Red Hot Silver Stocks
Being a gold bug has been great the last little while. The only thing better has been being a silver bug. Whether you own silver bullion, silver ETF's, silver stocks or silver trusts, that $20 dollar price tag has brought tears of joy to all those of us whove been long silver. But most important for silver bugs was news today July 20, 2020 that Sprott Silver Trust has just filed to raise $1.5 billion to purchase physical silver, which is a jaw-dropping 8.8% of annual global production.
Back in May I wrote about a silver explorer in MW Mexico that was going to be drilling what some said was a high grade silver camp. The company Vizsla Resources TSX-V: VZLA at that time was around 50 cents. It didn't take too long to get some cores back and within a months time the stock had topped out just shy of $3.00. That's a nice run giving investors a 500% return. The stock today has back off a bit but is still in the mid $2.50 range as shareholders wait for the next batch of assays.
Right next door to them is GR Silver TSX-V:GRSL and they also have been scoring some pretty nice grades. Infact today, July 20, 2020 they issued news of 5.4 m of 1,112 g/t AgEq at Plomosas. A couple weeks ago assays showed 2.7 m of 1,723 g/t AgEq at Plomosas. Last month First Majestic TSX:FR bought into a financing of 4 million units.
Now of course once people see this sort of thing happening with stock price going ballistic, they naturally want to find something in the immediate area that might be a bit cheaper. After all that is what I would do. So with a bit of investigating and searching I stumbled onto a smaller unknown start up that has property stuck right in between GR Silver's operation and and Vizsla's ground. That company is Brigadier Gold TSX-V: BRG. Recent news is that they have an option to acquire a 100-per-cent interest in the San Agustin mine which is located within the 3,954-hectare Picachos gold-silver property, centred over the historic Viva Zapata national mineral reserve, Sinaloa, Mexico.
Primary targets include under-explored gold veins within the historic San Augstin mine and La Gloria, a historic mine with rock samples containing 21.1 g/t Au and 6 g/t Ag across 0.8m. MCA (concession owners) produced about 1850 tonnes of muck from a shaft 12m long, 1.5 m wide and 45 m deep at the end of the main level. Values from the bottom of this shaft were 185 g/t Au.At the moment the company is arranging a private placement for 3.5 million dollars. Proceeds should be used for exploration. Once the PP closes investors should be getting news on the company's plans going forward.
Heading north now into Nevada most explorers are on the hunt for gold. However there are juniors that are into the silver in a big way. Silver One TSX-V:SVE has been in rally mode the last week or so. The company did a live webinar a while back and probably got investor attention. This company holds an option to acquire a 100%-interest in its flagship project which is the past-producing Candelaria Mine. Estimated production from the late 1880's to 1954 was 22 million ounces of silver. From 1874 to 1883, the Northern Belle Deposit alone produced high grade lodes averaging 1,700 - 2,000 g/t (50 - 60 oz/t) silver. Open pit mining between 1980 and 1999 resulted in the production of 47 million ounces of silver, with Kinross Gold producing approximately 13 million ounces of that between 1994 and 1999.
Silver One also has the Phoenix Silver Project is located within the "Arizona Silver Belt", which occurs on the margins of the prolific copper producing area near Globe, Arizona along with the Cherroke property in Nevada and a property in Sonaora Mexico.
Looking forward, silver is undervalued compared to gold being still around 100:1 ratio. If silver is to equalize to around even 50:1 like maybe silver watchers claim, things could get very exciting for those who hold silver and silver shares.
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Added note: The author of this article holds postions in all the above at the time of this writing. The author may buy or sell any time going forward.