One TSXV Stock Jumped 67% in A Week After Signing An LOI With A Silver Royalty Company

Published on: Mar 23, 2024
Author: Caroline Kong

The price of gold topped $2,200 per ounce for the first time in history this week and has touched a new all-time high five times this month as the Federal Reserve hinted at three possible rate cuts this year.

Higher gold prices are good news for gold producers as well as gold’s sister metal, silver, in particular. Unlike gold, which is at an all-time high, the price of silver is almost halved from its all-time high.

Last week, on the TSX Venture Exchange, the stock price of one precious metal jumped 67 per cent in just five trading days, for reasons that should be related to recent record highs in the price of gold as well as bets on silver prices catching up.

PPX Mining (TSXV:PPX) is a precious metals company focused on the Ignor project in northern Peru, including the Callanquitas underground mine in the Otusco province of northern Peru.

In a pre-feasibility study for the Ignor project, revised in January 2022, the company noted that the 1,300-hectare property was previously the site of a small-scale mining operation and a 50 metric tonne per day gold processing plant built in the 1980s.

PPX Mining is currently building a 350-metric-tonne-per-day ore carbon leaching and flotation plant on the property to process both oxidised and sulphide ores from Callanquitas, thereby increasing the processing capacity of the property.

The company’s latest resource estimate for Callanquitas, released in January this year, showed measured and indicated resources of 81,090 ounces of gold and 2.9 million ounces of silver for oxides. Inferred resources for sulphides were 34,450 ounces of gold equivalent at an average gold grade of 4.63 g/t.

Shares in PPX began to rise sharply last Tuesday (March 12) after the company announced that it had signed a $2.5 million Letter of Intent (LOI) with Silver Crown Royalties, a privately owned silver miner in Toronto, in exchange for a 15% silver royalty on the Ignor project.

Under the terms of the agreement, the royalty will expire after PPX delivers 250,000 ounces of silver to Silver Crown or five years, whichever comes later. PPX will use the funds to build a new processing plant to expand its gold and silver production capacity.

If you’re interested in investing in silver, you might want to keep an eye on this company: Silver Storm Mining Ltd. (TSXV:SVRS). Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Golden Tag recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd mill as well as five underground mines and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico.

Disclaimer: Investing involves risk, and individuals should conduct thorough research and seek professional advice before making financial decisions. NAI is being compensated for this content. Materials contained in this content are for information purposes only and is not intended to constitute an offering of securities in any jurisdiction. Nothing on this content should be construed as an offer, solicitation or recommendation to buy or sell products or securities.

Gold In-Depth Analysis Precious Metals Silver