The ultimate silver lever
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The Ultimate Silver Lever
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Back in 2020, when the silver market had its last big run,
Golden Tag Resources (GOG.V; GTAGF.OTC) was silver’s most potent lever on the trend.
Fast forward to today, and the silver market looks like it’s about to turn the corner…and Golden Tag and its massive silver resource in Mexico are positioned to again provide tremendous leverage to the move.
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Back in 2020, following the post-lockdown market dive in March, silver traded at just $12. It would go, later that year, to ride loose money euphoria to heights of $29.00.
That’s nearly a 2.5-times multiple in less than a year. Silver continued to ride high throughout the rest of 2020.
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Not bad, but consider this: Golden Tag Resources (GOG.V; GTAGF.OTC) would, between March of 2020 and early 2021, leap from C$0.03 a share to C$0.65 a share, a more than 21 times multiple!
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The company provided sector-leading leverage because it has something very rare: A world-class, primary silver resource in an excellent mining jurisdiction.
Only a handful of companies can boast anything like that, which is why traders gobbled up Golden Tag when silver took off.
Fast forward to today, and silver is starting to turn a corner from its Fed-induced swoon, and yet, Golden Tag continues to trade near 52-week lows.
As you’re about to see, with silver on the verge of a breakout, Golden Tag Resources is primed to again explode higher, thanks to that world-class resource, a strong cash position…
…And a recent discovery that could unlock the huge potential of that massive silver resource.
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A World-Class, Primary Silver Resource
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It all starts with that world class resource. Golden Tag owns 100% of the San Diego project in Durango State, Mexico.
That project hosts 31.6 million ounces of indicated silver and 438 million pounds of indicated zinc — plus an even bigger inferred resource of 83.8 million ounces silver and 1.2 billion pounds of zinc.
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That projects to a 220-million-ounce silver-equivalent resource…and makes San Diego home to one of the largest undeveloped silver resources in silver-rich Mexico.
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Better still, in a world where most silver production comes as a by-product of mining for other metals, the silver content of the San Diego resource is almost 50% by value.
That primary silver content makes Golden Tag a player in a very small universe of silver equities. It also explains why the company’s share price multiplied more than 21 times during silver’s last big run.
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In A Region Anchored By A Mexican Major
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And, San Diego is ripe for development, thanks to its location within the prolific Velardeña Mining District.
The district is dominated by privately-held Mexican silver major Peñoles, which operates the Velardeña Mine in the region and is currenting conducting 35,000 meters of drilling on its Reina del Cobre project, which lies to just west of the San Diego project.
More than 100 drill pads are expanding the mineralization at Reina del Cobre, and optimization and engineering studies are underway. Plus, Peñoles has a smelter in the nearby city of Torreon.
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In other words, Golden Tag’s core project lies square in the middle of a hotbed of activity, but one that doesn’t get a lot of press because Peñoles is privately held.
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It’s a location that sets San Diego up to be developed at a rapid clip, considering all the nearby infrastructure.
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The Engine For Golden Tag’s Tremendous Leverage On Silver
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There’s no doubt that Golden Tag offers tremendous value in San Diego’s world-class resource…but there’s a catch.
You see, the one drawback to the resource is it begins at a depth of 400 meters, which means a lot of earth would need to be moved to access the silver-zinc mineralization there.
So at current silver prices, the resource is uneconomic to exploit.
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But that’s why it provides such enormous leverage — these types of large, “out of the money” silver resources suddenly gain tremendous real-world value once the silver price rises above that economic threshold.
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This isn’t some obscure theory; it’s been proven time and again.
Not only did Golden Tag soar in the last silver run based on its massive, not-yet-economic silver resource, but Silver Standard Resources (the predecessor to SSR Mining) was famous for multiplying as much as 50 times in value by locking up large, out-of-the-money silver resources.
That’s why noted silver bugs like Eric Sprott have invested heavily in Golden Tag; they’re looking to repeat this proven, money-multiplying strategy in silver’s next big rally.
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Discovered:
A Potential Key To Unlocking
The Value Of San Diego’s Resources
Without A Huge Run In Silver
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Still, a recent discovery could transform Golden Tag’s resource…putting it square into economic potential even without a big run in the silver price.
It came just last year, when the company’s drills hit near-surface, open-pittable mineralization near the resource-hosting Fernandez target.
Hole 21-57 cut 72 g/t silver equivalent over a remarkable 274 meters…and that intersection began at surface. That discovery hole caused Golden Tag to go back and reassess historic holes near this hole.
What the company found was nothing less than a potential near-surface starter pit that could potentially pay for access to that huge underground resource at Fernandez.
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A History Of Leverage To Silver
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That’s what makes the timing of the Golden Tag story so perfect right now.
Here you have a company that multiplied 21 times on silver’s last big run and is now in a better position than it was in March 2020.
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Golden Tag still has that world class, 220-million-ounce silver equivalent resource, but now it is on the verge of outlining a near-surface, open-pittable resource that could unlock the treasure chest directly below.
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With C$7.4 million in the bank and a location in one of the world’s best silver mining jurisdictions, Golden Tag Resources looks ready to again provide outstanding leverage on rising silver prices.
If you’re a silver bug, it belongs squarely on your radar.
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CLICK HERE
To Learn More about Golden Tag Resources Ltd.
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Opportunities has paid the publisher for the costs and compensation related to the authorship, overhead, design and distributing this online edition, in the amount of $7,500. The publisher may receive revenue, the amount of which cannot be predetermined, from sales resulting from any accompanying offer. Authors of articles contained herein may have been compensated for their services in preparing such articles.
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