Sun Silver Ltd (ASX: SS1) reported intercepting a considerable amount of silver equivalent over 88 metres in the Silver State last week, thereby affirming a high-grade extension of mineralization at its flagship precious metals project.
These results come from the inaugural drill program at northeast Nevada’s Maverick Springs silver-gold operation. One of the holes yielded 79.6 grams per tonne silver equivalent (AgEq) over 88 metres, including 166 g/t AgEq in a 13.7 metre length and 521.5 g/t in a rich 1.5 metre section.
“This has proven our theory that wide high-grade mineralization extends to the north-west of the current resource area,” Executive Director Gerard O’Donovan said, “providing strong momentum for the remainder of our extensional drilling program.”
Sun Silver is a new kid on the block in Nevada and on the Australian Securities Exchange. The company completed its initial public offering in May.
The aim of Sun Silver’s game is to capitalize on a growing demand for solar infrastructure in the United States. According to the mining company, the U.S. plans to increase its solar capacity by 27 per cent before the end of the decade. The Solar Energy Industries Association says the same thing.
As nearly a quarter of the cost associated with a solar panel is attributable to silver, this provides incentive for mining the commodity.
Nevada, the “Silver State,” produces nearly 200 metric tons of silver per annum. Others exploiting the state’s silver veins include Blackrock Silver Corp. (CVE: BRC), Hycroft Mining Holding Corporation (NASDAQ: HYMC) and Summa Silver Corp. (CVE :SSVR).
O’Donovan has a discussion with a representative from Alford Drilling a few days ago. Alford has been contracted to complete the drill program. Photo credit: Sun Silver
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State gold mining activity ramps up on bull market conditions
The yellow metal is currently worth a historically high dollar at about US$2,583 per ounce.
Several analysts have predicted it will continue to rise into 2025 too, thereby prompting mining companies to capitalize on the current momentum.
Although Nevada earned its nickname “The Silver State” from its influential role in the silver industry, the state is a gold mining powerhouse. It produces approximately three quarters of all American gold.
Major operators like Nevada Gold Mines and Kinross Gold Corp (TSE: K) are poised to benefit from the current industry conditions while mid-tier gold producers like Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) and SSR Mining Inc (NASDAQ: SSRM) do too.
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
