More high grade US silver
SS1 hits more high grade silver - 305.7g/t AgEq - upgrade to come
Today, our US silver Investment, Sun Silver (ASX: SS1) announced further thick high grade silver-gold intercepts
There’s a further indication of antimony as well - the metalloid that has recently been all over the news for its role in the US defence supply chain, and recent Chinese export restrictions.
Hole MR24-190 intersected 71.63m at 112.7g/t silver equivalent (AgEq), including a really strong section of 18.29m at 305.7g/t AgEq.
This hole also included up to 1,197ppm antimony (0.12%) over 1.5m from 201.17m.
We’ve been following SS1’s drill program closely, and when portable XRF gun results came out, we were quite happy with the results being reported.
But as we learned today, the pXRF results we covered in previous SS1 notes are also, pleasingly, proving to generally be lower grade and show less thick intervals than the actual, official assay results:
(Source)
SS1 indicated that subject to results, another roughly 18 holes are to come.
Importantly the mineralisation remains open to the north and northwest:
(Source)
Today’s announcement indicated that SS1 will commence work to calculate a Mineral Resource Estimate (MRE) for the north-western sector of the Property, targeting an MRE upgrade “later this year”.
SS1 already has a 432Moz silver equivalent resource in Nevada, USA.
(It is the largest primary silver resource on the ASX.)
And with the silver chart threatening to break out above US$32/oz a few times over the last two months, we hope SS1 can continue to act as a “silver ETF” on the ASX:
(Source)
SS1’s large resource in the US may also help the company continue to attract institutional investors, as it did last week.
SS1 recently announced that a new strategic investor, US based Nokomis Capital, invested $9.2M in last week’s capital raise.
Nokomis now holds a ~9% cornerstone stake in SS1.
Nokomis invested $4.2M at the 62c capital raise price...
Then a further $5M at 80c, a significant premium to the capital raise price.
Read more about that in the article below:
SS1 Secures Cornerstone Investment from Strategic, US Based Fund… and some from us.
How does this impact our SS1 Investment Memo?
We see today’s results as slightly mitigating exploration risk for SS1.
Exploration Risk
There is no guarantee that SS1’s upcoming drill programs in Nevada are successful and SS1 may fail to find economic silver-gold deposits.
Source: “What could go wrong?” - SS1 Investment Memo 18 May 2024
While exploration risk is ongoing, more good assay results like today’s will further de-risk SS1’s project.
What’s next for SS1?
🔄 More Assay results for the 7,500m drilling - SS1 is currently drilling out its project, assay results are expected to keep coming in.
🔄 Antinomy potential - We want to see if antimony is widespread across SS1’s giant JORC resource.
🔄 Further update on US government funding - We want to see SS1 put out an update on the US$60M grant application the company is working on for its silver paste business.
