US$970 million transaction.
The deal will provide First Majestic with a 70 percent stake in the Cerro Los Gatos mine in Northern Mexico. The combined entity's anticipated annual production is 30 million to 32 million silver equivalent ounces.
On October 4, Coeur Mining (NYSE:CDE) agreed to acquire SilverCrest Metals (TSX:SIL,NYSE:SILV) for US$1.7 billion. The deal will create one of the largest silver producers in the world, with output of 21 million ounces projected by 2025.
The deal gives Coeur 100 percent ownership of the recently opened Las Chispas mine in Sonora, Mexico, which is projected to sell 9.8 million to 10.2 million silver equivalent ounces this year.
Krauth said M&A involving smaller companies may follow as the silver price moves higher.
“Current silver prices are positive for profits, but replacing reserves is a big challenge. I think silver crossing the US$35 mark and sustaining it will give miners confidence that high silver prices are here to stay. With that, they are likely to start moving down the food chain to developers and explorers,” he said.
Investor takeaway
Both Krauth and Mind Money CEO Julia Khandoshko see significant gains ahead for silver.
“Silver may hit more than US$40 and even $50 this year or mid-2025,” Khandoshko commented to INN, noting that strong geopolitical and economic issues continue to impact the precious metal.
“Although silver is less popular than gold, traders might consider it to diversify their investment portfolios, valuing the possibility of using silver as a hedge during periods of uncertainty and high inflation,” she added.
Krauth was similarly positive about silver's prospects. “We are near a crucial level of US$32. Once silver stays consistently above that level, I think it can continue to US$35, which I would expect by the end of this year. Beyond that, I think silver will continue to rise and is likely to reach US$40 at some point in 2025," he said.
However, he expressed a degree of caution, saying there are near-term factors that could pose challenges for investors. He's primarily concerned that a rally in the US dollar could lead to a retreat in precious metal prices.
“In my view, the approach in Q4 should be mostly the same for both metals and equity investors. I’m still cautious that we will see a price pullback in silver, which will bleed into the equities. For that reason, I’d only be adding on weakness in either the metal or the miners,” Krauth said.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Acquisition of Joaquin Silver District Completes
Following the satisfaction of all required approvals and consents, and execution of final definitive legal agreements between Pan American Silver Corp. (“PAAS”) and USL, the Company is pleased to advise that it has completed the acquisition of the Joaquin Project.
HIGHLIGHTS
- 100% acquisition of two contiguous properties (Joaquin and Cerro Puntudo) totalling 35,G46Ha.
- Joaquin contains a historical Foreign Estimate1 of 16.7Mt at 136gpt silver equivalent (AgEq2) for 73Moz AgEq (68Moz Ag, 64koz Au) in the La Negra and La Morocha deposits.
- Strategically located 60km west of USL’s G1Moz AgEq Cerro Leon resource2 and portfolio, enhancing future development options, with added scale and economics.
- Historical Foreign Estimates exclude adjacent Cerro Puntudo mineral properties which host the along strike extensions of the La Negra and La Morocha deposits.
- USL is planning a comprehensive exploration program on four advanced prospects, aiming to boost current Foreign Estimates and publish a maiden JORC (2012) MRE.
- Historical drill holes that fall outside the current resource:
- La Negra Feeder: 4.5m at 16GGgpt Ag, 22gpt Au from 272m
- La Negra Extension: 3m at 2723gpt Ag, 4.1gpt Au from 54m
- La Morocha Extension: 8m at 226gpt Ag, 0.5gpt Au from 189m
- Cerro Puntudo is host to numerous vein targets (Brunilda, La Esmeralda, Isabella) with high silver gold values at surface that are untested by drilling.
- The transaction includes camp infrastructure and a mining and access agreement valid until 2034.
- Upfront consideration of USD$2m funded from existing cash reserves, with future payments of USD$2m on publication of an economic study supporting a mineral resource at the Joaquin project and USD$8m on commercial production.
Cautionary Statement
(a) The estimates of mineralisation included in this announcement are foreign estimates and are not reported in accordance with the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (2012 JORC Code) and is a “Foreign Estimate”
(b) A Competent Person has not yet done sufficient work to classify the Foreign Estimate as Mineral Resources or Ore Reserves in accordance with the 2012 JORC Code.
(c) It is uncertain that following evaluation and/or further exploration work that the Foreign Estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012.
Figure 1: Joaquin and Cerro Puntudo project location
The information in this Announcement that relates to foreign estimates of mineralisation has been extracted from information contained in the Company’s ASX announcement of 20 August 2024. USL confirms that it is not in possession of any new information or data relating to the foreign estimates of mineralisation that materially impacts on the reliability of those foreign estimates or USL’s ability to verify the foreign estimates a mineral resources or ore reserves in accordance with Appendix 5A (JORC Code). USL confirms that the supporting information provided in the initial market announcement of 20 August 2024 continues to apply and has not materially changed.
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This article includes content from Unico Silver Limited, 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.
