Traditionally, Mexican silver manufacturing dates to the Spanish conquests. Over the previous 500 years, greater than 10 billion ounces of silver have come out of the bottom within the area. The fortunes are legendary.
The quick model of the story is that, for all method of geological causes, there’s a big, northwest-southeast mineral pattern that just about bisects Mexico and hosts an extended checklist of nice mines and well-known outdated names within the mining world.
Extra particularly there’s a function known as the Fresnillo Silver Belt, nestled throughout the rocky backbone of that nation. Simply this district alone has yielded over 6.2 billion ounces of silver.
We may spend all day reviewing nice corporations which have delivered silver and earnings to buyers.
For now, although, add a brand new title to the checklist, Zacatecas Silver Corp. (ZAC: TSX-V).
After an aggressive effort at land acquisition, Zacatecas has locked up a big block of mineral rights surrounding among the finest names within the area, as you possibly can see right here:
A lot of the land package deal is straight on pattern with producing mines and has zones with excessive silver grades.
In only a small a part of the land package deal, the earlier proprietor reported a historic inferred useful resource estimate of 19,472,901 ounces of silver-equivalent (Ag Eq., utilizing a knowledge cut-off 100 g/t). There’s way more element on the firm web site, however for our functions right here, the maths is 3,954,729 tonnes at 153.2 g/t Ag Eq (136 g/t Ag, 0.14 g/t Au, 0.012% Pb, 0.11% Zn).
Right here’s the factor. That is a formidable quantity in and of itself. But it surely’s nonetheless very a lot preliminary contemplating the exploration upside.
Certainly, the identified silver tendencies below Zacatecas management are open by way of strike and depth.
To use the spectacular high-grade silver upside, Zacatecas has assembled an outstanding group to use a complete, wide-ranging exploration program to the acreage. The mission chief is skilled geologist Chris Wilson, previously of the extremely regarded Ivanhoe group.
Zacatecas plans to revise the present mannequin for the useful resource estimate. Anticipate to see further mapping, geophysics and drilling. Then, it’s greater than doubtless that the corporate will develop the silver useful resource from its historic baseline.
The truth is, there are quite a few identified tendencies, together with named veins and outcroppings, which have by no means been correctly explored or totally mapped, not to mention drilled for depth and grade.
To perform this work, Zacatecas is already nicely financed, with early funding by excessive internet value people together with Canada’s Eric Sprott. The corporate financial institution steadiness sits at present at $9 million in liquid money without having to lift capital at this stage.
Share construction is tight, with 56.9 million totally diluted shares excellent.
The administration group contains a number of names which are acquainted within the “junior” firm funding area, together with CEO Bryan Slusarchuk, who was co-founder and former President of K92 Mining and John Lewins who’s the CEO of K92 and introduced the gold miner from startup stage to a totally working, extremely worthwhile mining play.
The group additionally contains James Hutton, well-known for arranging useful mergers and acquisitions.
Zacatecas goes public, and has quick plans to construct on the historic useful resource, with the aim of rising the numbers considerably.
Extra broadly, we’re within the early innings of an funding migration into exhausting belongings, together with silver. Industrial causes are driving the transfer, together with well-understood financial tides.
Positively, you wish to be invested within the best-of-class throughout the silver area.
Zacatecas is nicely positioned to ship vital exploration upside, from proper within the coronary heart of one of many world’s nice mining districts.
It is a floor ground story for buyers, with brilliant days forward.
Greatest needs for excellent success:
Byron W. King
Geologist & Publication Author.
FULL DISCLOSURE: Zacatecas Silver Corp. is a shopper of Stockhouse Publishing.