With a focused exploration strategy aimed at expanding its 2024 inferred resource and increasing its precious metals ratio, Silver47 is a compelling investment story, well-positioned to capitalize on the increasing global demand for silver, gold, copper, zinc, antimony, tin and graphite driven by its vast industrial applications and investment potential.
Silver47 Exploration (TSXV:AGA) is a North American-focused company dedicated to discovering and developing silver-gold rich deposits across its portfolio: Red Mountain in Alaska, Adams Plateau in British Columbia and the Michelle Project in Yukon. Silver47’s flagship project is the Red Mountain polymetallic VMS deposit, which has a 2024 inferred resource of 168.6 million ounces (Moz) of silver equivalent (15.6Mt at 335.7 g/t AgEq). This resource is equivalent to 2 Moz gold at about 4 g/t.
Silver47 has an “Exploration Target” for the Red Mountain Project of 50-75Mt at 300-400 g/t AgEq including the current resource.
Silver47 plans to rapidly expand its resource base to unlock the silver, copper and gold value in its deposits. In addition, zinc, lead, tin, antimony and graphite occur in abundance on its projects and value-add from these critical minerals is expected through further exploration.
Silver is critical in both industrial applications and as an investment asset. The global demand for silver is rising due to its essential role in electronics, renewable energy, such as solar, and other significant, new technologies in AI components, and AgZn and AgC batteries. Around 60 percent of silver demand comes from industrial use, while 40 percent is driven by bullion, coins and jewelry. With a silver supply deficit of 240 Moz, demand is expected to continue increasing.
The Red Mountain VMS Project is the Company’s flagship asset, located approximately 100 kilometers south of Fairbanks, Alaska. This project is a polymetallic VMS deposit, rich in silver, gold, zinc, copper, and lead. As of January 2024, Red Mountain holds an NI 43-101 inferred resource of 15.6 million tonnes (Mt) at 7 percent zinc equivalent, or 168.6 Moz of silver equivalent at a grade of 335.7 grams per ton (g/t) silver equivalent. The project is located in a mining-friendly jurisdiction on state managed lands with reasonable access to infrastructure.
The Western half of the Red Mtn claim group has a SEDEX affinity compared to the VMS targets of the Eastern half of the project. Initial exploration of the Horseshoe SEDEX target identified shallow dipping mineralized horizons over a broad area with rock grab samples returning up to 37.9 g/t Ag, 3.81 g/t Au, 4.6 percent Zn, 2.6 percent Pb (see images below).
Silver47’s exploration target for Red Mountain is estimated between 50 and 75 Mt, with an expected grade of 300 to 400 g/t silver equivalent.
The Red Mtn Project has immense growth potential with the many underexplored target areas with precious metals, base metals, tin and antimony.
The Adams Plateau Project is located 100 km NE from Kamloops, British Columbia, Canada and has great road access with infrastructure nearby. The Adams Plateau Project shares similarities to the VMS-SEDEX style deposits of the Company’s Red Mountain Project. Numerous showings of massive sulphide have been located across the 150 sq km project.
Historical drilling on the Adams Plateau Project has returned 4.8m of 348 g/t Ag, 0.72 g/t Au, 2.7 percent Pb+Zn at the Spar Target with surface rock grabs up to 4000 g/t silver, 7 percent copper. Recent rock samples collected by Silver47 have returned (3503 g/t Ag, 1.0 g/t Au, 29 percent Pb+Zn) and (1380 g/t Ag, 6.5 g/t Au, 25 percent Pb+Zn).
The Michelle Project is located in north central Yukon, Canada, a territory known for its high mineral potential. This project is situated in a highly prospective geological region that has 22 surface showings of Ag-Pb-Zn mineralization with critical minerals like gallium and antimony. Silver47’s first season of exploration on the project led to a new and exciting silver discovery at the Silver Matt showing. Geochemical analysis suggests that these targets are MVT type sediment hosted mineralization.
In 2022, Silver47 confirmed a new silver discovery at the Michelle Project with 7.68m of 1,577 g/t Ag, 45 percent Pb, 4 percent Zn within 15m of 907 g/t Ag, 26 percent Pb, 2.7 percent Zn in hole MCH22-002 at the Silver Matt Target. Surface samples at Silver Matt have returned up to 4180 g/t Ag, 82 percent lead.
Mineralization with sulphide and oxide at 39m depth in MCH-22-002, Silver Matt Target.
The company is waiting for a Class 3 permit for drilling from the Yukon government, which has been delayed due to a flawed (YESAB) Yukon Environmental and Socio-economic Assessment Board’s no-go decision in late 2022. The project has been pushed into a judicial review. During the land use planning process in this area all parties agreed to honour existing mineral claims.
Gary Thompson is a geologist with extensive experience in both exploration and building companies. He is the current Chairman and CEO of Brixton Metals and has held leadership roles in several successful ventures, including Sierra Geothermal Power, which was sold in 2010. In addition to his expertise in geology he has raised over $135 million of equity for exploration companies.
Kevin Chen brings a wealth of financial expertise to Silver47, having previously served as the CFO of prominent mining companies such as Gold Royalty and Uranium Royalty. With a strong background in finance and management, Chen oversees the Company’s financial strategy and ensures it maintains a solid financial foundation for growth. His experience in the mining sector, especially with royalty companies, adds significant value to Silver47’s leadership team.
Alex Wallis is an accomplished exploration geologist with over 15 years of experience in international mineral exploration. He was previously a project manager with APEX Geoscience and the country manager for U3O8 Corp in Guyana. His technical expertise in mineral exploration and his leadership in guiding exploration projects bring critical knowledge to the Company’s ambitious resource growth strategies.
David Netherway is a seasoned mining engineer with over 40 years of experience in the industry. He has successfully built and sold five gold mines in West Africa and brings a deep understanding of mine development and operations. His strategic insights and engineering background provide Silver47 with valuable guidance as the Company moves closer to its development milestones.
Ryan Goodman is a legal expert in the mining industry, currently serving as VP, Legal for Orezone Gold and previously at Aura Minerals. Mr. Goodman’s legal acumen and understanding of the regulatory landscape are key assets to Silver47.
Silver47 Exploration Corp. (TSXV: AGA) ("Silver47" or the "Company), is pleased to announce results from two diamond drill core holes at the West Tundra Flats resource area for a combined 331m at its wholly owned flagship Red Mountain Project in Alaska, USA. Both drill holes cut high-grade silver-zinc-lead-gold-copper zones within a wider sulfide mineralization horizon.
Highlights from 2024 West Tundra Flats Drill Holes:
Mr Alex Wallis, P.Geo., Vice President of Exploration, stated: "The successful confirmation and infill holes drilled at West Tundra Flats suggest a path to increasing the size and grade of the resource by utilizing modern drilling to fill the widely spaced historical drilling. Historical drilling had poor core recovery at West Tundra Flats, including through mineralized intervals. The high-percentage core recovery achieved in 2024 gives us an opportunity to improve upon the already robust grade reported from the 1980's drilling."
West Tundra Flats Resource Area
The West Tundra Flats prospect was first identified in 1981 as a surface gossan on the south bank of Dry Creek. Volcanogenic Massive Sulphide (VMS) mineralization was initially confirmed by widespread geochemical sampling and later drill tested in 1982, with zone expansion drilling in 1983. The mineralized horizon consists of semi-massive to massive sulfides including pyrite, sphalerite and galena, and is commonly enriched with silver and gold. This horizon historically occurs at the base of a black chlorite schist and overlying a metarhyolite in the upper formations of the Totatlanika Schist. The surface expression has a 1,000m strike and dips shallowly to the southwest for at least 1,600m. The West Tundra Flats horizon remains open laterally and at depth, and exhibits pinching and swelling of sulfide lenses typical of VMS mineralization.
Figure 1. Plan map of drill holes at Dry Creek and West Tundra Flats resource areas.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230842_4a898ae484dc9b30_002full.jpg
Table 1. Significant intervals for holes WT24-33 and WT24-34 at West Tundra Flats.
| Hole ID | From (m) | To (m) | Interval (m) | ZnEq (%) | AgEq (g/t) | Ag (g/t) | Au (g/t) | Zn (%) | Pb (%) | Cu (%) |
| WT24-33 | 102.62 | 124.65 | 22.03 | 3.7 | 177.1 | 57.5 | 0.14 | 1.6 | 0.67 | 0.09 |
| incl. | 121.70 | 124.60 | 2.90 | 22.6 | 1078.8 | 417.4 | 0.74 | 9.1 | 4.77 | 0.105 |
| WT24-34 | 92.25 | 96.62 | 4.37 | 13.7 | 656.2 | 157.4 | 1.05 | 6.3 | 3.03 | 0.076 |
| incl. | 94.59 | 96.06 | 1.47 | 31.1 | 1488.4 | 356.0 | 2.90 | 13.7 | 6.21 | 0.166 |
Assay intervals are weighted average and are drilled lengths, true widths cannot be determined at this time.
Notes:
Technical Discussion on Hole WT24-33
Hole WT24-33 was planned as a confirmation twin of hole WTF82-08 in the West Tundra Flats deposit. WTF82-08 intersected 7.3m of 334.8 g/t silver, 0.54 g/t gold, 3.48% zinc and 1.94% lead, including 1.8m of 1,313.1 g/t silver, 1.85 g/t gold, 11.1% zinc and 6.6% lead. Hole 33 cut regionally metamorphosed metasediments and metavolcanics consistent with the Totatlanika Schist. Comprised primarily of grey aphanitic phyllite with lesser graphitic intercalations and beds. Significant sulfides were first intersected at 102m, with laminations and sporadic 1-4cm beds of pyrite and chalcopyrite, including a 2m interval grading up to 0.4% copper and 94.8 AgEq. At 121.7m depth, a 2.9m sphalerite-pyrite-galena massive sulfide unit was intercepted grading 1,078.8 g/t AgEq (417.4 g/t silver, 0.74 g/t gold, 9.1% zinc, 4.7% lead, 0.105% copper). The massive sulfide was truncated abruptly by a fault containing clasts of mineralization.
The rock units and grade in WT24-33 matched what was expected from the historic log for WTF82-08, though a wider mineralized halo is observed in hole 33. Core recovery through the mineralized zone in hole 33 was significantly improved from the historic hole. The modern drilling methodology applied in the 2024 campaign achieved excellent core recovery across the property and will provide higher quality data as infill and expansion drilling progresses at West Tundra Flats Zone.
Figure 2. Drill Core WT24-33 Photograph 102.57m - 107.13m - Upper low-Cu sulfide zone.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230842_4a898ae484dc9b30_003full.jpg
Figure 3. Drill Core WT24-33 Photograph 119.65m - 124.05m, massive sulfide zone.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230842_4a898ae484dc9b30_004full.jpg
Technical Discussion on Hole WT24-34
Hole WT24-34 was designed to test the resource model at West Tundra Flats by stepping back 80m southwest from hole WT18-28 that yielded 3.5m of 517.5 g/t Ag, 2.05 g/t Au, 21.60 Zn+Pb. The upper portion of the hole passes through the regionally metamorphosed metasediments and metavolcanics of the Totatlanika Schist. A known metarhyolite marker unit observed throughout the target area was encountered immediately above the massive sulfide intercept, with increasing sericitization and silicification downhole and containing bands of disseminated pyrite and trace sphalerite. Galena-sphalerite-pyrite semi-massive to massive sulfide was intercepted from 92.25m to 96.06m, with a 1.47m high-grade interval from 94.59m to 96.06m grading 356 g/t silver, 2.9 g/t gold, 13.7% zinc, and 6.2% lead.
Historical drilling at West Tundra Flats was completed with vertical holes at very wide spacing (150m to 250m between holes), and the continuity of both thickness and grade from this first infill hole provides confidence in the resource model for future infill drill planning.
Figure 4. Drill Hole WT24-34 Cross Section.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230842_4a898ae484dc9b30_005full.jpg
Figure 5. Drill Core WT24-34 Photograph 94.0m - 97.86m, massive sulfide zone.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230842_4a898ae484dc9b30_006full.jpg
Figure 6. Drill Core WT24-34 photograph of high-grade sphalerite-galena-pyrite massive sulfide.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230842_4a898ae484dc9b30_007full.jpg
Table 2. 2024 Drill Collar Information, Red Mountain Project.
| Red Mountain 2024 Diamond Drill Hole Collars | ||||||||
| Hole ID | Easting | Northing | Elevation (m) | Azimuth | Dip | Depth (m) | Zone | Status |
| WT24-33 | 483950 | 7090863 | 982 | 0 | -90 | 185 | West Tundra Flats | Reported Here |
| WT24-34 | 484196 | 7090851 | 968 | 38 | -78 | 146 | West Tundra Flats | Reported Here |
| DC24-106 | 481059 | 7088384 | 1233 | 170 | -72 | 192 | Dry Creek | Previously Reported |
| DC24-104 | 480364 | 7088200 | 1218 | 180 | -45 | 112 | Dry Creek | Results Pending |
| DC24-105 | 480364 | 7088200 | 1218 | 180 | -75 | 120 | Dry Creek | Results Pending |
| KW24-03 | 470228 | 7085491 | 1561 | 180 | -50 | 283 | Kiwi | Results Pending |
Easting and northing in metres, NAD27 zone 6.
About the Red Mountain VMS-SEDEX Project - Alaska, USA
Silver47's flagship Red Mountain property covers 633 square kilometres of Alaska State-managed land 100km south of Fairbanks, Alaska. The project is well situated for infrastructure, 30km east of the community of Healy which has power, rail and state highway access to Alaska Route 3, providing a valuable connection to Anchorage and tide water. The Company has an approved permit to conduct advanced exploration, including drilling, across the property.
Red Mountain hosts a NI 43-101 inferred mineral resource estimate of 15.6Mt at 7% ZnEq for 1Mt of ZnEq or 335.7 g/t AgEq for 168.6 Moz AgEq at the Dry Creek (DC) and West Tundra Flats (WTF) resource areas as combined open pit and underground. DC and WTF are the two most advanced mineralized zones at Red Mountain, with at least 20 additional mineralized prospects discovered on the property to date over the 60 kilometres of highly prospective geology.
For more information, see the Red Mountain NI 43-101 technical report titled "Technical Report on the Red Mountain VMS Property, Bonnifield Mining District, Alaska, USA" dated January 12, 2024, prepared by Apex Geoscience Ltd., which can be found on the Company's website https://silver47.ca/ and SEDAR+.
Quality Assurance and Quality Control
Quality assurance and quality control (QAQC) protocols for drill core sampling at Red Mountain project followed industry standard practices. Core samples were typically taken at 1.0m intervals in mineralized zones, and 3.0m intervals outside of mineralized zones. Sample lengths were adjusted as necessary so as not to cross lithologic and mineralogic boundaries. QAQC check samples were inserted into the sample stream with one blank, one duplicate (coarse), and one certified reference material (CRM) occurring within every 20 samples. Drill core was cut in half, bagged, sealed and delivered directly to ALS Minerals Fairbanks, Alaska for transport to the ALS Minerals Laboratories labs in North Vancouver, British Columbia. ALS Minerals Laboratories are registered to ISO 9001:2008 and ISO 17025 accreditations for laboratory procedures. Core samples were analyzed at ALS Laboratory facilities in North Vancouver using four-acid digestion with an ICP-MS finish. Gold analysis was by fire assay with atomic absorption finish, or gravimetric finish for over-limit samples. Over-limits for silver, zinc, copper, and lead were analyzed using Ore Grade four-acid digestion. The standards, certified reference materials, were acquired from CDN Resource Laboratories Ltd. of Langley, British Columbia and selected to represent expected mineralization.
Qualified Person
Mr. Alex S. Wallis, P.Geo., is Vice President of Exploration for the Company who is a "qualified person" as defined by National Instrument 43-101. Mr. Wallis has verified the data disclosed in this press release, including the sampling, analytical and test data underlying the technical information and has approved the technical information in this press release.
About Silver47 Exploration Corp.
Silver47 wholly-owns three silver and critical metals (polymetallic) exploration projects in Canada and the US: the Flagship Red Mountain silver-gold-zinc-copper-lead VMS-SEDEX project in southcentral Alaska; the Adams Plateau silver-zinc-copper-gold-lead SEDEX-VMS project in southern British Columbia, and the Michelle silver-lead-zinc-gallium-antimony MVT-SEDEX Project in Yukon Territory. Silver47 Exploration Corporation shares trade on the TSX-V under the ticker symbol AGA. For more information about Silver47, please visit our website at www.silver47.ca.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Director and CEO
info@silver47.ca
403-870-1166
No securities regulatory authority has either approved or disapproved of the contents of this release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-Looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, including statements relating to the trading of the Company's common shares on the TSXV, the prospective geology and composition of its properties, anticipated results of further exploration on its properties, statements relating to the YESAB litigation, or other similar expressions and all statements, other than statements of historical fact included herein. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; the satisfaction of the conditions imposed by the TSXV on the Listing; operational risks associated with mineral exploration; regulatory risks; fluctuations in commodity prices; title matters; litigation risks; and the additional risks identified in the Company's long form prospectus dated October 25, 2024 filed under its issuer profile on SEDAR+ and other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-Looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230842
News Provided by Newsfile via QuoteMedia
Within 24.51m of 486.30 g/t AgEq
Silver47 Exploration Corp. (TSXV: AGA) ("Silver47" or the "Company), is pleased to announce the first results from the 2024 drill program at the Company's wholly-owned flagship Red Mountain Project in Alaska, USA. The results for the first of 6 holes drilled on the property in 2024 indicate strong potential for increased high-grade infill drilling within the Dry Creek resource area. A total of 1,039 metres of drilling was completed in 6 holes at the Dry Creek, West Tundra Flats, and Kiwi prospects combined.
Highlights from hole DC24-106:
Mr. Alex Walls, P.Geo., Vice President of Exploration, stated: "We are extremely excited to report these kinds of high-grade polymetallic intercepts in our first drill program on the Project. This drill intercept supports our thesis that Red Mountain Project hosts significant precious metal enrichment in addition to the base metal endowment."
Dry Creek Target Area
The Dry Creek mineralization consists of multiple horizons of semi-massive to massive sulfides within the metavolcanics and metasediments of the Totatlanika Schist which can be traced for 4,500m and dips steeply to the north. The Fosters and Discovery lenses of VMS mineralization make up the central 1,400m of the Dry Creek North Horizon occurring as massive to semi-massive silver-zinc-lead-gold-copper sulfides. The lenses pinch and swell along strike and down-dip, as is typical of VMS deposits. True width intersections are up to 40 m at Fosters where there is evidence of growth faults, showing potential proximity to a VMS feeder zone.
Figure 1. Plan map of drill holes at Dry Creek and West Tundra Flats resource areas.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230387_a4dd4a86f4a1fbb3_002full.jpg
Table 1. Significant intervals for hole DC24-106, Dry Creek Zone, Red Mountain Project.
| Hole | From | To | Interval | ZnEq | AgEq | Au | Ag | Zn | Cu | Pb |
| ID | (m) | (m) | (m) | (%) | (ppm) | (ppm) | (ppm) | % | % | % |
| DC24-106 | 126.40 | 150.91 | 24.51 | 10.17 | 486.3 | 1.99 | 55.5 | 4.08 | 0.10 | 1.32 |
| incl. | 128.29 | 130.77 | 2.48 | 61.44 | 2938.5 | 14.95 | 249.5 | 21.97 | 0.42 | 7.03 |
| and | 133.87 | 134.78 | 0.91 | 46.74 | 2235.0 | 8.08 | 225.0 | 21.20 | 0.42 | 6.68 |
| and | 145.94 | 150.91 | 4.97 | 4.33 | 207.4 | 0.26 | 68.7 | 1.84 | 0.04 | 0.73 |
Assay intervals are weighted average and are drilled lengths, true widths cannot be determined at this time.
Notes:
Figure 2. Drill Hole DC24-106 Cross Section.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230387_a4dd4a86f4a1fbb3_003full.jpg
Technical Discussion on Hole DC24-106
Hole DC24-106 was planned to step 60m down-dip from near-surface mineralized intercepts in DC97-03, DC97-04, DC97-07, and DC97-08. Additionally, the hole was intended to test continuity of high-grade mineralization between the 1997 holes and the deep, down-dip intercept in DC18-79. DC24-106 passes through regionally metamorphosed metasediments and metavolcanics of the Totatlanika Schist. The 24.51m mineralized intercept is hosted in a metarhyolite unit, with increasing intervals of semi-massive sulfides from 126.40m, massive sulfides from 128.3m, and finishing with semi-massive sulfides from 143.45 to 150.91m. The sulfides are comprised of aphanitic to coarse pyrite, sphalerite, galena, and chalcopyrite. The mineralized widths are consistent with the historical results, and the 2.48m of 14.95 g/t gold is the highest-grade gold interval drilled to date on the Red Mountain Project.
Figure 3. Drill Core DC24-106 Photograph at 126.81m - 130.63m Depth.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230387_silver47fig3.jpg
Figure 4. Drill core DC24-106 photograph of pyrite-sphalerite-chalcopyrite 129.4m-129.5m.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230387_a4dd4a86f4a1fbb3_006full.jpg
Figure 5. Drill core DC24-106 of pyrite-sphalerite with minor chalcopyrite 134.2m-134.94m
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/230387_a4dd4a86f4a1fbb3_007full.jpg
This successful infill hole in the centre of the Dry Creek resource indicates a strong potential for rapid resource upgrade and growth extending down-dip. The wide spacing of the historical drilling provides ample opportunity to increase the resource, which remains open at depth and along strike.
Table 2. 2024 Drill Collar Information, Red Mountain Project.
| Red Mountain 2024 Diamond Drill Hole Collars | ||||||||
| Hole ID | Easting | Northing | Elevation (m) | Azimuth | Dip | Depth (m) | Zone | Status |
| DC24-106 | 481059 | 7088384 | 1233 | 170 | -72 | 192 | Dry Creek | Reported Here |
| DC24-104 | 480364 | 7088200 | 1218 | 180 | -45 | 112 | Dry Creek | Results Pending |
| DC24-105 | 480364 | 7088200 | 1218 | 180 | -75 | 120 | Dry Creek | Results Pending |
| WT24-33 | 483950 | 7090863 | 982 | 0 | -90 | 185 | West Tundra Flats | Results Pending |
| WT24-34 | 484196 | 7090851 | 968 | 38 | -78 | 146 | West Tundra Flats | Results Pending |
| KW24-03 | 470228 | 7085491 | 1561 | 180 | -50 | 283 | Kiwi | Results Pending |
Easting and northing in metres, NAD27 zone 6
About the Red Mountain VMS-SEDEX Project - Alaska, USA
Silver47's flagship Red Mountain property covers 633 square kilometres of Alaska State-managed land 100km south of Fairbanks, Alaska. The project is well situated for infrastructure, 30km east of the community of Healy which has power, rail and state highway access to Alaska Route 3, providing a valuable connection to Anchorage and tide water. The Company has an approved permit to conduct advanced exploration, including drilling, across the property.
Red Mountain hosts a NI 43-101 inferred mineral resource estimate of 15.6Mt at 7% ZnEq for 1Mt of ZnEq or 335.7 g/t AgEq for 168.6 Moz AgEq at the Dry Creek (DC) and West Tundra Flats (WTF) resource areas as combined open pit and underground. DC and WTF are the two most advanced mineralized zones at Red Mountain, with at least 20 additional mineralized prospects discovered on the property to date over the 60 kilometres of highly prospective geology.
For more information, see the Red Mountain NI 43-101 technical report titled "Technical Report on the Red Mountain VMS Property, Bonnifield Mining District, Alaska, USA" dated January 12, 2024, prepared by Apex Geoscience Ltd., can be found on the Company's website https://silver47.ca/ and SEDAR+.
Quality Assurance and Quality Control
Quality assurance and quality control (QAQC) protocols for drill core sampling at Red Mountain project followed industry standard practices. Core samples were typically taken at 1.0m intervals in mineralized zones, and 3.0m intervals outside of mineralized zones. Sample lengths were adjusted as necessary so as not to cross lithologic and mineralogic boundaries. QAQC check samples were inserted into the sample stream with one blank, one duplicate (coarse), and one certified reference material (CRM) occurring within every 20 samples. Drill core was cut in half, bagged, sealed and delivered directly to ALS Minerals Fairbanks, Alaska for transport to the ALS Minerals Laboratories labs in North Vancouver, British Columbia. ALS Minerals Laboratories are registered to ISO 9001:2008 and ISO 17025 accreditations for laboratory procedures. Core samples were analyzed at ALS Laboratory facilities in North Vancouver using four-acid digestion with an ICP-MS finish. Gold analysis was by fire assay with atomic absorption finish, or gravimetric finish for over-limit samples. Over-limits for silver, zinc, copper, and lead were analyzed using Ore Grade four-acid digestion. The standards, certified reference materials, were acquired from CDN Resource Laboratories Ltd. of Langley, British Columbia and selected to represent expected mineralization.
Qualified Person
Mr. Alex S. Wallis, P.Geo., is Vice President of Exploration for the Company who is a "qualified person" as defined by National Instrument 43-101. Mr. Wallis has verified the data disclosed in this press release, including the sampling, analytical and test data underlying the technical information and has approved the technical information in this press release.
About Silver47 Exploration Corp.
Silver47 wholly-owns three silver and critical metals (polymetallic) exploration projects in Canada and the US: the Flagship Red Mountain silver-gold-zinc-copper-lead VMS-SEDEX project in southcentral Alaska; the Adams Plateau silver-zinc-copper-gold-lead SEDEX-VMS project in southern British Columbia, and the Michelle silver-lead-zinc-gallium-antimony MVT-SEDEX Project in Yukon Territory. Silver47 Exploration Corporation shares trade on the TSX-V under the ticker symbol AGA. For more information about Silver47, please visit our website at www.silver47.ca.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Director and CEO
info@silver47.ca
403-870-1166
No securities regulatory authority has either approved or disapproved of the contents of this release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-Looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, including statements relating to the trading of the Company's common shares on the TSXV, the prospective geology and composition of its properties, anticipated results of further exploration on its properties, statements relating to the YESAB litigation, or other similar expressions and all statements, other than statements of historical fact included herein. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; the satisfaction of the conditions imposed by the TSXV on the Listing; operational risks associated with mineral exploration; regulatory risks; fluctuations in commodity prices; title matters; litigation risks; and the additional risks identified in the Company's long form prospectus dated October 25, 2024 filed under its issuer profile on SEDAR+ and other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-Looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230387
News Provided by Newsfile via QuoteMedia
Silver47 Exploration Corp. (TSXV: AGA) ("Silver47" or the "Company), is pleased to announce that its common shares will begin trading on the TSX Venture Exchange (the "TSXV") effective at the open of trading today.
Silver47 wholly-owns three silver and critical metals (polymetallic) exploration projects in Canada and the US: the flagship Red Mountain silver-gold-zinc-copper-lead VMS-SEDEX Project in southcentral Alaska; the Adams Plateau silver-zinc-copper-gold-lead SEDEX-VMS Project in southern British Columbia, and the Michelle silver-lead-zinc-gallium-antimony MVT-SEDEX Project in Yukon Territory.
"We are thrilled to announce that Silver47 will commence trading on the TSX-Venture Exchange at a time when silver prices are surging and the market demand for this precious metal is approaching an all-time high," commented Gary Thompson, CEO. "Our flagship Red Mountain project in Alaska represents an exceptional opportunity for investors to gain exposure to a promising silver-rich deposit that has the potential to become a world-class mine. Our experienced team aims to rapidly advance this high-quality asset to create substantial value for our shareholders by unlocking the full potential of Red Mountain and our portfolio of projects."
Red Mountain, VMS-SEDEX Project - Alaska, USA
The flagship Red Mountain VMS-SEDEX project is located approximately 100 kilometers (km) south of Fairbanks, Alaska, in the Bonnifield Mining District. Silver47 wholly-owns 942 Alaska State Mining Claims and one Upland Mining Lease covering approximately 633 square kilometers of Alaska State-managed land. The Red Mountain Project is well situated for infrastructure, 30km east of the community of Healy which has power, rail and state highway access to Alaska Route 3, providing a valuable connection to Anchorage and tide water. Silver47 has an approved Application for Permits to Mine in Alaska ("APMA"), valid until December 31, 2026. The APMA allows advanced exploration activities, including drilling, across the property.
Figure 1: Red Mountain Project Location
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/229897_1d37e73a845288fc_001full.jpg
Red Mountain Highlights
The Red Mountain Project hosts a 2024 NI 43-101 inferred mineral resource estimate of 15.6Mt at 335.7 g/t AgEq or 1Mt of ZnEq at 7% ZnEq comprised of two resource zones, Dry Creek and West Tundra Flats
DC18-79: 6 m of 2155 g/t AgEq (409 g/t Ag, 5.38 g/t Au, 1.21% Cu, 23.3% Zn+Pb)
DC18-77: 5 m of 1719 g/t AgEq (1213 g/t Ag, 1.87 g/t Au, 0.4% Cu, 6.0% Zn+Pb)
DC98-40: 36 m of 672 g/t AgEq (183 g/t Ag, 1.02 g/t Au, 0.22% Cu, 8.54% Zn+Pb)
Incl. 3 m of 3123 g/t AgEq (738.2 g/t Ag, 3.29 g/t Au, 1.47% Cu, 44% Zn+Pb)
WTF82-08: 7.3 m of 619 AgEq (334.8 g/t Ag, 0.5 g/t Au, 5.4% Zn+Pb)
WTF18-28: 3.5 m of 1654 g/t AgEq (517.5 g/t Ag, 2.05 g/t Au, 0.2% Cu, 21.6% Zn+Pb)
Table 1: Red Mountain NI 43-101 Resource Summary, 2024
| Combined Open-Pit and Underground Mineral Resource Estimate | |||||||||||||||
| Mineral Resource Area | Rock Mt | ZnEq kt | ZnEq % | AgEq Moz | AgEq g/t | Zn kt | Zn % | Pb kt | Pb % | Cu kt | Cu % | Ag Moz | Ag g/t | Au Koz | Au g/t |
| Dry Creek | 11.6 | 676 | 5.84 | 104 | 279.4 | 346 | 2.99 | 130 | 1.13 | 23 | 0.2 | 17.5 | 47 | 128 | 0.34 |
| West Tundra Flats | 4 | 420 | 10.39 | 64.6 | 496.9 | 186 | 4.6 | 86 | 2.13 | 3 | 0.08 | 18.4 | 141.2 | 86 | 0.66 |
| Global | 15.6 | 1,097 | 7.02 | 168.6 | 335.7 | 532 | 3.41 | 216 | 1.39 | 26 | 0.17 | 35.9 | 71.4 | 214 | 0.43 |
Notes:
Technical Summary
The Red Mountain Project was first discovered in 1975, with exploration resulting in two deposits called Dry Creek (DC) and West Tundra Flats (WTF). The mineralization within the two resource zones are typical of a Volcanogenic Massive Sulfide (VMS) with a siliciclastic felsic association. The mineralization occurs within the upper portions of the Totatlanika Schist of Mississippian to Devonian Age. The Totlanika Schist forms the core of a roughly east-west trending syncline within the property (the Bonnifield East Syncline). The DC mineralized horizons can be traced for 4,500m of strike, and steeply dips to the north. Mineralization occurs as semi-massive to massive sulfides within metamorphosed mudstones and rhyolites. WTF is located approximately 3.5-5 km northeast of DC on the opposing limb of the syncline. Mineralization at WTF can be traced at surface for 1,000m and dips shallowly to the southwest.
Table 2: Select Drill Intercepts at Dry Creek (DC) and West Tundra Flats (WTF).
| Drill Hole | Width | Silver | Gold | Copper | Lead+Zinc | AgEq |
| ID | (meter) | (g/t) | (g/t) | % | % | (g/t) |
| DC98-38 | 9.00 | 268.60 | 1.15 | 0.15 | 7.80 | 725 |
| DC98-40 | 36.10 | 183.00 | 1.02 | 0.22 | 8.54 | 672 |
| Including | 3.00 | 738.20 | 3.29 | 1.47 | 43.99 | 3123 |
| DC18-77 | 6.80 | 938.70 | 1.45 | 0.36 | 5.20 | 1333 |
| DC18-79 | 4.60 | 233.30 | 1.75 | 0.16 | 9.73 | 820 |
| and | 6.10 | 384.60 | 5.50 | 1.23 | 22.20 | 1988 |
| Including | 4.70 | 466.00 | 6.91 | 1.45 | 27.20 | 2442 |
| WTF82-08 | 7.30 | 334.80 | 0.54 | 0.07 | 5.42 | 619 |
| Including | 1.80 | 1313.10 | 1.85 | 0.27 | 17.74 | 2248 |
| WTF82-14 | 1.80 | 240.20 | 2.14 | 0.10 | 12.50 | 984 |
| WTF83-17 | 1.90 | 620.70 | 3.58 | 0.00 | 23.21 | 1945 |
| Including | 1.30 | 871.60 | 5.06 | 0.51 | 31.93 | 2760 |
| WTF18-28 | 3.50 | 517.50 | 2.05 | 0.20 | 21.60 | 1654 |
Assays are weighted averages and the intervals are drilled widths as true widths have yet to be determined.
A total of 213 holes for 38,417m have been drilled since 1976 by numerous operators including Phelps Dodge, Getty Oil, US Borax, Grayd Resources, Bear Creek Mining, Inmet Mining and most recently, Whiterock Minerals, prior to Silver47 ownership.
DC and WTF are the two most advanced mineralized zones at Red Mountain, with at least 20 additional mineralized prospects discovered on the property to date over the 60 km of highly prospective geology. Silver47 has a robust database of historic geochemical and geophysical data, including 2,543 rock samples and 7,948 soil samples, 15,862 XRF soil samples, property-scale SkyTEM surveys and high-resolution FLEM, CSAMT and ground magnetic survey coverage over high-priority targets.
During the summer of 2024, Silver47 drilled six holes for a total of 1,039m at Red Mountain to confirm historic intercepts, infill and expansion potential at both DC and WTF, including one hole to 283m depth testing the Kiwi exploration target. A small surface geochemical sampling program was completed concurrent with drill operations for a total of 228 soils and 21 rocks from Galleon, Horseshoe and Kiwi targets.
Assay results from the 2024 exploration program are pending.
The Red Mountain NI 43-101 technical report titled "Technical Report on the Red Mountain VMS Property, Bonnifield Mining District, Alaska, USA" dated January 12, 2024, prepared by Apex Geoscience Ltd., can be found on the Company's website https://silver47.ca/ and SEDAR+. The Red Mountain technical report includes a Mineral Resource Estimate at Part 14.
Adams Plateau SEDEX/VMS Project - British Columbia, Canada
The Adams Plateau Project is located in the Kamloops Mining Division and is 70 km northeast of the city of Kamloops, BC. Silver47 wholly-owns 48 contiguous mineral titles covering approximately 149 square km. Mineralization was first identified in the area in 1925, resulting in more than 25 MINFILE showings, including small-scale past production of lead, zinc, and silver at the Lucky, Spar and Mosquito King Showings.
Historic Drill Highlights, Adams Plateau
3.66m of 180.4 g/t Ag, 8.1% Pb+Zn at the Lucky Showing
4.88m of 348.35 g/t Ag, 0.72 g/t Au, 27.3% Pb+Zn, 0.23% Cu at the Spar Showing
Modern exploration has consisted of surface geochemical sampling and various geophysical surveys. Silver47 carried out surface sampling programs in 2022 and 2024, producing numerous new targets for follow up exploration. A total of 16,947 soil, 694 rock and 146 silt samples have been collected over the project. Silver47 collected surface rock grab samples that have returned up to 3503 g/t Ag, 7% Cu, 6.5 g/t Au and 29% Pb+Zn.
Figure 2: Soil Geochemical Results for Silver with Rock Sample Highlights
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/229897_1d37e73a845288fc_002full.jpg
Michelle Project, MVT-SEDEX Project - Yukon Territory, Canada
The 15,900 hectare Michelle Project is located in north-central Yukon, 130 km north-northeast of Dawson City, Yukon. In 2022, Silver47 confirmed a new and significant silver discovery at the Michelle Project:
7.68 m of 1,577 g/t Ag, 45% Pb, 4% Zn within 15 m of 907 g/t Ag, 26% Pb, 2.7% Zn in hole MCH22-002 at the Silver Matt Target.
Surface samples at the Silver Matt Showing have returned up to 4180 g/t Ag, 82% Pb.
First discovered in 1973, exploration at the Michelle Project has identified 20 named showings with limited drilling defining 3 mineralized zones. Silver, lead, zinc and a number of critical metals are known to occur within oxide and sulfide mineralization of the Bouvette Formation carbonates across the property. Mineralization style is yet to be defined, with showings exhibiting characteristics of Mississippi Valley Type, Carbonate replacement, within the broader classification of SEDEX deposits.
In 2021, Silver47 discovered the Silver Matt showing with reverse calculations drilling intersecting several meters of oxide and massive sulfide mineralization. In 2022 a diamond core drill was mobilized to further test the Silver Matt prospect, MCH-22-002 intersected 7.68 m of 1,577 g/t Ag, 45.28% Pb, 4.03% Zn and 0.17% Sb. Holes MCH-22-004 and -005 confirmed continuous mineralization at least 50 m along strike.
Figure 3: Silver Matt Cross-Section
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/10967/229897_1d37e73a845288fc_003full.jpg
Table 3: Assay Intervals for the Silver Matt Discovery
| Hole ID | From (m) | To (m) | Interval (m) | Ag (ppm) | Pb (%) | Zn (%) | Cu (ppm) | Ga (ppm) | Sb (ppm) |
| MCH-22-001 | 16.91 | 27.10 | 10.19 | 246.31 | 5.71 | 3.54 | 526.82 | 98.62 | 976.62 |
| incl | 21.65 | 26.05 | 4.40 | 497.00 | 11.13 | 3.87 | 1035.50 | 190.27 | 2129.50 |
| and | 64.62 | 67.89 | 3.27 | 64.97 | 0.52 | 0.44 | 45.77 | 4.82 | 5.17 |
| MCH-22-002 | 33.79 | 49.00 | 15.21 | 907.11 | 26.03 | 2.72 | 117.24 | 17.10 | 1011.99 |
| incl | 33.79 | 41.47 | 7.68 | 1577.50 | 45.28 | 4.03 | 201.50 | 28.96 | 1748.75 |
| MCH-22-003 | 22.60 | 32.00 | 9.40 | 270.92 | 7.95 | 4.35 | 125.37 | 26.79 | 491.23 |
| incl | 27.00 | 31.05 | 4.05 | 640.30 | 16.55 | 7.06 | 190.00 | 41.26 | 880.25 |
| Not Previoulsy Released | |||||||||
| Hole ID | From (m) | To (m) | Interval (m) | Ag (ppm) | Pb (%) | Zn (%) | Cu (ppm) | Ga (ppm) | Sb (ppm) |
| MCH-22-004 | 26.80 | 48.34 | 21.54 | 172.42 | 3.11 | 7.08 | 65.93 | 19.44 | 340.59 |
| incl | 31.32 | 39.19 | 7.87 | 199.87 | 5.97 | 18.60 | 121.93 | 48.76 | 896.92 |
| incl | 44.12 | 48.34 | 4.22 | 232.62 | 4.45 | 2.30 | 84.20 | 11.50 | 213.62 |
| MCH-22-005 | 27.20 | 39.50 | 12.30 | 623.87 | 12.95 | 3.75 | 354.61 | 66.07 | 657.95 |
| incl | 33.32 | 38.53 | 5.21 | 1282.80 | 26.34 | 6.55 | 734.60 | 136.34 | 1343.40 |
| and | 49.88 | 79.00 | 29.12 | 2.77 | 0.10 | 6.80 | 54.27 | 2.38 | 11.69 |
Assays are weighted averages and the intervals are drilled widths as true widths have yet to be determined.
The Michelle Project is considered an early-stage exploration project, with further exploration recommended pending a class 3 permit. However, during the class 3 drill permit review process by the Yukon territorial government, the federal Yukon Environmental and Socio-economic Assessment Board's ("YESAB") recommended the project not proceed based on environmental and Indigenous group concerns. Both the Yukon Government and Silver47 are jointly challenging the YESAB recommendation for a variety of reasons, e.g. First Nation and government bodies all agreed to honour existing mineral claims, and YESAB improperly applied wrong criteria on Silver47's exploration proposals. The legal challenge will take the form of a judicial review in Yukon Supreme Court, and will be heard in Whitehorse on November 27-29, 2024. Indicative of the Yukon Government concern, it is taking the extraordinary position that Silver47 was treated unfairly by YESAB.
Michelle QA/QC
Quality Assurance and quality control protocols for rock, soil and drill core sampling at the Michelle Project followed industry standard practices. Rock and soil samples were delivered directly to ALS Minerals preparation facility in Whitehorse, Yukon. Core samples were taken at 1.0 m intervals in mineralized zones, and 3.0 m intervals in unaltered, fresh host rock. Blank, duplicate (Coarse and lab pulp), and certified reference materials were inserted into the sample stream every 8th sample. Core samples were cut in half, bagged, sealed and delivered to ALS Minerals preparation facility in Whitehorse, Yukon. ALS Minerals Laboratories are registered to ISO 9001:2008 and ISO 17025 accreditations for laboratory procedures. Rock and core samples were analyzed at ALS Laboratory facilities in North Vancouver using four-acid digestion with an ICP-MS finish. Over-limits for Ag, Pb, and Zn were analyzed using Ore Grade four-acid digestion. Silver values >1,500 ppm were analyzed using fire assay with gravimetric finish. Lead >20% and zinc >30% were analyzed using titration methods. The standards, certified reference materials, were acquired from CDN Resource Laboratories Ltd. of Langley, British Columbia and selected to represent expected mineralization.
Qualified Person
Mr. Alex S. Wallis, P.Geo., is Vice President of Exploration for the Company who is a "qualified person" as defined by National Instrument 43-101. Mr. Wallis has verified the data disclosed in this press release, including the sampling, analytical and test data underlying the technical information and has approved the technical information in this press release.
About Silver47 Exploration Corp.
Silver47 wholly-owns three silver and critical metals (polymetallic) exploration projects in Canada and the US: the Flagship Red Mountain silver-gold-zinc-copper-lead VMS-SEDEX project in southcentral Alaska; the Adams Plateau silver-zinc-copper-gold-lead SEDEX-VMS project in southern British Columbia, and the Michelle silver-lead-zinc-gallium-antimony MVT-SEDEX Project in Yukon Territory. Silver47 Exploration Corporation shares trade on the TSX-V under the ticker symbol AGA. For more information about Silver47, please visit our website at www.silver47.ca.
On Behalf of the Board of Directors
Mr. Gary R. Thompson, Director and CEO
info@silver47.ca
403-870-1155
No securities regulatory authority has either approved or disapproved of the contents of this release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
Information set forth in this news release may involve forward-looking statements under applicable securities laws. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, including statements relating to the trading of the Company's common shares on the TSXV, the prospective geology and composition of its properties, anticipated results of further exploration on its properties, statements relating to the YESAB litigation, or other similar expressions and all statements, other than statements of historical fact included herein. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the need for additional financing; the satisfaction of the conditions imposed by the TSXV on the Listing; operational risks associated with mineral exploration; regulatory risks; fluctuations in commodity prices; title matters; litigation risks; and the additional risks identified in the Company's long form prospectus dated October 25, 2024 filed under its issuer profile on SEDAR+ and other reports and filings with the TSXV and applicable Canadian securities regulators. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/229897
News Provided by Newsfile via QuoteMedia
Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ( "Pan American" ) yesterday completed the previously announced divestment of its 100% interest in La Arena S.A. ("La Arena"), which owns the La Arena gold mine as well as the La Arena II project in Peru, to Jinteng (Singapore) Mining Pte. Ltd., a subsidiary of Zijin Mining Group Co., Ltd. (collectively, "Zijin").
Under the terms of the agreement, Zijin paid US$245 million in cash consideration and granted Pan American a life-of-mine gold net smelter return royalty of 1.5% for the La Arena II project. Upon commencement of commercial production from the La Arena II project, the agreement provides for an additional contingent payment from Zijin of US$50 million in cash.
As part of the approval received from the Government of Canada under the Investment Canada Act, Pan American and La Arena entered into an offtake agreement in respect of the La Arena II project, which will enable Pan American to secure up to 60% of the future copper concentrate supply from the La Arena II project on commercial terms for sale in North American markets, following the commencement of commercial production.
About Pan American Silver
Pan American Silver is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "PAAS".
Learn more at panamericansilver.com
Follow us on LinkedIn
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: the anticipated commencement of production from the La Arena II project, if any; the potential receipt of the future contingent payment and the realization of any value in respect of the gold net smelter return royalty granted in connection with the transaction; and the amount of copper concentrates available from the La Arena II project, if any, and Pan American's ability to secure and complete future sales of any such copper concentrates within North American markets.
These forward-looking statements and information reflect Pan American's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: whether commercial production from the La Arena II project will be achieved, and the timing for any such commercial production; the benefits and value, if any, of the gold net smelter return royalty granted in connection with the transaction; tonnage of ore to be mined and processed from the La Arena II project, if any; future anticipated prices for gold, copper and other metals and assumed foreign exchange rates; ore grades and recoveries from the La Arena II project; capital costs for the La Arena II project and the availability of capital for development and construction; all necessary permits, licenses and regulatory approvals for the La Arena II project are received; and the amount, if any, of supply of copper concentrates from the La Arena II project and, if available, the future sales of any such copper concentrates within North American markets. The foregoing list of assumptions is not exhaustive.
Pan American cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and Pan American has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in gold and base metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); development and construction risks; risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom Pan American does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in Peru, including environmental, export and import laws and regulations; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in Peru, including legal restrictions relating to mining; risks relating to expropriation; and competition in the mining industry for equipment and qualified personnel. Although Pan American has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near- and longer-term prospects and may not be appropriate for other purposes. Pan American does not intend, nor does it assume any obligation to update or revise forward-looking statements or information, whether as a result of new information, changes in assumptions, future events or otherwise, except to the extent required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241203648739/en/
For more information contact:
Siren Fisekci
VP, Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: ir@panamericansilver.com
News Provided by Business Wire via QuoteMedia
Strong Free Cash Flow Continues, Supporting 29% Growth in Treasury Assets
TSX: SIL | NYSE American: SILV
SilverCrest Metals Inc. ("SilverCrest" or the "Company") is pleased to announce its financial results for the three months ended September 30, 2024 ("Q3 2024"). This release provides additional operational results to supplement the October 10, 2024 release of Q3 2024 operational highlights from the Company's Las Chispas Operation ("Las Chispas" or "Las Chispas Operation") located in Sonora, Mexico . All amounts herein are presented in United States Dollars ("US$"), unless otherwise stated.
N. Eric Fier , CEO, commented, "We are pleased to deliver another quarterly record for both revenue and mine operating earnings, as well as one of our best quarters to date for both operating and free cash flow. Our results were supported by strong metal prices, impressive sales quantities and all-in sustaining costs that were well below the low end of our 2024 guidance. Mining rates continued to benefit from having two underground contractors, a dynamic we plan to maintain into Q1 2025 as part of our strategy to manage single asset risk and create additional operational flexibility. These results once again showcase the quality and consistency of our asset and operating team.
Free cash flow per share remains a strong testament of our performance, increasing 49% to $0.24 per share (1) from already strong levels in Q2 2024. This performance led to a 29%, or $35.9 million , increase in treasury assets (1) to end the quarter with $158.2 million . With this exceptional quarter, we remain firmly on track to perform inline or better than our 2024 annual guidance for sales, cash costs, and all-in sustaining costs."
Q3 2024 Highlights
(1) | Refer to the "Non-GAAP Financial Measures" disclosure at the end of this press release and associated MD&A for a description and calculation of these measures. |
(2) | Silver equivalent ("AgEq") ratio used in this news release of 79.51:1 based on the Las Chispas Operation Technical Report dated September 5, 2023, with an effective date of July 19, 2023 (the "2023 Technical Report"). |
Third Quarter Operating Performance
The following operating performance refers to adjusted earnings, operating cash flow per share (basic), free cash flow, free cash flow per share (basic), cash costs, AISC, and treasury assets which are described in more detail in the "Non-GAAP Financial Measures" section of this news release.
Three months ended September 30, | Nine months ended September 30, | ||||
OPERATIONAL | Unit | 2024 | 2023 | 2024 | 2023 |
Ore mined | tonnes | 124,229 | 83,800 | 309,985 | 222,300 |
Underground development | kilometres ("km") | 4.4 | 3.3 | 13.3 | 9.6 |
Ore milled (1) | tonnes | 121,775 | 114,500 | 325,793 | 326,900 |
Average daily mill throughput | tpd | 1,324 | 1,245 | 1,193 | 1,197 |
Gold | |||||
Average grade | grams per tonne ("gpt") | 3.87 | 4.35 | 4.35 | 4.42 |
Recovery | % | 98.5 % | 98.3 % | 98.5 % | 98.1 % |
Recovered | oz | 14,928 | 15,700 | 44,950 | 45,600 |
Sold | oz | 15,204 | 14,500 | 44,704 | 42,100 |
Silver | |||||
Average grade | gpt | 366 | 413 | 416 | 427 |
Recovery | % | 98.3 % | 98.1 % | 98.2 % | 96.1 % |
Recovered | million oz | 1.41 | 1.49 | 4.28 | 4.31 |
Sold | million oz | 1.45 | 1.53 | 4.30 | 4.34 |
Silver equivalent | |||||
Average grade | gpt | 674 | 759 | 762 | 778 |
Recovery | % | 98.4 % | 98.2 % | 98.4 % | 97.0 % |
Recovered | million oz | 2.60 | 2.74 | 7.85 | 7.93 |
Sold | million oz | 2.66 | 2.68 | 7.85 | 7.69 |
Three months ended September 30, | Nine months ended September 30, | ||||
FINANCIAL | Unit | 2024 | 2023 | 2024 | 2023 |
Revenue | $ millions | $ 80.4 | $ 63.8 | $ 216.8 | $ 183.8 |
Cost of sales | $ millions | $ (33.3) | $ (26.4) | $ (90.8) | $ (72.5) |
Mine operating earnings | $ millions | $ 47.0 | $ 37.5 | $ 126.0 | $ 111.4 |
Earnings for the period | $ millions | $ 9.5 | $ 29.9 | $ 49.9 | $ 80.8 |
Earnings per share (basic) | $/share | $ 0.06 | $ 0.20 | $ 0.34 | $ 0.55 |
Adjusted earnings for the period | $ millions | $ 26.3 | $ 28.5 | $ 88.9 | $ 82.8 |
Adjusted earnings per share (basic) | $ millions | $ 0.18 | $ 0.19 | $ 0.60 | $ 0.56 |
Operating cash flow | $ millions | $ 44.2 | $ 43.8 | $ 82.6 | $ 122.2 |
Operating cash flow per share (basic) | $/share | $ 0.30 | $ 0.30 | $ 0.56 | $ 0.83 |
Free cash flow | $ millions | $ 36.2 | $ 34.0 | $ 49.2 | $ 97.0 |
Free cash flow per share (basic) | $/share | $ 0.24 | $ 0.23 | $ 0.33 | $ 0.66 |
Cash costs (2) | $/oz AgEq | $ 8.85 | $ 7.47 | $ 8.28 | $ 7.43 |
AISC (2) | $/oz AgEq | $ 13.72 | $ 12.23 | $ 14.50 | $ 11.94 |
September | December | ||||
Cash and cash equivalents | $ millions | $ 120.9 | $ 86.0 | ||
Bullion | $ millions | $ 37.4 | $ 19.2 | ||
Treasury assets | $ millions | $ 158.2 | $ 105.2 | ||
(1) | Ore milled includes material from stockpiles and ore mined. |
(2) | Q3 2023 figures have been recast to align with the presentation of the current period. For the three and nine months ended September 30, 2024, cash costs increased by $2.5 million and $4.7 million, respectively, from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories. |
Mine
In the quarter, a total of 124,229 tonnes were mined from the underground. Mining rates in Q3 2024 averaged 1,350 tpd, a 23% increase from Q2 2024, and above the originally targeted 2024 exit rate of 1,050 tpd. The Company completed 4.4 km of horizontal and vertical underground development, 0.7 km ahead of plan. Mining rates continued to benefit from having two mining contractors working simultaneously at site, a dynamic the Company plans to maintain through the end of Q1 2025 as part of a continued strategy to manage single asset risk and create additional operational flexibility.
Plant
Process plant throughput averaged 1,324 tpd in Q3 2024, benefiting from successful capacity testing of the plant in its current configuration at 1,500 tpd for 20 days.
Mill throughput returned to planned rates of 1,200 tpd by the end of the quarter and is expected to continue to run at this level for the remainder of the year. Process plant availability was 97.0% for the quarter, better than plan.
Average processed grades of 3.87 gpt Au and 366 gpt Ag, or 674 gpt AgEq compared to Q2 2024 grades of 4.36 gpt Au and 418 gpt Ag, or 765 gpt AgEq. As planned, grades in the quarter were lower than in Q2 2024 to balance increased throughput while maintaining consistent recovered ounces.
Average process recoveries in Q3 2024 were 98.5% Au and 98.3% Ag, or 98.4% AgEq, consistent with Q2 2024 and above design estimates.
Production
The Company produced 2.6 million oz AgEq in Q3 2024, largely in line with the 2.7 million oz AgEq in Q2 2024.
Sustaining Capital
Sustaining capital expenditures totaled $7.9 million in Q3 2024, which as expected, declined from $15.3 million in Q2 2024. Sustaining capital has totaled $33.4 million YTD and is expected to finish this year towards the top end of the 2024 guidance of $40.0 million to $44.0 million .
Cash Costs and AISC
During the quarter, cash costs averaged $8 .85 per oz AgEq, in line with Q2 2024 cash costs of $8 .87 per oz AgEq.
Cash costs YTD 2024 averaged $8.28 per oz AgEq, positioning the Company below the low end of 2024 cash cost guidance of $9.25 to $9.75 per oz AgEq.
AISC averaged $13.72 per oz AgEq in Q3 2024, 19% lower than in Q2 2024 ( $16.88 per oz AgEq) as a result of lower planned sustaining capital expenditures. AISC YTD of $14.50 per oz AgEq, positions the Company below the low end of annual AISC guidance of $14.90 to $15.75 per oz AgEq.
Exploration
During Q3 2024, the Company continued drilling activities at Las Chispas to support mineral resource growth with approximately 12,500 metres completed between conversion drilling (60%) and near mine targets (40%). In addition, efforts continued with regional field-based evaluation of greenfield targets.
Program expenditures of $2.5 million and $11.5 million for Q3 2024 and YTD 2024, respectively, put the Company in line to finish the year at the top end of the 2024 guidance range of $12.0 million to $14.0 million .
Selected Q3 2024 Financial Results
Revenue
During Q3 2024, the Company sold a total of 15,204 oz Au and 1.5 million oz Ag at average realized prices of $2 ,472 per oz Au and $29.48 per oz Ag, generating another quarter of record revenue of $80.4 million . During Q2 2024, the Company sold a total of 14,500 oz Au and 1.4 million oz Ag at average realized prices of $2,237 per oz Au and $27.84 per oz Ag, generating revenue of $72.7 million . The Company achieved record revenue in Q3 2024 due to higher metal prices and sales quantities relative to Q2 2024.
Net Earnings
Q3 2024 net earnings of $9.5 million , or $0.06 per share, increased compared to net earnings of $6.5 million , or $0.04 per share in Q2 2024. Similarly to Q2 2024, net earnings in the quarter were negatively impacted by declines in the Mexican peso. Income tax expense of $25.8 million recorded in the quarter was similar to $26.2 million in Q2 2024, with both quarters impacted by non-cash deferred tax expenses resulting from declines in the Mexican peso. Q3 2024 net earnings were also impacted by transaction and integration costs of $3.4 million .
Q3 2024 adjusted earnings of $26.3 million , or $0.18 per share, increased compared to adjusted earnings of $24.9 million or $0.17 per share in Q2 2024. This increase was primarily related to $5.5 million in higher mine operating earnings, partially offset by $4.4 million in higher current tax expense.
Cash Flow
In Q3 2024, cash flow generated by operating activities was $44.2 million , or $0.30 per share, an increase compared to $39.6 million , or $0.27 per share, in Q2 2024. Operating cash flow before changes in working capital was $37.8 million or $0.25 per share which compares to $31.8 million or $0.22 per share in Q2 2024.
During the quarter, the Company remitted $12.1 million in tax installments that will be attributable to 2024 payable income taxes. YTD tax payments totaled $52.7 million . Guidance for total tax payments in 2024 (including payments for 2023 taxes) was $56.0 to $63.0 million based on metal prices of $1,850 per oz Au and $22.80 per oz Ag and Mexican peso to US dollar of 17:1. With higher realized metal prices throughout the year, the Company expects total tax payments to be in the upper end or exceed this guidance.
During the quarter, the Company made payments of $10.4 million for mineral properties, plant and equipment, of which $7.9 million was related to sustaining capital expenditures and the remainder related to non-sustaining brownfield exploration capital expenditures at Las Chispas. This compares with $19.5 million of payments made for mineral property, plant and equipment in Q2 2024.
Q3 2024 free cash flow of $36.2 million , or $0.24 per share, increased 49% from $24.3 million , or $0.16 per share, in Q2 2024 as a result of increased operating cash flow and a planned reduction in sustaining capital expenditures.
Financial Position
As at September 30, 2024, the Company had treasury assets of $158.2 million ( $120.9 million cash and $37.4 million in bullion), an increase of $35.9 million from $122.3 million at the end of Q2 2024 ( $98.3 million cash and $24.0 million bullion). The Company remains debt free with access to an undrawn $70.0 million revolving facility.
Bullion assets increased by $13.3 million , or 56%, during the quarter as a result of $10.3 million in bullion purchases plus $3.0 million in mark-to-market increases from improved metal pricing.
The Company's working capital was $190.4 million on September 30, 2024, reflecting a $22.3 million increase from June 30 , 2024. This growth is attributed to continued increases of cash and bullion balances, driven by strong operating cash flow resulting from strong operating performance.
Environmental, Social and Governance ("ESG")
In Q3 2024, SilverCrest completed the latest phase of the reconstruction of the local sewage system in Arizpe with a total of 700 meters of new pipe installed. Work on other water related infrastructure projects in communities local to Las Chispas was paused, as planned, during the quarter due to seasonable rain and has since resumed.
During the quarter, the Company released its second annual ESG Report. The 2023 ESG Report offered further insight into SilverCrest's continued commitment to working with stakeholders to identify areas where contribution and Company lead initiatives can make the most meaningful impact.
Efforts to integrate renewable solar power at Las Chispas are progressing. With the permitting process underway SilverCrest expects to transition to using solar power in Q1 2025.
Subsequent Events
On October 4, 2024 , SilverCrest and Coeur Mining Inc. ("Coeur") announced that they have entered into a definitive agreement whereby Coeur will acquire all of the issued and outstanding shares of SilverCrest pursuant to a plan of arrangement (the "Transaction"). Pursuant to the Transaction, SilverCrest shareholders will receive 1.6022 Coeur common shares for each SilverCrest common share. The special meeting and management information circular relating to the Transaction is expected to be available in Q4 2024, with the Transaction expected to close in late Q1 2025.
As a result of the Transaction and quarter end reporting, a blackout was in place which prevented the exercise of some expiring options, including 149,800 held by executives and Board of Directors. It is expected that these options, along with 163,750 expiring in late December 2024 , will be exercised and the maximum number of shares sold will be those needed to cover the cost of the options and any tax obligations. with the remainder locked up as per the Transaction.
Q3 2024 Conference Call
A conference call to discuss the Company's Q3 2024 operational and financial results will be held Wednesday, November 13, 2024 at 8:00 a.m. PT / 11:00 a.m. ET . To participate in the conference call, please dial the numbers below.
Date & Time: Wednesday November 13, 2024 at 8:00 a.m. PT / 11:00 a.m. ET
Telephone: North America Toll Free: 1-800-274-8461
Conference ID: SILVER (745837)
Webcast: https://silvercrestmetals.com/investors/presentations/
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals producer headquartered in Vancouver , BC. The Company's principal focus is its Las Chispas Operation in Sonora , Mexico. SilverCrest has an ongoing initiative to increase its asset base by expanding current resources and reserves, acquiring, discovering, and developing high value precious metals projects and ultimately operating multiple silver-gold mines in the Americas. The Company is led by a proven management team in all aspects of the precious metal mining sector, including taking projects through discovery, finance, on time and on budget construction, and production.
Non-GAAP Financial Measures
Management believes that the following non-GAAP financial measures will enable certain investors to better evaluate the Company's performance, liquidity, and ability to generate cash flow. These measures do not have any standardized definition under IFRS, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these measures differently.
Average realized gold and silver price
Average realized gold and silver price per ounce is calculated by dividing the Company's gross revenue from gold or silver sales for the relevant period by the gold or silver ounces sold, respectively. The Company believes the measure is useful in understanding the metal prices realized by the Company throughout the period. The following table reconciles revenue and metal sold during the period with average realized prices:
Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Gold revenue | 37,580 | 28,005 | 100,935 | 81,361 |
Gold ounces sold during the period | 15,204 | 14,500 | 44,704 | 42,100 |
Average realized gold price (per oz sold) | $ 2,472 | $ 1,931 | $ 2,258 | $ 1,933 |
Silver revenue | 42,791 | 35,823 | 115,823 | 102,449 |
Silver ounces sold during the period | 1,451,493 | 1,530,000 | 4,299,493 | 4,341,000 |
Average realized silver price (per oz sold) | $ 29.48 | $ 23.41 | $ 26.94 | $ 23.60 |
Capital expenditures
Capital expenditures are classified into sustaining capital expenditures or non-sustaining capital expenditures depending on the nature of the expenditure. Sustaining capital expenditures are those required to support current production levels. Non-sustaining capital expenditures represent the capital spending at new projects and major, discrete projects at existing operations intended to increase production or extend mine life. Management believes this to be a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of AISC.
The following table reconciles payments for mineral properties, plant and equipment, and equipment leases to sustaining and non-sustaining capital expenditures:
Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Payments for mineral properties, plant and equipment | $ 10,449 | $ 13,081 | $ 44,797 | $ 33,930 |
Payments for equipment leases | 37 | 11 | 84 | 82 |
Total capital expenditures | 10,486 | 13,092 | 44,881 | 34,012 |
Less: Non-sustaining capital expenditures | (2,543) | (3,256) | (11,455) | (8,892) |
Sustaining capital expenditures | $ 7,943 | $ 9,836 | $ 33,426 | $ 25,120 |
Free cash flow
Free cash flow subtracts sustaining capital expenditures from net cash provided by operating activities, serving as a valuable indicator of our capacity to generate cash from operations post-sustaining capital investments. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS measure:
Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Operating cash flow (1) | $ 44,166 | $ 43,801 | $ 82,618 | $ 122,165 |
Less: sustaining capital expenditures | (7,943) | (9,836) | (33,426) | (25,120) |
Free cash flow | $ 36,223 | $ 33,965 | $ 49,192 | $ 97,045 |
Free cash flow per share (basic) | $ 0.24 | $ 0.23 | $ 0.33 | $ 0.66 |
Weighted average shares outstanding (basic) | 148,585 | 146,776 | 147,759 | 147,067 |
(1) | For the three and nine months ended September 30, 2024, operating cash flow has been adjusted to include $0.1 million and $1.7 million, respectively, in interest paid and $0.7 million and $2.8 million, respectively, in interest received which was previously presented in financing and investing activities, respectively. |
Working capital
Working capital is calculated as current assets less current liabilities. The Company uses working capital as a measure of the Company's operational efficiency and short-term financial health.
Operating margin
Operating margin is calculated as mine operating earnings divided by revenue. The Company uses Operating Margin as a measure of the Company's profitability. The following table reconciles this non-GAAP financial measure to the most directly comparable IFRS Accounting Standard measure:
Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Revenue | $ 80,371 | $ 63,828 | $ 216,758 | $ 183,810 |
Mine operating earnings | 47,033 | 37,460 | 125,998 | 111,359 |
Operating margin | 59 % | 59 % | 58 % | 61 % |
Operating cash flow before change in working capital
The Company uses operating cash flow before change in working capital to determine the Company's ability to generate cash flow from operations, and is calculated by adding back the change in working capital to operating cash flow as reported in the consolidated statements of cash flows.
Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Operating cash flow (1) | $ 44,166 | $ 43,801 | $ 82,618 | $ 122,165 |
Less: change in working capital | (6,394) | (4,268) | 4,539 | (4,106) |
Operating cash flow before change in working capital | $ 37,772 | $ 39,533 | $ 87,157 | $ 118,059 |
Operating cash flow per share (basic) | $ 0.30 | $ 0.30 | $ 0.56 | $ 0.83 |
Operating cash flow before change in working capital per share (basic) | $ 0.25 | $ 0.27 | $ 0.59 | $ 0.80 |
Weighted average shares outstanding (basic) | 148,585 | 146,776 | 147,759 | 147,067 |
(1) | For the three and nine months ended September 30, 2024, operating cash flow has been adjusted to include $0.1 million and $1.7 million, respectively, in interest paid and $0.7 million and $2.8 million, respectively, in interest received which was previously presented in financing and investing activities, respectively. |
Treasury assets
SilverCrest calculates treasury assets as cash and cash equivalents plus bullion as reported in the consolidated statements of financial position. Management believes that treasury assets provide a useful measure of the Company's most liquid assets that can be used to settle short-term obligations or provide liquidity. Treasury assets are calculated as follows:
September 30 | December 31 | |
Cash and cash equivalents | $ 120,864 | $ 85,964 |
Bullion | 37,374 | 19,191 |
Treasury assets | $ 158,238 | $ 105,155 |
Cash costs
Cash costs include production costs, and government royalties. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on a site basis.
AISC
All-in sustaining costs, a non-GAAP financial measure, starts with cash costs and includes general and administrative costs, reclamation accretion expense and sustaining capital expenditures. Management uses this measure to monitor the performance of its mining operation and ability to generate positive cash flow on an overall company basis.
Cash costs and AISC are calculated as follows:
Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | |
Production costs | $ 23,153 | $ 19,728 | $ 64,036 | $ 56,168 |
Government royalties | 404 | 319 | 980 | 927 |
Total cash costs (1) | 23,557 | 20,047 | 65,016 | 57,095 |
General and administrative expenses | 4,885 | 2,808 | 15,017 | 9,222 |
Reclamation accretion expense | 126 | 132 | 402 | 355 |
Sustaining capital expenditures | 7,943 | 9,836 | 33,426 | 25,120 |
Total AISC | $ 36,511 | $ 32,823 | $ 113,861 | $ 91,792 |
Silver equivalent ounces sold (koz) | 2,660 | 2,683 | 7,854 | 7,688 |
Cash costs (per AgEq sold) | $ 8.85 | $ 7.47 | $ 8.28 | $ 7.43 |
AISC (per AgEq sold) | $ 13.72 | $ 12.23 | $ 14.50 | $ 11.94 |
(1) | 2023 Figures have been recast to align with the current period's presentation. For the three and nine months ended September 30, 2024, cash costs increased by $2.5 million and $4.7 million, respectively, from the exclusion of adjustments for corporate salaries and other expenses, and changes in inventories. |
Adjusted earnings
Adjusted earnings and adjusted basic earnings per share (collectively, "Adjusted Earnings") are presented to remove items that are unrelated to ongoing operations. These metrics do not have a standardized definition under IFRS Accounting Standards and should not be considered as a substitute for results prepared in accordance with IFRS Accounting Standards. Other companies may calculate Adjusted Earnings differently. Adjusted Earnings excludes the tax-effected impact of transaction and integration costs, unrealized gains and losses on foreign currency derivative contracts, gains or losses from the disposal of mineral properties, plant and equipment, and deferred taxes.
Three months ended | Nine months ended | Three months ended | |||
2024 | 2023 | 2024 | 2023 | 2024 | |
Net earnings | $ 9,508 | $ 29,936 | $ 49,866 | $ 80,803 | $ 6,494 |
Increase (decrease) due to: | |||||
Transaction and integration costs | 3,435 | — | 3,435 | — | — |
Unrealized losses on foreign currency derivative contracts | 4,218 | — | 7,732 | — | 4,062 |
Mineral properties, plant and equipment gains | — | — | (20) | — | (20) |
Current tax effect from adjusting items | (380) | — | (380) | — | — |
Deferred tax (recovery) expense | 9,503 | (1,389) | 28,306 | 1,998 | 14,335 |
Adjusted earnings | 26,284 | 28,547 | 88,939 | 82,801 | 24,871 |
Weighted average shares outstanding (in 000's) Basic | 148,585 | 146,776 | 147,759 | 147,067 | 147,728 |
Adjusted basic earnings per share | $ 0.18 | $ 0.19 | $ 0.60 | $ 0.56 | $ 0.17 |
Forward-Looking Statements
This news release contains "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. These include, without limitation, statements with respect to: the proposed Transaction, including the terms of the Transaction, anticipated completion of the Transaction, the receipt of required approvals, and the satisfaction of closing conditions; the Company's 2024 guidance and outlook; the amount of future production of gold and silver over any period; the strategic plans and expectations for the Company's operation, exploration program and ESG related projects; working capital requirements; expected recoveries; expected cash costs and outflows, Au and Ag prices and currency exchange rates. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: present and future business strategies; continued commercial operations at the Las Chispas Operation; the environment in which the Company will operate in the future, including the price of gold and silver; estimates of capital and operating costs; production estimates; estimates of mineral resources, mineral reserves and metallurgical recoveries and mining operational risk; the reliability of mineral resource and mineral reserve estimates; mining and development costs; the conditions in general economic and financial markets; availability of skilled labour; timing and amount of expenditures related to exploration programs; and effects of regulation by governmental agencies and changes in Mexican mining legislation. The actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors including: the timing and content of work programs; results of exploration activities; the interpretation of drilling results and other geological data; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project cost overruns or unanticipated costs and expenses; fluctuations in gold and silver prices and currency exchange rates; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.
Qualified Persons Statement
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this news release is N. Eric Fier , CPG, P.Eng, CEO for SilverCrest, who has reviewed and approved its contents.
View original content to download multimedia: https://www.prnewswire.com/news-releases/silvercrest-reports-third-quarter-2024-financial-results-302303369.html
SOURCE SilverCrest Metals Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2024/12/c0577.html
News Provided by Canada Newswire via QuoteMedia
MAG Silver Corp. (TSX NYSE American: MAG) ("MAG", or the "Company") announces the Company's unaudited consolidated financial results for the three months ended September 30, 2024 ("Q3 2024"). For details of the unaudited condensed interim consolidated financial statements of the Company for the three and nine months ended September 30, 2024 ("Q3 2024 Financial Statements") and management's discussion and analysis for the three and nine months ended September 30, 2024 ("Q3 2024 MD&A"), please see the Company's filings on the System for Electronic Document Analysis and Retrieval Plus ("SEDAR+") at ( www.sedarplus.ca ) or on the Electronic Data Gathering, Analysis, and Retrieval ("EDGAR") at ( www.sec.gov ).
All amounts herein are reported in $000s of United States dollars ("US$") unless otherwise specified (C$ refers to thousands of Canadian dollars).
KEY HIGHLIGHTS FOR Q3 2024 (on a 100% basis unless otherwise noted)
CORPORATE
EXPLORATION
_________________________________
1 Adjusted EBITDA, cash cost per ounce, all-in sustaining cost per ounce and free cash flow are non-IFRS measures, please see below " Non-IFRS Measures " section and section 12 of the Q3 2024 MD&A for a detailed reconciliation of these measures to the Q3 2024 Financial Statements.
2 Equivalent silver head grade and equivalent silver production have been calculated using the following price assumptions to translate gold, lead and zinc to "equivalent" silver head grade and "equivalent" silver production: $23/oz silver, $1,950/oz gold, $0.95/lb lead and $1.15/lb zinc.
3 Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended September 30, 2024 realized prices: $30.16/oz silver, $2,587.65/oz gold, $0.91/lb lead and $1.29/lb zinc.
4 Information contained in or otherwise accessible through the Company's website, including the 2023 sustainability report and 2023 ESG Data Table, do not form part of this publication and are not incorporated into this publication by reference.
JUANICIPIO RESULTS
All results of Juanicipio in this section are on a 100% basis, unless otherwise noted.
Operating Performance
The following table and subsequent discussion provide a summary of the operating performance of Juanicipio for the three months ended September 30, 2024 and 2023, unless otherwise noted.
| Key mine performance data of Juanicipio (100% basis) | Three months ended | |||
| September 30, | September 30, | |||
| 2024 | 2023 | |||
| Metres developed (m) | 3,278 | 4,105 | ||
| Material mined (t) | 331,194 | 297,575 | ||
| Material processed (t) | 332,290 | 322,249 | ||
| Silver head grade (g/t) | 481 | 523 | ||
| Gold head grade (g/t) | 1.32 | 1.32 | ||
| Lead head grade (%) | 1.58 | % | 1.33 | % |
| Zinc head grade (%) | 2.83 | % | 2.25 | % |
| Equivalent silver head grade (g/t) (1) | 735 | 760 | ||
| Silver ounces sold (koz) | 4,462 | 4,289 | ||
| Gold ounces sold (koz) | 9.12 | 7.76 | ||
| Lead pounds sold (klb) | 9,984 | 7,603 | ||
| Zinc pounds sold (klb) | 15,426 | 9,596 | ||
| Equivalent silver ounces sold (koz) (2) | 6,204 | 5,710 | ||
| (1) | Equivalent silver head grades have been calculated using the following price assumptions to translate gold, lead and zinc to "equivalent" silver head grade in 2024: $23/oz silver, $1,950/oz gold, $0.95/lb lead and $1.15/lb zinc (2023: $21.85/oz silver, $1,775/oz gold, $0.915/lb lead and $1.30/lb zinc). |
| (2) | Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended September 30, 2024 realized prices: $30.16/oz silver, $2,587.65/oz gold, $0.91/lb lead and $1.29/lb zinc (three months ended September 30, 2023 realized prices: $23.51/oz silver, $1,911.99/oz gold, $1.00/lb lead and $1.15/lb zinc). |
During the three months ended September 30, 2024, a total of 331,194 tonnes of ore were mined. This represents an increase of 11% over Q3 2023. Increases in mined tonnages at Juanicipio have been driven by the operational ramp-up of the mine towards steady state mining and milling targets.
During the three months ended September 30, 2024, a total of 332,290 tonnes of ore were processed through the Juanicipio plant. The 3% increase over Q3 2023 was mainly attributable to the Juanicipio plant operating at nameplate per operating day during 2024.
The silver head grade and equivalent silver head grade for the ore processed in the three months ended September 30, 2024 was 481 g/t and 735 g/t, respectively (three months ended September 30, 2023: 523 g/t and 760 g/t, respectively). The higher silver head grade and lower lead and zinc head grades in Q3 2023 were the result of processing ore from the upper levels of the mine, characterized by higher silver grade, compared to deeper areas in Q3 2024. Silver metallurgical recovery during the three months ended September 30, 2024 was 95% (three months ended September 30, 2023: 88%) reflecting the commencement of commercial pyrite and gravimetric concentrate production during Q2 2024 delivering incremental silver and gold recovery paired with ongoing optimizations in the processing plant.
The following table provides a summary of the total cash costs and all-in sustaining costs ("AISC") of Juanicipio for the three months ended September 30, 2024, and 2023.
| Key mine performance data of Juanicipio (100% basis) | Three months ended | |||
| September 30, | September 30, | |||
| 2024 | 2023 | |||
| Total cash costs (1) | (555 | ) | 20,067 | |
| Cash cost per silver ounce sold ($/oz) (1) | (0.12 | ) | 4.68 | |
| Cash cost per equivalent silver ounce sold ($/oz) (1) | 8.38 | 9.37 | ||
| All-in sustaining costs (1) | 14,631 | 39,411 | ||
| All-in sustaining cost per silver ounce sold ($/oz) (1) | 3.28 | 9.19 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/oz) (1) | 10.83 | 12.75 | ||
| (1) | Total cash costs, cash cost per ounce, cash cost per equivalent ounce, all-in sustaining costs, all-in sustaining cost per ounce, and all-in sustaining cost per equivalent ounce are non-IFRS measures, please see below "Non-IFRS Measures" section and section 12 of the Q3 2024 MD&A for a detailed reconciliation of these measures to the Q3 2024 Financial Statements. Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended September 30, 2024 realized prices: $30.16/oz silver, $2,587.65/oz gold, $0.91/lb lead and $1.29/lb zinc (three months ended September 30, 2023 realized prices: $23.51/oz silver, $1,911.99/oz gold, $1.00/lb lead and $1.15/lb zinc). |
Financial Results
The following table presents excerpts of the financial results of Juanicipio for the three months ended September 30, 2024 and 2023.
| Three months ended | ||||
| September 30, | September 30, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Sales | 176,393 | 125,046 | ||
| Cost of sales: | ||||
| Production cost | (38,596 | ) | (43,782 | ) |
| Depreciation and amortization | (23,440 | ) | (21,646 | ) |
| Gross profit | 114,357 | 59,618 | ||
| Consulting and administrative expenses | (2,497 | ) | (3,458 | ) |
| Extraordinary mining and other duties | (2,810 | ) | (1,635 | ) |
| Interest expense | (1,839 | ) | (5,214 | ) |
| Exchange gains (losses) and other | 1,961 | 420 | ||
| Net income before tax | 109,172 | 49,731 | ||
| Income tax expense | (52,937 | ) | (23,824 | ) |
| Net income (100% basis) | 56,235 | 25,907 | ||
| MAG's 44% portion of net income | 24,743 | 11,399 | ||
| Interest on Juanicipio loans - MAG's 44% | 809 | 2,293 | ||
| MAG's 44% equity income | 25,552 | 13,692 | ||
Sales increased by $51,348 during the three months ended September 30, 2024, mainly due to 26% higher realized metal prices and 13% higher metal volumes.
Production costs decreased by $5,186 due to Juanicipio depleting higher-cost stockpiles in Q3 2023 ($2,085), resulting from the operational ramp-up and processing facility commissioning in the first half of 2023, and lower mining, milling and general and administrative expenses ("G&A expenses") ($3,101).
Depreciation increased by $1,794 impacted by an increased depreciable asset cost base as the Juanicipio mill achieved commercial production and commenced depreciating the processing facility and associated equipment in June 2023. In addition, Juanicipio processed 3% more tonnes during Q3 2024, impacting units of production depreciation.
Cash operating margin increased from 65% to 78%, mainly due to positive commodity price movements, reduced operating costs, as well as operational leverage.
Other expenses decreased by $4,701 mainly as a result of lower consulting and administrative expenses ($960), higher exchange gains ($1,542) and lower interest expense ($3,375) as Juanicipio reduced its outstanding shareholder loans balance by $223,192 ($206,712 loan repayments and $16,480 converted to equity) over the course of September 2023 to September 2024, offset by higher selling costs and other duties ($1,176) which were impacted by the commencement of commercial pyrite and gravimetric concentrate production during Q2 2024.
Taxes increased by $29,113 mainly due to higher taxable profits generated during Q3 2024, as well as non-cash deferred tax charges on fixed assets driven by a weakening in the Mexican peso versus the US dollar.
Gross Profit from Ore Processed at Juanicipio Plant (100% basis)
| Three Months Ended September 30, 2024 (332,290 tonnes processed) | Three Months Ended September 30, 2023 Amount $ | |||||||
| Metals Sold | Quantity | Average Price $ | Amount $ | |||||
| Silver | 4,461,644 ounces | 30.16 per oz | 134,580 | 100,841 | ||||
| Gold | 9,118 ounces | 2,588 per oz | 23,594 | 14,839 | ||||
| Lead | 4,529 tonnes | 0.91 per lb. | 9,067 | 7,571 | ||||
| Zinc | 6,997 tonnes | 1.29 per lb. | 19,885 | 11,005 | ||||
| Treatment, refining, and other processing costs ( 1 ) | (10,733 | ) | (9,211 | ) | ||||
| Sales | 176,393 | 125,046 | ||||||
| Production cost | (38,596 | ) | (43,782 | ) | ||||
| Depreciation and amortization | (23,440 | ) | (24,646 | ) | ||||
| Gross Profit | 114,357 | 59,618 | ||||||
| (1) | Q3 2023 includes toll milling costs from processing mineralized material at the Saucito plant. |
Sales and treatment charges are recorded on a provisional basis and are adjusted based on final assay and pricing adjustments in accordance with the offtake contracts.
MAG FINANCIAL RESULTS – THREE MONTHS ENDED SEPTEMBER 30, 2024
As at September 30, 2024, MAG had working capital of $113,657 (December 31, 2023: $67,262) including cash of $113,491 (December 31, 2023: $68,707) and no long-term debt. As well, as at September 30, 2024, Juanicipio had working capital of $187,234 including cash of $96,782 (MAG's attributable share is 44%).
The Company's net income for the three months ended September 30, 2024 amounted to $22,292 (September 30, 2023: $8,862) or $0.22/share (September 30, 2023: $0.09/share). MAG recorded its 44% income from equity accounted investment in Juanicipio of $25,552 (September 30, 2023: $13,692) which included MAG's 44% share of net income from operations as well as loan interest earned on loans advanced to Juanicipio (see above for a discussion of MAG's share of income from its equity accounted investment in Juanicipio).
| For the three months ended | ||||
| September 30, | September 30, | |||
| 2024 | 2023 | |||
| $ | $ | |||
| Income from equity accounted investment in Juanicipio | 25,552 | 13,692 | ||
| General and administrative expenses | (3,529 | ) | (4,094 | ) |
| General exploration and business development | (138 | ) | (468 | ) |
| Operating Income | 21,885 | 9,130 | ||
| Interest income | 1,336 | 663 | ||
| Other income | 533 | 269 | ||
| Financing costs | (211 | ) | - | |
| Foreign exchange loss | (41 | ) | (192 | ) |
| Income before income tax | 23,502 | 9,870 | ||
| Deferred income tax expense | (1,210 | ) | (1,008 | ) |
| Net income | 22,292 | 8,862 | ||
NON-IFRS MEASURES
The following table provides a reconciliation of cash cost per silver ounce of Juanicipio to production cost of Juanicipio on a 100% basis (the nearest IFRS measure) as presented in the notes to the Q3 2024 Financial Statements.
| Three months ended September 30, | ||||
| (in thousands of US$, except per ounce amounts) | 2024 | 2023 | ||
| Production cost as reported | 38,596 | 43,782 | ||
| Depreciation on inventory movements | (147 | ) | (1,145 | ) |
| Adjusted production cost | 38,448 | 42,637 | ||
| Treatment, refining, and other processing costs | 10,733 | 9,211 | ||
| By-product revenues (2) | (52,546 | ) | (33,415 | ) |
| Extraordinary mining and other duties | 2,810 | 1,635 | ||
| Total cash costs (1) | (555 | ) | 20,067 | |
| Add back by-product revenues (2) | 52,546 | 33,415 | ||
| Total cash costs for equivalent silver (1) | 51,992 | 53,482 | ||
| Silver ounces sold | 4,461,644 | 4,288,747 | ||
| Equivalent silver ounces sold (3) | 6,203,678 | 5,709,900 | ||
| Cash cost per silver ounce sold ($/ounce) | (0.12 | ) | 4.68 | |
| Cash cost per equivalent silver ounce sold ($/ounce) | 8.38 | 9.37 | ||
| (1) | As Q3 2023 represented the first full quarter of commercial production, information presented for total cash costs and total cash costs for equivalent silver together with their associated per unit values are not directly comparable. |
| (2) | By-product revenues relate to the sale of other metals namely gold, lead, and zinc. |
| (3) | Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended September 30, 2024 realized prices: $30.16/oz silver, $2,587.65/oz gold, $0.91/lb lead and $1.29/lb zinc (three months ended September 30, 2023 realized prices: $23.51/oz silver, $1,911.99/oz gold, $1.00/lb lead and $1.15/lb zinc). |
The following table provides a reconciliation of AISC of Juanicipio to production cost and various operating expenses of Juanicipio on a 100% basis (the nearest IFRS measure), as presented in the notes to the Q3 2024 Financial Statements.
| Three months ended September 30, | ||||
| (in thousands of US$, except per ounce amounts) | 2024 | 2023 | ||
| Total cash costs | (555 | ) | 20,067 | |
| General and administrative expenses | 2,497 | 3,458 | ||
| Exploration | 2,728 | 2,059 | ||
| Sustaining capital expenditures | 9,676 | 13,604 | ||
| Sustaining lease payments | 232 | 174 | ||
| Interest on lease liabilities | (13 | ) | (15 | ) |
| Accretion on closure and reclamation costs | 66 | 64 | ||
| All-in sustaining costs (1) | 14,631 | 39,411 | ||
| Add back by-product revenues (2) | 52,546 | 33,415 | ||
| All-in sustaining costs for equivalent silver (1) | 67,177 | 72,827 | ||
| Silver ounces sold | 4,461,644 | 4,288,747 | ||
| Equivalent silver ounces sold (3) | 6,203,678 | 5,709,900 | ||
| All-in sustaining cost per silver ounce sold ($/ounce) | 3.28 | 9.19 | ||
| All-in sustaining cost per equivalent silver ounce sold ($/ounce) | 10.83 | 12.75 | ||
| Average realized price per silver ounce sold ($/ounce) | 30.16 | 23.51 | ||
| All-in sustaining margin ($/ounce) | 26.88 | 14.32 | ||
| All-in sustaining margin ($/equivalent ounce) | 19.34 | 10.76 | ||
| All-in sustaining margin | 119,949 | 61,430 | ||
| (1) | As Q3 2023 represented the first full quarter of commercial production, information presented for all-in sustaining costs, all-in sustaining costs for equivalent silver, and all-in sustaining margin together with their associated per unit values are not directly comparable. |
| (2) | By-product revenues relate to the sale of other metals namely gold, lead, and zinc. |
| (3) | Equivalent silver ounces sold have been calculated using realized prices to translate gold, lead and zinc to "equivalent" silver ounces sold (metal quantity, multiplied by metal price, divided by silver price). Three months ended September 30, 2024 realized prices: $30.16/oz silver, $2,587.65/oz gold, $0.91/lb lead and $1.29/lb zinc (three months ended September 30, 2023 realized prices: $23.51/oz silver, $1,911.99/oz gold, $1.00/lb lead and $1.15/lb zinc). |
For the three months ended September 30, 2024 the Company incurred corporate G&A expenses of $3,429 (three months ended September 30, 2023: $3,961), which exclude depreciation expense.
The Company's attributable silver ounces sold and equivalent silver ounces sold for the three months ended September 30, 2024 were 1,963,123 and 2,729,618 respectively (three months ended September 30, 2023: 1,887,049 and 2,512,356 respectively), resulting in additional all‐in sustaining cost for the Company of $1.75/oz and $1.26/oz respectively (three months ended September 30, 2023: $2.10/oz and $1.58/oz respectively), in addition to Juanicipio's all-in-sustaining costs presented in the above table.
The following table provides a reconciliation of EBITDA and Adjusted EBITDA attributable to the Company based on its economic interest in Juanicipio to net income (the nearest IFRS measure) of the Company per the Q3 2024 Financial Statements. All adjustments are shown net of estimated income tax.
| Three months ended September 30, | ||||
| (in thousands of US$) | 2024 | 2023 | ||
| Net income after tax | 22,292 | 8,862 | ||
| Add back (deduct): | ||||
| Taxes | 1,210 | 1,008 | ||
| Depreciation and depletion | 100 | 133 | ||
| Finance costs (income and expenses) | (1,617 | ) | (740 | ) |
| EBITDA (1) | 21,985 | 9,263 | ||
| Add back (deduct): | ||||
| Adjustment for non-cash share-based compensation | 991 | 822 | ||
| Share of net earnings related to Juanicipio | (25,552 | ) | (13,692 | ) |
| MAG attributable interest in Junicipio Adjusted EBITDA | 58,296 | 33,527 | ||
| Adjusted EBITDA (1) | 55,720 | 29,920 | ||
| (1) | As Q3 2023 represents the first full quarter of commercial production, information presented for EBITDA and Adjusted EBITDA is not directly comparable. |
The following table provides a reconciliation of free cash flow of Juanicipio to its cash flow from operating activities on a 100% basis (the nearest IFRS measure), as presented in the notes to the Q3 2024 Financial Statements.
| Three months ended September 30, | ||||
| (in thousands of US$) | 2024 | 2023 | ||
| Cash flow from operating activities | 109,836 | 57,271 | ||
| Less: | ||||
| Cash flow used in investing activities | (12,656 | ) | (16,524 | ) |
| Sustaining lease payments | (232 | ) | (174 | ) |
| Juanicipio free cash flow (1) | 96,948 | 40,573 | ||
| (1) | As Q3 2023 represents the first full quarter of commercial production, comparative information presented for free cash flow of Juanicipio is not directly comparable. |
Qualified Persons: All scientific or technical information in this press release including assay results referred to, mineral resource estimates and mineralization, if applicable, is based upon information prepared by or under the supervision of, or has been approved by Gary Methven, P.Eng., Vice President, Technical Services and Lyle Hansen, P.Geo, Geotechnical Director; both are "Qualified Persons" for purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects .
About MAG Silver Corp.
MAG Silver Corp. is a growth-oriented Canadian mining and exploration company focused on advancing high-grade, district scale precious metals projects in the Americas. MAG is emerging as a top-tier primary silver mining company through its (44%) joint venture interest in the 4,000 tonnes per day Juanicipio Mine, operated by Fresnillo plc (56%). The mine is located in the Fresnillo Silver Trend in Mexico, the world's premier silver mining camp, where in addition to underground mine production and processing of high-grade mineralised material, an expanded exploration program is in place targeting multiple highly prospective targets. MAG is also executing multi-phase exploration programs at the 100% earn-in Deer Trail Project in Utah and the 100% owned Larder Project, located in the historically prolific Abitibi region of Canada.
Neither the Toronto Stock Exchange nor the NYSE American has reviewed or accepted responsibility for the accuracy or adequacy of this press release, which has been prepared by management.
Certain information contained in this release, including any information relating to MAG's future oriented financial information, are "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively herein referred as "forward-looking statements"), including the "safe harbour" provisions of provincial securities legislation, the U.S. Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended and Section 27A of the U.S. Securities Act. Such forward-looking statements include, but are not limited to:
When used in this release, any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, assumptions or future events of performance (often but not always using words or phrases such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "strategy", "goals", "objectives", "project", "potential" or variations thereof or stating that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions), as they relate to the Company or management, are intended to identify forward-looking statements. Such statements reflect the Company's current views with respect to future events and are subject to certain known and unknown risks, uncertainties and assumptions.
Forward-looking statements are necessarily based upon estimates and assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which, regarding future business decisions, are subject to change. Assumptions underlying the Company's expectations regarding forward-looking statements contained in this release include, among others: MAG's ability to carry on its various exploration and development activities including project development timelines, the timely receipt of required approvals and permits, the price of the minerals produced, the costs of operating, exploration and development expenditures, the impact on operations of the Mexican tax and legal regimes, MAG's ability to obtain adequate financing, outbreaks or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally.
Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including amongst others: commodities prices; changes in expected mineral production performance; unexpected increases in capital costs or cost overruns; exploitation and exploration results; continued availability of capital and financing; general economic, market or business conditions; risks relating to the Company's business operations; risks relating to the financing of the Company's business operations; risks related to the Company's ability to comply with restrictive covenants and maintain financial covenants pursuant to the terms of the Credit Facility; the expected use of the Credit Facility; risks relating to the development of Juanicipio and the minority interest investment in the same; risks relating to the Company's property titles; risks related to receipt of required regulatory approvals; pandemic risks; supply chain constraints and general costs escalation in the current inflationary environment heightened by the invasion of Ukraine by Russia and the events relating to the Israel-Hamas war; risks relating to the Company's financial and other instruments; operational risk; environmental risk; political risk; currency risk; market risk; capital cost inflation risk; risk relating to construction delays; the risk that data is incomplete or inaccurate; the risks relating to the limitations and assumptions within drilling, engineering and socio-economic studies relied upon in preparing economic assessments and estimates, including the updated Technical Report filed on March 27, 2024; as well as those risks more particularly described under the heading "Risk Factors" in the Company's Annual Information Form dated March 27, 2024 available under the Company's profile on SEDAR+ at www.sedarplus.ca .
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and, other than as required by applicable securities laws, the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on forward-looking statements.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedarplus.ca and www.sec.gov .
LEI: 254900LGL904N7F3EL14
For further information on behalf of MAG Silver Corp., please contact Fausto Di Trapani, Chief Financial Officer. Phone: (604) 630-1399 Toll Free: (866) 630-1399 Email: info@magsilver.com
News Provided by GlobeNewswire via QuoteMedia
