Silver North/SNAG

Silver North Resources Ltd. announced it has entered into a non-brokered private placement for up to CA$1.5 million in gross proceeds.

The company said the placement will include 15 million units of the company at a price of CA$0.10 per unit, and the funds will be used for working capital to advance its Haldane Silver Project in the Yukon Territory.

A recent drilling program at the site discovered a series of three parallel silver mineralized veins at the Main Fault with results including 1.83 meters (true width) of 1,088 grams per tonne silver (g/t Ag), 3.90 g/t gold (Au), 1.89% lead (Pb), and 0.63% zinc (Zn), including 0.73 meters (true width) of 2,470 g/t Ag and 9.64 g/t Au, 3.88% Pb, and 0.99% Zn in hole HLD24-30.

Haldane is in the prolific Keno Hill District host to Hecla Mining Company’s Keno Hill Mine. "The Haldane Project has very similar geology and vein mineralization to the Keno Hill Mine," the company said in a release. "At Silver North's Haldane Project, only a fraction of the12 kilometers of the prospective structure that may host silver vein mineralization has been tested. Silver North's geological team has determined that an airborne magnetics and electro-magnetics (EM) geophysical survey is a key step in unlocking the structural architecture at Haldane to aid in targeting further drilling at the Main Fault and surrounding targets."

In the proposed financing, the company said each unit will consist of one common share and one non-transferable common share purchase warrant allowing the holder to buy an additional share for each full warrant held for a period of three years at $0.15 per additional share.

The closing of the offering is expected to occur shortly and is subject to receipt of all necessary regulatory approvals including the TSX Venture Exchange.

*In a post on the company on February 14, Technical Analyst Clive Maund said the stock is "more of a Buy than ever" and expected fundings taken on by the company "to be well taken up and probably oversubscribed."

Looking to 2025

This month, Silver North released an update on its exploration activities and outlined its plans for 2025, including elevating the Main Fault at Haldane to a high-priority target for further exploration.

At the Tim silver project, optioned to Coeur Mining Inc. (CDE:NYSE), geological observations have confirmed the presence of a Carbonate Replacement Deposit (CRD) system. The Tim project is located near Coeur's Silvertip Mine, and under the terms of the option agreement, Coeur can earn an initial 51% interest by funding US$3.5 million in exploration expenditures, with the option to increase to 80% upon completing a feasibility study and making a mine construction decision. The 2024 drilling program at Tim included 2,250 meters of drilling, targeting structurally hosted "chimney" mineralization and stratigraphically controlled "Manto" mineralization. Final assay results are still pending.

Silver North said it also secured additional claim groups in the Silvertip District in 2024, including the GDR Property, which exhibits the potential to host CRD-style mineralization. The Veronica claims adjacent to Tim contain a 450 by 450-meter silver-lead-zinc geochemical anomaly with silver values up to 31 parts per million, presenting a high-priority exploration target.

Analyst: Stock Ready to Break Out

Technical Analyst Maund said the stock's price has changed little since he last looked at it last October, but "the technical condition of the stock has improved significantly, putting it in an even better position to advance."

He said improving upside volume has helped to drive the Accumulation line for the stock "steeply higher."

"This is bullish volume action, which indicates that the H&S (Head-and-Shoulders) bottom pattern is genuine and that a breakout from it into a new bull market is likely to occur soon and the now positive momentum trend (MACD) also makes this a likely outcome," Maund wrote. "A breakout into the first upleg of a new bull market will soon lead to a cross of the main moving averages, which will provide 'official' confirmation that a new bull market has begun."

Silver North's chart also shows a "persistent high volume from the Spring of last year, which means that a significant quantity of stock has rotated from weaker to stronger hands since the sellers are mostly selling at a loss and the new buyers are looking for gains and are less likely to sell until they get them."

Maund continued, "The conclusion is that Silver North is now poised to break out into a major bull market, and it is rated as a Strong Buy for all time horizons."

Maund set two target prices each for its Canadian and U.S. listings: CA$0.15 and CA$0.24-CA$0.26 and US$0.12 and US$0.22-US$0.25.

The Catalyst: Silver's Bullish Trend Intact

Silver prices held steady on Friday after a strong breakout on Thursday, wrote James Hyerczyk of FX Empire.

"While the metal remains below recent highs, technical support levels suggest the bullish trend is intact," he wrote. "With gold rallying past US$3,000 on safe-haven demand and central bank accumulation, silver is expected to follow suit, benefiting from similar macroeconomic factors."

Unlike other precious metals, silver's industrial uses are also coming into play to create a deficit for the metal, an unparalleled conductor of electricity.

"Underpinning silver's fundamentals is robust demand from industrial applications," The Silver Institute said in its World Silver Survey 2024 report. "These continued to push higher last year, reaching a new all-time record, fueled by the remarkable rise in solar demand and in spite of stagnation in some other sectors. Sluggish silver supply, owing to the slight decline in global mine production, was another factor contributing to silver's deficit conditions last year."

The metal's unique properties "make it nearly impossible to substitute and its uses span a wide range of applications," the institute has said.

Mordor Intelligence noted that silver is expected to register a compound annual growth rate (CAGR) of more than 5% between 2024 and 2029.

Ownership and Share Structure

According to the company, 16.14% of the company is owned by the board and management.

Silver North Resources has 47.71 million outstanding shares and 36.94 million free float traded shares.

Its market cap is CA$4.08 million. Over the past 52 weeks, the company traded between US$0.07 and US$0.24 per share.