SS1 tenders for silver drilling in US
Today our US silver Investment, and 2024 Small Cap Pick of the Year, Sun Silver (ASX: SS1) announced today that it is fully permitted to immediately start drilling its large silver JORC resource in the US.
SS1 has started the tendering process to secure a drilling contractor - so drilling could happen quite quickly.
Sun Silver indicated today that it will be drilling at the high grade northern section of the project.
As we said in our initial note on SS1:
![Next Investors Image](https://sdcms-prod.s3.ap-southeast-2.amazonaws.com/images/image1_n706XCp.width-350.png)
We think SS1 has room to grow its 292M ounce Silver equivalent resource.
The current JORC resource is shown in the yellow section in the image below.
The BLUE part has some great silver hits and mineralisation but is currently NOT included in the JORC resource calculation.
That blue area is where we think SS1 could drill to extend its already large JORC resource.
![Next Investors Image](https://sdcms-prod.s3.ap-southeast-2.amazonaws.com/images/image2_QAWvrPF.width-800.png)
Here are some of those drill hits where grades are ~4x the current JORC resource average.
![Next Investors Image](https://sdcms-prod.s3.ap-southeast-2.amazonaws.com/images/image3_ktTQklN.width-201.png)
(Source, pg. 61 of SS1 Prospectus)
What’s next for SS1?
- Geophysical surveys - this will be to identify drill targets.
- Drill program - this will be to upgrade SS1’s existing JORC resource.
- Downstream progress - for this, SS1 will be completing work on silver paste solutions
- AND if all goes well, feasibility studies - SS1 will put together a feasibility study that we hope shows strong project economics.
All of this work, we hope culminates in the achievement of our SS1 Big Bet:
Our SS1 Big Bet:
“SS1 re-rates to a +$300M market cap by expanding its large US silver resource and moving into development studies and/or attracting a takeover bid at multiples of our Initial Entry Price”
NOTE: our “Big Bet” is what we HOPE the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done, many risks involved - just some of which we list in our SS1 Investment Memo. Success will require a significant amount of luck. There is no guarantee that our Big Bet will ever come true.