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It was one of the largest and richest silver districts in North America.
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From 1900 to 1930, the Tonopah silver district in Nevada produced 174 million ounces of silver and 1.8 million ounces of gold.
Then the Great Depression shuttered the underground mines in 1930 and the district fell victim to fractional ownership that meant little modern exploration got done on the area.
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But then, in 2020, Blackrock Silver (BRC.V; BKRRF.OTC) managed to consolidate that fractional ownership on the western side of the district in a project called Tonopah West.
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The company had drills turning by June 2020 and the first high-grade hit sent its share price soaring in the summer of 2020, as it was clear they had their hands on a world-class project.
Blackrock would go on to drill 120,000 meters on Tonopah West over the next two years, an effort that resulted in the completion of a maiden resource estimate in May that established it as one of the highest-grade undeveloped silver projects in the sector.
Unfortunately for Blackrock Silver (but fortunately for you as a potential investor), the company’s shares have sold off along with the price of silver and the broader markets since it announced the resource estimate.
Now, you have a chance to get in at a bargain price on a project that is now backstopped by some of the highest-grade safe haven ounces in the ground in the industry.
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High-Grade Silver
…And More On The Way…
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That value is underpinned by a 42.7-million-ounce silver-equivalent resource at Tonopah West.
This resource consists of 2.98 million tonnes of mineralization grading an impressive 446 g/t silver equivalent.
As the chart below makes clear, this resource puts Tonopah West third in terms of grade among the world’s underground exploration and development silver projects.
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Click image to enlarge
At a diluted grade of 446 g/t silver equivalent, Tonopah West is one of the highest-grade exploration and development silver projects in the sector.
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Good market or bad market, grade is king, because it can make projects very profitable in virtually any cost environment. In that regard, Blackrock’s Tonopah West stands head and shoulders above its peers.
With discovery costs of just $0.62/ounce, Blackrock Silver has already realized phenomenal value for its 120,000-meter program.
But — as you’re about to see — there’s more to come….
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…In A World Class Jurisdiction
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The high-grade resource at Tonopah West, situated on private land in Nevada makes the company a clear takeout target.
As Mexico and Peru, the world’s top two silver producers, continue to become less attractive for investment, Blackrock’s Tonopah West project is clearly on the industry’s radar, having already attracted First Majestic Silver as a strategic investor.
A big part of the project’s allure is that it’s comprised entirely on patented claims (private land) in the heart of Nevada.
Being on private land is a big positive as it means permitting should be straightforward, offering potential to fast-track the project through development as they don’t require any federal approvals.
The state was rated by the Fraser Institute as the third-most mining friendly jurisdiction in the world in 2021.
Nevada’s combination of robust infrastructure, a well-trained labor force and a mining friendly government make it a highly attractive place to own a project.
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In fact, Tonopah West is bisected by a major state highway and lies just adjacent to the historic mining town of Tonopah.
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It’s an ideal location that makes the project’s 42.7 million ounces of silver-equivalent valuable indeed.
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With Plenty Of Exploration Upside
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As one of the most active silver projects in North America, drilling continues at the project as the company focuses on low-hanging resource expansion opportunities.
A 10,000-meter program is underway that will tie together substantial step-out drillholes that intersected the vein system significantly beyond the maiden resource area.
The program will also home in on the high-grade structures internal to the resource that could add significant high-grade tonnes.
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But there’s considerable blue-sky potential too: Blackrock also recently added the Tonopah North property, on which it is awaiting assays from 9,000 meters across three key target areas that are in search of new discoveries.
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This completely unexplored parcel of land could host the potential extension of the Tonopah silver district, as the company projects the vein system heads that way.
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One Of Today’s
Most Explosive Silver Plays
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High-grade silver stories always command a premium and having established the project as world-class in that regard, Blackrock Silver should lead the pack when the tides for precious metals turn.
The company has gone from discovery to backstopping their valuation with ounces in the ground in under two years, and now they have a clear path to grow it.
Even after coming back down to earth from its lofty valuations in 2020, the chart below demonstrates that Blackrock Silver continues to be one of the silver sector’s bigger winners over the last two years.
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Click image to enlarge
Even after suffering from recent market turbulence, Blackrock Silver has posted one of the best share price gains over the past two years.
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Why is that important now? Because Blackrock has the attention of some of the smartest and most active silver investors in today’s market.
In the next silver rally that seems likely to begin soon, it should quickly attract the kind of buying that could lead it to repeat and expand its previous high-flying run.
With one of the highest-grade underground silver projects in the world Blackrock Silver stands as one of the most exciting ways to play silver today.
Not only are their fortunes tied to the price of silver, but they can continue adding value via the drill-bit on the quest to add ounces.
Consider that drilling results, including assays for some “Hail Mary” step-outs, one drillhole which was said to have encountered a vein 20 metres thick, are expected soon that could provide shorter-term catalysts along the way.
Add in an expanded resource estimate soon to follow and a compelling summer and fall is laid out for investors.
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It’s a fact that silver itself offers big leverage to gold’s gains, and junior silver companies provide leverage on top of that.
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Among those few, high-potential silver plays, Blackrock Silver — at its current price levels — is one that smart investors will want to look at now.
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