Honey Badger Silver: Sample Results Coming Soon for Silver Project in Yukon, Canada

Key Concepts

• Silver Sector: The market and industry related to the mining, trading, and investment of silver.
• Junior Market: Refers to smaller, often exploration-stage companies in the mining sector.
• Plata Project (Yukon): A silver project owned by Honey Badger Silver, previously mined 50 years ago.
• Nano Civic Project (Nunavut): A zinc-lead-silver mine that shut down due to low zinc prices, with potential for remaining reserves and a large pyrite deposit.
• Silver Equivalent: A calculation that expresses the value of multiple metals in a deposit in terms of a single metal, usually silver, based on their relative prices.
• Assay Results: The results of laboratory analysis of rock or soil samples to determine the concentration of valuable minerals.
• Drill Campaign: A period of exploration drilling to test for mineral deposits.
• Surface Sampling: The process of collecting rock and soil samples from the surface to identify areas of interest for further exploration.
• Reserves/Resources: Quantities of minerals that have been identified and are economically extractable.
• Pyrite Deposit: A deposit of iron sulfide (FeS2), which can sometimes contain valuable metals like silver.
• Risk-Reward Ratio: An assessment of the potential return on an investment relative to the risk involved.

Honey Badger Silver: Silver Sector Focus and Project Updates

This summary details the discussion with Chad Williams, CEO of Honey Badger Silver, at the Roto Mesa Commodity Conference in Munich, focusing on the company's silver projects and strategic outlook.

Conference Impressions and Market Outlook

• Positive Conference Environment: Chad Williams noted the presence of many promising companies at the conference, highlighting it as a valuable event for investors.
• Junior Market Performance: The junior mining market has shown significant positive performance in recent months, creating numerous opportunities for investors.
• Silver's Prominence: Silver is currently a "hot" commodity, and Honey Badger Silver's primary focus is on this sector.

Honey Badger Silver's Project Portfolio

Honey Badger Silver holds seven silver projects, all located in Canada. The company has been actively working on two of these: Plata and Nano Civic.

Plata Project (Yukon)

• Historical Context: The Plata project is an older property that was mined approximately 50 years ago for very high-grade silver. Honey Badger Silver acquired it four years ago with the intention of finding more silver.
• Neighboring Discovery: Snowline Gold, a neighbor to Plata, has made a significant discovery, leading to a substantial increase in their market capitalization (a 100-fold increase, reaching a $2 billion market cap).
• Revised Exploration Strategy: Williams believes the company may have been exploring in the wrong area at Plata, focusing on high-grade silver in a specific zone. The new thesis is to explore "Plata 2.0," an area across the ridge, which shows potential for both silver and gold.
• Near-Term News: Assay results from recent surface sampling at Plata are expected within the next one to two weeks.
• Future Plans: This surface sampling is intended to define targets for drilling in the following year. Drilling is anticipated to commence next spring, with the exact meterage to be determined by the upcoming assay results.

Nano Civic Project (Nunavut)

• Historical Operation: Nano Civic operated as a zinc-lead-silver mine for over 20 years, shutting down about 15 years ago due to low zinc prices.
• Remaining Reserves and Exploration Upside: At the time of closure, the mine had four years of remaining reserves. Honey Badger Silver's thesis is that there is significant exploration potential, including:
  • The possibility of unmined reserves or resources.
  • A 100 million-ton pyrite deposit that was not mined and may be economic today.
• Silver Potential in Pyrite Deposit: This pyrite deposit may also contain silver. Historic drilling at Nano Civic intersected grades of 30 to 60 grams per ton (g/t) of silver.
  • Calculation Example: If the 100 million-ton pyrite deposit contains, for instance, 1 to 2 ounces of silver per ton (approximately 28-56 g/t), this represents a substantial amount of silver.
• Valuation and Risk-Reward: Honey Badger Silver's stock is currently trading at a low valuation, approximately $0.20 per ounce of silver equivalent per share. This is significantly lower than their peers, who trade at approximately six times this valuation.
  • Argument: Williams posits that any new discoveries at Nano Civic or Plata would be additive to the current valuation, making the stock appear very cheap with a favorable risk-reward ratio. He suggests that buying the stock now carries limited risk, with the potential for dramatic price increases following a significant discovery, similar to the performance of companies like Sitka and Rackla in the Yukon.

Honey Badger Silver's 12-Month Goals

• Defined Drill Campaigns: The primary goal for the next 12 months is to have defined drill campaigns for both the Plata and Nano Civic projects for the upcoming spring drilling season.
• Portfolio Development: Following the initial focus on Plata and Nano Civic, the company plans to shift its attention to other projects within its portfolio.
• Market Thesis: Honey Badger Silver acquired these projects when silver prices were lower, based on a strong conviction that silver prices would rise. They remain optimistic about the continued upward trend of silver.
• Value Addition Strategy: The company's strategy involves two key steps:
  1. Aggregation: Acquiring a portfolio of promising projects.
  2. Value Addition: Actively working on these projects to increase their value.

Conclusion and Next Steps

• Upcoming Results: Investors can anticipate the first assay results from the Plata project within the next one to two weeks.
• Future Drilling: These results will inform target definition for a drilling program planned for next spring.
• Company Outlook: Honey Badger Silver is positioned to potentially make significant discoveries, which could lead to substantial stock appreciation. The company's current valuation is considered attractive given the exploration potential.

The discussion concludes with an encouragement for viewers to examine Honey Badger Silver, with the expectation of positive news and drilling outcomes in the near future.