Since the start of the new year, the price of silver ran from ran from about $22 to a high of $27.50. While it has since pulled back, don’t write off the metal just yet. Analysts at BMO Capital, as noted by Kitco.com, just revised 21 out of 26 commodities it covers. In the precious metals space, the firm revised their 2022 gold price by 8% and silver by 12%. "The storm of supply disruptions, logistic issues, sanctions, financial short squeezes and purchasing manager panic has seen some of the most dramatic metals and bulk commodity price moves seen in history over Q1 2022," noted the BMO analysts. That’s all positive news for companies such as Reyna Silver Corp. (TSXV: RSLV) (OTCQX: RSNVF), Hecla Mining Company (NYSE: HL), SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM), Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS), and First Majestic Silver Corp. (NYSE: AG) (TSX:FR).
Look at Reyna Silver Corp. (TSXV: RSLV) (OTCQX: RSNVF), For Example
Reyna Silver Corp. reported results from its 8,000 m Phase 2 drilling program on its 100% owned Guigui Project in the heart of the historic more than 500 million ounce Santa Eulalia Silver District in central Chihuahua-Mexico's largest Carbonate Replacement Deposit (CRD).
Reyna's exploration is focused on finding the source of the system and believes that Phase 1 Hole GG21-28, which cut multi-stage Silver-Copper-Zinc-Lead sulphide-mineralized skarn (high-temperature alteration) overprinted on a previously unknown highly-felsic intrusive lies close to that inferred source (See Press Release of Oct., 28, 2021).
Phase 2 follow-up drilling was designed with two goals. The first was to take aggressive step-outs from GG21-28 to determine the extent and zoning of that mineralized skarn. Four of the five Phase 2 holes cut intrusive-hosted mineralized skarn very similar to that in GG21-28 (Table 1), significantly increasing confidence in the expanded mineralization footprint, which now covers an area of at least 0.5 km2.
The second important focus was to look within the overlying 1,200m thick historically productive limestone sequence for mineralization potentially sourced from the mineralized skarn. Silver-bearing sulphide veins ranging from a few centimetres to 4.5 metres wide (core length) cutting massive limestone were identified in 4 of 5 holes between about 340 and 720m above the mineralized skarn zone (Table 2). These are all high-angle structures that closely resemble "feeder" or "bleeder" structures that extend to and from major replacement bodies in the historic mines and may provide important mineralization vectors moving forward. Phase 3 will focus on seeking massive sulphide replacement mineralization related to these upper-level structures while continuing to zero in on the source of the district.
Highlights from the Phase 2 Drilling Program:
- Holes drilled 650, 770, and 1089 metres from discovery Hole GG21-28 (as well as from the same pad) all intersected varying thickness and grades of intrusive-hosted mineralized skarn. The mineralized skarn footprint now exceeds 0.5 km2
- Hole GG21-31, 650m north of Hole 28, intersected 34.5m of mineralized skarn including 2.62m of 130 g/t Ag with 0.7m of 338 g/t Ag
- Four holes intersected high-angle silver-bearing sulphide veins 342 to 719m above the mineralized skarn, including Hole GG21-30 which reported 2.11m of 233 g/t Ag
Click here to watch Jorge Ramiro Monroy and Dr. Peter Megaw talk about Phase 2 at Guigui.
"With Hole 28, we were excited to discover strongly mineralized skarn and are delighted that our aggressive Phase 2 step-outs expanded the skarn footprint so dramatically. We are equally pleased to have cut multiple high-angle silver-rich veins higher in these holes. These were probably fed by the underlying skarns and are the type of structures the old-timers chased towards the district's famous silver-rich orebodies," said Jorge Ramiro Monroy, CEO of Reyna Silver. "Phase 2 has given us multiple targets and areas of interest to follow up, which validates our commitment to true district-scale exploration. We have already begun the groundwork in preparation for our minimum 8,000m, fully-financed, Phase 3 drilling campaign."
"When we're exploring at district-scale, we follow up a discovery hole like Hole 28 with widely spaced drilling to determine the variations and scope of the mineralization. A 0.5 km2 footprint of repeatedly mineralized skarn with multiple overlying mineralized structures is extremely encouraging and gives us two exciting exploration targets to pursue," said Dr. Peter Megaw, Chief Exploration Advisor for Reyna Silver. "The first thing is to try following the high-level structures into high-grade, limestone-hosted massive sulphide mineralization like that mined historically in the district. Then we can seek high-volume mineralized skarn related to the district's source intrusion - a key piece of the puzzle and a principal component of our ongoing exploration program. We are currently concatenating all the data to strategically target Phase 3 drilling."
Other related developments from around the markets include:
Hecla Mining Company announced fourth quarter and full-year 2021 financial and operating results. "2021 was an outstanding year for Hecla as we generated record revenues and adjusted EBITDA resulting in the second highest free cash flow in our 130-year history,” said Phillips S. Baker Jr., President and CEO. “The year also positions Hecla for future success with our exploration program delivering our highest silver reserves in more than 20 years and the Lucky Friday’s establishment of a new, innovative mining method that should be both safer and more productive. This method, which we call the Underhand Closed Bench method will allow the Lucky Friday to increase projected production in 2022 by almost a million silver ounces over 2021, which was a million and half more than 2020.”
SSR Mining Inc. reported consolidated financial results in accordance with U.S. GAAP for the full year ended December 31, 2021. In addition, the Board of Directors declared a quarterly cash dividend of US$0.07 per common share, an increase of 40% over the third quarter dividend, payable on April 4, 2022 to holders of record at the close of business on March 7, 2022. This dividend qualifies as an 'eligible dividend' for Canadian tax purposes. Rod Antal, President and CEO said, "SSR Mining ended 2021 with another strong quarter, rounding out a year of operational outperformance, strong free cash flow generation and peer-leading capital returns. We delivered full-year gold equivalent production at the top-end of our 2021 guidance range and full-year AISC * below our previously lowered guidance range despite pervasive inflationary pressures across the industry. Subsequently, last month we announced our inaugural three-year operating outlook and increased our base dividend by 40%.
Pan American Silver Corp. reported fourth quarter financial results and audited financial results for the year ended December 31, 2021. The Company also provided its outlook for 2022 production, costs and capital expenditures, and announced a new dividend policy with a 20% increase to the dividend declared. "Q4 2021 marked a clear improvement in production and Silver Segment costs over the first three quarters of the year, contributing to cash flow from operations in the quarter of $118.1 million," said Michael Steinmann, President and Chief Executive Officer. "Our guidance for 2022 assumes the COVID-19 impact will diminish over the course of the year, while incorporating the effect of lower workforce deployment levels in January and February due to the Omicron variant. We are evaluating strategic alternatives for Morococha and have excluded the mine from our 2022 guidance while placing the operation on care and maintenance."
First Majestic Silver Corp. announced its 2021 Mineral Reserve and Resource estimates for its material mineral property assets with an effective date of December 31, 2021. The Company completed a record exploration program totalling 227,845 metres of drilling at its operating mine properties in 2021, representing a 46% increase in metres drilled compared to the prior year. Approximately 80% of this drilling was focused on near mine or brownfield targets while the remainder was focused on greenfield targets looking for new discoveries. During 2021, the Company added more ounces into Reserves than were depleted following a record 26.9 million silver equivalent ounces in annual production.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Reyna Silver Corp. by Reyna Silver Corp. We own ZERO shares of Reyna Silver Corp. Please click here for full disclaimer.
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