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Silver Co. Makes New Plan For Its Operations in Peru

Source: Timothy Lee


September 25, 2023 ( Newswire) The objectives of the Canadian miner's fresh strategic direction are to improve production and reduce costs, noted a Red Cloud Securities report.

Silver X Mining Corp. (AGX:TSX.V) restarted operations at its Nueva Recuperada property in Peru after putting them on hold in July to develop a plan for moving forward, reported Red Cloud Securities mining analyst Timothy Lee in a September 20 research note.

During the pause, management created a plan for mining Tangana, identified ways to improve efficiencies, and filled its chief operating officer (COO) position.

"We view these developments positively as they signal a prioritization of improvement in operations in light of issues, such as grade variability, which have impacted earnings in H1/23," Lee commented.

Potential 270% Gain

Given this news, Red Cloud maintained its CA$0.85 per share target price on the silver producer, the current share price of which, in comparison, is about CA$0.23 per share, Lee noted.

The difference between these two prices implies a significant return for investors of 270%.

Silver X is a Buy.

Production Schedule Revised

Management's new plan for mining the Tangana sector at Nueva Recuperada is to pursue the areas of higher certainty first, and the team revised the production schedule accordingly, reported Lee.

The company will use feed mainly from the Tangana 1 and 2 veins and use stockpiled material when milling resumes. These efforts should boost production rates.

"Surface exploration of the Morlupo and Cauca veins has revealed promising high-grade areas that could significantly improve the base case," Lee added.

Efficiencies To Be Made

Silver X also identified areas where costs could be reduced and came up with ways to achieve these, wrote Lee.

Specifically, headcount will be reduced, a type of sublevel stoping will be executed, and underground transportation and mineral handling will be minimized.

"The principal contractor is being engaged to produce a collaborative work environment and successfully implement these initiatives," reported Lee.

New COO Chosen

Silver X appointed seasoned mining professional and long-time associate, Freddy Mayor Zavellos, as the COO and general manager of its Peruvian subsidiary.

Zavellos was one of the company's founding members and its general manager from 2019 to 2021.

More Info: Newswire

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