High-Grade Drill Results Unveil Growth Potential at Promising Alaska Polymetallic Project
Silver47 Exploration Corp. (AGA:TSX.V) announced results from its 2024 drilling campaign at the Red Mountain Project in Alaska, USA. Read more about how the 2024 drilling campaign confirmed high-grade polymetallic mineralization at Dry Creek and West Tundra Flats, highlighting the project's significant resource potential.
Silver47 Exploration Corp. (AGA:TSX.V) announced results from its 2024 drilling campaign at the Red Mountain Project in Alaska, U.S.A. The program targeted polymetallic mineralization at the Dry Creek, West Tundra Flats, and Kiwi prospects, completing six drill holes over 1,039 meters. The exploration confirmed high-grade massive sulphide intervals and broad zones of polymetallic mineralization.
As per the press release, key results from Dry Creek's infill-confirmation drilling included:
Hole DC24-104: 15.24 meters grading 545.5 grams per tonne silver equivalent (g/t AgEq) from 14.3 meters depth, including 6.0 meters at 1,248.4 g/t AgEq. The mineralization consists of 106 g/t silver, 0.45 g/t gold, 6.4% zinc, 2.2% lead, and 0.19% copper.Hole DC24-105: 22.32 meters grading 601.0 g/t AgEq from 18.9 meters depth, including 2.66 meters at 1,801.2 g/t AgEq. This interval contained 599.4 g/t silver, 2.37 g/t gold, 14.5% zinc, 6.9% lead, and 0.64% copper.These results confirm the continuity of high-grade polymetallic mineralization in the western extent of the Dry Creek resource. Vice President of Exploration, Alex Wallis, stated: "Holes 104 and 105 confirmed infilled broad intervals of silver-gold enriched VMS-style mineralization, supporting the 3D modeling of historic data. This new data will aid future infill drilling of high-grade zones."
The Dry Creek deposit consists of multiple horizons of semi-massive to massive sulfides within the Totatlanika Schist. These horizons are traceable over 4,500 meters and include two primary lenses, Fosters and Discovery, which feature silver-zinc-lead-gold-copper mineralization.
Silver47 also reported high-priority exploration at its Kiwi, Horseshoe, and Galleon targets. At Kiwi, grab samples returned up to 10% copper and 218 g/t silver, although further exploration downgraded it as a lower priority. Horseshoe remains promising for SEDEX mineralization, and Galleon exhibits strong silver and gold anomalies consistent with historic results.
CEO Gary Thompson highlighted the program's success in advancing the resource base and exploration potential. Thompson stated in the press release, "We are pleased with the results from this summer's drill program at West Tundra Flats and Dry Creek, which further confirm the high-grade polymetallic mineralization and significant potential of the Red Mountain Project. These results strengthen our exploration strategy and enhance our confidence in the scale of the resource. Moving forward, our focus will be on integrating the new data into an updated geological model for planning further drilling to expand the resources along strike and down-dip. Secondary objectives for the next program will be drill testing for new discoveries like the Galleon and Horseshoe showings, as well as testing the infill potential of the 2.7 km gap between the two resource areas."
Looking At The Silver Sector
As Mining News Worth reported on November 12, Silver47 Exploration Corp. made its debut on the TSX Venture Exchange with its flagship Red Mountain Project in Alaska. The project spans 942 state mining claims and one mining lease, covering a 60-kilometer trend of silver, zinc, lead, gold, and copper mineralization. The company's inferred mineral resource includes 15.6 million metric tons averaging 335.7 g/t silver equivalent, amounting to 168.7 million ounces of silver equivalent. The article noted, "VMS deposits like Dry Creek and West Tundra Flats typically form in clusters and stack up over the eons," emphasizing the district-scale potential of the property.
In a YouTube interview with Daniel Lin, CEO Gary Thompson highlighted the growing demand for metals like silver. Lin said it was driven by industrial and technological advancements. Thompson explained, "Silver really is the number one [metal] all other metals are compared to . . . when it comes to electrical conductivity." He also discussed the role of silver in emerging technologies, including solar panels, military applications, and space technology, describing it as essential for the electrification of industries and global development. Additionally, he remarked on the challenges of meeting increasing demand, stating, "You can't just flip a switch to get these metals out of the ground it's a process."
A Deep Dive interview delved further into Silver47's Red Mountain Project, with Thompson highlighting its scalable potential. He detailed the company's plans to expand its resource base, aiming for a target of 500 to 900 million ounces of silver equivalent. "This is a district-scale opportunity with 60 kilometers of mineralized trend and numerous unexplored targets," Thompson said, adding that historical investments of over US$30 million and 38,000 meters of drilling have laid a strong foundation for future development. He emphasized that the company is well-positioned to capitalize on the rising demand for silver, supported by favorable jurisdictional conditions in Alaska.
The Driving Silver47 Exploration Corp.
The results from the 2024 drilling campaign highlight the potential for substantial growth at Silver47's Red Mountain Project. According to the company's November 2024 investor presentation, the property contains a National Instrument 43-101 inferred mineral resource of 15.6 million tonnes at 7% zinc equivalent or 335.7 g/t silver equivalent, representing 168.6 million ounces of silver equivalent.
The company plans to focus on resource expansion at the Dry Creek and West Tundra Flats zones, which remain open along strike and down dip. Additional exploration will target the 2.7-kilometer gap between these zones, where high-grade mineralization is considered a possibility. At the same time, the Kiwi, Galleon, and Horseshoe targets are being assessed for their potential to host new discoveries, with the Galleon target showing characteristics similar to Dry Creek's mineralization.
The project is strategically located near infrastructure, including roads, rail, and power, which supports cost-effective exploration and potential future development. In addition, demand for silver, zinc, and copper continues to grow due to global electrification trends and industrial needs, as outlined in the investor presentation. This robust demand positions the Red Mountain Project as a valuable asset in a favorable metals market, enhancing its attractiveness for further development and exploration efforts.
Analysts on Silver47
As Bob Moriarty of 321 Gold explained on November 14, Silver47 Exploration Corp. presented a compelling opportunity with its Red Mountain Project. Moriarty noted that the company strategically acquired the project from White Rock Minerals after the previous owner faced financial and regulatory setbacks. He emphasized that the Red Mountain Project already included a 43-101 resource of 168.6 million ounces of silver equivalent, with Silver47 targeting a significant expansion to 500-900 million ounces. "At current prices, Silver47's valuation represents a fraction of comparable silver projects, offering investors exposure to silver at roughly one-tenth the cost of peer companies," he said.
Streetwise Ownership Overview*
Silver47 Exploration Corp. (AGA:TSX.V)
*Share Structureas of 11/21/2024Source: Reuters and Silver47Moriarty also highlighted the project's logistical advantages, pointing out that it benefits from existing infrastructure, such as a haul road only 30 kilometers away, and is situated on state-managed land free from federal jurisdiction and indigenous claims. He remarked, "With Silver47, you can buy silver for a major discount (around 10% less) than what others are paying for other companies that have less silver." He concluded that Silver47 had captured market attention as a promising silver-focused investment.
Ownership and Share Structure
The company said its three largest shareholders are Eric Sprott, Crescat Capital, and management.
According to Reuters, about 10% of Silver47 is held by strategic investor Silver Range Resources Ltd. and Chief Executive Officer Gary Thompson owns about 21%.
The silver explorer has a tight share structure with 50 million total shares, 65 million fully diluted. Its market cap is CA$34.03 million and it trades in a 52-week range of CA$0.65 and CA$0.79.
| Want to be the first to know about interestingSilver investment ideas?Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
Silver47 Exploration Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver47 Exploration Corp.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
* Disclosure for the quote from the Bob Moriarty article published on November 14, 2024
Bob Moriarty I, or members of my immediate household or family, own securities of: Silver47 Exploration Corp. My company has a financial relationship with Silver47 Exploration Corp. I determined which companies would be included in this article based on my research and understanding of the sector.