Silver Tiger Metals Inc. is a Canadian company whose management has over 25 years of experience in discovering, financing, and building large hydrothermal silver projects in Mexico. The company has 100% ownership of the Historic El Tigre Mining District, which is spread across a land area of 28,414 hectares.
Matt Gordon caught up with Glenn Jessome, President and CEO, Silver Tiger Metals. He is the founding and the largest shareholder of the company. Glenn is a securities lawyer with over 25 years of experience in the resource sector capital markets. He is a member of the TSXV National Advisory Committee. He is also the Corporate Secretary and a founding shareholder at GoGold Resources Inc.
Company Overview
Silver Tiger Metals was founded in 2010 and is headquartered in Nova Scotia, Canada. The company is listed on the Toronto Stock Exchange (TSX-V: SLVR) and the OTC Markets (OTCQX: SLVTF). El Tigre Silver Corp. and Lunar Gold Holdings Inc. are the company's subsidiaries. The company's flagship asset is the Historic El Tigre Mining District in Sonora, Mexico.
In 2021, Silver Tiger Metals saw a jump in its share price. At the same time, its competitors' share prices came down by 20%-40%. The company was able to deliver results through continued drilling, exploration, and a new discovery. The company has been focused on Mexico. Its team has worked in the region for 3 decades, building mines.
Cash Position
Silver Tiger Metals raised $23M at $0.60 in April 2021. This capital raise was done through a bought deal without any warrants. The company's investors include Franklin Templeton, Merk Investments, and the Liebherr fund in New York. These investors provide the company with strong financial backing to carry out its operations. The company currently has $20M in cash flow and does not have plans to raise additional capital in the near future. It seeks to create real value and drive up the share price. The company is looking to reach a $1Bn market cap.
The El Tigre Mining District
The El Tigre District was under American ownership between 1908-1930. The old mine provided 100M silver equivalent ounces throughout the historic mining operation, with average grades of 2.5kg. The historic mining operation had a 100t/day mill for the first 10 years followed by 220t/day. This demonstrates the scale of silver reserves within the mountain.
Silver Tiger Metals previously had 3 drill rigs operating at the El Tigre Mining District. By the end of last year, it increased the total number of drill rigs to 6. The company made new discoveries at the Sooy vein and on the Seitz Kelley vein.
According to a recent press release, the company discovered a new vein at the El Tigre Mining district. A major part of the company's discoveries included a shale horizon. This region features a quartz vein countertop with wide, multi-kg deposits that span tens of kilometers. The horizon is located close to the surface. This region features wide precious metal deposits at 10-20m of 1kg.
The company is currently drilling close to the surface. It anticipates that this mine would be one of the highest-grade and most profitable silver mines in the world. The company will provide additional information on the drill results in Q2, 2022. Silver Tiger Metals' asset spans a 35km area. It is currently running drill operations within a 25km radius.
Drill Results
Silver Tiger Metals' first discovery was made in March 2021. This consisted of 3km of the Sooy vein which was extensively drilled. The silver grades found at the vein were 10-20m at 1kg, 50m at 1kg, 2m of 3g, 4kg, and 7kg. The company defines 0.5kg+ as a high grade. The company is currently carrying out infill drilling at the Sooy vein. It is looking to make this silver resource NI 43-101 compliant in the second half of 2022.
In 2021, the company drilled 10 holes at the 1.5km Seitz Kelley vein. As per the drill results published in December, each drill hole features grades higher than 0.5 kg. In fact, one of the dill holes featured super high grades of 82,000g/t close to the surface.
Silver Tiger Metals discovered a new vein between the Sooy and the Seitz Kelley vein. This is an untouched shale horizon vein. The mountain features tens of kilometers of high-grade quartz veins which have been drilled by the company for the past 1.5 years. The company observed kilo-wide zones during the drill operations. During the second half of the year, the company found wide zones of high-grade ores that are currently being drilled.
The shale horizon has grades featuring 17m of 2.6kg. This region has 82.000g/t silver. The shale horizon is close to the surface and the company anticipates that it extends to larger parts of the land package. The company has plans to carry out additional drilling at this newly-discovered vein over the next 6 months. So far, it has found grades that feature 16m of 300kg and 0.6m of 8kg silver equivalent ounces.
The Benjamin vein is present within the same shale. It is a flat formation that is situated on the shale horizon, close to the surface. This vein features 15m of 1kg, 100m grades from the surface. The company has drilled dozens of holes in the shale, leading to grades of 5m,10m,20m of 1kg. The shale also features outcropping.
This region was an epithermal system that saw volcanic events. The first layer of alternation was laid down 30 million years ago, followed by the second layer laid 15 million years ago. The area was historically underwater and the shale was deposited through pressure. The layer of shale in Mexico is a unique occurrence. It acts like a giant carbon sponge that captures precious metals.
The company has explored the shale up to 20m and is looking to determine its extent. The company's first discovery hole at the black shale was right outside the Sooy vein featuring 12m of 722g/t grades.
When the company initiated drill operations at surface, it found disseminated gold around the veins. The shale features the same characteristics in a different structure with precious gold sucked into the structure. The company is looking to determine the scale of the shale within its deposits.
Silver Tiger Metals began with an open-pit operation with extensive drilling. It uncovered tens of kilometers of high-grade material to become a multi-kilo highly-profitable mine. The company already had very strong drill results along with a resource. The discovery of shale within the last 2 months is a significant add-on to an already robust project.
The company is currently operating 6 rigs to carry out fan drilling. It is looking to find an intercept of the newly discovered vein along with the shale. It has plans to test out the width of the footwall and the hanging wall. The results from the Sooy vein, Seitz Kelley vein, the quartz vein, and the newly-discovered vein in the shale will be released in an upcoming press release.
The company is looking to explore the most prolific vein located in the middle. This is named the Tiger vein. It was the richest vein during the historic drill operations. The Tiger vein currently has no drill holes under it. The company is also exploring the shale by drilling downwards-facing holes that dip to the north.
Targets 2022 and Beyond
Silver Tiger Metals plans to aggressively drill these veins. It is looking to increase the number of drill rigs from 6 to 8. The company is looking for the fastest ways to extract the high-grade ore from the ground and eventually develop a mine over the next 6 months.
The company considers tailings as ore. The mine is backfilled with grades of 3g-4g/t gold. It features a 1.3kg silver cut-off grade. The company has plans to clean out the tailings and access the vein up to Seitz Kelly to reach up to 1kg gold grades. The lower-grade material will be stockpiled by the company.
Silver Tiger Metals already has a 1Moz pit. It is looking to extract the high-grade ore from the mountain in the fastest way possible. The company is currently drilling up to 20kg silver through 6 drill rigs. It anticipates that the demand for silver will grow significantly over the next 5-10 years. The company has one of the highest-grade silver mines in the world that will cater to the growing market demands.
The company has a happy shareholder base and has received increased interest from institutional investors. It has tailings and an open pit at hand. The company has plans to commence underground operations. It is looking to drill the new discovery over the next 2 to 3 months to generate millions of tons of high-grade silver equivalent ounces. The drilling is being carried out through mechanized mining. The company has successfully de-risked the project through its recent discoveries and drill operations.
