Mexican Silver Explorer Going For Gold in Chihuahua
Source: Streetwise Reports
August 15, 2022 (Investorideas.com Newswire) The CEO of a junior silver explorer operating in Mexico's Parral region believes its drill campaign revealed more than just promising gold-silver grades - he thinks his company is onto something much bigger. And that perhaps the entire camp is open to re-evaluation.
Fabled Silver Gold Corp. (FCO:TSX.V; FBSGF:OTCQB; 7NQ:FSE) is going for gold in Chihuahua state, Mexico.
Like a host of other junior mining companies, Fabled has switched focus not once, not twice, but thrice.
Initially, as the ticker would suggest, this was a copper play, but those assets were spun out into Fabled Copper Corp. (FABL:CSE) as the search for silver took centerstage. But then drills as started hitting gold - considerable gold - equity markets turned toward a broad risk-off sentiment, and the 50-hole drill campaign wrapped up.
With shares trading at CA$0.07, Fabled Silver Gold CEO Peter Hawley pushed most of his chips to the center of the table when he announced in June a private placement designed to finance further drilling on the company's flagship Santa Maria property in Mexico.
It was there where hole SM-50, drilled earlier this year, finished in high-grade hydrothermal gold-silver mineralization.
John Feneck, who manages the eponymous Arizona-based Feneck Metals and Mining Portfolio, which includes Fabled Silver Gold, calls hole 50 "a really nice hit."
Feneck met Hawley shortly after he acquired Santa Maria from Golden Minerals (AUMN:TSX; AUMN:NYSE American).
A drill rig tests the Santa Maria silver-gold project in Mexico. Source: Fabled Silver Gold Corp.
"I started a position in the stock due to Peter's extensive industry experience and his desire to spinoff Fabled Copper (which was completed in 2021). Golden Minerals liked what they saw at Santa Maria but had four projects ahead of it, which was the primary reason for the (Fabled Copper) transaction," Feneck explained to Streetwise Reports.
He added: "(Hawley) initiated an aggressive 50-hole drill program shortly after acquiring the project, which was quite successful."
Hawley, a geologist by training, explains that the large silver mines along trend in the Parral region, like Kootenay Silver's (KTN:TSX.V) La Cigarra project, for example, have mineralized systems that run north and south, while the primary silver vein at Santa Maria runs east and west. He believes the hydrothermal gold-silver system intersected in the last few holes of definition drilling earlier this year also runs north and south.
"Our high-grade silver vein is going east-west, not north-south. And I believe that the gold components that we're hitting are actually (situated) north-south. That means all the camp's open for re-evaluation," Hawley told Streetwise Reports.
Drilling to Confirm Hydrothermal Gold Theory
The company closed the first tranche of the offering and raised a total of $415,800 as of July 20.
Then offering was set to close in early August but has since been extended.
The money raised from the placement will go toward a drill program designed to confirm that Fabled has indeed found a high-grade hydrothermal gold system.
In the first tranche, Fabled Silver Gold issued 5.94 million units at CA$0.07 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant allows the holder to purchase one common share at CA$0.12 for up to two years after the placement's official closing date.
All the securities issued in the offering must be held for at least four months, plus a day, from the date when they were issued. The closing of the offering remains subject to regulatory approval.
A finder's fee of $23,394 was paid to Canaccord Genuity Corp. once the first tranche closed. Fabled may close one or more tranches of the same offering for additional proceeds.
Santa Maria PEA and Hole SM-50
A preliminary economic assessment (PEA) completed and updated on Santa Maria in 2018 outlined about 3.13 million oz. silver equivalent (3.13 Moz Ag eq) over a little more than four years of mine life.
Diamond drill hole SM20-50 (the last 10 holes of the 50-hole drill campaign were used to further define the existing Santa Maria resource) was drilled at minus 75 degrees for a planned total length of 294 meters. It was designed to hit the targeted zone at roughly 260 meters downhole.
Before intercepting the main Santa Maria hydrothermal breccia structure at depth, however, the shallow mineralized hydrothermal breccia was intersected once again from 148-153.1 meters downhole.
The intersection graded 131.49 g/t Ag Eq over 5.1 meters.
The main target - the Santa Maria footwall hydrothermal breccia structure - was intercepted from 267-288.9 meters downhole. The 21.9-meter intercept returned 5.29 g/t Au or 349.21 g/t Ag Eq.
The hydrothermal gold system remains open at depth and along strike.
SM-50 was not the only hit. Holes SM20-47, 48, and 49 all intercepted the new hydrothermal breccia.
The new discovery is defining previously unknown silver-gold mineralization, which will be added to the database for the internal resource model.
FCO has almost 215 million shares issued, with Toronto-based MMCap Management owning 8.5 million shares or around 4%, while Director David Smalley and Hawley each own about 1.14 million shares or 0.52%. The shares trade in a 52-week range of CA$0.16 and CA$0.45. It closed at CA$0.07 on Aug. 9.
1) Brian Sylvester wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He and members of his household are paid by the following companies mentioned in this article: None. His company has a financial relationship with the following companies referred to in this article: None.
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4) 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) own securities of Fabled Silver Gold Corp., a company mentioned in this article.
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