With three active silver projects, Aftermath Silver (AAG.V; AAGFF.OTC) offers a potent lever on the metal that itself offers leverage to gold.

Dear Fellow Investor,

Secular precious metals bull markets don’t come around often, so when they do, you want to wring out every last drop of profits.

That means you need to employ leverage to maximize your gains.

It’s a step-by-step process, beginning with the fundamental, macro story.

To wit: Are governments going to continue to shower their economies with newly created currency, more and more debt and seemingly unrestrained spending?

You bet.

Will the growing mountains of debt require continued ultra-low interest rates going forward? Even negative rates after adjusting for inflation?

Absolutely.

And does this mean the price of gold will rise considerably over the coming years?

It seems assuredly so — and even more likely given gold’s recent rebound from its correction lows.

Given all that, how do you leverage this historic, multi-year gold bull market for maximum gains?

The easy answer is the metal that has always leveraged gold in markets like this: silver.

But it doesn’t end there…because you can leverage the move once again, with silver juniors.

These companies can multiply the moves in silver, which in turn leverages the moves in gold.

You get the picture. Now your job is to find the best silver junior companies.

And in this regard, one name is standing out right now: Aftermath Silver (AAG.V; AAGFF.OTC) and its three under-appreciated silver projects.

A Rare Bird In The Silver Space

It’s not hard to understand why silver naturally outperforms gold in a secular bull market.

For one thing, it trades at a fraction of gold’s price, which means the percentage gains for silver are much greater when silver prices begin to run.

Even though silver’s uses are primarily industrial, it retains its historic status in investors’ minds as a monetary metal.

Thus, when gold prices begin to run, silver typically begins to run in sympathy.

And when investors start scanning the space for equities that can leverage a run in silver, they will find only a small group of candidates.

That’s because most silver is produced as a by-product of base metal deposits, meaning projects with silver-forward mineralization are rare.

Within that already tiny universe of companies, Aftermath Silver and its millions of ounces of silver resources stand out.

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New Acquisition Fits Strategy To A Tee

Company President and CEO Ralph Rushton sums up the Aftermath Silver story nicely: “This is not a grassroots situation. We have built an early-stage, pure-silver play with three projects and a growth curve ahead of it.”

Those three projects began with two primary silver projects in Chile: Challocollo and Cachinal.

To those Aftermath has just added what looks to be a flagship project in Peru called Berenguela.

Aftermath is purchasing a 100% interest in the Peruvian company that owns Berenguela from SSR Mining for US$12.7 million in cash and C$3.4 million in shares. SSR will also retain small royalties, which Aftermath can buy on a sliding pricing scale.

Because SSR’s previous optioner was an Australian company, the most recent resource estimate for Berenguela was JORC-compliant, but not compliant according to Canada’s NI 43-101 standards.

Still that Australian-compliant resource, compiled in 2018, demonstrates the potential.

The study posits a measured and indicated resource of 98.7 million ounces of silver and 624.5 million pounds of copper (35.9 million tonnes of 85 g/t silver and 0.79% copper). It also contains an inferred resource of 28.2 million ounces of silver and 147.2 million pounds of copper (10.0 million tonnes of 88 g/t silver and 0.67% copper).

The historic resource gives Aftermath a big head start as it begins the work to complete an NI-43 101 prefeasibility study on Berenguela, which will go a long way to establishing the economics associated with the project.

The Smart Money Is Betting On Aftermath

True kingmakers are rare in the mining sector, but Eric Sprott is certainly one of them.

In this latest run for the precious metals, Sprott has been making strategic bets on a variety of companies…and hordes of generalist investors have tended to follow his lead.

Bear that in mind when you consider that he participated heavily in the non-brokered private placement Aftermath Silver announced in August and closed in September.

Between the announcement and the closing of the deal, the placement was upsized from C$12.5 million to C$17.1 million. Sprott increased his participation in the transaction so that he remains the company’s lead shareholder, with a 19.6% interest.

Clearly, Sprott sees what other far-sighted investors see in Aftermath: a unique silver play with not one but two potentially large silver development projects led by a management team with a strong track record of delivering value for shareholders.

Potentially Massive Leverage To Silver

Leverage to silver (and gold) is one key thing to look for in a junior silver play, and given its resource, Aftermath offers that in spades.

But you also want to see upcoming catalysts to grab the market’s attention and unlock that potential.

Aftermath shines here as well, with big news on the way.

First off, with the money from its recent raise in hand, Aftermath plans to start the aforementioned prefeasibility study at Berenguela.

To do so, it will conduct infill, geotechnical and metallurgical drilling. Not only will Aftermath complete the report, they will also test several highly prospective exploration targets that could provide investors with more reasons to own Aftermath.

And even before that, at Challacollo, the company’s other major project, an NI 43-101 compliant resource is due shortly. It will be followed by a PEA to assess an open-pit mining scenario.

Indeed, both projects may be open-pittable. The mineralization at Berenguela is exposed at surface.

That makes them potential takeout targets as Aftermath moves them through the de-risking process.

Simply put, companies with silver projects this interesting are few and far between, a fact that makes Aftermath a compelling takeout target in the long term.

But even in the short term, this company’s silver projects make it a highly levered optionality play on rising silver prices.

If you like silver’s potential leveragability on gold, you’ll want to own a piece of Aftermath Silver before the next leg of the precious metals bull market kicks into gear.

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