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| Imagine, if you will, that you could build the perfect silver play for today’s scorching-hot metals and mining market.
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| If you could, you’d start off with a tight share structure, and staff the company with experienced management and board members that had already built big silver success stories...
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| • You’d give it a big, proven silver resource with high grades — and an expansive land position with plenty of room to expand that resource.
• Heck, while you’re at it, throw in a fully permitted mill and mine development, lots of infrastructure and put it on trend with some of the richest and most profitable silver mines in the world.
• Then, keep it secret and private...and then spring it onto the public markets before most investors are even aware that it’s coming.
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| Too much to ask, you might say? Completely unrealistic, you might wonder?
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| Well, it’s real and it’s here, in the brand-spanking new Silverco Mining (SICO.V) — one of the biggest stories to hit the silver market in years.
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| As you’re about to see, Silverco checks all the boxes that most silver investors could imagine, as well as some that few would dream possible.
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| A Fully-Permitted Mine Hungry For Ore
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| The Silverco story starts with the Cusi Mining Complex — a fully-permitted, past-producing underground silver, lead and zinc mine with a 1,200-tonne-per-day mill...and located in the midst of the legendary Sierra Madre Occidental belt hosting a string of major silver deposits.
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Silverco’s Cusi Mine Complex boasts an existing mill and underground development...in the midst of the legendary Sierra Madre Occidental belt hosting major silver deposits.
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| Importantly for silver investors, 85% of the Cusi mine’s revenue was produced by silver, with the other metal credits serving merely to reduce operating costs per silver ounce.
And there’s plenty of silver still here, with a measured and indicated resource of 37 million ounces. That’s within an historic (non-compliant) global resource of 66 million ounces, so there’s an obvious target there for increasing the resource.
Production at Cusi under previous operators began in 2014 at a 650 tpd rate, increasing to 1,200 tpd by 2019. In 2020, the mine was shut down due to Covid, but limited funding for underground development hamstrung the operation’s restart.
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| Still, in the last full year of production in 2022, 1.43 million ounces of silver-equivalent metal was produced at an all-in (AISC) cost of only US$23.17/ounce.
And that was achieved with just a 62% mill utilization!
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| You can understand why Silverco management is so excited about what this mine can do with the funding and management they are now providing — and with silver prices at all-time highs.
They’re also excited about another aspect of the story....
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| Exploration Upside Near Term
And District-Scale Potential
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| It’s important to realize that Silverco has already made major advancements at Cusi and on its greater property position while still a private company — and much of that work is now bearing fruit right now.
Consider that a 5,000-meter drilling campaign last year discovered two new, high-grade targets, and drills are turning at this moment to expand those targets.
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Recent discoveries of downthrown mineralization across the Cusi fault have opened up district-scale potential for the project.
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| But the company’s work also points toward much greater potential. Although this mining camp has existed for 300 years, previous production ceased at the Cusi Fault, and extensions across that fault weren’t considered prospective.
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| That all changed as geologic interpretations revealed a downthrown, preserved mineralization to the east of the Cusi Fault...opening up district-scale exploration potential for the large, 11,665-hectare project.
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| Silverco is in the midst of a major, 15,000-meter drill program to test and expand that potential in extensions to existing mine development and across multiple new targets.
The upshot is that while Silverco is rapidly advancing toward a production restart, this development/production story has a big exploration kicker.
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| Big Silver Production Ahead
...And Much More
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| Silverco is well on its way to restarting production at Cusi and taking full advantage of today’s record silver prices.
The opportunity is dramatic. Consider the leverage this mine offers:
An historic preliminary economic assessment showed a US$52.5 million net present value, discounted at 8%, for the Cusi mine...based on a silver price of just $20/ounce.
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| That same study showed that increasing the silver price to just $26 increased the NPV by 120% to US$115.1 million.
Can you imagine what the NPV would be if you double the silver price, to roughly today’s levels?
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| It won’t be long until the market knows, because Silverco’s plans are to restart production by the second half of next year, perhaps even sooner.
And that’s just the start: The company’s stated goal is to create a 10-million-ounce-plus producer within the next three years through accretive acquisitions.
If there was ever a “set it and forget it” silver play, Silverco might be it.
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| Ground-Floor Opportunity
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| Getting in early on new opportunities can super-charge the potential gains in a junior mining play. And it’s here where Silverco offers truly remarkable potential.
Consider that, at the near-term projected valuations for Silverco as a public company and its targeted 2.5 million ounces of annual production, it is valued at a mere fraction of its pre-production peers.
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As a new story in the market, Silverco’s valuation has lots of room to catch up to its peers — and even more potential as it achieves the valuation level of a producer.
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| But that’s only the beginning, as the valuation mismatch gets even more dramatic as the company advances toward production.
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| As you can see from the chart above, by simply going into production, Silverco would need a 10x re-rating to achieve the market valuations of its peer producers.
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| And with a drum-tight share structure of only 32.6 million shares outstanding, the path to realizing that potential is cleared.
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| An Opportunity That May Not Last Much Longer...
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| In today’s extraordinary metals and mining bull market, silver is providing leverage to gold...and silver mining plays are leveraging silver itself.
This is why investors are desperately searching for the next big thing in silver mining — the companies that the market has yet to revalue.
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| Nothing beats a fresh new story just coming onto the market, especially one like Silverco that checks all the boxes an investor could ask for.
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| The Silverco story is getting out at this very moment, however, so the time to begin your due diligence is now.
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| CLICK HERE
To Learn More about Silverco Mining
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