Sponsored Video at PDAC: Prince Silver targets 100Moz at Nevada past-producer

Key Concepts

• Brownfields Asset: A previously mined site where existing data and infrastructure provide a head start for new exploration.
• RC Drilling (Reverse Circulation): A drilling method that uses a dual-wall drill string to bring rock cuttings to the surface, allowing for faster and more cost-effective sampling.
• Silver Equivalent (AgEq): A metric used to express the total value of various metals (gold, zinc, manganese) in terms of silver, allowing for a standardized resource calculation.
• Fissures and Mantos: Geological structures; fissures are crack-like openings, while mantos are horizontal, blanket-like ore bodies often found in carbonate rocks.
• Infill Drilling: Drilling between existing holes to increase confidence in geological data and upgrade an exploration target to a formal resource estimate.
• 43-101 Resource: A standard for reporting mineral projects in Canada, requiring specific data density and quality.

Project Overview and Drilling Progress

Prince Silver is currently conducting a 9,000-meter RC drilling campaign at its project in Nevada. The company has reported positive initial results from the first five holes, which intersected manganese, silver, and gold mineralization. Notably, some silver grades exceeded 1,300 grams per tonne (g/t).

CEO Derek Iwanaka suggests that historical miners likely missed high-grade fissures and mantos, and the current drilling is successfully identifying these untapped zones, particularly at depth. The company expects to release results from an additional nine holes in the near future.

Strategic Objectives and Resource Estimation

• Goal: The primary objective is to establish a resource estimate of approximately 100 million ounces of silver equivalent by Q3 or Q4 of this year.
• Methodology: The company is utilizing a database of 130 historical drill holes. By performing infill drilling to verify this data, they aim to bypass roughly two years of exploration work.
• Financing: Prince Silver recently closed an upsized $4.75 million financing round, bringing their total cash position to approximately $8 million, which is intended to fund further drilling if necessary to reach the 100-million-ounce target.

Metallurgical Challenges

A significant component of the ore is manganese. The company is currently working with a metallurgist to determine the most efficient method for separating manganese from silver and gold. This is complicated by the presence of both oxide and sulfide ores. A solution is expected within approximately six months.

Historical Context and Infrastructure

• Production History: The site was historically active between 1912 and 1949, producing 1.12 million tons of ore containing approximately 3.6 million ounces of silver and 50,000 kilotons of zinc.
• Infrastructure: The project benefits from excellent accessibility, located about 2.5 hours from Las Vegas. It features road access directly to the drill site and proximity to existing power lines, significantly lowering the barrier to potential future production.

Corporate Structure and Outlook

• Share Structure: Post-financing, the company has approximately 59 million shares outstanding (84 million fully diluted).
• Backers: Key financial support comes from industry figures such as Scott Gibson, professionals from Haywood Securities, and various European family offices.
• Future Catalysts: Investors are advised to monitor upcoming drill results, the progress toward the maiden resource estimate, and potential land acquisitions to expand the project into a "district-scale" play.

Synthesis

Prince Silver is leveraging a brownfields strategy to rapidly advance its Nevada project. By combining historical data with modern infill drilling, the company aims to prove a significant silver-equivalent resource. While metallurgical work regarding manganese recovery remains an ongoing technical challenge, the project’s strong infrastructure, recent financing, and successful early-stage drilling results position it as a high-potential asset for further development throughout the year.