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Silver Storm Mining Ltd. (TSXV:SVRS)

Summary

Silver Storm Mining Ltd. (formerly Golden Tag Resources Ltd.) is focused on advanced stage silver projects located in Durango, Mexico. Silver Storm recently completed the acquisition of the La Parrilla Silver Mine Complex, a prolific complex which is comprised of five underground mines and a past producing open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. Infrastructure also includes a 2,000 tpd mill.

The Company also holds the San Diego Project which is among the largest undeveloped silver assets in Mexico. Silver Storm vested into a 50% interest in the property in January, 2008. To date, over 33,000 meters of surface diamond drilling have been completed on the property. Silver Storm acquired the remaining interests of Golden Minerals in July 2016 and now owns a 100% interest.

Stock Chart

Share Structure

As of Nov. 30, 2023
Shares Outstanding 397.14 M
Warrants 24.99 M
Options 7.65 M
Fully Diluted 429.27 M

Investment Highlights

  • Near-Term Restart Opportunity: 18-24-month target to restart mining at the past-producing La Parrilla Silver Mine Complex (produced over 34 Moz AgEq between 2006 and 2019).
  • Excellent In-Place Infrastructure: ~$150M in in-place infrastructure including a 2,000 tpd mill and partial mining fleet. Fully permitted for production. Modest restart capital.
  • Significant Re-Rate Potential: Drill program underway at La Parrilla to grow mineral resource base near developed areas. Targeting 2H 2024 for new resource and PEA mine plan to support restart. Significantly undervalued compared to peers.
  • Further Upside Optionality: San Diego is one of the largest undeveloped silver projects in Mexico. Investigating potential milling synergies with La Parrilla. Regional exploration work at La Parrilla.

Projects

La Parrilla Silver Mine:

  • La Parrilla is large historic silver mining complex with substantial on-site infrastructure, including a fully permitted and operational 2,000 tpd processing facility
  • La Parrilla has:
    • UG and OP Mines with long operating history (34.3 Moz AgEq produced between 2006 and 2019)
    • High-grade resources
    • Large Stockpiles
    • Large, underexplored land package
    • Partial UG mining fleet and workforce on site
  • Resource expansion potential near historically mined areas
  • Modest restart capital

La Parrilla – Overhead of processing complex and tailings

La Parrilla – Overhead of processing complex

La Parrilla – Agitation Tanks

La Parrilla – Underground Mineralization

San Diego Project:

  • 100% owned San Diego Project remains one of the largest undeveloped silver projects in Mexico
  • Evaluating potential synergies with La Parrilla

San Diego – Overhead of Property

San Diego – Mineralization in Drill Core

Management Profiles

Greg McKenzie Director, President & CEO

Mr. McKenzie (JD, MBA) is a former senior investment banker with more than 20 years of experience in financing, M&A, financial advisory, valuation, and strategic advice to mid-cap companies. Mr. McKenzie has held positions with Morgan Stanley, CIBC World Markets and Haywood Securities, and has been involved in transactions valued in excess of $18 billion. In addition to his capital market experience Mr. McKenzie previously practiced corporate law with a leading Canadian securities and M&A law firm.

Carmelo Marrelli CFO

Carmelo Marrelli (CPA, CA, CGA), is the principal of The Marrelli Group. Mr. Marrelli is a Chartered Professional Accountant and a member of the Institute of Chartered Secretaries and Administrators, a professional body that certifies corporate secretaries. He has a Bachelor of Commerce degree from the University of Toronto. Mr. Marrelli also acts as the chief financial officer to a number of issuers on the TSX, TSX-V and CSE, as well as non-listed companies, and as a director of select issuers.

Will Ansley COO

With over 20 years of experience Mr. Ansley (CPA, CA) has been involved with the development and construction of seven mines in the Americas, including six mines in Ontario; Mr. Ansley was the Director of Business Development for FNX Mining Company Inc. and the Vice President of Corporate Planning & Strategy for Lake Shore Gold Corp., and was the Chief Operating Officer of Mineral Streams Inc. where he helped orchestrate its successful sale to AuRico Metals Inc. in 2015.