In one of my last articles which is posted back on the main page, I talked about Golden Goliath Resources GNG and their silver projects in the Ureuachic mining district in Chihuahua State, Mexico. I choose to talk about this company because I have followed their efforts in exploration over the years and because of the location of their work which is mining friendly Mexico. Today I am going to talk about another silver explorer in the same state of Mexico but this company is going to drill their property starting in Ocotber 2016 where as Golden Goliath has the bulk of their properties optioned out to a major who is doing the exploration and drilling.
Silver Spruce Resources SSE is a junior miner on a mission. This is not the first time I've talked about Silver Spruce either on this website. Back in November, 2015 I did an article also because I was on the hunt for a small under valued silver miner preferably in Mexico and I came across this company. Then just a few months ago I was approached by a marketing team asking if I could write up a small feature about this company and of course I was more than willing because this time the talk and the article wouldn't be so much about the sampling and ground work but there is a drill plan in the works here. In fact drilling is going to get started this month, the month of October, 2016 and I would expect we maybe fortunate enough to see some drill results before the end of the year.
Just to give you are quick recap on this silver play, the project is called the Pino del Plata Project and is located in the Chihuahua State of Mexico and is situated about 15km away from Coeur Mining's Palmerejo Mine and is surrounded by concessions held by Coeur. By the way the Palmarego Mine is the third largest silver mine in Mexico and nineth largest in the world so this small company is in an extremely good position land wise.
In my write up last year I just mentioned some of the grab sample grades and that the company was doing on going exploration. Now over the year of exploration work of sampling and mapping the company has come to the conclusion that there is three target areas that will be drilled. One of those target areas is the Terrero target which is about two hectares in size and had good mineralization in igneous rocks contained good silver grades at surface. After much due diligence on this target area the company calculates that this area represents a potential resource of up to 90 million ounces of silver alone. The company hopes to drill as many as six, 100 meter holes in this area.
The second spot of interest isa 20 hecatare area called the Santa Elena and modeling shows that this target could contain 1.3 million tonnes of mineralized rock with an average grading of 250 g/t (8 opt) Ag which suggests an in-situ resource of up to 10.5 million ounces of silver.
The third area called the the Sierpe and Theodora could contain a resource of 28.5 million ounces of silver. So a combined total for what has been sampled and explored so far gives an estimated potential of around 130 million ounces of silver.
Comparing Golden Goliath to Silver Spruce we see that Golden Goliath has over 100 million shares and has their property optioned out to FresNillo PLC which leaves only some cash for Golden Goliath to maintain their properties. Silver Spruce on the other hand has a very small float of 40 million shares, is fully funded and ready to start drilling any time now which could very well see their stock price rally strong especially if the drill results prove out the sampling and modeling.
The above chart is the stock chart for Coeur Mining. Being only 15 km away could very easily spell success for silver Spruce.
Silver Spruce has 40 million share O/S and a 52 week high of 14 cents and a low of 4 cents.
Personal side note: One of the things like about this company is how they keep shareholders informed. Just go to their website and take a look at the news releases going back over the years and you can see that while the company is at work, the management is keeping everyone informed.
As always, use Due Diligence and see our Disclaimer and be sure to sign up for our free news letter located on the right hand side of this page.