The Next Silver Elephant?

The record shows that some of the biggest winners in the junior mining market have been silver plays with big resources and a few other key ingredients.

So what’s the next big silver winner?

With a flagship project containing tens of millions of ounces of high-grade silver — and a new gold-silver project with 94-meter intercepts — the well-named Silver Elephant (ELEF.TO; SILEF.OTCQX) ticks all the boxes.

Dear Fellow Investor,

Gold futures just marked the highest quarterly close in history — yet another piece of evidence indicating a major new bull run in gold.

As exciting as that may be, experienced investors know that silver typically moves more than gold in a classic bull market, providing much more profit potential.

And with silver recently beginning to out-perform gold, it seems the long-awaited big move in the white metal is on.

But smart traders also know that high-quality silver stocks offer even more potential than silver itself.

And this is the key to doing just that: Finding a silver company that understands the leverage comes from expanding silver resources in the ground…and buying such a company at an early stage.

In that regard, it’s hard not to consider Silver Elephant Mining Corp (ELEF.TO; SILEF:OTCQX), which has not one but two quality silver projects under its belt.

And as you are about to see, even with two potential silver elephants already in the stable, the company is on the hunt for even more.

Flashback: Silver Standard Resources Of 2001

Many experienced junior mining investors fondly remember buying a silver company named Silver Standard (back then the symbol was SSRI, not the current SSRM) at C$1.50 a share in 2001. By June 2002, it had gone to $7.00…before hitting $15.00 in 2004 and $30.00 in 2007!

Get this: During the entire six-year, 2,000% run, SSRI had no silver production, no revenue, and no profit to speak of!

You see, investors were drawn to Silver Standard’s silver resources in the ground, which were ultimately estimated at around a billion ounces, from the various silver projects they acquired and expanded.

Their operating mindset at the time: Why mine silver at low prices in exchange for fiat money, when that silver could be kept safely in the ground in anticipation of much higher prices to come?

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Could This Silver Junior Be The New Silver Standard?

The management team at Silver Elephant is operating from the Silver Standard playbook by drilling to expand its flagship Pulacayo project and the newly acquired Triunfo project, while looking to further acquire pre-production-stage silver assets which may be slightly out of money at current silver prices.

As Joaquin Merino, Silver Elephant’s VP of South American operations, stated in the company’s recent Triunfo project acquisition announcement, “We want our shareholders to own as much silver in the ground as possible.”

Mr. Merino, a professional geologist who started his career with Hecla, led a team that outlined, from scratch, 30.4 million ounces of Indicated silver and 27.2 million ounces of Inferred silver resources at the Pulacayo-Paca project before that project was acquired by Silver Elephant in 2015. Mr. Merino believes there’s a lot more silver at Pulacayo, as only 30% of the known mineralization had been drilled.

Mr. Merino joined Silver Elephant in 2019 and feels the newly acquired Triunfo project will be another a big success.

“Historic hole TR-001 returned 94.2 meters grading 0.39 g/t gold, 21.8 g/t silver, 0.65% lead, 0.39% zinc, (0.95 g/t gold-equivalent *) based on the prior operator’s SEC 10K fillings. Only 20% of the property was explored.”

Mineralization outcrops at the surface and continues for at least 750 meters, in three discrete blocks, in the east-west direction with widths varying from 20 meters to 150 meters. The deposit remains completely open at depth and to the east, where there are numerous artisanal gold workings. The Triunfo Project has access to power and water, and is accessible by road year-round.

A Deal Maker With Strong Financial Backers

Silver Elephant was founded by John Lee, CFA, who is the company’s chairman and known as a smart deal maker and prolific fundraiser. Lee is one of the well-positioned survivors coming out of the long metals bear market.

Sprott disclosed a 9% stake in Silver Elephant in late 2019, and the Nine Point gold fund is also a large shareholder.

A combination of two highly prospective silver projects, a proven exploration team and a deal maker backed by top-tier financiers is a powerful recipe for success.

Here’s The Opportunity...

Silver Elephant Mining Corp is currently trading around C$0.35, for a market capitalization of around C$45 million.

This is one-twentieth (1/20) of the value of its neighbor, New Pacific Metals, with its massive new Silver Sand discovery in Bolivia.

While you can’t compare the two companies at this point in terms of resources, the market value of New Pacific clearly demonstrates the value proposition of a growing silver resource in a country that is rapidly re-opening to foreign investment.

And there’s news to come: Gold and silver assay results expected late this month from two Pulacayo drill holes and several dozen chip samples taken from surface and the tunnels at Triunfo.

Considering a silver market that appears primed for substantial gains ahead — and the proven leverage of silver juniors with large, growing resources — smart investors will want to check out Silver Elephant Mining Corp before the rest of the herd discovers it.

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To Learn More About Silver Elephant Mining Corp And Its Growing Silver Resources