SS1 Commences Geophysics in Maverick Springs
Today, our Silver Investment Sun Silver (ASX:SS1) has announced that geophysics has commenced at their project in Maverick Springs.
The survey will capture data on a dense 100m x 100m grid across the existing resource area and along extensional targets to better define geological structures.
Contractor Zonge International has mobilised to site to conduct the ~546 station gravity survey:
Interestingly, the gravity stations are skewed towards the northwest of SS1’s project which is home to some interesting rock chips which have the pathfinder element arsenic in them.
We think the image below nicely summarises why we are interested in the northwest area of SS1’s project:
The geophysics data will be used to identify targets for the upcoming inaugural drill program which we covered in our latest SS1 note:
This geophysical program marks an important step for SS1 as it advances exploration at its Maverick Springs project, which already hosts a large JORC resource of 292M oz silver equivalent.
How does this Impact our Investment Memo for SS1?
One of the key reasons we Invested in SS1 was the following:
Potential to increase an already large JORC resource
Only ~20% of SS1’s project has been explored to date. With its first round of drilling, SS1 will be looking for extensions to its current JORC resource and potential nearby targets.
By doing geophysics, SS1 hopes to vector in on high-priority targets for an expanded resource and potential new discoveries during its maiden drill campaign.
Which in turn would help SS1 grow its large existing JORC resource to an even larger resource:
Geophysics is an important step to achieving Objective #1 from our SS1 Investment Memo:
Objective #1: Drilling to upgrade existing JORC resource
We want to see SS1 run geophysical surveys, identify new drill targets and then run an infill/extensional drill program to upgrade its JORC resource.
In terms of potential risks that could materialise there is also the possibility that the geophysics survey does not reveal any targets for drilling which would be an example of this risk:
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.
For a full rundown of the key reasons we Invested in SS1, objectives, risks and our Investment Plan...
(Click here to read our SS1 Investment Memo in full)
Silver macro heating up
Silver prices have surged to new decade highs above $30/oz in 2024 amid rising industrial demand and tight supply.
With the green energy transition driving exponential growth in silver consumption for solar panels, the market is in need of new silver supply sources.
We think this dynamic bodes well for SS1, as its large, high-grade silver resource is in the US.
Which has recently increased tariffs on Chinese solar panel imports by 25% to support its domestic solar panel manufacturing industry.
The US solar panel manufacturing industry has notched a record quarter in terms of growth - as the IRA starts to have an impact:
(Source)
All that solar manufacturing will need silver, ideally domestic silver.
(Not to mention silver paste, which is a value added solar panel product that SS1 is looking at making - read our Quick Take)
We think SS1 may also benefit from government incentives supporting domestic mineral projects that can feed into the US solar manufacturing industry.
What's Next for SS1?
SS1 is currently getting set up for its maiden drill program. The next key piece of news that we want to see is some drill targets to follow.
✅ Permitting for drill programme
✅ Drilling contractor secured
🔄 Finalise drill targets + announce a drilling plan
- ✅ Review historical drill logs and interpret data
- 🔄 Undertake geophysical surveys
🔲 Drilling commenced
🔲 Drilling results
