In a May 4 research note, Red Cloud Securities analyst David A. Talbot discussed the just released initial resource estimates for Silver Viper Minerals Corp.'s (VIPR:TSX.V; VIPRF:OTCQB) La Virginia gold-silver (Au-Ag) project.
After incorporating the results into its model on Silver Viper, Red Cloud increased its target price on the company to CA$1.30 per share from CA$1. The current share price is about CA$0.44.
"While we consider the initial estimate a positive step, it is relatively small and low grade, and we believe it is not reflective of the property," Talbot commented. "We envision potential to increase grades given the high Au and Ag intercepts seen from recent drill results."
The five deposits at La Virginia are estimated to have a total resource of 48.9 million ounces (48.9 Moz) of silver equivalent (Ag eq) or 0.7 Moz gold equivalent (Au eq). Indicated resources stand at 154.3 thousand ounces (154.3 Koz) gold and 6.93 Moz silver. Inferred resources are 260.3 Koz gold and 12.9 Moz silver.
"The resource ranks 15th of 32 comparable Ag-Au deposits, while its 92 g/t [grams per ton] grade ranks it 23rd," Talbot wrote.
As for methodology, Talbot indicated that to calculate the resource estimate, Arseneau Consulting Services employed kriging for the Las Huatas, Con Virginia and El Rubi deposits, but used inverse distance squared for the other two. The firm capped grades at 1.5 meters (1.5m) at up to 15 g/t gold and 1,000 g/t silver. It used metals prices of US$1,650 per ounce for gold and US$22 per ounce for silver.
Talbot highlighted that the El Rubi deposit is "gaining critical mass," as shown in the resource estimate, now accounting for 95% of gold and 83% of silver mineralization. Currently, El Rubi spans 500 meters along strike and 300 meters vertically.
Silver Viper plans a phase three drill program at La Virginia to test prospective anomalies and expand the current resource. "The trend currently extends for 6.4km, but work suggests mineralization may extend for up to 1km S and 2km N along strike," Talbot noted.
Red Cloud has a Buy rating on Silver Viper. "We expect the stock to re-rate," the analyst concluded.
Read what other experts are saying about:
Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Silver Viper Minerals. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from Red Cloud Securities, Silver Viper Minerals Corp., Development Update, May 4, 2021
Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Company Specific Disclosure Details
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.
Analyst Certification
Any Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst's compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
