Silver47 Acquires Red Mountain Project After Previous Owner’s Missteps

In the mining industry, some of the most promising projects can be victim to poor management. Case in point: two companies where I held significant positions—one dropped 94%, and another went bankrupt despite having exceptional assets. 

Irving Resources in Japan exemplifies this pattern. Despite surface samples assaying at over $25,000 per tonne in Hokkaido and backing from Newmont’s technical teams, the company spent $38 million on unsuccessful exploration. My investment dropped 94% from its peak.

White Rock Minerals faced similar challenges with its Alaskan and Australian projects. COVID-19 border restrictions delayed crucial drilling at its $5 billion Red Mountain project. Then, regulatory changes in New South Wales increased its Mt Carrington project bond from $968,000 to $6.8 million, causing its joint venture partner to withdraw. Management’s decision to redirect remaining funds to Woods Point backfired when Victoria raised that project’s bond from $153,000 to $16.3 million, effectively ending White Rock’s operations.

Enter Silver47 Exploration Corp. (AGA:TSX.V), initially focused on its Michelle Project in the Yukon.

This 158 square km property showed promise with impressive drill results in 2022: 15 meters of 907 g/t silver with 45% lead and 4% zinc, followed by 18.29 meters of 310 g/t silver with nearly 17% zinc and over 8% lead.

However, permitting issues with the Environmental and Socio-Economic Assessment Board halted their planned 60,000-meter drilling program. While legal proceedings continue, Silver47 pivoted strategically.

Recognizing an opportunity, Silver47 acquired the Red Mountain project from White Rock for approximately $6 million in cash and shares.

The 620 square km property, located 100 km south of Fairbanks, already has a 43-101 resource of 15.6 million tonnes at 335.7 g/t AgEq (168.6 million ounces silver equivalent). Silver47 aims to expand this to 50-75 million tonnes at 300-400 g/t AgEq, potentially reaching 500-900 million ounces silver equivalent.

While reviewing projects, it’s imperative to also review comparables to see the value of other companies with similar assets. Comparably, Silver47’s $0.80 price is incredibly cheap.

The project benefits from existing infrastructure, with a haul road 30 km away, and sits on state-managed land free from federal jurisdiction and indigenous claims. At current prices, Silver47’s valuation represents a fraction of comparable silver projects, offering investors exposure to silver at roughly one-tenth the cost of peer companies.

Being an investor in Silver47 for a few years now, I was pleased to hear it was going public. The market is keeping a keen eye out for a great silver story. With Silver47, you can buy silver for a major discount (around 10% less) than what others are paying for other companies that have less silver.