Tonight after the close, Norseman Silver Inc. (NOC:TSX.V; NOCSF:OTCQB) reported more positive findings at Taquetren, its large land package in Rio Negro province located in the Patagonia region of southern Argentina.
You will recall that the company reported the discovery of a high-grade copper-silver vein at Veta Juan, where values exceeding 8% copper (Cu) and 200 g/t silver (Ag) were found in a vein covering a 300m strike length. Following up on this, the field team has encountered two additional significant copper-silver veins (Veta Nuevo and Veta Mirasol) as well as a new gold-bearing zone (Irma).
Read more about the new discovery here.
The significance of these new Cu-Ag-bearing veins is that Veta Nuevo is located 5km northwest of the original Veta Juan discovery, while Veta Mirasol is 3km to the east. These outcrops are situated along the rim of the caldera (collapsed volcano), which from a geological perspective, has been the site of some major discoveries.
The discovery that really caught my eye was Irma, where elevated gold values were found approximately 2km northwest of the Veta Juan area. This is significant because of the proximity of Taquetren to the Calcatreu deposit, a 400,000-ounce gold-equivalent discovery owned by Patagonia Gold.
The occurrences of copper and gold along the caldera are located in the Gastre Fault formation that hosts one of the largest undeveloped deposits in the world, Navidad (M&I: 632 million ounces Ag contained in 155.2 Mt at 127 g/t Ag, 0.85% lead, 0.05% Cu, 150 g/t silver equivalent). Of particular importance is that this region is largely under-explored and certainly under-exploited.
"The stakes at Taquetren are high and rising as more and more evidence arrives indicating the potential for world-class scale and value."
Given that Norseman’s field crew is headed by the geologist-prospector that actually discovered Navidad, Daniel Bussandri, Taquetren is off to a great start in the hunt for a game-changing deposit. The company has now identified four distinct target areas for additional geochemical and geophysical refinement, as well as a maiden drill program in early 2023.
When you consider that Pan American took out Navidad by acquiring Aquiline for US$626 million in 2009, the stakes at Taquetren are high and rising as more and more evidence arrives, indicating the potential for world-class scale and value.
I will not assign a target price just yet, but Norseman certainly has all the pieces to command a pre-discovery market cap of somewhere north of $20 million or CA$0.30 per share between now and year-end.
Buy Norseman Silver up to CA$0.20 (subject to revision on news).
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1) Michael J. Ballanger: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: Norseman Silver. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: My company, Bonaventure Explorations Ltd., has a consulting relationship with Norseman Silver.
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