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Silver Co.'s Inaugural Drilling Program Commences

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The 2024 drilling program at the Silver North Resources Ltd. (SNAG:TSXV; TARSF:OTCMKTS) Tim property, under option to Coeur Mining Inc., has officially begun. Find out how this agreement plays into Silver North's upcoming plans.

The 2024 drilling program at the Silver North Resources Ltd. (SNAG:TSXV; TARSF:OTCMKTS) Tim property, under option to Coeur Mining Inc., has officially begun. This program is part of an option agreement allowing Coeur to earn up to an 80% interest in the property. The current plan involves approximately 2,000 meters of drilling, targeting silver-lead-zinc Carbonate Replacement Deposit (CRD) mineralization. This mineralization is similar to that found at Coeur's Silvertip Mine Property, located 19 kilometers south of Tim.

Jason Weber, President and CEO of Silver North, expressed enthusiasm about the collaboration, stating in the company news release, "We are excited to see Coeur start the inaugural drill program at Tim. We are very pleased to be working with their experienced team in our efforts to bring new silver discoveries to bear for Silver North's shareholders." The drilling initiative aims to explore a nearly 2,000-metre strike length of prospective stratigraphy, testing both "chimney" style and "manto" mineralization.

Historical data supports the potential of the Tim property. According to the release, previous trench work from the 1980s revealed significant silver mineralization. Recent efforts by Coeur to verify earlier sampling returned promising results, including 468.1 grams per tonne (g/t) silver, 21.1% lead, and 0.3% zinc over 4.0 meters in one trench. Another trench, located about 200 meters along strike, showed 265.0 g/t silver, 6.7% lead, and 0.9% zinc over 8.8 meters. These results enhance the property's status as a high-priority exploration target due to its geological similarities to the Silvertip Project.

Silver’s Outlook

In a July 3 report on BullionVault, it was noted that "silver touched US30.67 for a 4.4% jump, showing strong momentum in the precious metals market amid weakening U.S. labor data and shrinking services sector activity."

This surge in silver prices was highlighted by the observation that "gold priced in Dollars has risen 13.9%, silver 27.4%," showcasing the robust performance of silver in the current economic environment. UBS emphasized the strategic value of precious metals, stating, "We see gold as an attractive geopolitical hedge and portfolio diversifier, and rate the metal as most preferred." This sentiment often extended to silver as well, given its historical correlation with gold. 

In his June 13, 2024, analysis, Technical Analyst Clive Maund highlighted that Silver North Resources Ltd. was "continuing to shape up well." 

On July 5, FX Street wrote about the silver market's recent performance, highlighting that "silver price (XAG/USD) posts a fresh three-week high near US31.00 in Friday’s American session." The report explained that "the white metal strengthens as U.S. bond yields weaken after the United States (US) Nonfarm Payrolls (NFP) report for June showed that the labor market lost momentum."

This decline in U.S. bond yields and the resulting impact on silver prices was further detailed with the statement, "Silver price jumps to near US31.00 as U.S. yields decline after weak US NFP report." FX Street also mentioned that "a decline in yields on interest-bearing assets reduces the opportunity cost of holding an investment in non-yielding assets, such as silver."

Additionally, the technical analysis indicated positive trends for silver, as "silver price strengthens after a Falling Channel breakout," and "the 14-period Relative Strength Index (RSI) shifts into the bullish range of 60.00-80.00, indicating that momentum has shifted to the upside." 

Company Catalysts

The commencement of the 2024 drilling program at Silver North's Tim property is a key development for the company's exploration activities. Under the terms of the option agreement as specified by the company, Coeur Mining Inc. can earn a 51% interest in the property by completing a minimum of US$3.15 million in exploration expenditures and making additional cash payments to Silver North totaling US$275,000 by December 31, 2026. Coeur has the option to increase its interest to 80% by making further cash payments of US$100,000 annually in 2027 and 2028, completing a positive feasibility study, and notifying Silver North of its intention to develop a mine at Tim by December 16, 2028.

The agreement stipulates that Coeur must fund a minimum of US$700,000 for the 2024 program. The property's road accessibility via 25 kilometers of 4 x 4 access off the Silvertip Mine Road supports the logistical aspects of the exploration. Verification of historical trench results by Coeur has yielded significant silver, lead, and zinc mineralization, reinforcing the exploration potential of the Tim property.

Expert Opinions on the Company

*In his June 13, 2024, analysis, Technical Analyst Clive Maund highlighted that Silver North Resources Ltd. was "continuing to shape up well." He referred to the fundamentals of the company and recommended looking at the company's investor deck for detailed geological information. Maund emphasized that the stock had been recommended on three prior occasions at opportune "buy spots," each time followed by a rally. He noted that the price had recently reacted back to support at the lower rail of a developing uptrend channel, making it a very good point to buy or add to positions.

Maund also pointed out that the corrective action of the past couple of weeks had unwound the earlier overbought condition, fully restoring the stock's upside potential. He observed a bullish crossover of the main moving averages, which placed the stock in a stronger position to advance. "While the boundaries of this channel will probably need adjusting with the passage of time, the adjustment should be in favor of shareholders as the uptrend is very likely to accelerate," he highlighted.

Maund noted, "whilst the price remains below this resistance, we are generally in a favorable zone to accumulate the stock," suggesting that breaking above this resistance would mark the "official" start of a major bull market with expected marked acceleration to the upside. The strong Accumulation line, favorably aligned moving averages, increasing volume, and improving momentum all suggested a likely breakout.

Richard Mills, writing for Ahead of the Herd on June 3, 2024, also expressed a positive outlook for Silver North Resources, referring to the company as "the next pure silver play." Mills highlighted the company's focus on the Keno Hill silver-mining district, noting that Silver North offers exposure to one of Canada’s most prolific silver districts.

streetwise book logoStreetwise Ownership Overview*

Silver North Resources Ltd. (SNAG:TSXV;TARSF:OTCMKTS)

*Share Structure as of 7/10/2024

He pointed out the high-grade potential of the Haldane project and the promising collaboration with Coeur Mining at the Tim property. Mills emphasized the strategic value of these properties, stating, "Silver North offers strong discovery and development potential against the bullish backdrop for silver."

Mills concluded that Silver North Resources was strategically positioned to benefit from the rising silver market, especially given its strong management team and valuable projects in the Yukon Territory.

Ownership and Share Structure

According to the company 33% of the company is held by management and insiders. 20% is with institutional investors.

The rest is with retail. 

Silver North Resources has 46.1 million outstanding shares and 33.87M free float traded shares. Over the past 52 weeks, the company traded between US$0.0250 and US$0.4347 per share.

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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver North Resources Ltd. 
  2. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  3.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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* Disclosure for the quote from the Clive Maund article published on June 16, 2024

  1. For the quoted article (published on June 16, 2024), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee. 
  2. Author Certification and Compensation: [Clive Maund of] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.

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