Silver Storm Mining Ltd. (TSXV:SVRS)
Building the Next Latin American Silver Producer.
With its name change to Silver Storm Mining Ltd. (TSX.V: SVRS | OTCQB: SVRSF | FSE: SVR) (formerly Golden Tag Resources Ltd.) early in November 2023, we knew we were going to see big things coming out of this silver explorer operating in Durano, Mexico. We were surprised, however, with the announcement of the second set of results from its Phase 1 diamond drilling program at the La Parrilla Silver Mine Complex in Durango, Mexico. The spotlight is on the Quebradillas mine, where Hole Q-23-007 has intercepted a remarkable 436 g/t Ag.Eq over 4.46 meters. A standout revelation comes from Hole Q-23-006, showcasing 1,085 g/t Ag.Eq over 0.82 meters.
To contextualize the drilling results, the average grade at established silver mines in Mexico. Pan American Silver’s La Colorada reports an average grade of approximately 313 g/t, while First Majestic Silver’s San Dimas stands at approximately 292 g/t.
The Quebradillas mine continues to validate the company’s strategy: that high-grade mineralization within previously mined stopes can be significantly extended down-dip. Hole Q-23-007, strikingly positioned 97 meters below the last mine development in the area, adds weight to this theory. Comparable high-grade mineralization is evident in Level 1749, which graded 358 g/t Ag.Eq over a strike length of 51 meters and a width of 3.6 meters. Similarly, Level 1737 showcased 407 g/t Ag.Eq over a strike length of 28 meters and a width of 3.2 meters, although only approximately 50% of the stope was mined by the previous operator before the mine was placed on care and maintenance.
A surprise discovery in Hole Q-23-007 includes an unusual tourmaline breccia pipe, returning 4.07 g/t Au over 1.77 meters. This additional element adds complexity and depth to the mineralization profile at La Parrilla.
Hole Q-23-006 has introduced a new dimension to Silver Storm’s exploration endeavors. Intersecting a replacement mineralization zone that returned 1,085 g/t Ag.Eq over 0.82 meters and 633 g/t Ag.Eq over 0.44 meters, this discovery is generating considerable interest. The proximity of this mineralization to historic Hole ILP-Q-14-02, which intersected 1,019.5 g/t Ag.Eq over 1.05 meters, establishes a foundation for further exploration.
Silver Storm’s President and CEO, Greg McKenzie, commented on the results, highlighting their significance in affirming the potential for re-establishing mining operations at La Parrilla. With additional assay results pending from Hole Q-23-008, Silver Storm anticipates further validation of its geological hypothesis.
The acquisition of the La Parrilla Silver Mine Complex positions Silver Storm as a key player in the silver mining industry. The complex comprises a 2,000 tpd mill, five underground mines, and an open pit, collectively producing 34.3 million silver-equivalent ounces between 2005 and 2019. Alongside La Parrilla, the company also holds a 100% interest in the San Diego Project, one of the largest undeveloped silver assets in Mexico.
As the mining industry witnesses Silver Storm’s remarkable discoveries, the company’s stock price at CAD$0.10 per share has attracted attention. Online commentators, recognizing the company’s strides in unearthing substantial silver deposits, are calling it an undervalued gem. While the market always involves risks, the potential showcased by Silver Storm sparks intrigue and warrants closer consideration by investors.
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