- Silver One Resources (TSXV:SVE), a microcap silver miner, closed an oversubscribed financing for a little more than C$5.9 million, making it an opportune time to consider what investors find so attractive about owning the stock, besides silver hitting a three-year high
- The company’s flagship Candelaria project is estimated to contain a historical resource of 34.6 million ounces of silver
- Silver One Resources is focused on the exploration and development of quality silver projects backed by a management team with multiple discoveries and large-scale projects across over a century of combined experience
- Silver One stock has given back 15.15 per cent year-over-year, but has added 75 per cent since 2019
Silver One Resources (TSXV:SVE), a microcap silver miner, closed an oversubscribed financing for a little more than C$5.9 million, making it an opportune time to consider what investors find so attractive about owning the stock, besides silver hitting a three-year high.
Silver One’s Candelaria project
Proceeds from the financing will be allocated to ongoing metallurgical work at Silver One’s flagship past-producing Candelaria project in Nevada, the main driver behind investor interest in the company, with the goal of updating the historical resource and completing an economic study.
Candelaria resides within the Candelaria mining district, the richest silver mining district in Nevada, which produced 69 million ounces of silver from the 1880s until 1999. For its part, the project boasts a historical resource estimate of 34.6 million ounces of silver and intercepts as high as 1,339 grams per tonne (g/t) of silver, as reported in August 2022, with more than 25,000 metres of drilling completed since 2018. At current prices, the Candelaria project’s historical resource is equivalent to a little more than US$1 billion in the ground. For perspective, Silver One’s current market cap is C$69.38 million.
Silver One’s Phoenix project
A portion of the proceeds will also fund the drilling of multiple high-grade silver targets and the outlining of potential porphyry copper-silver targets at the company’s Phoenix project, an earlier-stage asset that could contribute significantly to Silver One’s potential for shareholder value creation.
The Phoenix project is a very high-grade silver prospect in the Arizona silver belt, immediately adjacent to the copper-rich area of Globe, Arizona, where BHP, Rio Tinto and Freeport McMorran all operate producing mines. A history of strong sampling from mineralized vein structures at Phoenix has yielded up to 459,000 g/t silver (14,688 ounces per tonne) and 7.79 per cent copper, positioning the company to continue delineating prospective grades with upcoming drilling.
Silver One’s Cherokee project
Finally, an investment in Silver One offers you exposure to the Cherokee project, also in Nevada, which features a 12-km-by-4-km epithermal high-grade silver-gold-copper vein system. While not falling under the C$5.9 million financing, Cherokee benefits from strong exploration upside, as it resides only 75 km from the Pioche mining cap, which has produced more than 1 million ounces of gold, 20 million ounces of silver, 7 million pounds of copper, 350 million pounds of lead and 700 million pounds of zinc from 1869 to the present day.
The bottom line
While junior mining is a volatile business owing to its pre-revenue nature and heavy reliance on financing, investors can align themselves with long-term, high-conviction opportunities by seeking out high-quality portfolios such as Silver One’s – whose strategic acquisitions and high-grade results speak for themselves – and diversifying across a basket of them spanning multiple commodities with long-term tailwinds such as copper, uranium, lithium, nickel and gold. Silver One shareholders have been rewarded for sticking to this thesis with a 75 per cent return since 2019.
About Silver One Resources
Silver One is focused on the exploration and development of quality silver projects backed by a management team with multiple discoveries and large-scale projects across more than a century of combined experience.
Silver One Resources (TSXV:SVE) last traded at C$0.28 per share. The stock has given back 15.15 per cent year-over-year, but has added 75 per cent since 2019.
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(Top photo of 2021 drilling at Silver One Resources’ Candelaria project: Silver One Resources)
