Silver Hammer Mining Corp. (HAMR:CSE; HAMRF:OTCQB) has found encouraging results from their Phase II drilling program on Silver Strand near Coeur d’Alene, Idaho. The drilling was performed by a local contracting company, Nasco Industrial Service and Supply (NISS), which established nine holes from an underground station. According to Silver Hammer Mining Corporation, “eight of the nine holes . . . encountered mineralization within the anticipated structural and silicified zone, which measures 30 meters wide over a 170-meter strike length to date."
Silver Hammer Mining Corp. is a mining company primarily based in Idaho and Nevada, which are known as tier-one mining-friendly jurisdictions. The company’s flagship operation resides at Silver Strand near Coeur d’Alene. In addition to the Idaho site, the company has two major operations in Nevada: the Eliza Silver Project in Eureka, Nevada, and the Silverton Silver Mine near Tonopah, Nevada.
Silver Hammer Mining Corp. has an experienced team, some of whom have extensive technical expertise in the industry, such as their director, Ron Burk, and newly appointed President and CEO, Peter Ball.
Drill Results
The drilling found three gold (Au) dominant intercepts and six silver (Ag) dominant intercepts. According to Silver Hammer, six of the nine drill holes returned greater than 100 grams per ton of silver or greater than 1 gram per ton of gold (1 g/t Au). A few of the drill holes returned particularly interesting finds.
SS22-017 seemed to indicate further potential for gold at Silver Strand, as it returned 2.9 g/t over 8.4 meters.
SS22-015 found three mineralized zones and found 613 g/t Ag over 0.5 meter. According to the company, it extended mineralization to 65 meters below what has previously been found.
SS22-18 also found multiple mineralized zones, with 212 g/t Ag and 0.67 grams per ton over 1.5 meters and 2.45 g/t Au and 8.9 g/t Ag, over approximately four and a half meters.
SS22-011 found 115 g/t Ag and 2 g/t Au over 0.7 meter, and an additional 9.9 g/t Ag and 1.7 g/t Au over approximately 2 meters in an area with no previous drilling.
Ballanger said, "I believe that it is time to revisit silver for what is shaping up to be — finally — a stellar performance in 2023."
According to Silver Hammer Mining Corporation, “2022 drilling results extend mineralization further along the strike to the northwest, southeast, and to depth.” Overall, the company seems optimistic about future returns from their drilling on Silver Strand.
The company reported that the results from their drilling at Silver Strand demonstrated that the potential for mineralization remains far beyond the historically mined areas. SS22-009, SS22-011, SS22-012, and SS22-013 tested the southeast region beyond previously modeled Silver strand mineralization.
Overall, the region has proved a reliable source of precious metals and other valuable minerals. Despite challenging markets in 2022, the company has focused on “high impact, low-cost work,” while many other companies ceased operations in anticipation of better markets.
Why Silver and Gold?
Silver and other precious metals are often considered to be “safe haven” investments. In difficult markets, the value of these materials tends to remain relatively stable. Silver has multiple applications that make it thrive in difficult markets.
David Morgan of the Morgan Report and Michael Ballanger of GGM Advisory Inc. both predict that silver will do well in 2023.
Ballanger noted that silver tends to spike during financial crises, as it did in 2008 and in 2020, and recommends shifting portfolios to silver developers. He said, "I believe that it is time to revisit silver for what is shaping up to be — finally — a stellar performance in 2023."
Morgan reported that the silver market is displaying a “cup and handle” formation that usually predicts a rise in value and that demand for silver remains high, while supply remains relatively low.
Chen Lin of What is Chen Buying? What is Chen Selling? has also spoken highly of silver.
According to Lin, silver has critical applications in the construction of solar panels. Given the increasing demand for solar power in place of fossil fuels, silver may become a valuable commodity.
Lin reported that “in 2021, solar PV used 13% of total silver.” The upcoming debut of new solar panel technology may increase demand for silver, as it requires more silver than previous models.
Catalyst: Leadership Change and Exploration Programs
Silver Hammer utilized existing underground sites to extend its new drilling operations and cut costs associated with establishing a new site. The company seeks to extend its explorations deeper in anticipation of richer mineral deposits further below the surface. According to Silver Hammer, this is to be expected of mineral-rich formations in the area, such as the Rivett formation.
Technical analyst Clive Maund listed Silver Hammer as one of nine stocks that should pique your interest.
The company also seeks to extend its mining on the surface, and increase the total area covered by its mining operation on Silver Strand.
The company will use the data yielded by this drilling operation to update its 3D model of Silver Strand.
According to the company, “it is anticipated that a geophysical ‘signature’ will be defined for the Silver Strand structure, which will allow it to be traced across the property, a potential strike length of five kilometers. This will then translate into new high-potential drill targets being defined on the 5.85 kilometers squared property.”
Silver Hammer is also looking forward to a leadership change, replacing the interim CEO, Warwick Smith, with a permanent CEO. The new leadership is focused on growth, advancement of assets, and capital markets.
Silver Hammer Mining Corporation received CA$3 million of investment in June, and despite the rocky market, the company reported that it still holds CA$1 million.
Technical analyst Clive Maund indicated in November of 2022 that Silver Hammer Mining could be worth keeping an eye on. Maund listed Silver Hammer as one of nine stocks that should pique your interest.
“Whilst it could break lower from this pattern, this is only likely if a market crash forces the sector temporarily lower. Otherwise, it looks set to break higher,” Maund noted.
He continued saying, “We should note that it may take some more time to do so, given that the falling 200-day moving average is still some way above the price. Positives are that the Accumulation line has held up quite well on the decline from the peak last April, and downside momentum (MACD) has dropped out.”
Ownership and Share Structure
Streetwise Ownership Overview*
Silver Hammer Mining Corp. (HAMR:CSE; HAMRF:OTCQB)
According to Reuters, 8.37% of Silver Hammer's shares are owned by management and insiders. Among top investors, President Morgan Lekstrom has the most out of management at 2.30%, with 1.08 million shares. Director Lawrence Roulston has 1.28%, with 0.60 million, and Director Michael R. Dake has 1.10%, with 0.52 million.
Silver Hammer Mining Corp. does not report any institutions or strategic investors, however, it reports that it is working with High Tide Consulting Corp., an IR firm, and Gold Silver Pros, an influencer.
91.63% is in retail.
Silver Hammer Mining Corp. has a market cap of CA$12.6m, based on a 50-day moving average, and 46,713,662 shares, 11,289,538 warrants, and 2,400,000 options.
The company reports CA$1 million and a monthly burn rate of CA$120k. It currently is not drilling but has plans for the summer of 2023.
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1) Amanda Duvall wrote this article for Streetwise Reports LLC 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.
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