Summa Silver Corp. (ISIN: CA86565E1051 / CSE: SSVR) only celebrated its stock exchange debut on the Canadian stock exchange on May 7, 2020. But already on April 21, 2020, still under the previous name Pinnacle North Gold Corp., the option contract for the ‘Hughes’ project was drawn up. Summa Silver acquires 100% of the rights of disposal if a sum of USD 400,000, divided into half-year installments, is paid in cash to the option giver within five years. Also in half-year installments, shares worth USD 400,000 are to be handed over, as well as USD 1.5 million in investments in the property over the course of five years. If production starts, there is an additional 3% smelting tax, which can be reduced to 2.5% for a payment of USD 4.5 million.
The ‘Hughes’ project!
The optioned project area covers a size of 1,030.7 ha and is in the best infrastructure location. With the acquisition of 10,453,267 shares in 1237025 BC Ltd. An additional area could be acquired, which expanded the existing project area to 1,085 hectares for only USD 10,000.
Source: Summa Silver
‘Hughes’ – THE highlights!
Mine-friendly Nevada (USA), in which the project is located, is not only a very good jurisdiction for investors, but also for the companies operating there. The project is on the Walker Lane trend known for its abundance, between Reno and Las Vegas.
On this trend, well-known mining companies have already mined more than 700 million ounces of silver and 80 million ounces of gold.
Source: Summa Silver
Since the project can be driven year-round on the highway and electricity and water are already available due to the earlier mining, the project already has an excellent infrastructure!
Tonopah, which has everything raw materials companies need, is also directly adjacent to the project.
Source: Summa Silver
The history of the project suggests many more high-grade discoveries, as although high-grade ore had been mined in the western ‘Belmont’ project area since 1903, production was finally discontinued in 1929 due to low metal prices. Exploration work also ceased in the 1940s.
Source: Summa Silver
Since there are significantly more opportunities for effective discoveries with modern exploration methods, a few hits should be expected. The extent of the main veins, which are up to 15 m wide, can be easily read from the historical data, their contents up to 53.49 g / t gold and 3,156 g / t silver or 7,435 g / t silver equivalent !!! In the production period 1903 to 1929, 36.7 million ounces of silver and 428,000 ounces of gold were mined from only 2.1 million tons of ore-bearing material!
Since many of the veins of the ‘Belmont’ area are already known with similar levels, it is now important to find their continuations! And that is exactly what Summa Silver’s primary goal is currently. Sporadic investigations by a previous owner in 1989 show that there are still many anomalies in the direction of the trend and the ‘Walker Lane‘Trend can possibly be extended another 4-5 km in the southeast! However, these sub-areas have never been examined in more detail! And that can be really exciting, which makes Summa Silver the right ‘Hotstock’ investment!
The area around ‘Belmont’, plus 4 km to the west, is geologically known for its historical mining. With this data, Summa Silver can draw conclusions about the eastward trend continuation in the project, which must then be confirmed.
Source: Summa Silver
The geological data from historical production and analytical knowledge gained from geophysical investigations show that on this trend the ore-bearing and hydrothermal vein systems are on average at depths of around 300 m to 500 m. It is therefore clear that in the case of production, only an underground mine can be considered.
‘Mogollon’ as a supplementary project!
On August 24, 2020, the company announced that it had entered into an option with Allegiant Gold Ltd (TSX-V: AUAU) to acquire 100% of the ‘Mogollon’ project located just 2km west of the border of the ‘Hughes’ Project lies.
This project area also houses historical extraction of high-grade silver veins.
Source: Summa Silver
For this project, too, management has access to a large amount of data from the historical mine, which was operated between 1904 and 1925 and produced 13.1 million ounces of silver and 271,000 ounces of gold from just 1.39 million tons of material during this period. The mine shut down in 1942 when World War II brought all American gold and silver mines to a standstill.
‘Hughes’ – Full exploration power ahead!
As the exploration on Hughes progresses at full speed, the geological team is collecting and processing the available data to determine the best drilling sites. And that should be relatively easy, because the high-grade silver veins are numerous, but have never been examined with modern methods. Especially in the deeper subsurface, the geologists expect enormous potential for discovery in the vicinity of the historic mine, but also in other areas of the project.
According to the management, the first major drilling work should start as early as spring 2021. As a result, the news flow will condense considerably into 2021!
The way to your own project or joint venture!
The acquisition of the rights of disposal for this project is divided into two parts. Summa Silver will receive 75% within 3 years if a total of USD 3 million was spent on exploration in ‘Phase 1’, USD 350,000 was paid in cash and 200,000 shares were handed over. “Phase 2” provides the following solution. Summa Silver either pays an additional amount of USD 3 million in cash or shares – at least USD 1 million of which is in cash – for the acquisition of the remaining 25%, or a 25% to 75% joint venture is set up with the seller, Allegiant Gold .
So it goes on!
The management has precise ideas about the further process. Even for the current year, ambitious goals have been set:
- Create a 3D model of ‘Belmont’, with all its dimensions!
- Geophysical and geochemical investigations through field programs!
- Enter all data in a geological map to determine the best drilling sites!
- After the 7,500 m drill program on ‘Hughes’, it goes straight to ‘Mogollon’!
THE TOP management!
For a project to be successful, however, you not only need a top property, but also experienced management. Summa Silver offers both. The top management consists entirely of experienced geologists and financial experts.
McNamara is a trained geologist with almost 15 years of mining experience. Among other things, he was Senior Project Manager at NexGen Energy, where he led all exploration and drilling activities. Many high-grade uranium zones have been discovered and developed under his leadership.
Position: technical advisor
A highly decorated geologist, he is President and CEO of District Metals Corp. (TSX-V-DMX). For two of his great discoveries, he was awarded the ‘Propspector of the year’ at the PDAC mine conference in 2018. Before that in 2016 and 2013 he also received similar awards, which speaks for his expertise overall.
Bajic received his bachelor’s and degrees from the University of British Columbia and has extensive financial experience gained over time with a variety of Canadian public companies.
Gross is the founder and president of Rangefront Geological, a well-known geological consultancy and project development company that has already supported many clients in the mining industry. He is also a director at Ridgestone Resources (TSX-V: RMI). His specialties are exploration and project management.
Summa-Silver in numbers!
The debt-free top explorer had at the end of September 50,990,317 shares outstanding. With a current share price of around CAD 1.40, the market capitalization is around CAD 60 million. This is offset by a cash balance of around USD 11.5 million. The anchor investors include the management and insiders who hold almost 41% of the company, undoubtedly the star investor Eric Sprott, who holds around 17.7% of all shares issued!
Source: Summa Silver
Another 33.2% are in firm hands with other investors, so that the bottom line is that only around 8.4% remain for us investors! This is an incredible share structure that can be seen as massive trust in the projects and management!
Price development of the Canadian stock exchange 6-month chart
Right from the start, the management made a clearly visible footprint with the choice of project and the very quick announcement of the planned exploration work. The ‘Hughes’ project itself has everything you need for a successful project.
There should still be a lot of positive things to discover in the historical mines, which have not yet been well developed! Because being active in well-known precious metal-rich trends with the best infrastructure is a very good basis for successful exploration and development. With a cash balance of around USD 11.5 million, all work should be covered by at least the second quarter of 2021, which should already provide the company and investors with a lot of project information and successes!
That outlook was only confirmed last week when the company extremely high-grade Bonanza ore grades with 596 g / t Ag Eq over 18.5 m including 3,760 g / t Ag Eq over 2.5 m!
Given the current potential of the projects, after the latest correction, which we also see as another TOP entry opportunity, a re-evaluation of the company is only a matter of time. The most recent acquisition of the ‘Mogollon’ project also underlines the company’s excellent future prospects and offers an excellent additional opportunity for explosive growth. A positive development of the gold and silver prices will certainly support this in the near future.
Summa Silver Corp. (ISIN: CA86565E1051 / CSE: SSVR) is only at the beginning of its company history, but the experienced top management and project quality already represent an excellent basis for future increases in value for an investor!
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