Coverage Initiated on Emerging Silver Producer With Large Land Package in Peru
Source: Streetwise Reports
December 8, 2021 (Investorideas.com Newswire) "Silver X is one of the best positioned emerging junior silver producers in the market, with tremendous growth potential," noted a Red Cloud Securities report.
Silver X Mining Corp. (AGX:TSX.V) garnered coverage by Red Cloud Securities for its "production growth profile and exploration potential at its Nueva Recuperada silver-lead-zinc project in Peru," reported analyst Timothy lee in a Dec. 5 research note. Red Cloud initiated coverage on Silver X with a Buy rating and a CA$1 per share target price. The current share price is around CA$0.31.
"We believe Silver X is one of the best positioned emerging junior silver producers in the market, with tremendous growth potential at its Nueva Recuperada mining operation," Lee wrote.
Lee presented the highlights of the Silver X (formerly Oro X Mining) story. To start, Silver X has a project, Nueva Recuperada, on which it can build to achieve its goal of becoming a midtier silver producer. This operation is based on a past-producing mine. The company also has assets in Ecuador.
Having quickly started producing zinc and lead concentrates at Nueva Recuperada's mill and mine, Silver X generated revenue from concentrate sales in H1/21 of US$6.5 million, which nearly covered mine costs.
Two, the miner "is poised for rapid, near-term production growth," and has "potential for long-term growth," Lee pointed out. The company's next production target is 2,500 tons per day (tpd) of output, about four times the current maximum capacity of 600 tpd. For that, Silver X is now expanding the mill to 720 tpd (it has the permit in hand for this) and working on the environmental and social assessment for another permit. The miner aims to start full commercial production next year and ramp up to 5,000,000-6,000,000 ounces of silver production by 2024.
Lee also addressed Silver X's exploration upside, both blue sky and from known targets.
"The company has consolidated a large (roughly 15,000 hectare) land package surrounding the centrally located mill at Nueva Recuperada, and this property contains numerous (more than 80) known veins and unexplored areas," Lee described.
Silver X is actively conducting mapping, sampling, and drill programs on its property and has future work planned for it as well. The 25,000 meter (25,000m) drill campaign in progress there is targeting known veins and greenfield targets. The objectives are to delineate a resource and find further highly prospective places to drill.
Looking to next year, in H1 Silver X plans to drill another 10,000m, hitting all major areas of the property, including Esperanza, Tangana and Maria Luz.
Also of note according to Lee, the Canadian company has a significant presence in Peru and maintains strong relationships with local communities. Many of the employees at Nueva Recuperada are locals.
"Community relations and environmental, social, and governance [policies] are high priorities for Silver X, and we expect that this could be an advantage for the company as it looks to expand," Lee added.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Silver X Mining Corp. Please click here for more information.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) do not own securities of Silver X Mining Corp., a company mentioned in this article.
Red Cloud Securities Inc., Silver X Mining, Dec. 5, 2021
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