SS1 just weeks away from more silver drilling, resource upgrade very soon

Published 20-MAR-2025 13:26 P.M.

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Today, our silver Investment and 2024 Small Cap Pick of the Year Sun Silver (ASX: SS1) announced its expected start date for more drilling at its huge silver project in Nevada.

Here are the forward works - with April (just two weeks away) shaping up a key operational month for SS1:

SS1 will begin 2025 drilling program in early April
The company will release an updated Mineral Resource Estimate (expected soon, before drilling restart)
SS1 will also target additional resource upgrade potential through in-fill drilling
SS1 has also started metallurgical testing, a key element of any future development activities

New SS1 Managing Director Andrew Dornan has clearly been busy since being appointed (read about that below):

SS1 announces board restructure

In our latest note on SS1, we contemplated the scenarios that could help SS1 secure another sustained re-rate.

What could make the SS1 share price go up from here?

We think the pathway to the next leg up in the SS1 share price could come from any of the below from we just need a few of these things (the more the better) to go our way:

Silver price runs: if the silver price runs, then we expect SS1’s share price to follow. The silver price could run due to a hedge against persistent inflation or industrial demand.

Update: Silver looks like it wants to move higher:

(Source)

1. More silver discovered from drilling . If SS1 can continue to build on this identified silver mineralisation, we think that it could follow a similar path as Spartan Resources - which discovered and defined a giant gold resource in a short period of time.

2. SS1 silver resource update - If SS1 publishes a JORC resource update that increases the level of confidence in the project and the size of the silver equivalent resource (above investor expectations), this could be a big catalyst for the company.

3. Antimony surprise: SS1 could publish an antimony resource by re-assaying historical drill cores that were not tested for antimony. On top of this, if SS1 is able to secure any US DoD funding for this project (it happened for $1.2BN Perpetua - read more here) it could be a big signal to the market that SS1’s project is of ‘strategic importance’ to the US Government.

See the image below for what we are getting at:

5. SS1 hits market cap/trading volume requirements to get into an index: Once a company enters an index then ETFs will be required to buy up the stock and certain funds will be able to take positions in the company. This opens up a whole new market of capital that tends to be more patient and more predictable than retail investors.

How does this impact our SS1 Investment Memo?

Today’s update from SS1 noted that “Work is currently in its final stages for a resource upgrade incorporating all of the 2024 drill results, with the updated Mineral Resource Estimate expected shortly ahead of the scheduled re-commencement of drilling in early April 2025.”

So in just a few weeks we could have another updated look at SS1’s already mammoth silver-gold resource in Nevada.

This directly relates to Objective #2 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.

Milestones
🔄 Release upgraded JORC Resource

Source: 18 May 2024 SS1 Investment Memo

Today’s announcement also noted that metwork efforts were underway, which should further Objective #3 for SS1:

Objective #3: Enter feasibility studies

SS1 has signalled its intention to enter feasibility studies, which would provide a first pass assessment of the project’s economic viability. As part of the feasibility studies we will be keeping an eye out on the metallurgical testwork SS1 completes.

Milestones
🔄 Metwork results
🔲 Start scoping study
🔲 Scoping study results

Source: 18 May 2024 SS1 Investment Memo

Here’s what we are looking for next from SS1:

🔄 Upgrade Resource - we want to see SS1 publish a resource update/upgrade over its project.
🔄 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.
🔄 Metwork results - these results could aid future development plans at the project.

Read our latest note on SS1 below: