A newly listed junior miner from Australia has identified a rich silver (Ag) target zone at its flagship Nevada mining operation.
Sun Silver Limited (ASX: SS1) just assessed a series of historical intercepts from its Maverick Springs project containing exceptional grades. Most notably, 6,216 grams per tonne Ag over 1.5 metres, 240 metres below the surface.
Furthermore, significant mineralization over more substantial lengths helped delineate the zone. These include 54.9 metres grading at 303 g/t Ag, among other favourable results.
The cores come from drilling completed by Element79 Gold Corp. (CSE: ELEM) and others prior to the finalization of an option agreement with Sun Silver last month. Sun Silver now operates the project with the option to take a 100 per cent interest. As a result of the deal, Element79 (the former owner) holds a substantial 3.5-million-share stake in the new mining company.
Element79 acquired the property from Waterton Global Resource Management’s Precious Metals Fund in late 2021 before deciding to hand off the project and focus on its Lucero operation in Peru.
Map: Sun Silver
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Site holds 292 million ounces of silver equivalent
Sun Silver completed its C$11.9 million initial public offering in mid-May. The assays examined by the junior were completed by SGS Canada.
The Silver State operation is situated 85 kilometres from Elko, northeast of the Bald Mountain mine run by Kinross Gold Corporation (TSX: K). It is a mere 1.5 hour drive from the Keystone project run by U.S. Gold Corp. (Nasdaq: USAU) as well.
Sun Silver is now carefully selecting additional drill hole locations for its inaugural campaign at the project.
“Mapping high-grade results near the north-western border of the current resource has boosted confidence in potential for extension of mineralization beyond defined boundaries and the potential for discovering higher grades,” Executive Director Gerard O’Donovan stated.
O’Donovan says the company’s mining endeavours are significantly propelled by a high demand for silver in solar applications.
The demand for silver in solar has grown by 330% over 10 years as countries commit to increasing their carbon offsets by switching to solar energy.
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— Sun Silver (@SunSilver_SS1) June 13, 2024
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