Summa Silver Corp. (SSVR:TSX.V; SSVRF:OTC) discovered several new, high-grade surface showings at the Mogollon gold-silver project in New Mexico, on which the company has a 100% interest earn-in option, reported Research Capital Corp. analyst Stuart McDougall in a July 20 update note.
"We reiterate our Speculative Buy recommendation," McDougall wrote.
264% Implied Return
Upon the news, Research Capital also maintained its CA$2 per share target price on the Canadian explorer. Its share price now, in comparison, is CA$0.55.
The return to the target from Summa Silver's current price represents a substantial return for investors of 264%.
Samples Show High Grades
Summa Silver's discovery came during reconnaissance work in advance of anticipated drilling in the fall. These recent efforts included testing 126 surface samples of old dumps, outcrop, and float in the Silver Bar, Great Western, and highly prospective Queen vein systems.
Sample results "all point to their continuation beyond historic underground workings," wrote McDougall. Grades varied, as expected, but included high ones of silver, gold, and copper.
Some of the highlight results of sampling from all three veins were:
- From the Silver Bar vein: 8,373 grams per ton silver (8,373 g/t Ag), 5.39 g/t gold (Au) and 4.43% copper (Cu) (float sample) and 2,332 g/t Ag, 0.67 g/t Au and 6.06% Cu (grab sample).
- From the Great Western vein: 812 g/t Ag, 3.8 g/t Au and 18.4% Cu (dump sample) and 89 g/t Ag, 0.07 g/t Au and 8.77% Cu (grab sample).
- From the Queen vein: 221 g/t Au, 39.3 g/t Au and 0.83% Cu (dump sample) and 38 g/t Ag, 4.52 g/t Au and 0.16% Cu (grab sample).
"Summa Silver intends to follow up the results with more detailed geological mapping, rock chip sampling, and soil geochemical surveys to better define the structural controls on mineralization and their orientations," wrote McDougall.
Further Exploration Upside
Ultimately, the new showings expanded Mogollon's cumulative vein potential to 75 kilometers (75 km). Only 0.5 km of that has been drilled.
Thus, the remainder represents exploration upside.
Drilling Progress at Hughes
In other news, reported McDougall, at its Hughes silver-gold project in Nevada, Summa Silver completed several drill holes, results of which are pending.
"Meter-scale quartz veins, breccias, and stockworks with silver sulfide minerals were noted from the Ruby and Sapphire targets located east of the core historic mine area," the analyst noted.
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Disclosures for Research Capital Corp., Summa Silver Corp., July 20, 2023
Analyst Certification I, Stuart McDougall, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
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