SS1: Antimony zones over 100m. Up to 1.7% Antimony from re-assayed historical silver drill cores… INSIDE its 480 million ounce silver equivalent resource, Nevada USA

Disclosure: S3 Consortium Pty Ltd (the Company) and Associated Entities own 3,374,000 SS1 shares at the time of publishing this article. The Company has been engaged by SS1 to share our commentary on the progress of our Investment in SS1 over time. This information is general in nature about a speculative investment and does not constitute personal advice. It does not consider your objectives, financial situation, or needs.

Ok, where do we start...?

A lot of planets seem to be aligning for Sun Silver (ASX:SS1) this week...

Antimony is a critical defence metal, USA has no domestic supply.

The antimony price is up 300% over the last 6 months and ASX stocks with US based antimony projects have been delivering price runs on volume.

SS1 has a 480 million ounces of silver equivalent JORC resource in Nevada, USA.

(a few days ago the silver price just broke out to new 14 year highs... but surprisingly that isn’t even the main story for today)

SS1’s giant silver resource estimate consists of ~200 historical drill holes that were only ever tested for silver and gold... but NOT for critical defense metal antimony.

SS1 has been re-testing the historical drill cores that make up their giant silver resource estimate to test a theory that their giant silver resource may ALSO contain a significant antimony deposit all throughout it.

So far every single hole that’s been tested for antimony has confirmed mineralisation... today’s was the most significant:

(Read the SS1 announcement here)

That’s the biggest antimony intercept we have seen from SS1 to date...

And the results are starting to look good, even relative to the US antimony poster child - $2.3BN Perpetua Resources project.

Perpetua has the biggest antimony resource estimate in the US and has re-rated by over 1,000% over the last 18 months - Perpetua’s resources average ~0.06% antimony - SS1 hit 66m at 0.12%.

(Past performance of stocks is not a guarantee of future performance)

(Perpetua’s antimony resource runs through its giant 6M oz gold resource - antimony is often found inside precious metals deposits... assuming you test for it of course)

SS1 now has antimony in the north, south and north-east of its project - next we want to see the remaining holes tested to see if there could be a resource here:

(the pink dots show the historical drill holes that have been tested and returned antimony results - note how far apart some of them are, does the antimony continue in between?)

It’s still relatively early days here. Before we can start thinking about the antimony resource potential of SS1’s project we will need to see more of those old drillholes confirm antimony mineralisation.

In the announcement SS1 says that 30 historical holes have been submitted for antimony lab testing, with 5 back positive already, we have 25 more to go...

What we are watching for next from SS1:

• More historical antimony cores results - to prove antimony runs all through SS1’s giant silver resource estimate. This will see SS1 continue to evolve into being seen as USA precious metal AND defence critical metals company
• Continued US government and investor interest in USA critical metals - Last week the US government invested US$400M into rare earths producer MP Materials (Source)
• More SS1 silver drill results in the 2025 campaign - like a giant 10,548g/t silver interval outside the resource, allow SS1 to grow it even further. (Read about it here)
• Silver price to keep going up - On Monday silver hit US$39, the highest price in 14 years. (read our take here)
• More Index fund and ETF on market buying - SS1 has made it into the Sprott Silver ETF, will more come in?

We do a deep dive on the catalyst list later in today’s note, first though, here is our take on today’s news.

What today’s SS1 announcement means

0.12% of antimony across 66m in a historical drill core...

This intercept makes us think there is a real possibility the biggest pre-production silver asset in the US could also host a giant antimony resource...

So far SS1has assayed 5 holes - all of which have had antimony in them (with a further 25 to come).

Today, SS1 showed continuity and more importantly thickness across its resource area:

(Source)

SS1’s results are now starting to look comparable to those of $2.3BN capped Perpetua Resources 200 million pound antimony resource estimate with a grade of 0.06-0.07% stibnite.

(Source)

Perpetua’s project has a 200 million lbs antimony resource estimate, which has attracted a commitment of US$1.8BN in US government funding support to get what is actually a primary gold asset into development.

The government funding mostly came because Perpetua’s project has the potential to supply ~30% of US domestic antimony needs.

The US still needs to fill the other 70% of its demand (and ideally it’s a local supply given the China export ban) - and that’s why we think antimony could become a bigger part of the SS1 story IF the company can define an economic resource estimate of antimony.

We think SS1 has now shown enough to materially progress its discussions with the US government about funding for its project - which SS1 has already started to look into:

(Source)

Minerals and mining are all over the mainstream finance news in the US, here are the excerpts from yesterday’s Wall Street Journal:

Last week the US government showed the lengths that it would go to to support US based critical minerals projects investing US$400M in US-based rare earths producer MP Materials:

(Source)

The US government will become MP Materials’ largest shareholder with a US$400M equity investment from the DoD and a US$150M loan to build out a new magnet facility.

Also, the US government guaranteed a floor price to purchase 100% of rare earths from this mine that is almost DOUBLE the Chinese market price.

(this is not something that the “free market” US Government generally does, and it shows the importance of critical minerals to national security)

The US Government is really putting its money where its mouth is with critical minerals projects in the US right now and we hope that SS1 is able to enter that conversation.

SS1 is planning to submit a whitepaper to the US Government to support an even larger-scale re-assaying program over the project, permitting or government offtake. (Source)

SS1’s project has around 200 historical core samples which have only been sampled for gold and silver... never for antimony.

Right now SS1 is assaying 30 of them, with results from the first 5 published.

Each of those first 5 results have shown antimony, strengthening its case for government funding to support assaying the remaining 170 holes.

The goal would be for SS1 to build out an antimony resource.

The US government's first grant for Perpetua Resources was for US$15.5M back in 2023.

This was like a starter position for the government, most of which would have to go toward doing more samples on drillcore and technical studies to see if Perpetua’s ore could be used to make ammunitions:

Since then the US government has handed over US$80M to Perpetua in the form of grants and also committed to a US$1.8BN loan to fund the development of its project.

Just like the starter grant Perpetua received in 2023, we are hoping the US government will support SS1 to resample its old drillcores to build out an antimony resource.

SS1’s project has drillcore sitting around from over 200 historic drill holes - only a fraction of these have been tested for antimony to date.

IF SS1 got anything near the US$15.5M Perpetua received, we think it would bring not just cash but also a big wave of US interest into SS1.

There would have to be a lot of North American investors who have made a lot money from Perpetua Resources, watching it re-rate by over 1,000% inside 18 months to now becoming a ~$2.3BN company.

It’s worth noting though, US funding is no guarantee. There are a lot of US-based mining projects out there right now trying to lobby for more funding, and there is no guarantee that the US Government will fund SS1.

Update on our 6 key “Share price catalysts” for SS1

We have been talking about what might trigger a rally in SS1’s share price in 2025 since the start of this year.

Of the 6 catalysts that we have forecast for SS1, so far 4 of them have played out in SS1’s favour:

• ✅ Silver price runs - On Monday this week silver hit US$39, the highest in 14 years.
• ✅ Exploration success - Last week SS1 delivered its best ever drill result 70m of mineralisation outside of the current resource. An interval with grades as high as 10,548g/t silver.
• ✅ SS1 reaches a size where it gets added to index funds - This month SS1 was revealed to be in the Sprott Silver Miner and Physical Silver ETF
• ✅ SS1 delivers an antimony surprise - TODAY: SS1 delivers the best antimony results from the large-scale re-assay program, which suggests antimony may be across the entire resource.
• 🔄 SS1 resource update - Pending
• 🔄 SS1 met test work results - Pending

Here is a deeper dive into each of the six catalysts

✅ Silver price runs

The first is pretty simple, IF the silver price runs, then we would expect SS1’s share price to follow.

🚨 Update

On Monday, silver hit a 14 year high on Monday at just above US$39 per ounce.

We have shared this video a few times with technical analyst Michael Oliver who said: “If silver goes above $35, watch out because if it goes above $36 it's a triple top breakout”.

And then said “we are going to get another launch” and when we get it “it will be at a speedier process than what gold is currently doing”.

Gold is currently trading at all-time highs and is up over 100% over the last 18 months.

IF silver does anything like that, it could trade above US$50/ounce.

And here is another technical expert - Mike Maloney - who put out the following video after Monday’s run in the silver price and said a “$10 move is coming quickly”. Mike thinks the silver price is going to US$48 per ounce. (Source)

There are lots of supply and demand factors that go into the short and medium term forecasts for the price of silver, there is no guarantee that it continues to go up based on technical or trend analysis.

Being the largest pre-production silver resource on the ASX, SS1’s price generally tracks closely to the silver price.

(SS1 / Silver Chart)

Any increase in the silver price matters a lot for SS1 because of how big its resource is...

You can do your own maths on what every incremental increase of US$1 per ounce in the silver price means for the potential in ground value of SS1’s 480 million ounce silver equivalent resource estimate.

(It’s actually not an easy calculation, and a lot of assumptions need to be made - costs to mine, operational execution and processing the silver would also need to be considered, which SS1 is in the process of figuring out. That’s before we even consider the time value of money.)

Read our note on Monday talking about this: Silver just hit a new 14 year high: SS1 has the biggest pre-production silver equivalent project on the ASX and in the USA.

✅ Exploration success

SS1 is drilling right now. Anything that extends the current resource OR adds shallow mineralisation the resource could be a game changer for SS1 (especially a big silver hit or antimony hit, or more mineralisation near surface)

🚨 Update

Assays from SS1’s first hole for 2025 hit over 70m of mineralisation outside of the current resource area...

That hole also came in with the highest grade silver intercept to date from SS1’s project - an interval with grades as high as 10,548g/t silver.

See our coverage of the 10,548g/t silver hit here: SS1: Announces 70m intercept with a 10,548g/t silver equivalent interval... outside of its 480 million ounce JORC resource

✅ SS1 hits market cap/trading volume requirements to get into an index

This one is somewhat outside of the company’s control, but as the market cap gets bigger, SS1 becomes more investable for larger institutions. We are hoping SS1 can hit the $150-200M market cap this year and get included in one of the ASX indices.

🚨 Update

This is happening...

SS1 was recently added to the Sprott Silver Miners and Physical ETF (Exchange Traded Fund), which trades on the NASDAQ under the ticker SLVR.

As of 30 June 2025 - SS1 made up 0.36% of the ETF:

(Source)

We think index inclusion into the Sprott ETF could be a precursor for entry into other indexes (like the ASX indices).

Getting into more indices should mean more passive funds flow into SS1.

We wrote about how index inclusion can open up a stock to a whole new pool of capital in a previous weekend note here: Index Inclusion: A Small Cap’s Big Leap

Index inclusion was something that some of our best ever resource Investments have had going into a period of strong newsflow.

Some of our best ever Investments ran to their all time highs off the back of index inclusion.

Here is what happened to Vulcan Energy Resources after it got included in the S&P All Ordinaries index:

(At its peak, VUL was up 8,225% from our Initial Entry Price)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Also Latin Resources, which went from our Initial Entry Price of 1.8c to a high of ~42c (up 2,332% at its peak):

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Both of those companies started run ups off the back of index inclusion.

Index inclusion alone didn’t spark these rallies nor does it guarantee sustained price increases, but it played a part in adding “fuel to fire” as larger pools of capital become unlocked.

Now having been included into one index fund (Sprott’s ETF) we are hoping SS1 gets into a major ASX index and attracts another wave of institutional capital.

✅ Antimony surprise

SS1 could publish an antimony resource by re-assaying historical drill cores that were not tested for antimony. Antimony could signal to the market that SS1’s project is of ‘strategic importance’ to the US Government.

🚨 Update

SS1’s antimony results from today are the best we have seen from SS1 to date.

We are now starting to see continuous antimony from across most of SS1’s resource.

The 66m intercept from today also has grades that are in the ballpark of Perpetua’s average resource grades:

This is only the first five assays from a 30 assay program, we will need to see the full results of the assay program to determine what kind of antimony resource sits on SS1’s project.

SS1 could also drop the other two catalysts before the end of the year:

The two catalysts we mentioned, but SS1 hasn’t had any news from, were:

1. 🔄 SS1 silver resource update - SS1 updating its resource from inferred to indicated status could unlock institutional/corporate interest in its project.
2. 🔄 Metallurgical testwork - IF SS1 can show that its project can be heap leached it would instantly become a well understood mega project that the bigger players would surely want a piece of.

We expect the 2025 drill program to feed into a resource update AND in an interview a few weeks back, SS1’s Managing Director Andrew Dornan also mentioned that SS1 is currently running met test work to see if its project is “heap leachable”.

So we could see both of these catalysts drop this year too:

(Source)

So far, SS1’s share price is responding to these catalysts coming in - SS1’s share price is up from the ~50c lows early in the year and is trading at just under $1 per share.

AND it looks like it wants to at least re-test those previous all time highs:

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Ultimately, we are hoping that a combination of the six catalysts we wrote about above can help SS1 achieve our Big Bet which is as follows:

Our SS1 Big Bet:

“SS1 re-rates to a +$300M market cap by expanding its large US silver resource and moving into development studies and/or attracting a takeover bid at multiples of our Initial Entry Price”

NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is no guarantee that our Big Bet will ever come true. There is a lot of work to be done, many risks involved, including development risk, country risk and commodity price risk - just some of which we list in our SS1 Investment Memo.

Success will require a significant amount of luck. Past performance is not an indicator of future performance.

What are the risks?

In the short term we think there are two key risks for SS1.

First is “Commodity price risk” and second is “Funding/dilution risk”.

There is commodity price risk, because SS1’s share price tends to move up and down with the silver price.

IF the silver price was to fall, we would expect to see weakness in SS1’s share price.

Commodity price risk

The performance of commodity stocks are often closely linked to the value of the underlying commodities they are seeking to extract. Should silver and gold prices fall, this could hurt the SS1 share price.

Source: “What could go wrong?” - SS1 Investment Memo 26 March 2025

There is funding/dilution risk, because as a pre revenue resource development company, SS1 may need to raise some cash off the back of momentum in its share price.

Raising cash allows a company to continue to develop its assets with the goal of increasing shareholder value over the long term.

In the short term it creates some selling pressure from the investors who may look to flip their shares for a quick profit.

For every new share issued, the value of each share can go down, hence the dilution risk.

Funding risk/dilution risk

As a small cap, SS1 is reliant on capital markets to advance its projects. If something negative happens at a macro or company level, SS1 could struggle to access capital on favourable terms. These capital raises may take place at a discount, and result in the issuance of new shares which incur dilution to existing shareholders.

Source: “What could go wrong?” - SS1 Investment Memo 26 March 2025

Other Risks:

Investing in SS1 carries other risks which may affect the value of the company. The Company’s primary asset is a pre-production silver and potential antimony project in Nevada, USA, and its prospects are inherently speculative.

As mentioned the value of SS1 is highly sensitive to fluctuations in commodity prices - particularly silver, and maybe antimony. A sustained downturn in these prices could materially impact the project’s economic viability.

There is also exploration and development risk. The Company is currently re-assaying historical drill holes and undertaking new drilling to confirm the presence and extent of antimony, which remains unproven at commercial scale.

Metallurgical test work is ongoing, and the project’s ability to proceed to heap leach production has not yet been demonstrated.

Additionally, there is no guarantee SS1 will receive government funding or support, including from the US Department of Defence, despite strategic interest in antimony.

The Company is as mentioned reliant on capital markets to fund development, and any capital raise may dilute existing shareholders.

Finally, regulatory, environmental, and permitting risks in the US jurisdiction - while generally stable - may delay or adversely affect development.

Investors should consider these risks carefully and seek professional advice tailored to their personal circumstances before investing.

Our SS1 Investment Memo

Our Investment Memo provides a short, high-level summary of our reasons for Investing.

We use this memo to track the progress of all our Investments over time.

Click here to read our SS1 Investment Memo where you will find:

• What does SS1 do?
• The macro theme for SS1
• Our SS1 Big Bet
• What we want to see SS1 achieve
• Why we are Invested in SS1
• The key risks to our Investment Thesis
• Our Investment Plan