Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Recent drilling at Southern Silver’s flagship Cerro Las Minitas project in Mexico shows higher grade silver than previous drilling.
In a Mar. 20 news release, Southern Silver Exploration Corp. (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE)announced that drilling at the Blind Shoulder Zone had the following results:
The company stated that with “approximately 4,280 metres now completed of the planned 10,000 metre, US$2 million exploration program, further drilling with two core rigs will focus on continuing the systematic expansion of the Blind Shoulder mineralized zone.”
Lawrence Page, president of Southern Silver, stated that “assay results from this recent drilling have returned some of the better silver and base metal grades on the project to date and continues to not only expand the dimension of the Blind Shoulder target but have also yielded further improvement in potential size, quality and scope of the Cerro Las Minitas project. Our focus remains to establish this rapidly evolving district into one of the most significant economic polymetallic discoveries in our industry.”
Southern Silver owns 70% of the Cerro Las Minitas project, and stated that it is partnering with Electrum Global Holdings LP to turn the project into “a premier, high-grade, silver-lead-zinc mine.”
In Vicarage Capital’s Mar. 13 report, analyst Martin Wood highlighted that “the company has an experienced Board of Directors and strong management team with a good track record in project exploration, discovery and development.” Wood went on to say that “in November 2016, SSV commenced a new diamond drill campaign comprising 16 holes totaling 10,000m after receiving funding approval by Electrum for a US$2 M 2016-17 program. Drilling was designed to confirm the extent and dimension of the Blind Shoulder target and to confirm the continuity of mineralization at the Mina La Bocona target with the goal of significantly enhancing the current Mineral Resource estimate.”
In the Mar. 8 edition of the Gold Investment Letter, Eric Muschinski reported that the National Inflation Association (NIA) was initiating coverage on Southern Silver. According to Muschinski, NIA’s Mexican silver stock recommendations over the years have an almost “500% average return on 5 companies all within 18 months of initiating buy recommendations. If they just hit the average again it would equal $2.50 per share approximately on SSV. I’m as bullish as ever on silver and strongly recommend investors bolster your silver mining holdings during this current correction.”
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1) Melissa Farley compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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