Additional potential already identified
Summa Silver (TSXV SSVR / WKN A2P4EE) reaches a huge milestone: CEO Galen McNamara’s company just announced the first ever resource estimate for the company’s two U.S. silver projects Huges (Nevada) and Mogollon (New Mexico).
Specifically, the Hughes project in Nevada accounts for 10.47 million ounces of silver equivalent (5.94 million ounces of silver and 0.05 million ounces of gold) at an average grade of 332 g/t silver equivalent (188 g/t silver and 1.59 g/t gold) in the higher category indicated. In addition, there are inferred resources of 33.42 million ounces silver equivalent (16.2 million ounces silver and 0.19 million ounces gold) at an average grade of 418 g/t silver equivalent (202.7 g/t silver and 2.38 g/t gold).
In addition, Summa reports inferred resources of 2.74 million ounces silver equivalent (1.79 million ounces silver and 0.011 million ounces gold at 68 g/t silver equivalent (44.0 g/t silver and 0.26 g/t gold) contained in overburden.
For the Mogollon Project in New Mexico, the company estimates an inferred resource of 32.08 million silver equivalent ounces consisting of 12.12 million ounces of silver and 0.24 million ounces of gold at 367 g/t silver equivalent composed of 139 g/t silver and 2.72 g/t gold.
Clearly visible growth potential
In our opinion, Summa Silver has thus made a more than promising start with both projects. However, and the company emphasizes this emphatically, there is still considerable potential to expand the deposits at both Hughes and Mogollon!
This is because the Hughes mineralized zones, for example, are wide open for expansion and the project also includes the largely unexplored 4-kilometre extension of the highly productive Tonopah mining district. Here, 175 million ounces of silver and 1.86 million ounces of gold grading 679 g/t silver and 7.3 g/t gold were reportedly mined along the original strike length in the past. And this also amounted to 4 kilometers…
In any case, Summa has already set out to exploit this additional potential of the Hughes project and has already commenced expansion drilling. A fully funded drilling program has been designed to both expand the known zones of mineralization and to explore for new veins in the eastern extension of the Tonopah district.
Summa reports that the first extension drilling, which was carried out at a distance of 85 metres from the Ruby zone, has already intersected a target horizon as planned, which has zones with epithermal quartz veins and breccias that even show visible silver sulphide mineralization in places!
The Summa team also sees clear upside for Mogollon. This is because the known mineralization zones here also remain open for expansion. After all, the resource estimate now presented at covers just 2.4 of the 77 kilometers of the project’s known vein and prospective structure, the majority of which has not yet been explored using modern methods.
Conclusion: The first resource estimate is an important milestone for any exploration company, so it is easy to understand why Summa Silver’s CEO is proud of what has been achieved so far. Summa now has two of the rare, high-grade silver deposits in the USA and, with substantial deposits at both projects – composed exclusively of precious metals – has made what we believe is a very good start. And in a very efficient way, as according to the company, the average discovery cost per ounce was just USD 0.29 and each hole drilled in Nevada and New Mexico added an average of 915,291 ounces of silver to the resource! We also see it as very positive that Summa Silver has already identified clear potential for further growth of the deposits at both projects and has already started to explore for this. We will definitely stay tuned to this exciting silver story!
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