Explorer With High-Grade Silver Starts Largest Drill Campaign Ever

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Silver X Mining Corp. (AGX:TSX.V; AGXPF:OTC) shared its strategic plans for the upcoming months and announced the initiation of a 40,000-meter diamond drilling campaign, the largest in the company's history, according to an October 22 release.

These initiatives will be funded by the proceeds from the recently completed Bought Deal financing and will concentrate on accelerating exploration, underground development, and optimizing operations at its Nueva Recuperada district in Huancavelica, Peru, the company said.

"We have done the hardest part — building a company during challenging times with limited access to capital," said Chief Executive Officer José María García. "Now, with a stronger balance sheet and the largest exploration program in our history, we are positioned to capitalize on the current metal price environment and drive meaningful growth."

García continued, "The funds raised will allow us to expand our resources, enhance our operations, and unlock the full potential of the Nueva Recuperada district. With the quality of our assets, the expertise of our team, and the momentum we’ve built, Silver X is entering a new phase — one focused on scale, profitability, and long-term value creation."

Drilling Aimed at Expanding, Upgrading Resources

According to the release, some key highlights of the campaign and strategic initiatives include:

• The launch of a 40,000-meter drill program, the largest in Silver X’s history, aimed at expanding and upgrading resources at Nueva Recuperada, Peru.
• Funded by recent Bought Deal financing to speed up exploration, mine development, and efficiency improvements.
• Production is set to increase beyond nameplate capacity, targeting up to 1,000 tonnes per day by the second quarter of 2026, effectively doubling current output.
• The "Plan 100" initiative aims for US$100/tonne operating and sustaining costs, positioning Silver X among Latin America’s lowest-cost silver producers.
• Strategic investments are focused on margin growth, stronger cash flow, and long-term expansion.
• Drilling will test high-grade satellite targets RedSilver and Tangana West (high-grade silver) for potential near-term production.

Funds from the Bought Deal financing will propel the company’s next growth phase through exploration, mine development, and operational strengthening.

The diamond drilling program is aimed at expanding resources, upgrading classifications, and improving grade continuity across key targets within Nueva Recuperada.

For mine development, the company said it is fast-tracking underground infrastructure projects, including new ventilation systems, enhanced mine access, and contractor-supported equipment upgrades to boost safety, productivity, and efficiency.

And Silver X said it continues to focus on selectivity, dilution control, and grade improvement to drive stronger cash flow and higher operating margins.

New PEA

The company recently filed a new Preliminary Economic Assessment (PEA) and technical report for Nueva Recuperada. The study outlined a combined mining and processing capacity of 3,000 tonnes tpd and an average annual production of approximately 6.2 Moz of silver equivalent (AgEq).

According to the company, the PEA demonstrated an after-tax net present value (NPV) of US$439 million at a 5% discount rate, a 14-year mine life, and an after-tax payback period of three years. The assessment includes an initial capital expenditure of US$82 million, covering costs for a new processing facility, dry-stacked tailings, and mine development.

Life-of-mine (LOM) cash costs are estimated at US$11.8 per AgEq ounce, with all-in sustaining costs (AISC) at US$15.8 per Ag Eq ounce.

García, the CEO, said that the findings confirm the company's long-held view of Nueva Recuperada as a district-scale silver project with strong operational potential.

"With a 14-year mine life at 3,000 tonnes per day and average annual production of more than 6 Moz of silver equivalent, the study provides a concrete framework for scaling Silver X into a mid-tier producer," Garcia said in the news release.

The assessment includes measured and indicated mineral resources of 3.9 million tonnes grading 9.12 ounces per tonne Ag Eq and inferred resources of 15.1 million tonnes grading 7.5 ounces per tonne Ag Eq. The project includes the Tangana and Plata mining units, which together represent Silver X's path toward full operational capacity.

Nueva Recuperada is located within the Huachocolpa mining district in Huancavelica, a region recognized as one of Peru's most productive silver jurisdictions. The district covers 20,795 hectares and has a history of mining activity supported by existing infrastructure and long-term community agreements.

Analysts Highlight Strong Economics and Growth Outlook for Silver X

After the company released the new PEA, Analyst Alina Islam of Red Cloud upped the target price on the stock to CA$0.85 per share, up from CA$0.65 per share in an updated research note on September 5.

"Overall, we see this as a positive update since the mine plan includes the operation of two mill facilities at Nueva Recuperada, each with a capacity of 1,500 tpd," Islam wrote. "It is noted that Silver X has faced operational challenges and has been running the Recuperada plant at about 50% capacity due to issues with mining and mine development. We believe that incorporating the higher-grade Plata unit into the future mine plan should help reduce costs in the long term."

On October 1, Fundamental Research Corp. (FRC) reaffirmed its positive outlook in a report authored by head of research Sid Rajeev, who raised the firm's fair value estimate on Silver X by 25% and maintained a Buy rating. FRC's new fair value target of CA$0.95 per share implied a 73% return based on the company's share price at the time of the report.

Rajeev described the updated PEA as "highly positive," emphasizing that it "confirms the viability of advancing the Plata Mining Unit to production."

The Catalyst: Silver Hits Speed Bump, Is It Temporary?

Recently, investors have gravitated towards traditional safe-haven assets like gold and silver, while digital currencies such as bitcoin have struggled to maintain their momentum, according to a report by Emma Neff for the Deseret News in Salt Lake City, Utah, on October 23.

However, even the metals market has experienced recent volatility. Silver has risen 62.6% over the past year and up 78.4% year-to-date, according to the iShares Silver Trust (SLV), Neff reported.

Yet, in the past week, both metals have reversed direction, with silver's value dropping by 5%.

"A drop of more than 5% is rare," Alexander Stahel, a resource investor in Switzerland, told Yahoo! Finance, according to the report. "In theory, it would be once in hundreds of thousands of trading days."

Both metals had previously reached record highs, with gold surging in price based on bets on the U.S. Federal Reserve. However, Daniela Sabin Hathorn, senior market analyst at Capital.com, told Quartz that the recent pullback was not unexpected, according to Neff.

"The upside in gold and silver seems to have run out of steam at the start of the week," Hathorn said. "The trade had become quite overcrowded and was running a little hot considering the levels both markets were at, so a reversal is not entirely out of the blue."

Hathorn believes the downturn is temporary — "both gold and silver were primed for a pullback, so there is likely some profit-taking, which has deepened the reaction," she noted, according to the article. She added that fundamentals remain intact, with long-term support still in place. However, the strength of the recent rally may have been overextended, leaving room for a sharper correction.

Many people are aware of silver's role as an investment, but its extensive industrial applications often go unnoticed, as highlighted on a page titled "Why Silver Is One of the Most Important Elements on Earth" on the GoldSilver.com website.

In fact, nearly half of the annual silver supply is allocated to industrial uses and manufacturing. This industrial silver is truly indispensable in modern society. You might not realize it, but silver is used in almost all of your electronic devices.

If you’re using a gadget with an on/off button, it’s highly likely that silver is a vital component, according to GoldSilver.com. Known for its unparalleled electrical conductivity, silver is the perfect material for a wide array of applications. It can be found in everything from printed circuit boards and switches to TV screens, telephones, microwave ovens, children’s toys, and even the keys beneath our computer fingertips.

Ownership and Share Structure¹

According to the company, about 9% of the company is owned by institutions, including Baker Steel, and about 6% by management. The rest is retail.

The silver miner has 222.5 million outstanding shares and 198.57 million free float traded shares. Its market cap is CA$113.34 million. Its 52-week range is CA$0.12–CA$0.71 per share.