Transcript: Silver Tiger Metals (SLVR) - Bumper Grades, as "Predicted"
Silver Tiger Metals Inc. is a Canadian company whose management has more than 25 years’ experience discovering, financing and building large hydrothermal silver projects in Mexico. Silver Tiger’s 100% owned 28,414 hectare Historic El Tigre Mining District is located in Sonora, Mexico. Principled environmental, social and governance practices are core priorities at Silver Tiger.
We wanted to speak to Silver Tiger Metals following an exciting press release showing big numbers from the initial drilling at the Seitz Kelly vein. This follows the drilling success at the Sooy asset which was the first asset to deliver a large amount of silver equivalent ounces at a high grade for the company.
Silver Tiger Metals started by retrieving all historical mining records to understand the assets before commencing their own exploration programme. This has led to a successful drill campaign and the company will have 6 drill rigs turning by Christmas, 3 on the Sooy vein and 3 on the Seitz Kelly vein. Assay results will be announced on a regular basis from both veins over the next couple of months as drilling continues and the company has $20M in the bank to fund this drilling.
The plan is to keep drilling the Sooy vein to get to resource estimate number 22. At the same time 3 drills will be working on the Seitz Kelly towards resource estimate number 23. The company will drill towards the resources estimates which will be followed by economic studies, the PEA, PFS, heading towards a global resource. The Sooy vein and Seitz Kelly vein are only 100m apart so the ultimate aim is for one big resource estimate which will continue to grow going forward.Silver Tiger Metals is a mining company so the objective is to get the resource completed, get through the economics and then get the metal out of the ground as soon as possible and start mining the ore.
00:00 – Company Overview
00:11 – Recent Press Release, Silver Equivalent & Hunting Crack Operation
04:21 – Cash Position, Changing Plans & Resource Estimate
05:55 – Stepping Out Small Amounts, Progressing Things & New Fuel Rigs
09:06 – Economic Study & Company’s Global Resources
11:10 – Outro
Glenn Jessome: Good morning, Matt. It's great to see you. Coming at you from Halifax, Nova Scotia, Canada. Little update on the Tiger.
Matthew Gordon: You had a press release this morning, some big big numbers in there, but when you get into the meat of the press release, we're starting to see a huge amount of metal in the ground.
Glenn Jessome: I would never start by telling you, I told you so. Just so we're clear, I wouldn't do that.
Matthew Gordon: You're not that guy!
Glenn Jessome: We've been methodical. You know the 2 companies. You know GoGold. You know Las Ricos a little bit, you and your viewers. What we do is real simple, and this is why we get criticised sometimes, we get the history down. The first thing we always do, at Las Ricos or here at the Tiger is to get the mining records. We did it for The Tiger: 15,000 underground channel samples every 5ft in the drift and every 5ft in the raises. And people know what that is, what's the ore drop down and they sample it. Then you go to 2 drills, 4 drills. And by the way, now it's 6 drills. People will be happy; we'll tell you where they're going at the end, but from my perspective: understand the asset, drill it, [inaudible 1:25] was first - I told you that. We're now on 3km strike on the Sooy. We're nailing it. We're going to fill that pop in with 3 drill rigs by next spring, and there's your first big amount of silver equivalent ounces at very high grade to be delivered - that's number 1.
Where next? What happened on the Sooy? Lots of high-grade quartz vein. Counter-top: 1kg, 3kg, 4kg, 5kg. We've got 10s of kilometres of it. But make no mistake, that Footwall Zone, we're renaming that the Crackle Breccia. We can't call it the Footwall Zone because now we're seeing in the Hanging Wall and the Foot Wall, it's a hanging breccia, and that isn't on the Sooy. I don't have to tell you - look at all the press releases of the people who follow us: 10m, 15m, 12, of 0.5kg, 0.75kg right next to a 1, 2, 3, 4, 5, 6, 7, 8kg quartz vein. It's beautiful.
Sooy's going to be done, bow on it. We don't need a discovery, it's a big resource. Where are we going next? I think I might have hinted in the last press release...Sights Seitz Kelley - we're not reinventing the wheel. You go a few hundred metres to the east, the old vein that the old timers worked on, they went to the same depth as Sooy there, we are just getting going, so let's go drill that, not just for the down-dip on the big high-grade quartz vein, which we know we're going to have, this thing goes for 1km at depth, but now we're hunting for that crackle breccia - beautiful stuff.
There's some crackle breccia in your press release this morning. I told my son we had crackle breccia, he thought it was a new type of cereal! But that's what we call this thing. So from my side, we're pretty excited. The last thing I will say is, thing about this: the old times in 1908-1930, they went home. They had mined 100Moz silver equivalent ounces at over 2kg. They left us way more than that in the Quartz veins. They didn't touch, didn't care about, didn't hear anything about crackle breccia. 800g, 900g, 700g was below their cut-off. They may have left us an entire mine of crackle breccia, which we think will compete with what they drilled in the quartz veins. We've got both. The game is changed. We now see that crackle breccia all along 3km at Sooy, first holes are here and boom, we're in the game.
It's a real game-changer. The team is very excited.
Matthew Gordon: In all seriousness, you get to tell me 'I told you so'. You've signposted it the whole way along. You have 6 drills turning, how's the cash position at the moment? How long can we see these 6 drills running for? Do your plans change given what you're starting to see here?
Glenn Jessome: Let's talk about the result, because I know your people go look at it. Today we delivered the first 13 holes on the Side Scale. On that, 82,000g/t silver equivalent over 0.5m, but almost 20m of 2.6kg. Now go look at the other 13 holes - I want your people to go at look at those, and that's over 100m strike length. This ain't no pin cushion. We stepped out on all those holes. All of them have 0.5kg-1kg in them and there are multiple hits, not only in the Foot Wall but the Crackle Breccia Zone as we have to call it now. That's number 1.
Number 2 - we have USD$20M left in the bank. We're loaded there. 5 drill rigs today, and within the next week or so there will be 6 turning.
Number 3 - between now and Christmas we will finish off the resource estimate for Sooy by the end of next year.
Number 4 - we will be all over the Site's Seitz Kelley, and we think the site's Seitz Kelley now will be the resource estimate for 2023. That's the way we're shaping it up. We'll get to the Tiger, we'll get to the Northern Veins, we'll just keep going.
Matthew Gordon: Talk to me about the step out with the recent drilling of the 13 holes. Have you been ambitious or are have you just been stepping out small amounts?
Glenn Jessome: We've got 13 holes over 100m. Remember that this site is Seitz Kelley, where the workings were, was 1km. We did almost 1km to the south that they didn't touch, you'll see that from some of the maps. From my perspective, we're systematically stepping out 25m at a time. If you look in the press release, you'll see that the first section is 5,500m - boom - we hit it right there, then we went 25m north and we got the vein and the crackle breccia zone again.
What we do on the Sooy we're not going to change; let's fill in the 3km, let's fill in a couple of km of the Sooy vein, but there's another part of the story in [06:48].
Matthew Gordon: Let me just finish on the drilling aspect, you've done 13 holes of 100m or was it more?
Glenn Jessome: Those 13 holes are across the first 100m, but 3,400m of drilling across the first 100m of what we see as the first km of strike length there. We're stepping out 25m at a time.
Matthew Gordon: Got it. You've got more results pending in terms of assays?
Glenn Jessome: I think what you'll see here is that it will be like battling banjos. You'll see super-high grade results come in from the Sooy on a regular basis: quartz vein, high-grade wide crackle breccia. The Sooy is going to perform then you'll see the Seitz Kelley come back and say, anything you can do I can do better. Then we're going to hit you with the same thing from the Seitz Kelley. Seitz Kelley, Sooy: regular results, 6 drills turning. We're excited about the prospects for the next couple of months.
Matthew Gordon: I get that drill program, the plan and the announcements into the marketplace. In terms of your thinking about how you progress things here, you guys have done a job on GoGold, where you're drill, drill, drill. You've been drilling a long time there. Are we expecting exactly the same model here? Is the ore giving you the same sort of information to allow you to say: we're going to keep drilling this out until we better understand it. There's no spinning out of assets, there's no desire to get into studies soon, or bring partners in, it's just drill, drill, drill?
Glenn Jessome: It's really simple: drill the Sooy vein, the western vein. You've seen the results for the last 6 months. We're filling that thing in. That's resource estimate 2022. A big amount of high-grade silver veins. High-grade for us, and look, I'm not guaranteeing but we consider high grade to be 0.5kg. We'll get that on the books and while we're doing that, 3 drill rigs are also turning on the Seitz Kelley - resource 2023 will be a big chunk of high-grade silver ounces at high grade. Then we'll just keep going.
Matthew Gordon: I just want to be really clear on the point that resource is different from studies; you're not planning a PEA? If I look at GoGold, they did Los Ricos South, they did a resource, got a PEA. Then they started drilling in the north and they'll drill through until the end of the year and they will do a PEA. What is your plan here? Are you creating a bunch of different resources or are they combined?
Glenn Jessome: Just so we're clear, No 1, we do one thing in GoGold and with the Tiger: we drill off ounces, we move them to economics, we get that metal out of the ground as soon as is humanly possible. Yes, the resource will be followed by the PEA, but this is all going to be a global resource. The Seitz Kelley vein and the Sooy vein or 100m apart - they're not at different parts of the property, so this is going to be a big resource estimate which will continue to grow and we'll add the economics.
Brad, my friend at GoGold, my 20-year partner, he loves living off the dore brick, parral, what a beautiful thing. Trust me: when we see high-grade like we've just drilled here, we are going to make every effort to get it as soon as we can. We're miners, we're not resource drillers. You only drill a resource off to get it out of the ground.
Matthew Gordon: That's where I was going. That's what I want people to understand about the plan here: they are quite close here and I just wondered, you create different resources but this is a global resource for you and you do want to get to the economics quickly and move it through the phases. Understood.
I think you've done the job of 'I told you so' - that's good news. I loved the headlines. I want to see more of these results come through as you get them through and as the drilling continues. Well done. come back on and let us know how it's going. We'd be delighted to see how things are going in the near future.
Glenn Jessome: It would be my pleasure. Thank you.