Transcript: Silver Tiger Metals (SLVR) - What Can You Do With 5 Rigs & $20M?
Silver Tiger Metals has been in Mexico for almost 30 years building Silver mines. Silver Tiger’s core asset is the 100% owned 28,414 hectare Historic El Tigre Mining District which is located in Sonora, Mexico. The El Tigre historic mine district lies at the northern end of the Sierra Madre silver and gold belt which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end.
Silver Tiger has delivered its maiden 43-101 compliant resource estimate and is currently drilling to update its resource estimate which should be published in June 2022. Silver Tiger is planning a big drill programme at El Tigre with 4 drills already in situ and a 5th on its way. They have raised money at the right time and have in excess of $20M in the bank to fund the drill programme to get to the resource estimate in June.
Silver Tiger has a simple strategy to delineate the ore, fund the programme and get it out of the ground as soon as possible and they are well on track at El Tigre. Principled environmental, social and governance practices are core priorities at Silver Tiger who have an exciting future ahead with the El Tigre asset as worldwide demand for clean metals is on the up.
0:00 – Company Overview
00:39 – Drill Front, Confidence Vote, & Recent Conference
05:19 – Drilling Map Presentation by the Representative
12:50 – Funding, SilverCrest, & Market Understanding
Glenn Jessome: Good morning, Matt. Glenn Jessome here from Halifax this morning, president CEO as many of your watchers would know, Silver Tiger Metals. We’ve been in Mexico out of little old Halifax for almost 30-years now, building Silver mines. I’m very excited about El Tigre, our core asset district, 30,000hectares and boy are we on it there. We’re getting ready for our next big very material high-grade Silver resource, which we’re gunning to have out to the market by June. We’re really on it there. It’s been an exciting couple of months. I think it was July when I talked to you. It’s nice to be back.
Matthew Gordon: Absolutely. It was only July, but you’re a busy man. There’s a lot of drilling going on, 5 rigs. We wanted to stay in touch with this story because it’s shaping up, as you say, to be a little bit like GoGold, just 12 or 18-months behind them. That would be nice. Before we get into that, you’ve been down at the conference this week. What’s the mood of the nation down there with regards to where the Silver market is today?
Glenn Jessome: When we went to the Hybrid conference, I wasn’t sure but man, was it nice to see people again, and have all the players there, all the banks, the corporates were snooping around, the dinners and the bars in the evenings were very active. People were interacting and I like the buzz. Let’s face it, the commodities prices were a little drag, but I heard people talking about M&A, I heard people talking about financings, and I heard people saying stuff like the following: it’s just a matter of time, there’s not enough Silver. There’s just not enough of that metal. Some of the guys were talking about others, but really that was the highlight. We need to find a lot of Silver because the world is really going to need it where it’s heading in the next couple of years.
Matthew Gordon: Are they also talking the language of consolidation M&A?
Glenn Jessome: I think right now, we’re seeing it. I have a different way of finding that out. I’m a securities lawyer so I don’t want to break the rules, but you just have to call up some of the securities lawyers in the big cities, ‘Yeah, you guys busy?’ ‘Oh, man, we’re so busy, we’ve got some many deals we’re going to-’ ‘Are they announced?’ ‘No, but we’re busy.’ The banks are busy. In my opinion, will there be some deals coming out of that conference? Absolutely. Of course, Denver is on this week, the big boys are there. I think you’re going to see some real energy here into the fall, and into the new year.
Matthew Gordon: What about in terms of people actually turning up? I know you said it was nice to see people’s faces, but did people actually show?
Glenn Jessome: I would say from my experience, we’ve been doing this a long time - I’d say about half. Look, it was a weird world. I fly from Halifax to Colorado, that’s a day’s travel. Then you get into a little cubicle, and you get your Zoom like I’m talking to you, we fire it up and we talk to a guy in Toronto who we flew over on the way here because he just didn’t want to be there for various reasons. It really worked. I was very pleased. We had 60 meetings in 3-days. That’s incredible. That’s a real go after them, I had Davy Duncan, our VP Ex whose now in Mexico for the next 3-weeks, he continued on getting that drill program firing, and is very busy. I was very fortunate; I’d say 70% of our meetings were live. I’m not complaining, great show, great energy. Just good for everybody to start talking about Silver again.
Matthew Gordon: It’s quite interesting actually, we say 60 meetings over 3-days, that’s a real sign. That’s a vote of confidence I think in the interest in not just precious metals, but metals more broadly at the moment. I remember only 2 or 3 short years ago where people would pay to be at a conference, they’d be sitting around twiddling their thumbs for half the day. That’s good news.
Glenn Jessome: That doesn’t happen for us. Davy is a little older than me and, in the end, they move you around from meeting spot to meeting, I was dragging it pretty hard on a couple, like, ‘Come on Dave, we’ve got 5-minutes to get to the next one.’ There were no breaks. It was so bad at the end that Dave said, ‘Do you realise we’ve not eaten lunch for 3-days?’ I said, ‘That’s okay, I’ll do that every time we come to a conference.’
Matthew Gordon: Okay, well look I just wanted to catch up, wanted to see how people are feeling about actually getting out to these conferences. Those 2, specifically, are fantastic conferences for junior miners in terms of meeting other people in the sector, for getting a sense of what’s going on, but the money side of things as well more importantly. Let’s get down to business. You said that you’re going to be off doing a bunch of drilling, we’ve seen some nice numbers come out. What’s happening on the drill front?
Glenn Jessome: Listen, I think I want to show - not a lot, Matt, 5-minutes - 3 maps. I think it’s really going to peak; it’s going to go boom, boom, boom, and people are really going to see where we’re going, not only for our resource in 2022, but our resource in 2023, 2024, and 2025. This is coming at us hard. I’m going to share this thing. It’s always challenging with the technology, let’s see if we can make this thing work. Boom. You should start to see my slide deck here any minute. You see that, Matt?
Matthew Gordon: I certainly can.
Glenn Jessome: Beautiful. Look, here’s what we’re going to talk about with the viewers here for the next 5-minutes or so. We’re going to talk about 3 maps. This one, that’s the 5km right in the guts of El Tigre. We’re drilling hard on the Sooy, I’m going to come back to that. You can see the black vein, the old Tiger mine. DO you remember the Tiger mine? 100M Silver equivalent ounces, 2.5kg in about 20-years, 1930 everyone went home, American line, because of the Great Depression, Silver to $0.10 from $1.33. The cut-off grade for the mine was 1.2kg; we can match. We thought, and we’re right, we always are, when we start drilling around this old mine, we’re going to see what they left us. Boy, did they leave us a lot. We’re going to come back to that. I’m going to tell you how we’re going to drill 2 resources right in that area, 1 in June of this year coming-is, and one shortly after that in 2023. I really think you have to appreciate before we do that, what we’ve now really started to look at over the 4 or 5 or 6 past months that I haven’t talked about a lot. To do that, I’m going to show you really what the Tiger is. People have to really appreciate this, Matt. That’s my land package. 35km inside the blue box. That’s when I bought that public company, everybody knows I’m a securities lawyer, it’s what I do, not a corporate raider but sometimes we see an asset, I have to buy the company. I did. To put it in perspective, I’m going to blow it up. That’s the middle 25km. Everything I showed you on the previous map, right here, was the old mine right here, and where we’re drilling to the north. That’s all the drilling. Oh boy, are we excited now, Matt? We’ve gone 15km this way, it’s exactly the same. We’ve gone 12km this way, high-grade Silver and Gold mineralisation, more base metals up here, all in this big, epithermal system. We got in the other side of the mountain, upper volcanic as the song goes. The whole vein set repeats itself here. We’re going to talk about resource 22 here, boy you’re going to start seeing some of this stuff rear its head in 2023. This is a district. This will become the Tiger, here. Do we think we already have an economic deposit? Yes. I’ve got some work to do to show the world and be able to say that as a securities lawyer, and guarantee it, but we do know one thing. This is going to become a very strategically important Silver asset in the world, just like Los Ricos already has. We know that, and we can say that because of our 30-years doing this in Mexico, our team, our technical team. Let’s go back, finish up a couple of minutes on those other maps. We’re going back to this one. All our drilling, you want to know where the drills are? 4 turning to 5, fifth one on the way. We didn’t want to phase the fifth one in, we got the fourth one up there cranking away, but we have a little rainy season, starting to dry up beautifully now, let’s get that fifth one cranking. Real simple what, and I’m going to write a note here, R22, Resource 22 early next summer. It’s going to be the Sooy vein. That’s 3km of strike length, we’ve got a drill here, a drill here, a drill here, and the fourth drill right now is on the Seitz Kelly. We’ll talk about that in a minute. We’re going to fill this in 50m spaces. That is going to deliver a big, super, high-grade Silver equivalent ounce 43-101 resource. I’m going to show you something right now, how we’re on it. I’m going to show you a breakout map on the Sooy of 500m right about there - that’s where all those drill results, we got it filled in at 50 there - and show you what we’re seeing, especially on 200m of it. Let’s go look at the next map, there it is. Look at that 500m. That’s where we really already have it filled in. I’m going to blow up that 200m little circle you see there. See that right there? I’m going got blow that up for everybody. Look at that. Remember, that’s some of our most recent drilling. 2 things. The red is the high-grade Quartz vein. Black on the left-hand side, look at the width of high-grade. Remember the old-timers? That was waste rock. Anything 1.2 down, all they wanted was your countertop, and they left us lots of that countertop Quartz vein. Look at the grade on that thing. 1.3m of 2, 1.3m of 1 - boy do we ever like as miners, 5.4m of almost 1kg. It’s 4.6m of 810g. That’s what we’re seeing consistently along that 3km of Sooy vein. You can go and look at the Benjamin results, they were as good or better. 1.5km north, down south the same. I’m showing you this because this is where we’re really on it. Remember, see all the triangles? We’re never not paying attention to the triangles, but we always do, Matt and we get there first, is we basically go after the historic records. That old mine was mined there, when we go 150m, and what they left us around and down dip, we have 20,000 underground samples in that old mine every 5ft. That’s what’s given us that continuity. Not only these drill holes but all of those where it’s high or higher grade. Remember everything in the bottom low left, it’s a couple of kilos and they stop mining. That’s the way we’re onto it. I’m going to go back to this and show you exactly what 22 is going to be, and then what we’re going to do in 23. That was the breakout right there the 500m. We’re going to drill into early next year that 3km of the Sooy vein. Every 50m, we’re going to put some fans in there as you know when the sections get up and get down, take a few deep shots, get some inferred. That’s going to be the basis for resource R22. It will be very material. We delineate ore, that’s the only way you win here, and then move it to economics and build a mine. The last thing I’ll say is the following: R23, just remember when the fifth drill, sixth drill, seventh drill, which is going to happen, we’re going to fix this but we’re already mapping and sampling, Matt, 500m - 600m to the south, getting that ready for the drill bit. Remember the success we had north on the Caleigh Protectora? We’re going to get back there. The Fundadora is just the northern extension of the Caleigh. I’ll just make it over here, the vein on the other side of the mountain, Santa Maria, drill holes here, you’re going to see drill holes here, here, here. After we come out with R22, all this drilling will be taking place later this year into early next year, that will be R23. Then as we like to say, we’re looking this far ahead, 3 and 4-years. I guess we could say this will be R24, R25 - I’m making that up as I go. That’s what we have here. This is not going to be ‘drill it off, here’s your number’. My geologists tell me all the time Matt, I’ll be dead, and they’ll still be drilling ounces at the Tiger. That’s, when you find a district like this, what they are. They’re 30 or 40-years events. That’s where we think this is going. Early days so far. Are we ever on it right there? That’s all I really wanted to show everybody, how we’re going to do things, what we’re seeing. You saw those results. People can go look at them themselves. I think I don’t need to be in this anymore. I’m going to come back and talk to you face to face.
Matthew Gordon: Thank you very much. Okay, what I want to know is, bring it back to today, R22, R23 - how are you funding all of this drilling? I know you’ve got 4 drills, the fifth one is on its way. How is this being funded?
Glenn Jessome: We were very successful in raising money at good valuation at the right time. We’ve got in excess of $20M in the bank, and if people want to know roughly what we’re doing, just do the maths in their head. 4 drill rigs today, our G&A is less than CAD$100,000 a month. 4 drill rigs today is about USD$500,000 per month. Maybe if we add a drill on, it goes to USD$550,000, USD$560,000. Do the maths. We can go for a long time with 4 drill rigs, but we’re not going to do that. Do we have enough money to get to that resource estimate in June? Absolutely.
Matthew Gordon: Okay. I think that’s the first moment. It’s very difficult with the explorers sometimes, sometimes they just keep drilling and keep drilling and it’s like they never get to an endpoint. You’re very clear. You want to get a resource done, you’re talking about 2022, 2023, and 2024. You’re going to build it up to what size before you say, ‘Do you know what? We’ve got to show people this can become a mine. We’ve got to stop with the drilling, put some studies together, and show people what we’re doing.’
Glenn Jessome: Here’s how we operate. People should know that. We’ve been there a long time, so what we’ve learned is we update, we have our own team that has built internal models on a weekly basis for our projects at Hermosillo, led by the SPN team, Jose, Carlos, Ramon, Muna, fantastic, they’ve been doing this ever since we were there. They’ve been with us. We get that update weekly. We work with PNE; they are our independents. We don’t wait to put a pin in something and say, ‘Here Mr. Independents, we’re going to do a resource you take 6-months and come back and tell us how we screwed up.’ Every week, we download to them. They are side by side. When we’re going to put it out, but there’s no number in my head - this is going to be a very material amount of Silver at high grade. That’s what I’ll tell you. We don’t need to wait to get to 100M, 200M, 300M. We’re going to come with - because you can’t here. You can’t do - look, I don’t want to - some guys go out and drill the 0.5M metres, and they come out with their full resource after 3 or 4-years. They’re done. We’re not going to do that. We’re going to put out very substantial numbers on an annual basis, and I think the market is going to be very excited about that.
Matthew Gordon: Okay. Again, I just want to help people understand how you create value, where the numbers are login to come from here. You’re drilling, right? We get the drilling. There are lots of press releases about the drilling, you’ve just gone through some maps about where you’re going to drill as well. I think that’s really useful. But people look to a GoGold, they look to a SilverCrest and go, ‘That’s the way to do it. They have created $800M, $1.2Bn companies respectively. They’ve got a model that has worked.’ Do you say, ‘We’ll just do that?’ I know you’re involved with GoGold, but what’s the model here?
Glenn Jessome: SilverCrest, we know what they’ve done. GoGold, we’re the same. I built GoGold, I was a securities lawyer, I’ve been with that team for more than 20-years. We’re not going to change the model now; it’s worked pretty well. It’s really simple what we think about - delineate ore, move into economics, get it out of the ground as soon as possible. It’s really that simple, and that’s what we’re going to do here. We’re well on the track at El Tigre.
Matthew Gordon: Okay. Cheeky one. Is there any point at which Tiger and GoGold come together?
Glenn Jessome: I would say no, but I also say never never. But I would say no.
Matthew Gordon: Okay, fine.
Glenn Jessome: Why I say that is because the 2 aspects are so strong - both of them are going to become very important standalone strategic Silver assets on the planet. I think GoGold is already in the top 5. I’m gunning to get there.
Matthew Gordon: Again, just on M&A, you said that people want Silver. There are not a lot of big, good Silver stories out there. I don’t want you to answer on behalf of GoGold, but if a company like GoGold is probably in the scopes of some big major as it stands, likewise, if you can do what you say you’re going to do, you’re in the scope, which is fine. You can work out how you play that.
Glenn Jessome: Honest to goodness, I’m a capital markets guy, go ahead-
Matthew Gordon: I was about to say in some ways, there’s a bit of protectionism by coming together a little bit more formally than informally as you are now.
Glenn Jessome: Look, what we’ve learned our whole careers is we delineate ore, move into economics, build mines. Sometimes, it makes sense for the shareholders that like our Santa Gertrudis sale to Agnico to move an asset. I’m only going to speak for the Tiger, I don’t want to get myself into trouble with Brad at GoGold, my partner, but what I would say on this is the following: there is a time when a company can be acquired, and do I think the Tiger will get to that point? There’s a sweet spot where a CEO of an acquirer can look at your asset and say, ‘I can buy that.’ Look at all the upside. And if it goes, I’m not getting fired. Listen, everybody is self-interested. Let’s face it. I think we’re going to get very rapidly into a market cap area, which is quite a bit higher than where we are right now, where we become, in my opinion, a very attractive target for some of the acquirers out there. But make no mistake, the best advice I ever got from one of my partners was the following: we control one thing, our own board room controls what we do 100%. I don’t control anybody else’s boardroom. They can do what they want, they can come and see what they want, they can follow as they will and they will, and we’re going to delineate ore, more into economics, and build that mine as fast as we possibly can. That’s what we’ve done the entire time we’ve been there. It’s the only way to survive. You can’t go drill hole to drill hole and someone’s going to buy my drill holes. It never works that way.
Matthew Gordon: With regards to the market, Silver is down $1.50, $1.60 since we last spoke towards the end of July - how is that impacting decision-making?
Glenn Jessome: It’s actually down almost $3, I think. As I remember, we were over $25 in July at the time we talked, and today it’s $22. Listen, it does not affect on a day-to-day basis my decision-making. I can tell you right now, I’m probably the largest shareholder- there are institutions in there - but I’m the largest shareholder in the company. Wrote my cheques for multi-million dollars to buy all my stock, and then I’m with everybody else. I’m with you shareholders. I don’t sell until we build a mine, where I sell to a major full stop. So, you’re with me. I don’t watch the stock on a day-to-day basis. People say, ‘Oh, you should you’re the CEO.’ I don’t because I know where we’re going. With these ups and downs, you can’t control that but all we’re going to do- If I had $600,000 in the bank, I’d be sweating today a little bit. I’d have to go out and get the institutions to give me money at a lower rate. I raised my last money at $0.60, from the top institutions in the world. Franklin Templeton, Merk, Sprott Asset Management, out of New York. These are the best ones out there, and they gave it to me at that price. They’re not concerned. I’m not concerned. We now have $21M to deliver that resource, and then its real value. It’s not, ‘Man, he didn’t put a press release out for 3-weeks, something’s wrong.’ No, nothing is wrong. I couldn’t be more excited about the company. I got my blinders on the price. Look, there’s not enough Silver in the world. They’re going to build cars and batteries, they’re going to do 5G, and they haven’t got any Silver. They’re all saying, ‘We want clean metal, and by the way, where is it?’ Supply-demand will rule. I don’t know when, but it will. On that front, you asked about capital. Capital is really important. We have to be good corporate citizens. I’m, as you know, on the National Advisory Committee for the TSX Venture Exchange, so governance? Got that covered. But on the social side and the government, and on the environmental side, we’re upping our game. You would have seen a press released a week or so ago - I got a few calls, ‘Oh, that’s fluffy.’ You have no idea. We are going to use ESG as a strategic advantage. We’ve been in Mexico for 30-years. We will be the best. Full stop. That is where the world is going. You’ll see also when we have our shareholders meeting later this year, we’re going to appoint our first female director, a very talented securities mining lawyer out of Mexico. Those are important things to us. We’re going to be great corporate citizens, but you’re going to see some really interesting information come out because we think the world’s changed, they want their metal, but they also need to get it clean. We’re going to give it to them as clean as possible. Things are coming, very good.