Financialnewsmedia.com News Commentary
PALM BEACH, Fla., July 28, 2020 /PRNewswire/ -- Although the recent pandemic has helped and hurt the revenues of various mining company outputs and revenues, silver is expected to track the rise of gold in 2020… which is good news for silver mining operations and investors alike. An article in Investing News said: "There are many factors to consider when looking at silver companies, from metal prices to demand to management. But it's a good idea to start with the top silver-producing countries… Knowing the top silver-producing countries can help investors understand the logic behind the exploration and development decisions that companies make. For example, high silver production in a particular country might indicate mining-friendly laws or high-grade deposits." A recent report from the London-based precious metals consultancy, Metals Focus, discussing its latest silver survey for the Washington, DC, based Silver Institute, said that: "Overall the report suggests that global mined silver production fell for the fourth consecutive year in 2019, dropping by 1.3% year-on-year to 836.5 million ounces (26,019 tonnes) due to declining grades at large silver mines, lower silver output from copper mines and disruption-related losses at some major producers…" but they continued saying: "the outlook for silver prices over the rest of 2020 remains constructively positive." Active mining companies in the markets this week include: MAG Silver Corp. (NYSE: MAG), Aftermath Silver Ltd. (TSX-V: AAG) (OTCQB: AAGFF), Endeavour Silver Corp. (TSX: EDR) (NYSE: EKX), First Majestic Silver Corp. (TSX: FR) (NYSE: AG), Pan American Silver Corp. (TSX: PAAS) (NASDAQ: PAAS).
The report continued: "The analysts expect physical investment to enjoy strong growth. Importantly, they also believe that professional investor interest in silver will improve considerably in the months to come, as confidence that gold is once again in a sustainable bull market grows and silver's historical undervaluation compared with gold makes it look yet more attractive. The silver price still moves up and down with the gold price, but without the sometimes extreme volatility we have seen in the past. There has been little change, therefore, among the world's major silver producers with Mexico, Peru and China comfortably ahead of the rest, Australia has overtaken Russia and Poland to move into fourth place and it is interesting to note that now that three of the world's top 5 silver producing nations, China, Australia and Russia, are also the world's top three gold producers. If the pundits are correct and gold is due for a strong bull run as a result of the coronavirus-induced global recession/depression, and drags silver up with it, then these three countries will do particularly well in terms of revenues."
Aftermath Silver Ltd. (TSX-V: AAG.V) (OTCQB: AAGFF) BREAKING NEWS: Aftermath Silver Announces Transformative Acquisition of the Berenguela Silver-Copper Project, Peru - Aftermath Silver is pleased to announce that it has entered into a binding Letter of Intent (the "LOI") with SSR Mining Inc. ("SSRM") to purchase 100% of the Berenguela silver-copper project located in Puno, Peru ("Berenguela" or the "Project") through the purchase of 100% of SSRM's shares in the Peruvian holding company Sociedad Minera Berenguela S.A. ("SOMINBESA"). Closing of the acquisition is subject to Aftermath Silver and SSRM having executed and delivered the acquisition agreement, SSRM having reacquired a 100% direct and indirect interest in SOMINBESA, the owner of the Project, from Valor Resources Limited ("Valor"), the approval of the TSX Venture Exchange and certain other customary closing conditions.
Ralph Rushton, President and CEO of the Company, commented "The Berenguela acquisition perfectly matches our corporate strategy of acquiring de-risked assets with immediate value creation for our shareholders. When the Berenguela acquisition is complete, Aftermath Silver will have assembled one of the largest portfolios of silver development assets. Combined with the organic growth we hope to achieve at Challacollo, we believe it positions Aftermath as one of the preeminent silver development companies."
Berenguela is located in the Department Puno, in Southern Peru, between 4150 and 4280 meters above sea level in the Western Cordillera of southern Peru. It is located 6 km north-east of the closest community of Santa Lucia, the nearest town. Berenguela is close to regional centres at Juliaca (1.5 hours drive) and Arequipa (2.5 hours drive), these cities have daily flights from Lima. A railway loading station is located at Santa Lucia, connecting to the port of Matarani on the Pacific coast. Santa Lucia is connected to the national grid at 220 Volts.
Small scale production from surface pits and underground occurred in the early 1906 through to 1958, for a total of approximately 500,000 tonnes. ASARCO optioned the project in 1965 undertaking the first large scale investigations. Several companies subsequently performed drilling and bulk sampling for metallurgical test work. SSRM (then Silver Standard) optioned the Project in 2004. Between 2004 and 2005, SSRM undertook 222 RC holes, metallurgical test work and produced a NI 43-101 technical report on the Mineral Resource in October 2005 to complete 100% ownership. Subsequently, SSRM drilled 28 diamond holes between 2010 and 2015. SSRM optioned the property in 2017 to ASX-listed Valor Resources Limited ("Valor"), who completed 69 RC holes in 2017. In April 2020, SSRM and Valor entered into a definitive agreement pursuant to which Valor has agreed to return to SSRM a 100% direct and indirect interest in SOMINBESA, the owner of the Project. A total 318 drill holes have been drilled between 2004 and 2017 for a total of 34,796 metres. Read this entire release and more news for Aftermath Silver at: https://www.financialnewsmedia.com/news-aag/
Other recent developments in the mining industry include:
MAG Silver Corp. (NYSE: MAG) recently announced that, pursuant to a transaction (the "Transaction") among Reyna Silver Corp. (formerly named Century Metals Inc.) (the "Issuer"), Reyna Silver Mining Inc. (formerly named Reyna Silver Corp.) (the "Target") and a wholly owned subsidiary of the Issuer ("Subco"), MAG has acquired, in exchange for its existing preferred shares of the Target and for no additional consideration, 14,556,706 common shares of the Issuer ("Company Shares") together with certain contractual rights of participation in future issuances of Company Shares (the "Participation Rights"). The preferred shares of the Target were previously issued to MAG in connection with the sale by MAG of certain non-core assets.
Endeavour Silver Corp. (TSX: EDR) (NYSE: EKX) recently announced that the Company's recent re-assessment of all aspects of the Terronera Mine Project in Jalisco state, Mexico has resulted in more robust economics in the final Pre-Feasibility Study ("2020 PFS") compared to the earlier Pre-Feasibility Study released on August 30, 2018 ("2018 PFS").
Endeavour management worked with Ausenco Engineering Canada Inc. (Ausenco) on the re-conceptualization and re-engineering of the project to generate the significantly improved 2020 PFS economics presented herein. Ausenco will co-author the 2020 PFS Technical Report in compliance with National Instrument 43-101, to be filed on SEDAR and EDGAR within 45 days of this news release. All currency references herein are in US$.
First Majestic Silver Corp. (TSX: FR) (NYSE: AG) recently announced total production in the second quarter of 2020 reached 3.5 million silver equivalent ounces consisting of 1.8 million ounces of silver and 15,764 ounces of gold. Quarterly production was impacted following Mexico's Ministry of Health's Federal Decree requiring all non-essential businesses, including mining, to temporarily suspend activities throughout most of April and May in response to the global pandemic. Despite having limited operations in the quarter, total production was better than expected due to a slower ramp down at San Dimas compared to the other mining units. In the first half of 2020, the Company has produced a total of 9.7 million silver equivalent ounces consisting of 5.0 million ounces of silver and 47,967 ounces of gold.
Pan American Silver Corp. (TSX: PAAS) (NASDAQ: PAAS) recently announced it has acquired ownership and control of an additional 450,000 common shares of New Oroperu Resources Inc. (ORO.V) ("New Oroperu") through the exercise of 450,000 previously acquired Common Share purchase warrants (the "Warrants") with an exercise price of CAD$0.20 per common share of New Oroperu ("Common Shares") on July 13, 2020 , for gross proceeds to New Oroperu of CAD$90,000 (the "Warrant Exercise").
Immediately following the completion of the Warrant Exercise, Pan American owns directly or indirectly, or exercises control or direction over 4,850,000 Common Shares, representing approximately 18.61% of the total issued and outstanding Common Shares on a non-diluted basis, and approximately 14.33% of the total issued and outstanding Common Shares on a fully-diluted basis. Prior to the Warrant Exercise, Pan American held directly or indirectly, or exercised control or direction over 4,400,000 Common Shares and 450,000 Warrants, representing approximately 17.18% of the total number of issued and outstanding Common Shares on a non-diluted basis.
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