Silver & PGM Snapshot: Seven juniors with projects spanning the Americas

While falling short of the glamour of gold, the other major precious metals — namely silver, platinum and palladium — nevertheless have a strong hold on the imaginations of many explorers, miners and investors. The following is a look at seven juniors advancing significant silver or platinum group metal projects throughout the Americas.

ARGENTUM SILVER

Vancouver-based Argentum Silver (TSXV: ASL; US-OTC: AGSVF) is exploring for silver and gold in southwestern Mexico’s scenic Jalisco state on two prospective land packages named Coyote and Victoria.

In May 2017 there was a large turnover in management and directors, with Geoff Balderson resigning as president and CEO but remaining a director, Carrie Cesarone resigning as chief financial officer, and Stephen Gatensbury and David Toyoda resigning as directors.

Joining the company were: Gary Nassif as president, CEO and a director; James Fairbairn as chief financial officer; and Fraser Sinclair and Gregory Ho Yuen as directors. (Argentum non-executive director Robert E. Shea had died in August 2016.)

Nassif is senior vice-president of Jerritt Canyon Gold, a private gold-mining company in Nevada that is 80%-owned by Sprott Mining Inc., and invested $1 million in Argentum Silver in September 2016.

Argentum describes Nassif as having 24 years’ experience in mining and exploration in Canada, Nevada and sub-Saharan Africa, including being part of the management team of Trelawney Mining and Exploration, which Iamgold acquired in 2012.

FORTUNA SILVER MINES

From its management head office in Lima, Peru, Fortuna Silver Mines (TSX: FVI; NYSE: FSM) operates two underground silver mines in Latin America: the Caylloma silver-lead-zinc mine in southern Peru, and the San Jose silver-gold mine in southern Mexico.

In 18 months Fortuna will have a third precious metals mine in a third Latin American country, having recently green-lighted construction of the Lindero open-pit gold mine in northwestern Argentina’s Salta province.

In 2017, Fortuna expects to mine 6 million equivalent oz. silver at Caylloma and 8.9 million equivalent oz. silver at San Jose for 14.9 million equivalent oz. silver at all-in sustaining costs of US$10.30 per equivalent oz. silver. In terms of pure silver, Fortuna expects to mine 1 million oz. silver at Caylloma and 7.1 million oz. silver at San Jose in 2017. Fortuna expects to mine 500 oz. gold at Caylloma and 52,400 oz. gold at San Jose in 2017.

Lindero should add 137,000 oz. gold and 138,000 oz. gold to Fortuna’s account during the first two years of commercial production.

Between 2007 and 2017, Fortuna has achieved 25% and 32% compound annual growth rates for its silver and gold production.

For the second quarter of 2017, Fortuna posted net income of US$8.9 million, or US6¢ per share, compared to a net loss of US$1.4 million, or US1¢ per share, during the year-ago quarter.

GREAT PANTHER SILVER

Great Panther Silver (TSX: GPR; NYSE-AM: GPL) mines silver and gold from its wholly owned operating mines in Mexico: the Guanajuato mine complex, which includes the San Ignacio mine; and the Topia mine in Durango.

On June 30, 2017, Great Panther completed its acquisition of the dormant Coricancha silver mine complex east of Lima in Peru, and intends to apply its Mexican operational expertise to modernize what it regards as the underdeveloped Coricancha asset, possibly bringing it back into production in 2019.

For 2017, the company expects a production level of 4 to 4.1 million equivalent oz. silver (at a 70-to-1 ratio) from its Mexico operations, and notes that it is unhedged and has no royalties or streaming agreements on its mines.

As of June 30, Great Panther had no debt, US$57.1 million in cash and US$63 million in working capital.

MAG SILVER

Vancouver-based Mag Silver (TSX: MAG) aims to become a top-tier primary silver mining company by exploring and advancing high-grade, district scale, silver-dominant projects in the Americas.

Its focus is its 44%-owned Juanicipio property being developed in partnership with Mexico’s Fresnillo (56%) in the iconic Fresnillo silver trend in Mexico.

Mag Silver says it is developing the underground infrastructure on the property, with the operational expertise of Fresnillo to support a 4,000-tonne-per-day mining operation.

Mag Silver says it is considering alternate mine plans and other project enhancements with Fresnillo to maximize the value of Juanicipio’s Bonanza Zone and the new Deep Zone. A new feasibility study should be in hand by year-end.

Mag Silver says it will “continue to work on regaining surface access to our 100% owned Cinco de Mayo property in Mexico while we seek other high-grade, district-scale opportunities.”

MCEWEN MINING

Toronto-based McEwen Mining (TSX: MUX; NYSE: MUX) is a familiar name in the gold-silver investment arena, with prominent gold executive Rob McEwen serving as chairman and chief owner, with a 24% interest.

While McEwen Mining is stepping up its involvement in gold mining, with ongoing development of its Gold Bar mine in Nevada and the recent US$35-million purchase of the Black Fox gold mine in Ontario, its exposure to silver remains substantial, highlighted by the El Gallo Silver development project in Mexico, near its existing El Gallo gold-silver mine.

McEwen Mining expects to finish a revised feasibility study of El Gallo Silver in December 2017 for a mine that could produce 2.7 million oz. silver annually. McEwen cautions that the project requires a silver price of at least US$18 per oz. to go forward.

NORTH AMERICAN PALLADIUM

For more than 20 years, North American Palladium (TSX: PDL) has operated its Lac des Îles primary palladium mine near Thunder Bay, Ont., and experienced gushing profits when palladium prices have been high and crushing losses when palladium prices were low.

With palladium prices almost doubling this year, North American Palladium — the world’s only pure-play palladium producer — is once again positioned to benefit from good operating performance at Lac des Îles, which includes both open-pit and underground components.

Indeed, the company celebrated its return to profitability in the second quarter, posting a net income of $7.9 million — its first quarterly profit since a major financial restructuring in August 2015. Second-quarter revenue was $70.3 million, up 76% compared to the year-ago quarter.

The underground mine operates at 6,000 tonnes per day while the surface mill operates at 12,000 tonnes per day, augmented by low-grade surface stockpiles.

The company’s 2017 guidance for palladium production remains between 180,000 and 190,000 oz. palladium at an average all-in sustaining cost of US$700 to US$720 per ounce.

SSR MINING

SSR Mining (TSX: SSRM; NASDAQ: SSRM) is the new name of long-time Vancouver-based junior silver developer Silver Standard Resources, with the changeover occurring on Aug. 1.

Management says the new name “more accurately reflects our evolution from a silver-focused explorer to an intermediate precious metals producer, with three mines in the Americas — two of which produce predominantly gold.”

SSR’s operating gold mines are the Seabee underground operation in northern Saskatchewan, which was acquired in May 2016 through the purchase of Claude Resources; and the Marigold heap-leach mine in Nevada, acquired in April 2014.

SSR’s sole operating silver mine is its Pirquitas open-pit mine in northern Argentina’s Jujuy province. The mine opened in 2009 and produced a record 10.4 million oz. silver in 2016, but is slated to produce between 4.5 and 5.5 million oz. silver this year, as operations shift to processing stockpiles.

SSR is exploring the property with the aim of extending mining operations.