|
| It goes almost without saying that the potential for growth is a prerequisite for share-price appreciation. |
| That fact is as true for junior mining companies as it is for companies in every industry...but in this very special sector that growth can come from three sources: |
| 1) Discovery — finding significant resources from drilling can obviously add tremendous value.
2) Development — bringing ore into production transforms potential into reality, which the market rewards.
3) Growth — production brings metal price gains directly to the bottom line, and showing a steep production growth profile can significantly boost a company’s current market value. |
| Remarkably, one company offers investors tremendous potential in all three areas: Silver X Mining (AGX.V; AGXPF.OTC).
Through its flagship Nueva Recuperada project in central Peru’s Huachocolpa district, Silver X has a story with a potential path to six million ounces of annual silver equivalent production by 2028. |
| |
| Click image to enlarge
Silver X Mining’s district-scale Nueva Recuperada project in Peru offers investors the potential for production, development and exploration growth. |
| That path will be driven by the development of known resources and the exploration of more than 200 drill targets identified so far on the district-scale land package.
As you’re about to discover, Silver X Mining may be one of the most undervalued and high-growth stories in the entire silver sector. |
| Growing, Ongoing Production |
| For Silver X, the production from Nueva Recuperada’s Tangana Mining Unit provides the critical base from which the company plans to grow.
In operation since 2023, Tangana is a polymetallic mine processing around 600 tonnes per day (“tpd”) of ore that contains silver, gold, lead and zinc. |
| The area within a 30-kilometer radius of Tangana has historically produced over 200 million ounces of gold and includes mines and concessions acquired by majors like Buenaventura, Pan American Silver and Barrick Gold. |
| Tangana is fully permitted to reach 720 tpd in production, and management plans to do so by the third quarter of this year.
Already, the company’s recent production highlights for Q4 and full-year 2024 show that Tangana is headed in the right direction.
The mine saw a 21% increase in processed tonnage in Q4 2024 compared to Q4 2023 and a 36% increase for the full year 2024 compared to 2023. With that momentum set to continue over the balance of 2025 and with the area surrounded by supportive infrastructure — including access to roads, water supply and power transmission lines — there is little to prevent future growth. |
| Phenomenal Resource Growth |
| The current production at Nueva Recuperada has been driven by a fantastic amount of resource growth as Silver X has steadily drilled off new ore.
In 2021, the company reported 7.4 tonnes of inferred resources. By the next year, it had grown to 14.9 million tonnes of inferred resources, plus another 0.85 tonnes in higher-confidence measured and indicated resources.
An April 2023 resource update would show a four-times increase in that M&I resource to 3.61 million tonnes, along with an inferred resource of 14.9 million tonnes.
But here’s where it gets really interesting: The most recent update, released last October, showed another 18% growth in M&I (4.3 million tonnes) and a major 45% increase in inferred resources (17.2 million tonnes). |
| That’s 36.2 million ounces of silver-equivalent in measured and indicated resources...and 153.9 million ounces of silver-equivalent in inferred resources. |
| That latest increase came primarily from the Plata Mining Unit (PMU), a deposit that has produced 1.8 million tonnes of 16.0 oz/ton in historical silver-equivalent and which Silver X has shown contains 0.95 million tonnes of 12.4 oz/ton indicated silver-equivalent and 5.4 million tonnes of 9.8 oz/ton inferred silver-equivalent. In other words, rich grades and growing.
The Plata project involves the rehabilitation of a historic mine and will become the second mining unit of the Nueva Recuperada Project.
Like the production extracted from the Tangana Mining Unit (TMU), PMU’s production will be processed at the Recuperada Plant, which the company plans to expand to 1,500 tpd (see map) — and that’s just the first source of big, obvious growth ahead. |
| Literally Tons Of Exploration Upside |
| In addition to the short-term development potential at Nueva Recuperada, the project also boasts remarkable long-term exploration upside.
Silver X’s land position in the region is large, spanning 20,472 hectares. |
| Management sees room to grow the Tangana Mine’s current production by exploiting high grades in three main structures on the Tangana West target, plus the bulk-tonnage potential of the Tangana East target.
Brownfield targets at Tangana include the San Antonio Vein (both its southeastern half and its northwest half), the Positiva Vein system and the nearby Ccasahuasi gold target. |
| Via organic production, development and exploration growth, Nueva Recuperada could be operating at six-million-ounce-a-year level by 2028. |
| The Real Potential To Multiply In Value |
| The great news for potential investors in Silver X Mining is its still trading at a fraction of the after-tax NPV, discounted at 10%, of $175 million projected by a 2023 preliminary economic assessment...on just the Tangana Mining Unit. |
| That $175 million figure also happens to be the same amount that a mid-tier silver explorer just paid for an adjacent project in the Huachocolpa district, one that’s not nearly as far advanced as Nueva Recuperada. |
| |
| Click image to enlarge
A 2023 PEA on Tangana shows it having an after-tax NPV of $175 million, which is several multiples of Silver X’s current market cap. |
| Based just on the PEA’s projection of a 1,500-tpd operation at Tangana, the mine could generate 4.2 million ounces of silver equivalent each year for 12 years. |
| But as you’ve already seen, Silver X has plans to triple silver equivalent production at Tangana by 2028. |
| In what looks like a very strong market for silver, that growth promises to translate into a share price significantly higher than Silver X Mining’s current depressed levels.
All this projected growth ahead adds up to one thing: You need to start doing your homework on Silver X Mining now. |
| CLICK HERE
To Learn More about Silver X Mining Corp. |
.png)
