I recently visited Huldra Silver Inc.’s [TSX-V: HDA] mining and milling operations in south-central British Colombia with the company’s CEO Ryan Sharp. Huldra Silver is emerging as Canada’s newest silver producer since they are hauling rock out of their second stope on Level 1 of their Treasure Mountain Mine, and their Merritt mill just shipped the first load of concentrates to a nearby smelter.
Huldra Silver Inc. has approximately 48.8 million shares issued and outstanding, and 64.3 million fully diluted, so with V.HDA shares trading around C$1.30 the company has a market cap near $63.4 million. The company is using a $10 million loan to finance mine and mill development while minimizing share dilution. This will be repaid with profits from production. Other large shareholders include Sprott and Coeur d’Alene Mines Corp. [NYSE.CDE].
In 2010 Ryan Sharp took over as CEO from Huldra and refocused the company with a new plan to leverage Treasure Mountain’s near-term production potential. Two years later, all of the plan’s milestones have been reached. Their new mill has just begun producing silver-rich lead and zinc concentrates. On November 23 the company announced that they’ve now shipped the first load of concentrates to a smelter.
Throughout the company’s history, management has minimized shareholder dilution by using the time proven “drill for structure and mine for grade” method of exploration. By mining several bulk samples over the years Huldra has been able to generate some cash flow from metal sales while collecting important geological and metallurgical information.
Huldra was founded as a private company in 1980 with the objective of exploring their 2,850 hectare [7,000 acre] Treasure Mountain property, which is 100% owned with no royalties. The mine’s 48 person camp is located 29km northeast of Hope and about a 3 hour drive east of Vancouver.
Initially silver was discovered on these claims in 1892, and around the early 1900s about 8,000 tonnes were mined from an underground stope and milled on site. Essentially Huldra is building a brand new modern underground mine at Treasure Mountain and does not have to work around any historic workings.
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Since 1980 Huldra Silver Inc. has been methodically exploring and developing their 100%-owned Treasure Mountain Mine and has still just barely scratched the surface of the property’s potential. Now that they’ve begun making and shipping concentrates, investors should start to notice Canada’s newest silver producer as a rapidly growing mining company. Longer term Huldra intends to use positive cash flow from these operations to acquire other projects with near-term production potential.
For more information on Huldra Silver, please visit www.huldrasilver.com
Simon Russell is a mining and geological engineer with over 10 years of diverse industry experience. His background includes hydrology and environmental engineering, exploration geology, underground contract mining, mine engineering, project management, and mine investment analysis. Mr. Russell has worked for many different types of mineral projects across the western United States and internationally for investors, consulting firms, and both major and junior resource companies. Mr. Russell is not an investment advisor and this is not intended as investment advice. Mr. Russell and members of the GoldSeek group may or may not own shares in the company described by this report.
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