Issued on behalf of Yukon Metals Corp.
VANCOUVER – USA News Group – According to a new report from Mining.com, the global silver supply has flat-lined, all while explosive demand growth continues to cause supply chain issues. Within the report, several experts were referenced, with Sprott Money and Investopedia strongly indicating that the gold-silver ratio is worth watching, as both predict silver to break out later this year, in the wake of United States Feder Reserve Chair Jerome Powell hinting towards beginning the process of lowering interest rates. According to the Silver Institute’s forecasts, industrial applications will drive 58.3% of the world’s 1.2 billion ounces of demand, with silver demand for industrial uses having now jumped to 64% of global use from approximately half, representing a 19% increase from last year. With a flat supply growth being referenced throughout, it’s worth taking a closer look at developments from the mining sector involving silver, including from Yukon Metals Corp. (CSE: YMC), First Majestic Silver Corp. (NYSE: AG), Gatos Silver, Inc. (NYSE: GATO) (TSX: GATO), Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS), and Silvercorp Metals Inc. (NYSE-American: SVM).
Significantly adding to its momentum after acquiring a premium copper-gold property portfolio in June, well-financed mining exploration company Yukon Metals Corp. (CSE: YMC) just released an update of sample results ongoing reconnaissance fieldwork on its from its 715-hectare Star River Project, also located in the Yukon. This time the focus of the results centered more on silver and gold, as the initial results of the prospecting program included assays for 41 of 164 samples, with one sample assayed over 10,000 g/t silver, with multiple other samples over 1,500 g/t silver and up to 6.9 g/t gold at Star River.
“We are thrilled with the spectacular assay results received from this initial batch of samples, including one sample of over 10,000 g/t Ag and another at over 4200 g/t Ag,” said Rory Quinn, President & CEO of Yukon Metals. “The team have been hard at work sampling and mapping various areas of the property and have found compelling evidence of mineralization across multiple areas, in both outcrop and float. The Time-Domain electromagnetic (TDEM) survey was completed in August and the gravity survey is underway, the results of which will provide significant data relative to the potential continuity between these multiple showings.”
As part of the process of obtaining these results, Yukon Metals contracted the assistance of Yukon First Nations-owned exploration contractor Vision Quest, which completed ground preparation for the geophysical program, and successfully commissioned a temporary 10-person camp on the claims permitted under a Class 1 Notification on the claims.
While the geophysical work has progressed, on-site geologists initiated the first prospecting and mapping program to follow up on initial geophysical anomalies and investigate areas around historical showings. This effort led to the discovery of two new mineralized exposures in the central part of the claim block, which build upon previously reported showings from assessment reports.
Yukon Metals holds full ownership of the Star River base and precious metals project, which is easily accessible via the Robert Campbell Highway and the former Ketza Mine haul road. The project features several occurrences of polymetallic carbonate replacement mineralization and quartz-sulphide veins, initially discovered in the 1950s. Evidence of past underground and surface workings, conducted using historical exploration methods, can still be seen across the property, all connected through previously established access routes from the Ketza Mine road.
The Star River results came shortly after Yukon Metals announced positive results at its Birch Property, which included a rock-chip sample containing 14.1 g/t gold and 4,260 ppm copper, and 1,400m of 0.99 g/t gold with 2,310 ppm copper demonstrated by a soil anomaly.
In a move to further enhance its mining focus on silver and gold production in Mexico and the United States, First Majestic Silver Corp. (NYSE: AG) recently announced having entered a definitive merger agreement to acquire Gatos Silver, Inc. (NYSE: GATO) (TSX: GATO), which holds a 70% interest in the Los Gatos JV, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico.
By coming together, the emerging entity would consolidate three world-class, producing silver mining districts under one banner (Cerro Los Gatos, San Dimas and Santa Elena). The move would effectively enhance the combined production profile with strong margins, into a combined annual production of 30-32 million ounces of silver-equivalent, including 15-16 million ounces of silver at all-in sustaining costs of US$18-20 per silver-equivalent ounce.
“The acquisition of Gatos Silver is a highly compelling and transformative transaction that meaningfully enhances First Majestic's operating platform through the addition of 70% of Cerro Los Gatos - a high quality, long-life, unencumbered, free cash flow generating asset in the mining-friendly state of Chihuahua, Mexico,” said Keith Neumeyer, President and CEO of First Majestic. “Mexico is a country that First Majestic has operated in for over 20 years, and we are extremely excited to deploy our operating expertise within these mining districts to deliver operational synergies and exploration success for our shareholders. We look forward to working with the operating team at Cerro Los Gatos and with our new joint venture partner Dowa Metals & Mining Co., Ltd. (“Dowa”), and we are pleased to welcome all Gatos shareholders as they transition into being shareholders of First Majestic going forward.”
Within its Q2 2024 results, Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) highlighted that it saw its silver production of 4.57 million ounces largely impacted by ventilation constraints at its La Colorada factility, and weather-related disruptions at its Dolores and Cerro Moro facilities. As well, the miner generated record revenue of $686.3 million in the quarter, while recording silver segment cash costs and all-in sustaining costs (AISC), excluding NRV inventory adjustments, per silver ounce of $14.49 and $18.12, respectively.
“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,” said Michael Steinmann, President and CEO of Pan American Silver. “This resulted in free cash flow of $102.1 million in Q2 2024. 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.”
In China, Silvercorp Metals Inc. (NYSE-American: SVM) recently reported an update to its NI 43-101 Technical Report on Mineral Resources and Mineral Reserves for its underground Gaocheng Mine dated effective June 30, 2024.
As per the update, Silvercorp is now reporting a 15% increase in M+I resource tonnes from its 2021 Technical Report, specifically now with an increase of 18% in silver, with the new Estimated Measured and Indicated Mineral Resources of 11.5 million tonnes, grading 84 g/t silver, 1.18% lead, and 2.85% zinc, which includes 31 million ounces of silver. As well, Silvercorp’s Estimated Proven and Probable Mineral Reserves rose 20% to 5 million tonnes grading 81 g/t silver, 1.21% lead, and 2.84% zinc, which included 13 million ounces of silver.
Based solely on Proven and Probable Mineral Reserves, the GC Mine’s annual production rate is set to increase from the current 326,000 tonnes per annum (tpa) in FY2025 to around 362,000–363,000 tpa between FY2026 and FY2037, before slightly decreasing to 359,000 tpa in the final year, FY2038. Silver production is expected to reach approximately 0.8 million ounces annually. There is also potential to extend the Life of Mine beyond 2037 through additional exploration and development, particularly in areas containing identified Inferred Resources.
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