SS1 hits more silver at giant US asset - silver prices at NEW all time highs
Our 2024 Small Cap Pick of the Year Sun Silver (ASX: SS1 | OTC: SSLVF) just hit silver grades, over and above the averages inside its giant silver deposit in Nevada, USA.
SS1’s project has 539M ounces of silver equivalent resource.
Just recently last month, this was upgraded which makes it the largest pre-production primary silver mining project in the USA.
We covered that: SS1 increases resource estimate to 539M ounces of silver equivalent, silver price at all time highs...
Today’s hits all came from inside the existing resource, but the interesting takeaway for us was how the grades from the drilling all came in above the average grades of the existing resource.
The resource is 539M ounces at 71g/t silver equivalent. (source)
Today’s hits included an interval of 224.5g/t silver equivalent over 33.77m.
(Hopefully that means, there is scope for future upgrades to SS1’s resource - both in terms of size and grade).
Here is a cross section showing where today’s results came from (the red is the current resource footprint):
(source)
And here is a bird's eye view:
(source)
The silver price is up ~7% overnight
Over the past 24 hours, the silver price has rallied ~7% following the recent Federal Reserve video, where the Federal Reserve Chair Jerome Powell has been subpoenaed by the US government.
Powell responded with a stern but measured video response, where he accused the US government of bringing forward this action because he isn’t doing what they want.
This being to lower rates to allow the economy to rapidly grow and ignoring the impacts of this, such as inflationary pressures.
Which is already part of the reason we have seen increased interest into silver and gold, especially over the last 12 or so months.
Remember the Federal Reserve is meant to be independent from the government… see the response from Powell below and the spike this appears to have caused to gold and silver.
(source)
This suggests to us that the gold and silver price has responded in a way which in particular shows silver’s increasing role as a 'reserve' or 'safe-haven' asset.
While the price of silver continues to rise, we anticipate a significant further influx of capital into the silver market."
Remembering that SS1 has 539M ounce of silver equivalent resource, which makes it the largest pre-production primary silver mining project in the USA.
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 539M ounce silver equivalent resource estimate.
Of course, we are conscious of the in-ground value of a resource being a very small part of the story for any resource project - there’s a bunch of different costs to consider when thinking about how much of that in-ground resource is economically mineable.
What’s next 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 - Silver is now in uncharted territory at new all time highs - now at above US$85 per ounce.
- ✅ Exploration success - SS1 with the first hole of its 2025 drill program 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 also recently upgraded its resource to now sit at 539M ounces of silver equivalent.
- ✅ SS1 reaches a size where it gets added to index funds - SS1 was added to the Sprott Silver Miner and Physical Silver ETF and the ETF has been increasing its holding…
- ✅ SS1 delivers an antimony surprise - SS1 is working towards a “potential maiden antimony mineral resource”.
- ✅ SS1 resource update - SS1 is drilling its project right now.
- 🔄 SS1 met test work results - SS1 is also working on this right now.
