Before Nevada became one of the world’s largest gold producers, it was known as the Silver State.

Now, Summa Silver (SSVR.CSE; SSVRF.OTC) is helping breathe new life into the state’s Tonopah District, putting an area that has produced hundreds of millions of ounces of silver back on the map.

Dear Fellow Investor,

Since gold was discovered along its Carlin trend in the 1960s, Nevada has become one of the world’s most productive districts for the yellow metal.

But before elephant-sized deposits of Carlin-style gold made the state a mecca for major gold miners, it was known as the Silver State.

That moniker developed from the silver rush to the area in late 1850s based on the discovery of high-grade silver on the Comstock Lode near Virginia City, Nevada.

The Comstock Lode would go on to generate 200 million ounces of silver (and 8.3 million ounces of gold) in its history.

Second only to the Comstock Lode was the high-grade silver mined in the early 20th century in the Tonopah district, before low silver prices shuttered most production.

Fast-forward to today, and tiny Summa Silver (SSVR.CSE; SSVRF.OTC) has a tiger by the tail, having snapped up the Hughes property on the east side of the Tonopah trend.

It seems hard to believe, but the area on and around the high-grade Belmont Mine at Hughes has seen little to no modern exploration.

Now, with silver prices skyrocketing in recent months, Summa Silver is back drilling the area, with a determination to breathe new life into this historic silver district.

Summa Silver Locks Up The East Side Of The Tonopah Trend

The Belmont Mine that anchors Summa’s Hughes property was one of the region’s most prolific silver producers between 1910 and 1930.

Legend has it that the Tonopah district was discovered by a man named Jim Butler, who while chasing after run-away donkeys, came across silver veins exposed in outcrop.

The first person to assay the area decided the rocks were worthless, but a second assayer came up with veins averaging 3,500 g/t silver (3.5 kilograms per tonne)!

Overall, the Tonopah district has generated 175 million ounces of silver and 1.86 million ounces of gold in its history, with average grades of 679 g/t silver and 7.3 g/t gold.

And the Belmont Mine on Summa’s Hughes project was one of the best, yielding dozens of rich silver veins, with some as much as 15 meters wide.

This Rich, Past-Producing Mine Could Have A New Lease On Life

Summa bought the property surrounding Belmont earlier this year, naming it Hughes after the great aviator and businessman Howard Hughes, who once owned the mine.

Then, in mid-summer, as the company was putting together its drill plans for the project, a neighboring company tagged into high-grade silver from a past-producing operation on the west side of the Tonopah trend.

In an area-play move that is typical when a new discovery meets a bull market, Summa Silver’s share price spiked in sympathy with the find.

That share price spike made it that much easier for the company to raise the money it needed to fully test its theories about the remaining high-grade.

Those theories include the potential for more high-grade silver mineralization, not only around the historic Belmont Mine, but to the east as well, where a fault offset of the Belmont vein system has never been tested properly.

Mining Financier Eric Sprott Makes A Big Endorsement

In all, the company has raised C$13 million in two private placements conducted since May, one for C$5 million and the next for C$8 million.

Better still, mining financier Eric Sprott participated in both financings (he currently owns a 17.7% interest in Summa.)

Sprott has been something of a king-maker in the current cycle, with companies that announce his participation in financings seeing their share prices rise as a result.

It stands to reason: In the mining game, you want to follow the smart money, and it doesn’t come any smarter than Eric Sprott, who has amassed vast wealth by making astute bets on precious metals bull markets like the one we’re currently in.

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Silver Grades Measured In Kilograms Per Tonne

Summa Silver has wasted no time putting these funds to work — we just got the first assays from its 7,500-meter drill program on Hughes, and they were impressive.

The first holes released tested the area around and beneath the prior workings at Belmont and, in a mirror of the mine’s past, generated silver grades measured in kilograms per tonne:

Highlights included:

• Hole 6: 3,760 g/t silver-equivalent (1,762 g/t silver and 20.0 g/t gold) over 2.5 meters from the Rescue veins

• Hole 1: 2,423 g/t silver-equivalent (1,870 g/t silver and 5.5 g/t gold) over 0.8 meters from the 725 veins

• Hole 7: 4,630 g/t silver-equivalent (2,370 g/t silver and 22.6 g/t gold) over 0.2 meters from the I.O.U. veins

Summa Silver’s share price responded nicely to the news of these high-grade assays…and these are just the first three holes from the program.

Looking east, if the drills can hit into similar grades on the underexplored eastern section of the property, it could light a bonfire under the company’s valuation.

With more assays at the lab from Belmont and silver set to rebound strongly from its current levels, now is a great time to build a position in Silver Summa.

The odds are good this company can help put the storied Tonopah District back on the map — and make a tidy profit for Summa Silver shareholders in the process.

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