Silver Tiger Metals Inc. is a Canadian exploration company that boasts a management team with more than 25 years of experience discovering, financing, and building large hydrothermal silver projects in Mexico. The company owns 100% of the 28,414-hectare El Tigre Mining District located in Sonora, Mexico.
The past year saw the company’s share price increase whilst that of its peers decreased between 20% to 30%. The company has expanded its drilling campaign from 3 to 6 drilling rigs, which are scheduled to recommence in early 2022. The company is well-financed to reach its milestones and boasts CAD$ 20 million in the bank. One of the company’s recent discoveries, the Shale Horizon at Section 5075 N of the deposit, has 16.1 m of mineralisation containing 32 g/t of Ag and 343.2 g/t of AgEq.
The past year also saw discoveries at the company’s Sooy and Seitz Kelly veins as well as the discovery of a new wide zone of high-grade silver mineralization at its Benjamin vein. Moving into the year, the company is focused on continuing its aggressive exploration of the deposit with it aiming to increase its drill rigs from 6 to 8. The company further plans to develop the Sooy and Seitz-Kelly veins to high-grade NI 43-101 resources in the second half of 2022.
The company is confident that this year will be filled with exciting announcements and will monitor the market throughout the next two to three months to decide the correct path moving forward. Silver Tiger Metals is confident that the El Tigre Mining District has the potential to host one of the most profitable silver mines on the planet.
00:00 - Company Overview
01:18 - 2021: Lessons Learnt, What Worked?
06:42 - Understanding the Professionals
08:50 - Marker in the Sand: What are SLVR Doing?
21:11 - $20M: Enough for the Year?
24:06 - How Much of a Priority are Tailings?
Glenn Jessome: Good morning, Matt. Glenn Jessome coming at you here from Halifax. Silver Tiger Metals, most of your audience know I'm the President-CEO of that company. It has been a great year and we are just getting ready for this coming year. We're excited about it and I wanted to look back a little bit and tell you what's on the horizon for the Tiger.
Matthew Gordon: Great. Looking forward to that. You also caught up with our geo, Merlin Marr-Johnson, in December. He came away a little bit excited about what you've got. He was quite blown away by the asset itself. How did you find the conversation?
Glenn Jessome: I really enjoyed the chat with him, and the nice part was for your audience, who hear me going on all the time, so it was nice for me to shut up, get out of the way and let our VP exploration. Dave Duncan, who has 40 years’ experience doing this. He's put a lot of ounces on the books in Mexico in the last decade, I think 6Moz-7Moz, and let him get right into the guts of the Tiger and let those two go at it. It was just nice to see them really talk about what this is and what it's going to be.
Matthew Gordon: Fantastic. For anyone who hasn't seen it, go see it. It was a really solid conversation, for sure, and we can have understand what the potential of this thing can be. But today I wanted to take a look back at what happened in 2021 and see if there are lessons learned. What is your take? Obviously, I'm looking at your share price: you have performed. Compared to most precious metal companies that share price is directly opposite to the bulk of your competitors and peers, who really, saw share prices come off between 20%-40%. You must be pleased, but what were the things that worked for you?
Glenn Jessome: With the share price, everybody looks at charts once in a while. I like our chart, there's a ski hill. You're either on the gondola going up the hill, or your skis are coming down the hill. We've been on the gondola and it's been fantastic. A lot of hard work; we've delivered. This is not promotion. This is delivered with the drill bit, explore, add a new discovery, and we've done that.
You look back, and as our focus is on Mexico, our team has been there for almost 30 years building mines. The summer of 2019 was the Gold Rush-Silver rush. You saw how many new entrants came in. We want them all to do very well, but we know what we're going to do. It's really clear; if you look at what we've done since that summer and how we've delivered. You always want to move to the front of your peer group. We are at the front -100%. In that period of time we've raised USD$40M almost, all bought deal. No warrant. The last one we did last April was USD$23M at $0.60c. We moved our share price up from that when most have gone the other way drastically, unfortunately.
It's the quality of the investors: when Franklin Templeton, when Steve Lamb runs it over there. When Samir Smirnova, when Merk, led by Peter Maletis. Ranjan fund, the Liebherr fund in New York. Those are front drawer institutions. That's who gives us our money, and that should tell people something. Unlimited capital going forward for what we need. USD$20M in the bank - we don't need any right now.
I told everybody, this is important: 3 drills. I told them we'd get at it hard. We started the year with 3. We ended the year with 6. 6 have already been turning on that mountain for a week now, after the little Christmas break that takes place in Mexico. We will escalate that number of drills, but most importantly, there is a new discovery on the Sooy vein and a new discovery on the Seitz Kelley vein.
If you saw the press release last week: a brand new vein we didn't even know was there. And of course, the biggest part of this discovery is there's a shale horizon there. We've got 10s of kilometres of quartz vein countertop that wide, multi-kg. Now we've found a horizon close to surface. Shale, black shale where this wide precious metals is blowing out 10-20m of 1kg.
It couldn't have gone better. I'm very happy with the year, very happy with the team and how they performed. But let's face it, we're in the game of creating value. I'm one of the largest shareholders. I'm aligned completely with my shareholders. What we want to do is create real value and drive the share price up and continue to do that. And we have done that.
Matthew Gordon: To that point, obviously, like I said, most of your peers and competitors came off big time in Q4, and there was a little disconnect between the silver price and the gold price last year, and the equities. It was USD$1,800 Gold and $25 Silver. It's great. It's a nice place to be, but the equities weren't getting the love and attention. You did, how do you keep and sustain this growth story of yours? Because I feel that, and I think Go Gold, your compatriot Brad Langer suffered a little bit of this, which was really weird: putting out these high-grade numbers week after week after week, and people were fatigued by it. What do you do about it?
Glenn Jessome: Well, we've lived that throughout our entire careers. Brad and I talked about this so many times, and we talked about it before people realized it. You can put out, using me as an example, 4kg, 6kg, 8kg, 86kg on a new discovery: these are unheard of numbers, but after that people judge you on your success. Okay, what's next? Is it 100kg? It doesn't exist. So from my perspective, they get numbed to it so you have to keep showing that this is not about drill holes. This is about creating real value. I don't need to tell you what Brad does; in the end, he doesn't worry about down or up. You saw that resource. There will be another. We will work towards our resource. We will work towards the next resource on this project, but always in the back of our minds we're figuring out how we're going to build a mine and take that metal out of the ground. That's all we do.
Matthew Gordon: Okay, so you're looking long term. There are just a couple things that we need to do: we need to help people who coming at this new to understand the way that professionals look at this. Headlines are like 7,000g over whatever, right? I saw a crazy one here: 82,000g over whatever intersection there. Grams per tonne is one way of measuring. You, me and analysts talk in kilos. What does that mean? Explain it to people.
Glenn Jessome: When you're looking at these kind of high-grade intercepts...I'm going to tell you something, Matt, why we love this project? And this is a simple as it gets: everybody is building 2,000t-3,000t/day mines. When I looked at this first, why we bought it was the following: from 1908 to 1930, the Americans had this mine. They took 100M silver equivalent ounces out of that old mine, it had an average grade of almost 2.5kg. Guess what they took it out in? In the first 10 years it was a 100t/day mill. In the second year it was a 210 years, 110 years of 220t/day. Do you understand how rich the ore is on this mountain? It didn't change. That's what we're drilling.
For an example. Silvercrest, just to the south of me. You all know about Silvercrest: 100M silver. equivalent ounces at 750g is worth USD$1.5Bn today. That's a simple comparison. When you start saying the old timers took 100M at 2.5kg - 3x -that's what we're drilling, and it's close to surface. This will be, if we're right, one of the highest grade and most profitable silver mines on the planet. We see that already and we're seeing how we get there a lot quicker than anybody thinks. We'll save that for a little conversation in the second quarter. I'll leave that with you.
Matthew Gordon: Okay. Talk to me about the resource. Again, that's a way of putting a marker in the sand that people understand. What are you doing?
Glenn Jessome: Can I share my screen? Here we go - our project. 35 km. All we have talked about so far in our year and a half is right there in that little blue area. It's all the same here and it's all the same over here, over 25km. We will be drilling here, here and here later in the year - hold that thought. Right here is enough for us we think. It's a big statement, but we've done it before, to create a USD$1Bn company. People should think about that. Go look at my market cap today. I'm not crazy saying that, we've done that several times in our group's history in Mexico; we've created unicorns. We see it right there, being enough to do that, but there's work to be done.
I want to focus in on this because this is very important. You asked about a resource. I'm not going to go through all the results. You've been following it. This was the first discovery, made in March, not even a year ago. That is 3km of the Sooy vein. We have all kinds of drill holes through that. You've seen them: 10-20m at 1kg. 50m at 1kg, the 2m of 3kg, 4kg, 7kg. Look at the results. They're all there for you. That is being filled in and that 1 vein will be a high grade, we call high grade 0.5kg+. There's a large amount of silver ounces that will be put on the books by us in the 43-101, Step 1.
Matthew Gordon: What's the date of that? Timing?
Glenn Jessome: We are targeting to have that done this year. That's all I'm going to say. It will not be in the first half. Let's just leave it at that.
Secondly, that is where we drilled those results. This is the Seitz Kelley. That's 1.5km. We put our first 10 holes in that, it had never had a drill hole in it, for the first 10 holes in that, you saw the results in December: every one of them were 0.5Kg and up. Let's face it: we had one that was 82,000g close to surface. It is super high-grade. That, once it is drilled off, will be the next chunk of resource. This will not be a Las Chispas - drill it off, here's the resource. It will be more like, but even shorter and smaller amounts, like Brad is doing. Brad just delivered 1 resource, his second resource. He's already on the third resource with Go Gold. He had a big dump at Los Rico's. We will be the same. That's going to create the value.
We now, and this is very important, we just made and put out last week that we found a new vein right in the middle of those 2. It has never been touched. Never seen before. I'm going to go show you that right now because I think it's important. People have to start paying attention: this is the newest discovery after Seitz Kelley and the Sooy. This shale horizon is extremely important. The big explosion is that this hasn't hit the street yet. People haven't figured this out yet, but I want them to. What you have on this mountain is tens of kilometres of high-grade quartz vein. That's we've been drilling for the last year and a half. You’ve seen it: kilo-wide zones. What we started to see in the second half of the year was wide zones of incredible ore starting to be drilled, like you saw right here. This was before we put this on the map is a shale horizon. Look at that. That's where you're seeing 17m of 2.6kg. That's where you're seeing. 82,000g/t silver. What we have is, and you can see it clearly here, there is a shale horizon close to surface, that goes through, we think, all of this land package. That's a new vein, never discovered, where that vein goes through that shale horizon, and this is what you're going to be hearing about for the next 6 months- it's going to be amazing- you start to see this kind of stuff:16m of 300kg. 0.6m 8kg. You start to see 17. This is the shale horizon here, it's just not on that map because it's a new discovery from November, 17m of 2.6.
Look at the last one we drilled on the Benjamin in this same shale. This is what you're starting to see. now: this shale horizon, close to surface, always within this flat formation. Then I'm going to go to the big map again. Look at what we just drilled here: 15m of 1kg, 100m from surface, 2.6 of 4.375. Hold that, think in the horizontal, not in the vertical. Now, let's go back to the map. Everywhere you see these red veins going through that shale, look what's happening: this is brand-new. This is December news.
I'm going to go back to the map and hypothesise if we're right, and you know we're right. I just showed you a drill hole up here in that shale. We're basically 15m of 1kg. I just showed you on the Seitz Kelley in that shale, 82,000, 17m of 3 kg. I just showed you all along the Sooy, we've got dozens of those holes in that shale where you're seeing 5, 10, 20m of up to 1kg. We have indications up here in our mapping and sampling. We see the shale outcropping here. Imagine. It's a horizontal that goes through all of this 20-30m, and wherever any of these veins are. The veins were enough. The quartz veins were enough. This shale is brand-new. It just showed up on our mapping in our sections. You'll see in December, if all that horizon goes under here, and wherever these veins pass through, Tiger, Sooy, Sites, the new one, protect, or a Caleigh, Fundadora, we're going to get that kind of blow out - all bets are off. That is the new, and people have to understand that new.
There you can see the first time it showed up. This was the press release at the end of November on the Benjamin. That was the first time that that structure ever showed up in any of our cross sections. Why? Because we just discovered it. Were we expecting it? No.
To explain what happened I'm going to get geological on you. You know that I'm a securities lawyer, but the way it's explained to me is very simple. As you know, this was an epithermal system, so there were volcanic events. In between the first layers being laid down, say - I'm making this up - 30 million years ago, and the next level of alternation being laid down 15 million years ago, this whole area from and this is all historically correct, this was all underwater. As you know, shale is deposited from pressure, this was all underwater. This was an inland giant, and this is not complicated, that's where this layer of shale, which is very strange for Mexico, was laid down. As you know, this layer of shale is acting like a giant carbon sponge and it's sucking the precious metals.
We don't know how far it goes into this. We've been out 20m now and we've nailed it. You can see what we're nailing. Look at that result. That's everywhere: Foot wall, Hanging wall. We're going to get some vertical holes down this through this, we have to, how far does that go? Remember at surface, in some of the initial drilling we did, 4900 is a really good section to see, and this was one of the ones we put out when we didn't know about the shale. We thought it was just the Footwall Zone. Now it's black shale. It's all the same. This black shale is exactly up here. That's right on the Sooy. That was our first discovery hole. 12m of 722, 381, outside that vein.
Remember, back in the day, when we started at surface: we had that great plumbing around the veins where we had the gold only disseminate. That's the pit we drilled off, right at the surface, first 100m. You're getting the same thing down here in a different structure where you have this shale, and that precious metal is just getting sucked into it, which for us is is very exciting. Look were we expecting that? Absolutely not, but when you drill around the hottest spot we've ever seen in Mexico: 100Moz silver equivalent, 2.5kg in 20 years, we knew we'd get some pleasant surprises, more veins like we just discovered, but this is a total game changer right here.
I'm guessing that most of your crowd who are listening, even when we talked about that with your Geo and Dave, they get up in the rocks and structures, but for me it's real simple: this deposit of shale got laid down in between the events. And this is like a big carbon sponge and she's just sucking up those precious metals. Who knows how far it goes? You can see it here. You can see it here. It's all over. That's all we're doing work on right there. There's no reason why it shouldn't be here. It's all the same structure. What if it goes all through here? It was all underwater. We'll see what happens.
Anyway, that's exciting. I'm going to come back. We don't need to look at this anymore. That's what's got us so fired up. You want to see what the next level is? Listen, we started with an open pit, we drilled that up with our eyes closed. We've hit quartz veins, tens of kilometres of 1,2,3m. High multi-kilo, very profitable mine. All of a sudden, this shale has come out of nowhere in the last couple of months. This is not one cherry on top. It's like 4 cherries.
So what's going to happen? 6 drill rigs were added. They're all drilling, but right now, I'm not saying it's a rule, but most of those drill holes, you know how you do a fan drilling? That fan now has to go through that shale. We know right where it is exactly because we want to make sure we get an intercept of that vein but we get that shale too. We will testing the Foot Wall, the hanging wall, and how wide is it?
You want to stay tuned for results coming off Sooy in the shale, Seitz Kelley in the shale, in the quartz vein it is always in there, intact. That new vein - number 4- we don't have a name for it yet. I'll dream something up by the next press release, that came out as quick. But remember, the most prolific vein, the one down the middle, that's what people should be looking forward to if you want excitement, the Tiger vein. That was the richest vein at the time. The old-timers said. We have no drill holes under that. The first little holes are going down, dip under that to the north and you're going to see what happened there in the shale. We can pretty well guess what's going to happen, but stay tuned for that. It could be very exciting, and that's imminent.
Matthew Gordon: Thanks for going through that. I'm not going to go over old ground that you covered with Merlin in December. People should go and look at that video. More importantly, go look at the summary of what he took away from that. He was quite excited.
With regards to this year, just a few little questions around admin-type things. You have USD$20M in the bank. You said that's enough for you and 6 drills for the rest of this year and possibly some kind of resource in the second half.
Glenn Jessome: That's exciting. I'm going to give you a little hint here of the next thing we're going to be thinking. I'll save that one for the next video. But what we really want to start doing now, those 6 drill rigs will turn to 8, we're just going to keep hammering the kind of results we are Shale is very important, black shale quartz. But remember what we are at the basis of our group: we are miners. We're not drillers, you have to drill to mine. It's really just step 1. We want to start thinking about how do we get at that high grade as quickly as possible. People don't realize how valuable that ore is. The ore that we're drilling now is almost solid metal. It's incredible.
I had a debate with one of my partners, you can guess who it was. We were in my office here, having a drink, and we looked at the size. It's not a very big office as you can see, if my office was filled full of the ore we drilled on the Seitz Kelley, my office would be worth CAD$42M. That is the power of this high grade. This is a high-grade mine. And that's what you're going to start to see over the next 6 months. We need to get in that mine. There's a plan in the works right now. We'll have that thing opened up a lot quicker than anybody thinks - stay tuned over the next couple of months.
Matthew Gordon: That might answer the next question; we've got a few questions sent in with regards to tailings. If you're after a high-grade mine, you probably aren't putting tailings to the front of the queue of things to look at or spend money on.
Glenn Jessome: We look at all ore. Tailings are an ore. That mine is backfilled with resaga, that is 3g-4g/t gold. That was the back-fill. The cut-off for this mine was 1.3kg silver. If it wasn't above that, they didn't mine it. This is the highest-grade mine we've ever seen in Mexico. So, tailings are ore. When we go into that mine and clean it out and get access all the way over to the Seitz Kelley and touch that 1kg gold, that's going to happen sooner than you think. We're going to stockpile all that resaga. That's wonderful ore. We've got a pit there that's 1Moz already. 60% of that pit, 600, is almost 2g. Start doing the math in your head about how fast this can be a mine.
Matthew Gordon: But my point here is that you have USD$20M to spend in the best possible way to create value for shareholders, how far up the priority list is tailings for you today? I get that there's value there, but do you monetize it today or do you wait?
Glenn Jessome: There is a plan in the works today prioritizing all of the things you're talking about. I'm only going to say one thing right now: we will be taking high-grade ore out of this mountain faster than anybody can imagine and we're going to create some great value for the shareholders. But don't lose sight of what we're doing today: 6 drill rigs. We are drilling up to 20kg silver. We're going to keep doing that. We can't change our DNA; some people are explorers. Some people only drill holes. They've never built a mine. Look at what's in our DNA. Everything we're thinking about now is: how do we get metal out of the ground? We have a feeling, in the next 5-10 years, that there's going to be a real demand for silver. It's a great time to have probably one of the highest grade silver mines on the planet ready to go.
Matthew Gordon: I agree with that, but I just want to nail this one because, as I said, we do get a lot of questions sent in You've got so much money today. Best use is drill, drill, drill. I get that there is value sitting at surface in these tailings, but are you going to go and raise money now or in the near future to tackle the tailings component, or do you want to see the share price move, or the silver price move before you make that decision?
Glenn Jessome: We've got USD$20M. You know our history. You can go look at what we do. I told everybody I'd raise money at $0.60c with no warrant. We did that in the last 5 months after we did our last raise. That was very good for the shareholders and for us. Now we have all the cards. I have all the cards with respect to raising money. I don't need to raise money. If the market goes absolutely crazy and I get to I'm not going to say $1.20, but let's just use that number, I've more than doubled the market cap. I've got such happy shareholders the institutions are banging on my door. And yes, I have a use for the money. I have tailings. I have a pit. I have an underground opened up by then. I'm going to do what's best for the shareholders. Guess what? I'm the largest shareholder. So you're with me. So we're going to make the right decisions on that. But rest assured, and I don't want to say too much now, give me another 2-3 months and we'll be chatting about it, but make no mistake: we are going to drill this thing off and there is going to be hundreds of millions of silver equivalent ounces of high-grade. But as we go, I can't not want to go get my teeth into 82,000g, 7kg, 10kg, 9kg, 20m of 1kg! This is mechanized mining. This is not narrow vein. This ore is so valuable, we need to get the metal out of it.
Stay tuned. We'll be talking about this a lot this year. I hope I'm not confusing the issue. I don't want to, but boy, are we excited about the fact that we know we're going to hit these drill results. This shale is next level for us. Nobody else has that. We've got to the narrow vein quartz. We got the open pit. Now we've got this shale horizon. That ain't going anywhere. This project is completely de-risked; it will be a mine, and not many people can tell you that. Make sure you know that the mining DNA in this is going after that metal. It's that high grade. I don't even want to confuse it with CapEx. You can get at that metal so cheaply it's not even funny. Save that for the next quarter, Matt.