SS1 silver paste technical assessment is underway
Silver makes up 23% of the cost of photovoltaic cell.
US tariffs on Chinese solar imports recently rose from 25% to 50%.
The US has set a target of 30% for solar energy in the country by 2030.
And yet, silver paste production (which is essential for solar panels) remains heavily concentrated in China.
Our US silver Investment, Sun Silver (ASX: SS1) announced that the company has appointed engineering firm Wood to conduct a technical assessment on silver paste production technology.
The ultimate aim here for SS1 is to establish a silver paste production facility in the US.
Previously, SS1 submitted an application to the U.S. Department of Energy for a USD $60M investment tax credit for silver paste production.
For context, SS1's Maverick Springs project in Nevada hosts a 292 million ounce silver equivalent JORC resource.
SS1 recently put out an announcement with an XRF reading for a grade of up to 296 g/t... in a step out hole.
This step out drill hole is 115m outside of the boundary of the company’s 292,000,000 ounce silver equivalent resource.
We think this means SS1’s silver resource (which is already the largest silver deposit in the “early development” stage on the ASX and TSX)could get even bigger.
With drilling ongoing, SS1 is looking to grow its resource, and as today’s news shows, also advance the company’s silver paste ambitions.
How does this news impact our SS1 Investment Memo?
Objective #4: Progress downstream opportunities
If we got any material newsflow in regards to downstream funding OR silver paste opportunities then we think this could be an unexpected catalyst for SS1’s share price.
Source: 18 May 2024 SS1 Investment Memo
Today’s news is a step towards material newsflow from SS1 on downstream opportunities, in particular silver paste production.
What’s next for SS1?
Drilling assays.
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.
Milestones
✅ Geophysics survey
✅ Drill permits granted
✅ Drilling commenced
🔄 Drilling assays
For a full discussion of SS1’s recent activities, read the note below:
SS1 finds silver in step out hole - bring on the assays…
For a full rundown of our investment thesis, read our SS1 Investment Memo, where we share:
- What SS1 does
- The macro theme for SS1
- Our SS1 Big Bet
- What we want to see SS1 achieve
- Why we are Invested in SS1
- The key risks to our Investment Thesis
- Our Investment Plan
