Summa Silver (SSVR.V) Has Two Excellent Projects To Drive Their Valuation Higher
Both of their projects are high-grade silver yet they still have a modest valuation that is primed to catch the wave of gold and silver heading higher.
Yesterday, the Fed pulled the trigger on what will likely be their final rate hike of this recent campaign. That wasn’t overly surprising, but what was surprising is Chairman Powell started his smoke and mirrors show by saying he wanted to start by addressing recent banking developments. Yes, that is what he calls a banking crisis.
Then he went on to say that the problems are isolated and the banking sector is strong. He must have forgotten that after the Silicon Valley Bank collapse weekend, the bank stocks got hammered and many had to be halted. These “isolated” problems have seen depositors rushing to get their money out of small banks and put them in the biggest banks and investors in the stocks of those small banks following them out the exit.
It was pretty astonishing that he spent very few minutes discussing the banking crisis. He certainly didn’t seem interested in discussing the underlying problem. Which is that many banks are stuck holding mortgage backed securities and long term bonds that leave them unable to deal with all the depositors that want their money out. Or that he helped cause the problem after 14 years of near zero interest rates that he then jacked up to 5% and put many of the banks debt holdings under water.
I’ve heard a lot of commentary about the banking crisis, but what I have heard very few people mention is that the Fed’s balance sheet looks very similar to the banks. They are holding a huge position in the exact same kinds of assets. But, they are going to be able to backstop depositors in all the banks to the tune of around $18 trillion. Colour me skeptical.
No wonder he wanted to get off the topic of the bank crisis as quickly as possible. I was thinking to myself does he really think people are that stupid, that they will think it is a small, isolated problem. Everybody on the planet knows this is a bank crisis, except for the economists at the Fed it seems.
The worse thing investors and depositors can do with their money is listen to the Fed, FDIC, Treasury or any government entity. They are putting their money at severe risk.
It is much more prudent for investors and depositors to get their money out of small banks and park it in the big banks. Then as quickly as possible switch it into gold and silver to protect it. Even “Dr. Doom” Nouriel Roubini, who once called gold a Barbarous Relic, agrees that people should put their money in gold to combat the banking crisis.
For those that want to see their money grow, the gold, silver and other metals stocks are trading at record low valuations. If the gold and silver prices go into a strong bull market, then the stocks will have a rising tide that lifts all boats wave.
Some junior mining stock boats will rise more than others. This next company that I’m pleased to welcome as a new member of the Rocks And Stocks News sponsorship program is one such company.
A Silver Company With Spectacular Growth Potential
I’m always on the lookout for good silver stocks, the problem is they are hard to find. In February, I made Summa Silver Corp. a pick, then reached out to them to invite them to become a sponsor of my reports which they graciously accepted.
The reason I made them a pick and invited them to be a sponsor is because I’m very impressed with the drill results they have at their Mogollon project, near Silver City, New Mexico. They say a good place to look for a new silver mine is near an old mine, in their case why not near a city named after what they are looking for.
When looking at an exploration stock, it is all about what is revealed with the truth machine, the drill rig. The highlights from their Feb.1, 2023 news release caught my attention, check out these numbers.
Key Highlights
16.6 m at 445 g/t silver equivalent* (3.00 g/t Au, 207 g/t Ag) including 9.9m at 640 g/t silver equivalent* (4.26 g/t Au, 306 g/t Ag) both beginning at 289.1 m in MOG22-10.
17.8 m at 339 g/t silver equivalent* (2.46 g/t Au, 143 g/t Ag) beginning at 344.6 m including 2.1 m at 1,233 g/t silver equivalent* (1,002 g/t Ag, 12.9 g/t Au) beginning at 348.3 m in MOG22-08.
On March 6, 2023 they put out the table below that helps one understand the results from their recent drilling and the pending holes.
The g/m of silver equivalent is very impressive, they are getting thick intersections of high-grade to bonanza-grades.
Those orange, red and magenta dots are spectacular for grade and thickness and also help one understand the grade continuity they are getting from around the historical mine working. All those arrows indicate it is wide open to get a lot bigger.
I’ve often heard people in mining say grade is king, actually continuity is king because if you have sporadically distributed high-grade you will have a money losing mine. You have to mine what is between the high-grade and if it is waste rock, it dilutes the grade. In their case, they have the best of both worlds, high-grade and continuity.
I love it when companies show their drill core, it tells me that the geologists are very impressed with what they have drilled into.
Can’t blame them for wanting to show this core off, what it shows is the banding that is indicative of a long lived mineralizing system, which is exactly what you want in an epithermal system.
They say a picture tells a story. Whether looking at the high-grades, distribution of the high-grade, how open it is to grow or the core, it all adds up to a remarkably impressive story.
But, their story doesn’t end there. They also have an excellent project at their Hughes project in Tonopah, Nevada. As they are awaiting the pending results from Mogollon, they are warming up the drills at the Hughes project.
Check out some of the highlights from past drilling at the Hughes project it also has outstanding grades.
Usually a company is elated to have one project like this, having two is somewhat unique as you just don’t see it often. To find them in a junior with a $54 million valuation is an exceptional value proposition.
Catalysts that can move their valuation are pending assays from the Mogollon drilling and upcoming drilling at their Hughes project. After drilling at Hughes they can get back onto more drilling at Mogollon. They will be very busy with drilling and another key catalyst for them is a rising tide for gold and silver stocks.
In Closing
I’m very happy that Summa Silver took me up on the offer to join my sponsorship program as I like to find stocks before the crowd figures them out. Then I like to keep covering them in interviews with management and in my sector reports. I have a strong feeling there will be a lot to talk about when it comes to this junior.
Next up, I will follow this report up with an interview of their CEO early next week. Then not long after that they should have more assay results from Mogollon to talk about. Then shortly after that the drilling program at the Hughes project will come into play. I’m looking forward to the upcoming interview to help my audience learn more about the Mogollon project and the Hughes project.
As always, my reports are for information purposes only, they are not investment advice, it is important for you to speak with your financial advisors to determine if the companies I report on are suitable for you.
I’m also a big promoter of investors doing their homework, I’ve done interviews with management of most of the companies I follow. You can find those interviews on my Youtube Channel, search for Rocks And Stocks News, which is a good place to start your homework. The websites of the companies I follow have plenty of information in their news releases and corporate presentations to do additional homework.
Ultimately, well informed shareholders that understand the companies they invest in, and have reasonable time frames for companies to reach their success, are prone to make logical investment decisions not emotional ones. This is a recipe for success investing in any sector.
All the best,
Allan Barry Laboucan
interesting. Has Allegiant come across your radar? And who has farmed out Mogollon to Summa?
Thanks for doing this write-up! Summa has a lot going for it, and we need to get the word out about real silver juniors with good management and real potential while we are still young in this silver bull cycle. Plenty of poor projects and poor operators in the junior mining space, the good ones need more attention!