Silver X Mining Corp. (AGX:TSX.V) keeps upping the ante by increasing mill production at its flagship Nueva Recuperada silver-lead-zinc mine in Huancavelica, Peru.
“The company continues its upward trajectory,” wrote Caesars Report newsletter editor Thibaut Lepouttre.
The plant processed more than 169,000 ounces silver equivalent (Ag eq) in October versus 162,000 ounces Ag eq in September. The company also calculated recoveries of 89% silver, 80% gold, 85% zinc, and 86% lead.
The plant has seen eight consecutive months of increased processing on a three-month moving average from last January, Silver X said.
“The company continues its upward trajectory,” wrote Caesars Report newsletter editor Thibaut Lepouttre. “The production results for September were quite good despite the very unfortunate events in the last week of September as the employee of a contractor lost his life in the Tangana mine.”
Production was temporarily halted due to the incident, which is under investigation.
In September, the processing plant calculated recoveries of 84% for silver, 80% for gold, 75% for zinc, and 85% for lead.
“The hardworking Recuperada team has maintained consistent production levels within the mining unit as we continue to advance new production faces,” said Silver X Chief Executive Officer José Garcia. “The bulk of production is coming from the Tangana 1 vein, where we remain focused on grade and consistency.”
The Catalysts
It’s been a big year for Silver X, as they expanded the resource at the site and the increased production at the mill.
It updated its inferred mineral resource estimate for the 22,000-hectare site in June to 14.9 million tonnes (Mt) at 162.65 grams per tonne silver (g/t Ag), 2.54% lead per tonne (Pb/t) and 2.5% zinc per tonne (Zn/t), an increase of 104% from totals reported in 2021. It also added five additional veins to the resource inventory.
The company also said there were measured and indicated mineral resources at the site of 841,286 tonnes at 118.5 g/t Ag, 2.85% Pb/t, and 2.16% Zn/t.
The majority of the established resource, 12 million tonnes across seven veins, is situated in the Tangana Mining Unit, the main source of material for the 720 tonnes per day (tpd) Nueva Recuperada processing plant.
The plant’s capacity was expanded this year from 600 tpd with the installation of a new jaw crusher. Amounts produced could continue to increase as full commercial production is expected at the plant by the end of the year.
The updated resource is an important step on the way to the company’s goal of becoming a mid-tier producer within the next three years. A preliminary economic assessment (PEA) is expected by the end of 2022.
Silver X started trading in late June 2021 after Oro X merged with Latitude Silver earlier in the year. The company then raised CA$14 million and started drilling to improve the resource and further de-risk the project. It is currently finishing a 15,500-meter drilling campaign at the site to support the upcoming PEA.
Ownership and Share Structure
Management owns about 25% of Silver X; and institutions including Baker Steel Capital Managers LLP, U.S. Global Investors, and Sprott Asset Management own a total of about 26%; the company said.
Silver X has a market cap of CA$53.54 million with 150.8 million shares outstanding, and 103.2 million free-floating. It trades in a 52-week range of CA$0.39 and CA$0.17.
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1) Steve Sobek compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. They or members of their household own securities of the following companies mentioned in the article: None. His company has a financial relationship with the following companies referred to in this article: None.
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