Silver Tiger Metals (SLVR) - What Can You Do With 5 Rigs & $20M?

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. 

We met with Glenn Jessome, President and CEO, Silver Tiger Metals who joined us from Halifax. He is the founding shareholder of the company. Glenn is a securities lawyer with over 25 years of experience in the resource sector capital markets. He is also a member of the TSXV National Advisory Committee. He is also the Corporate Secretary and a founding shareholder at GoGold Resources Inc. Glenn is also the largest shareholder at Silver Tiger Metals. 

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). El Tigre Silver Corp. and Lunar Gold Holdings Incorporated are the company's subsidiaries. The company's flagship asset is the historic El Tigre Mining District in Sonora, Mexico. 

The company has been operating in Mexico for the past 30 years building silver mines. The company is preparing for its upcoming very-high grade silver resource at the El Tigre Mining District. This resource update is scheduled for release in June 2022. Silver Tiger Metals has carried out extensive drilling through 5 rigs in the past few months. 

The Hybrid conference

During the recent Hybrid conference, the company found that a lot of entities are in discussion for potential M&A and financing opportunities. This is due to a growing demand for silver in the market for use in car and battery manufacturing along with the rollout of 5G technology. It is speculated that the global silver demand will grow substantially in the coming 2 years. 

The company has strong reasons to believe that several major deals will be coming out of this conference. Based on the recent meetings and conferences attended by the company's team, a renewed interest in silver along with various precious metals is apparent.

Deposits and Discoveries

Silver Tiger Metals has made significant discoveries across their deposits and have resource updates planned up to 2024. 

The Old Tiger Mine

The Old Tiger Mine features a 100Moz Silver equivalent supply. This historic mine was previously explored until 1930 before the Great Depression. The cut-off grade for this mine stood at 1.2kg. The company has been carrying out extensive drilling around the old mine and plans to drill 2 resources, the first one in June 2022 followed by a second one in 2023. This 35km land package has significant high-grade silver deposits.

Silver Tiger Metals has discovered high-grade silver and gold mineralization along with base metals by exploring 12km and 15km outside the Old Tiger Mine. These deposits are part of a big epithermal system. 

Across the mountain, the company has found a repeated trend similar to the vein present at the Old Tiger Mine. At a depth of 150m, the company has 20,000 underground samples at every 5ft from historical data. This has led to the recognition of continuity in these veins with the presence of high and higher-grade material. 

Resource 22

 Resource 22 (R22) is scheduled for exploration in the summer of 2023. This district-scale operation features an economic deposit that has the potential to become a strategically important global silver asset, similar to Los Ricos. 

The company has employed 4 drills at this site and a 5th drill is scheduled to be added post the rainy season. This resource was historically mined for a couple of kilos before the operations were halted. 

Sooy vein

The Sooy vein is located 5km right to the core El Tigre deposit. The Sooy vein features a 3km strike length. The company has 3 drills currently employed and plans to add a 4th drill to this operation. Silver Tiger Metals plans to fill this deposit with a 50m spacing, leading to a large, super high-grade 43-101 silver equivalent resource. 

Recent drilling operations have uncovered a high-grade quartz vein along with a wide high-grade vein. These veins were considered waste rock during the deposit's historic mining days. However, the multiple countertop quartz veins turned out to be extremely high-grade silver deposits. 

Silver Tiger Metals has found 5.4m of close to 1kg and 4.6m of 810g silver. This trend is found to be consistent throughout the 3km length of the Sooy vein. The company plans to drill the 3km Sooy vein in early 2022. They plan to drill every 50m and get an inferred resource that would serve as a basis for R22. The company plans to delineate the ore, work out the economics and then build a mine. 

Resource 23 (R23)

The company plans to employ additional 3 drill rigs at the R23 deposit. They are currently carrying out the mapping and sampling at the site. The company plans to carry out the exploration well into 2024 and is projecting the operation to continue for the next 30-40 years. 

Silver Tiger Metals also plans to revisit the Fundadora site, the northern extension of the Caleign Protectora deposit. This vein is located on the other side of the Santa Maria mountain. Once the R22 exploration has concluded, the company will start operations on R23. 

Financial Capabilities 

Silver Tiger Metals currently has $20M in cash flow. Their G&A (General and Administrative expenses) is under CAD$100,000/month. The 4 drill rigs employed have a monthly cost of USD$500,000/month. Adding another drill would bring the monthly expenses to $550,000-$560,000. This enables the company to carry out its exploration programs along with a planned resource estimate by June 2022. 

The company's most recent capital raise was done through Franklin Templeton, Merk, and Sprott Asset Management in New York at $0.60.

Silver Tiger Metals' team has built internal models that are being updated weekly. The projects at Hermosillo are being led by the SPN team. The company is also working with PNE in an independent capacity. They plan to put out substantial numbers annually to meet the market's growing silver demand. 

M&A Considerations

Silver Tiger Metals is open to the possibility of a potential M&A with GoGold Resources in the future. Glenn is a founding shareholder at GoGold Resources and has worked with the team for over 20 years as a securities lawyer. 

Both companies have some of the most strategically important silver assets in the world. GoGold ranks in the top 5 and Silver Tiger Metals is working towards claiming the top spot. 

As Silver Tiger Metals continues to grow, they are bound to have interest from potential acquirers in the market. Presently, the company is focused on delineating ore, moving into economics, and building a mine at the earliest. 

The company is also focused on the ESG (Environmental, Social and Corporate governance) component, leading to a strategic advantage. Later this year, a planned board meeting will lead to the appointment of the company's first female director, a securities mining lawyer based out of Mexico.

To find out more, go to the Silver Tiger Metals Website