With silver in the early stages of what looks to be a long-term bull market, keep an eye on some of the top silver stocks, including Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF), Hecla Mining (NYSE: HL), Gatos Silver (NYSE: GATO) (TSX: GATO), Pan American Silver (NYSE: PAAS) (TSX: PAAS), and Avino Silver & Gold Mines (NYSE: ASM). Helping, First Majestic Silver CEO Keith Neumeyer says silver could climb to $100, even $130 per ounce. All thanks to silver’s deficit, its strong industrial demand, and just how undervalued it is as compared to gold.
“Neumeyer has previously stated that he expects a triple-digit silver price in part because he believed the market cycle could be compared to the year 2000, when investors were sailing high on the dot-com bubble and the mining sector was down. He thinks it’s only a matter of time before the market corrects, like it did in 2001 and 2002, and commodities see a big rebound in pricing,” as noted by InvestingNews.com.
Look at Dolly Varden Silver Corporation (TSXV: DV) (OTCQX: DOLLF), For Example
Dolly Varden Silver Corporation announced the first results from the Wolf Vein step-out directional drilling. High grade silver mineralization was intersected in a 40-meter southwest step-out, grading 1,091 g/t Ag over 9.38 meters, with significant base metal grades.
Approximately 8,000 meters of an ongoing 25,000m drill program at the Company’s 100% owned Kitsault Valley Silver and Gold Project is being drilled at the Wolf Vein to expand and infill the plunge of high-grade silver mineralization.
Wolf Vein Step-out
– DV24-404: 1,091 g/t Ag, 1.35% Pb and 1.40% Zn over 9.38 meters, including 2,505 g/t Ag, 3.42% Pb and 2.88% Zn over 1.63 meters.
* intervals shown are core length. Estimated true widths vary depending on intersection angles and range from 60% to 70% of core lengths, further modelling of the new intersections is needed before true widths can be estimated.
“We are encouraged with an increase in silver plus base metal grades over potential bulk underground mining widths at the Wolf Vein and eagerly anticipate more assays soon from this area. We are impressed with the consistency of mineralization, including strong native silver, within the intersection from drill hole DV24-404. Additional drilling to the southwest is being prioritized during the remainder of the 2024 drill season,” said Shawn Khunkhun, CEO of Dolly Varden Silver.
The Company is using directional drilling technology to precisely target areas for step-out and infill work. Drillhole DV24-404 is the initial “mother” hole on a step-out collared at surface from which three additional holes were directed off at depths near the base of the sedimentary cap (DV24-409, 412 and 414). Assays are pending for the three “daughter” holes (Fig 1). The directional drilling steered the holes to intersect the Wolf Vein at specific points that were a minimum of 30 meters apart. The drill hole was collared within the Surprise target area to the west of the Wolf Vein and intersected gold mineralization near the top of hole (Table 1).
Drill holes DV24-396 and DV24-402 targeted the upper, northeast portion of the recently discovered Wolf Vein Extension. These holes tested for mineralization below the projected plunge of high-grade silver first discovered in previously released drill hole DV21-273 (December 20, 2021 release). Both holes intersected alteration and the Wolf structure where elevated base metal values are typical.
Wolf Vein
The Wolf Vein is hosted in Jurassic-age Hazelton Formation volcanic rocks and is interpreted as a structurally controlled, multi phased, epithermal vein and vein breccias that occur along a southwest plunging zone of wider, higher grade silver mineralization. Native silver, parargerite, argentite and argentiferous galena are hosted in multiple phases of silica and iron carbonate veins and breccias. The extention of the mineralization discovered underneath the sedimentary rock cap and the initial Wolf deposit that comes to surface has a plunge extent of ver 950 meters at -45 to the southwest.
Other related developments from around the markets include:
Hecla Mining announced second quarter 2024 financial and operating results. “Hecla saw significant improvement in gross profit and free cash flow during the quarter – with our gross profit increasing more than 1.5 times over the prior quarter, and free cash flow generation of $28.3 million, which allowed us to reduce our net debt by $25.1 million,” said Cassie Boggs, interim President and CEO. “This financial performance was driven by strong results and free cash flow generated at Greens Creek and Lucky Friday, while Keno Hill’s ramp-up progressed well with throughput in excess of 400 tpd. With this strong performance and favorable price environment, we will continue our focus on reducing debt while continuing to invest in our operations and exploration programs.”
Gatos Silver announced its second quarter 2024 financial and operating results. The Company has a 70% interest in the Los Gatos Joint Venture, which in turn owns the Cerro Los Gatos mine in Mexico. Production for the second quarter of 2024 was previously disclosed on July 9, 2024. Dale Andres, CEO of Gatos Silver, commented: “The LGJV generated record revenue and free cash flow in quarter, reflecting significantly lower unit operating costs and higher metal prices combined with the strong previously reported production at CLG. The LGJV has distributed $95 million to its partners so far this year through July, with our share being $66.5 million. We remain on track to achieve 2024 production and cost guidance and we continue to expect that our updated life of mine plan scheduled for the third quarter of 2024 will further extend CLG’s mine life. We are also continuing to follow-up on the exciting initial exploration results we announced on July 23, as we continue to advance our district exploration program.”
Pan American Silver reported unaudited results for the quarter ended June 30, 2024. “Operations generated record cash flow before working capital changes of $203.3 million in Q2 2024, with solid performance on costs, which were below our expected ranges for both the silver and gold segments in the quarter. This resulted in free cash flow of $102.1 million in Q2 2024,” said Michael Steinmann, President and Chief Executive Officer. “We completed the new ventilation infrastructure at La Colorada on schedule in early July, and we are now seeing significant improvements in the underground working conditions. We expect silver production to increase in the second half of the year, which will bring annual silver production to within our guidance range based on first half 2024 results. We are also on track to meet our annual production outlook for gold, zinc, lead and copper.”
Avino Silver & Gold Mines, a long-standing silver producer in Mexico, reports second quarter production of 616,571 silver equivalent ounces. “Our second quarter production remained consistent with 616,571 silver equivalent ounces produced, up 5% over the second quarter of last year and tracking our production target for the year. We were able to start processing La Preciosa surface stockpile material through our mill with excellent recovery results, particularly silver, which exceeded our expectations. This contributed to the 26% increase in silver ounces produced this quarter, which we expect to grow significantly when we are able to commence mining and processing underground material from La Preciosa.” said David Wolfin, President and CEO of Avino. “We are eagerly anticipating the receipt of the environmental permits for La Preciosa. La Preciosa is an integral piece of our 5-year plan and will deliver economic growth and benefit to the local communities in Durango. With the price of silver gaining momentum, we remain focused on delivering organic growth for all stakeholders.”
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