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Next Generation Silver Producers: Part I

While there are a dearth of primary silver producers and even fewer quality companies, the same can’t be said of the next generation of primary silver producers. With the exception of Pan-American, Hochschild, Hecla, Fortuna, Fresnillo and arguably First Majestic Silver, there are essentially only a couple to no other high-quality primary silver producers (meaning no other companies derive at least 65% of total revenue from silver-equivalent production (silver and gold) and at least 40%-45% +/- from silver, now or in the future (inclusive a company’s advanced development projects), and have an all-in sustaining cost (AISC) profile per ounces of silver in the lowest quartile or bottom 40-50% on the industry cost curve (which may exclude First Majestic Silver for the time being).

Silver Seeker Report: This Week in Mining Issue #5

Endeavour Silver: Things are going from bad to worse for the higher-cost silver producer. In 2019, the company announced its El Cubo mine (which was its most profitable operation for a couple years) had become depletes of mineral reserves and it would be winding down operations until the company could drill out additional resources. This lowered output and caused an increase in companywide all-in sustaining costs (AISC). Further, due to heavy selling in silver and the company’s all-in cost structure being well above spot prices, should this continue for a prolonged period of time, it will be a cash drain. Beyond that, this week, the company completed the updated pre-feasibility study (PFS) at its Terronera silver project. Based on the preliminary economic assessment (PEA) and initial PFS, in addition to encouraging drill results after the study was completed, Terronera was to be its cornerstone asset, and by a substantial margin. Instead of publishing a summary of the PFS, Endeavour is now reviewing the study internally as it is less robust relative to the previous PFS. This could be resolved and be every bit at economic as originally thought but this in nonetheless unsettling news for the time being. | $AUY $PAAS $SILV $SVM $NEE.V $NGD $MUX $KL $GUY.TO $GCM.TO $EXK $ELY.V $GOLD $ALO $AGI

Silver Seeker Report: This Week in Mining Issue #4

$USA $EDV.to $EQX.to $FSM $FNV $WPM $KGC $MAX.to $OSK.to $PVG $NVO.V | America’s Gold and Silver Corp: Reported FY 2019 production of 5.8m AgEq oz, though only 1.2m oz. of that was actual silver ounces, the rest being base metals converted to silver equivalent. 2019 was a transition year for the company as it recapitalized and entered into a JV agreement with Eric Sprott for its Galena Complex. Having visited the site a couple times over the years, it is a solid smaller silver operation but optimization measures, a larger resource base and in turn production coupled with higher silver prices will make this a profitable operation in a couple of years. The real-story here is achieving commercial production at its Relief Canyon gold mine. When first acquired, this was going to be a profitable operation but with low margins, but now with gold $200-$250/oz. higher, it should have solid margins (assuming a long-term gold price deck between $1,450-$1,500/oz). In other words, it is looking like the worst days are behind it and over the next year and a half, should begin to generate a fair amount of cash flow.

Silver Seeker Report: This Week in Mining Issue #3

Aurcana: Increased the previously announced non-brokered private placement from $4m to $5.76m and completed the second tranche. This will go toward underground development (and in turn, reducing cap-ex) to bring its principle asset (Revenue-Virginius) into production and ideally, the remaining capital investment will be funded via debt or at least in large part. While it is difficult to generate positive operating cash flow in the current silver price environment, due to the higher grade nature of the deposit and in turn AISC/AgEq oz. is sub-$10.75/oz. (or $8/oz. Ag), due in part to a resource grade >1k g/t, this shouldn’t be an issue. The asset currently has a relatively small resource base of 21.2m oz. (2P), 29.9m (M&I inclusive of 2P), and an additional 13.2m oz. (Inferred). This asset, while small, will also derive the vast majority of revenue from precious metals: silver (71%) and gold (9%). $AUN.v $BCM.V $CALDAS $EQX $FSM $GOLD.TO $GORO $HIGH.V $MAG $MMX $SAND $SMF.TO $SILV $WM.TO

Silver Seeker Report: This Week in Mining Issue #2

Companies covered in this weekly review: $BTG $KOR.TO $EDV.TO $GCM.TO $MAG $SKE.V $AUY MAG Silver: Construction of the world class Juanicipio silver project continues to progress. The underground mine will commence production ahead of schedule in mid-2020. Over 25km of underground development has been completed to date. There are slight capital-cost over-runs relative to the January 2018 estimate, now estimated at $440m ($194m attributable to MAG). The ramp up will take some time on this large underground mine but this won’t really impact profitability as silver grades are highest in the earlier years. The project is now expected to reach 85% of nameplate capacity in Q4 2021 (up from 65% previously) and 90-95% in 2022. Commissioning of the flotation plant will start mid-2021.

Silver Seeker Report: This Week in Mining Issue #1

Alexco: is in the process of divesting its profitable and fast-growing remediation business (AEG) to the AEG management group. On closing of the transaction AEG will be pay Alexco $12.1m in cash, with the balance of $1.25m payable pursuant to a promissory note maturing on February 14th, 2021. This will go a long way to reducing the required capital investment to bring several Keno Hill mines back into production, feeding a central mill. Construction will start in 2020 and the because the company has already built the mill and started mine development, the buildout period is estimated at 8 or so months... Companies covered in this weekly report: $AXU $USAS $KOR.to $AG $FSM $KNT.v $GSV $KL $OR $SILV $PAAS $TXG.to $WGO.v

New Pacific Reports Final 2019 Drill Results from its Silver Sand Project, Bolivia - Continues to Return Broad Intervals of Near Surface Silver Mineralization

New Pacific’s Exploration Group is currently completing detailed geological and structural mapping and associated geochemical sampling on the wholly owned Silver Sand North Block which is located approximately two kilometres to the north of the Silver Sand deposit, including the recently acquired El Bronce Property (see the Company’s news release dated December 19, 2019 for details). The results will be utilized for subsequent target generation and initial drill testing. At the Silver Sand deposit the Company recently commenced a four-hole, 800 metres, metallurgical drill sampling campaign to support subsequent Preliminary Economic Assessment level studies including initial processing plant flow sheet design. Detailed structural, geological and geochemical modeling is ongoing which will be used for future advanced engineering (geotechnical, geometallurgical) studies and resource expansion target generation. Other activities remaining include geological logging and sampling of completed holes, data analysis and various QA/QC initiatives in preparation for the inaugural NI 43-101 resource estimate around the end of Q1 2020.

Kootenay Announces Drilling Begins at Columba High-grade Silver Project, Mexico

Kootenay President and CEO, James McDonald stated: "These next 6 months will be very exciting as we will have a steady flow of news from two drills at Columba while we follow up on the numerous high grades confirmed from the 2019 program. Not only that but we are preparing an inaugural drill program for our second high-grade vein property Copalito; expected to begin in the first quarter." The Company has contracted GlobeXplore, S.A. de C.V. of Hermosillo, Sonora, Mexico to conduct the drilling at Columba. Results of the drill program will be announced as soon as the assays are received and interpreted by the Company.

Golden Arrow Commences Drill Program at Indiana Gold-Copper Project

“The Indiana project is particularly exciting for us because in addition to its potential to host significant gold resources, it has permits in place and nearby processing infrastructure that significantly contributes to the production viability of the project,” stated Brian McEwen, VP of Exploration and Development for Golden Arrow. “The area has many additional excellent project opportunities and Indiana can become the driver and supporter of our acquisition program.”

Interview with Peter Spina: Is It Time To Give Up On Silver and Gold?

With stocks like Tesla setting new astronomical highs, almost by the day, while gold and silver continue to get pounded by the bullion banks, is it time to finally give up on the precious metals? If you’ve been invested in gold and silver over the past few years, there’s a good chance that question has entered your mind. Although perhaps that’s why I was so fortunate to have Peter Spina (who runs GoldSeek and SilverSeek) join me on the show to share his always insightful perspective.

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