SILVERBUGS (SILVER)

[basserdan]

From the Silver Bull board at Stockhouse... (TSX: SVB, OTCQB SVBL)

by LondonInvest
July 06, 2020 12:07pm

Hi,
I have been accumulating SVBL for years and have a VERY sizeable position.

South32 being on board is very significant. As for the resource, they already have a NI43-101 with Measured and Indicated being:
Ag - 90.8 Million Oz
Zn - 4.67 Billion Lbs

Assumptions were for $18/oz Ag and $1.00/lb Zn

As the surface resource is oxides recoveries are lower, but they factored in 75% recovery for Ag and 41% for Zn.

This gives following
Ag - 90.8 Million Oz x 0.75 x $18 = $1.22 Bn Ag value
Zn - 4.67 Billion Lbs x 0.41 x $1.00 = $1.92 Bn Zn value
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Total known M&I resource is $3.14 Bn with ~60% Zn and ~40% Ag split.

The total market cap of this company is <$20 Million USD. This could easily trade at 10% of resource in ground, $300 Million or a 15x return.

This company is valued as an explorer looking for a resource, not a company with a resource and exploring for the main ore body to make it a bonanza company. It has alot similar to Arizona Mining's Taylor deposit which South32 bought for $1.6 Bn. This is why South32 is involved, looking for another Arizona Mining. They are had been drilling and hitting sulfides honing in on main ore body.

http://www.silverbullresources.com/projects/overview/

Here is resource IRR at different ore prices:
https://www.kitco.com/ind/Tommy/2013-10-09-Silver-Bull-CEO-Tim-Barry-Discusses-Sierra-Mojada-PEA.html

https://stockhouse.com/companies/bullboard/svbl/silver-bull-resources,-inc?postid=31229008