This Junior Mining Company To The Rescue As Global Demand For Silver Continues To Soar

In 2021, global demand for silver hit a six-year high — surging 19% to 1.05 billion ounces, and from what experts predict, demand is expected to continue its upward course this year.

The Silver Institute’s World Silver Survey 2022 projects demand for silver could reach a record high of 1.112 billion ounces in 2022.

According to reports by some analysts, the performance of silver as an asset has been interesting. In 2020, silver bullion, for example, reportedly put up big numbers gaining 47%. The metal has, however, been stuck in the range of $22 and $28 per ounce since 2021, with an average price of $25.14. 

Silver is widely used across various clean energy industrial applications like solar cells because it is a good electricity conductor. Like gold, silver for years has also functioned as a safe haven — a hedge — in times of economic uncertainty.

Sprott’s Silver Report indicates that mine production increased by 5%, and recycling volumes grew by 7%, with predictions of more growth in the mining sector.

A Diamond In The Rough In The Silver Industry?

Silver mining and exploration companies like First Majestic Silver Corp. AG, Pan American Silver Corp. PAAS and Hecla Mining Co. HL could all benefit from increased demand for silver.

Apart from the bigger players, Summa Silver Corp. SSVRF, a Canadian junior mineral exploration company, could attract a lot of eyeballs, particularly in the investor community, because of its high-grade silver projects in the U.S, which it reports are led by award-winning geologist Galen McNamara.

The company owns the Hughes Project in central Nevada, which is consistently ranked one of the best mining jurisdictions worldwide. It also has an option for 100% interest in the Mogollon Project in southwestern New Mexico.

According to Summa Silver, the Hughes Project is host to the high-grade past-producing Belmont Mine, one of the most prolific silver producers in the U.S. between 1903 and 1929. The company says the Mogollon Project is the largest historical silver producer in New Mexico. 

Returning to past-producing mines can provide mining companies with benefits over developing new projects. Often geologists find that significant resources still remain. As the old saying goes, the best place to find a new mine is right next to the old mine.

Both properties have remained inactive since commercial production ceased, and neither has seen modern exploration before the company’s involvement.

High-Grade Silver Projects

Summa Silver reports that it offers exposure to two high-grade silver U.S. projects led by award-winning geologists.

Mogollon Project

The Mogollon Project is 75 miles from Silver City in southwestern New Mexico. It covers an extensive, silver-gold bearing epithermal vein field.

Between 1904 and 1925, the district reportedly produced 13.1 million ounces of silver (Ag) and 271,000 ounces of gold (Au) from 1.39 million tons of rock. Production stopped in 1942 because of the wartime cessation of all gold and silver mining in the U.S. 

Summa Silver reports promising results from drilling in the region, with sites yielding 448 grams of silver per ton over 31m.

Hughes Project — The Tonopah District

Discovered in 1900, Tonopah quickly became known as the Queen of the Silver Camps. Over the following years, people from across the country rushed to Nevada in hopes of making their fortunes.

Over the next half century, the Tonopah district produced 175 million ounces of silver and 1.86 million ounces of gold from 8.8 million tons of rock.

“The Hughes Project represents a unique opportunity to both revitalize a historic district and make new discoveries in the shadows of the headframes of some of America’s great historic silver producers,” said Galen McNamara, Summa Silver’s CEO and director.

Financials And Management

During Summa Silver’s last financing, it raised $11.5 million with lead orders from Canadian billionaire Eric Sprott and First Majestic Silver Corp. AG.

A key driver of growth for the company could be its management. Summa Silver is led by a team of award-winning mining professionals, who the company reports are focused on value creation through a modern and cutting-edge approach to mineral discovery.

Mr. McNamara, for example, is a geologist with over 15 years of discovery and capital markets experience. He was a former senior project manager at NexGen Energy Ltd. NXE and a co-founder and chairman of Goldshore Resources Inc. GSHR and Angold Resources Ltd. AAU.

Chris York, Summa Silver’s vice president of exploration, is an economic geologist with over 12 years of experience focused on sediment-hosted and epithermal narrow vein deposits. He was the former exploration manager for Klondex Gold and Silver, running all field activities.

Such an experienced team and exploration prospects could present some exciting opportunities for Summa Silver.

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