Junior Mining Expert Eyes Silver

The long-term driver of fiat currency debasement remains firmly in force, and will continue to propel the gold price higher regardless of any short-term setbacks engendered by geopolitical events.

Meanwhile, the junior mining sector is on fire. Yes, the charts seem to indicate that the equities are ahead of themselves on a short-term basis. However, prices remain near long-term lows and that the sector is only beginning to respond to higher gold and silver prices.

If this bull run resembles anything like that of the early 2000s — and I think it will because of the fundamental monetary issues at play — then we’re seeing only the start of truly extraordinary gains ahead. The stocks we’re currently following have lots of room to run still; here's a look at two silver-focused mining firms.

Endeavour Silver (EXK) has been following up on the Veta Colorada vein structure at its Parral project in Chihuahua State. Grupo Mexico owned this past-producing mine operation, but closed it in 1991 due to low silver prices. The area includes the Sierra Plata mine, where Endeavour is currently testing a 600-meter by 500-meter area adjacent to old workings.

Highlights from the latest batch of assays come from both surface and underground drilling. The surface program turned up 346 g/t silver over 9.6 meters (Hole VCS-02), and the best underground hole of the batch returned 332 g/t silver over 13.1 meters (Hole VCU-05).

Combined with underground channel samples grading 1,705 g/t silver over 0.55 meters and 1,480 g/t silver over 0.95 meters, it’s easy to see why the company has already applied for a mining permit for Parral. At those grades, it could easily set up a toll mining operation in the area.

Endeavour’s share price has bounced back along with the silver market this summer, but I think we’re still in early days here for the precious metals boom, and particularly for silver. Endeavour has a strong track record of performance when silver prices head north, making it a continued buy at current levels.

1 2
View single page >> |

Subscribe to Brien Lundin Gold Newsletter here.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.