SS1 hits another high grade silver intersection

Today, our US silver Investment, Sun Silver (ASX: SS1) announced another thick, high grade silver intersection from pXRF results.

The result, hole MR24-200 delivered:

• 21.34m at 81g/t Ag from 265.18m, including:
  • 4.57m at 271g/t Ag from 266.70m, including 1.52m at 332g/t Ag from 268.22m

pXRF results are not a substitute for final assays and are not used in resource estimation.

However, SS1 has pointed out previously that pXRF results are generally coming in below assay results in these two holes:

The big news for us though, was that this hit came to the east of the northwest area where SS1 is targeting resource expansion:

(Source)

We think this is promising, as a sign that the resource may be able to be upgraded to include more of this area.

Importantly, the mineralisation remains open to the north and northwest in this program, so we will be looking out closely for additional drilling updates as SS1 tests the extent of mineralisation in these directions.

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.

It also advances SS1 towards Objective #2 for the company from our SS1 Investment Memo:

Objective #2: Upgrade 292m Oz silver equivalent JORC resource

Pending positive results from extension and infill drilling through RC and diamond drilling, we want to see SS1 release an upgraded JORC Mineral Resource Estimate with more silver and gold ounces in it, and more of the resource in higher confidence categories.

Source: “What could go wrong?” - SS1 Investment Memo 18 May 2024

SS1 has already increased its resources by remodelling a now 423 million ounce silver equivalent JORC resource at its project in Nevada, USA.

But this drilling should help further expand that resource.

SS1 is now the biggest primary silver resource on the ASX.

Read our latest note on SS1:

Silver price about to break out? SS1 delivers high grade extensional hit.

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.