Source: Tier One Silver

Tier One Silver (TSXV:TSLV), the Canadian exploration company believes it has initiated the first drilling stage of a new discovery in Peru. The Curibaya project is 100% owned by Tier One Silver. Tier One Silver completed the first Curibaya drill program located in northwest Peru 48 kilometers northeast of the provincial capital, Tacna, near the Chilean border.

Drilling on the project comprised 16 holes intercepting bonanza grade silver mineralization. Highlights included drillhole 21CUR016, which intersected seven metres grading 272.3 grams silver per tonne, 0.33 gram gold per tonne, 0.046% zinc, and 0.03% lead (299.1 grams silver-equivalent per tonne) from 139 metres downhole, including a higher grade core of 1.5 metres of 1,128.7 grams silver, 1.04 grams gold, 0.15% zinc, and 0.09% lead (1,213.7 grams silver-equivalent).

Tier One Silver CEO Peter Dembicki said that Curibaya, “hosts a major intermediate-sulphidation epithermal system that lies on the border between an epithermal belt and a world-class, prolific coastal porphyry belt. The drill results indicate that the project has the potential to host both a large-scale, high-grade silver deposit and porphyry deposit.”

The Curibaya property comprises some 16,800 hectares located in a porphyry copper belt where some of South America’s largest porphyry deposits are located, including Freeport McMoRan’s Cerro Verde deposit, the Cuajone and Toquepala Southern Copper deposits and Anglo American’s Quellaveco deposit. 

In 2020, the company conducted a magnetic survey that identified a two kilometer by 750 meter chargeability anomaly near the surface that is believed to be a precious metal target.

Tier One Silver has identified the age of the mineralization at Curibaya to be Paleocene, ranging from approximately 55 to 61 million years old. The company’s technical team believes that the Paleocene age of the mineralization supports the potential for a world class discovery at the Curibaya project.

The Curibaya mineralization occurs in the dome complex in the center of the property and several structural corridors (Tipal, Sama, Madre, Sambalay, Cambaya I and Cambaya II) over a four by five kilometer alteration system.

Tier One Silver plans to restart drilling on the property in May when the rainy season comes to an end. Drilling will focus on higher elevation targets in the Sambalay, Tipal and Cambaya systems. 

“The second phase of drilling is going to be very exciting for us,” said Christian Rios, the company’s senior vice president of exploration. “We will be able to drill the high priority Cambaya target area, where we’ve seen the best channel samples to date, and continue to explore targets along the mineralised corridors to further increase our confidence that Curibaya could deliver a significant discovery.” 

In December Tier One Silver is also advancing Hurricane Silver, a project that hosts numerous high-grade silver occurrences located some 66 kilometers north of Cusco. Dembicki said that Hurricane Silver “offers the potential to make a second world-class discovery in Peru.”

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.
Map view, Curibaya and major surrounding mines. Source: Tier One Silver

Tier One Silver (TSXV:TSLV) has made major strides in its Curibaya silver-gold mining project in Southwestern Peru by expanding its property from 11,000 hectares to 16,800 hectares. This land extension came after weeks of mapping and sampling since it covers the post mineralization volcanic cover. 

The company hopes to further increase the scope of its ground-based induced polarization (IP) geophysical survey so that it can map the whole mineralized area in the Curibaya mining region. According to Founder Ivan Bebek, it may be one of the more profitable enterprises for the company,

CEO Peter Dembicki commented:

“We are excited by what we’re seeing so far with our ongoing drill program at Curibaya and are pleased to expand our land position prior to receiving our first results. Ongoing surface sampling has continued to extend the alteration and mineralization footprints, and therefore, we are expanding our IP survey as well. We look forward to a very busy second half of 2021 with results from drilling and surface sampling.”

Management Shakeup for a Strong Path Forward

This expansion at Curibaya comes at a time of change in the company’s development as it has recently appointed a new President/CEO, Director, and Vice-President of Communications. Collective was spun out from Auryn Metals, and these changes bring financial expertise and signal confidence in future profits and dividends for shareholders. According to Bebek, this can be achieved with this new team and the budding flagship project in the Curibaya region.

Christy Strasesh was recently appointed by the company board of directors and brings a wealth of experience to the company’s financial strategy and management. She has over 15 years of experience with capital markets and with a CFA designation, has ample history with investment management.

Natasha Frakes was recently appointed VP of Communications, having worked with Tier One Silver’s founders Ivan Bebek and Shawn Wallace since she joined Torq Resources in 2018 as their Manager of Investor Relations. With a background in journalism, she has worked for CBC Vancouver and CBC Calgary and thus has a fundamental and comprehensive understanding of media. She has previously done communication work for three different companies in the mining industry; Fury Gold Mines, Tier One Silver, and Sombrero Resources.

Tier One’s (TSXV:TSLV) new President and CEO, Peter Dembicki, has ample experience with capital markets and investment strategies. He has managed many corporate finance projects and has an extensive network of high net worth venture capitalists and corporations. Being a member of Canaccord, a multi billion-dollar investment company, he oversaw many lucrative deals and will be a valuable asset to the financial health of Tier One at large.

This is likely the biggest change for the company, and likely point to a more fiscally strong future for the company and more profitable dividends for shareholders. Since joining the team, Dembicki commented

“I am thrilled to be joining the Tier One team. The track record of success of management, the caliber of the technical team and the quality of assets led to my decision to join the Company. I am looking forward to the numerous catalysts ahead, including exploration at Curibaya, growing the project portfolio, and pursuing world-class discoveries, with a primary focus on silver, as we enter the precious metals bull market.”

The company began trading on the TSX Venture Exchange on June 9, 2021, under the ticker TSLV on the TSX Venture Exhange and TSLVF on the OTC Markets. The company’s exploration plans and its strong ties with local communities, and commitment to environmental, social, and governance (ESG) principles are what has made it so attractive for investors thus far. The company has also applied for listing on the OTCQB, to expand options for US investors and broaden the investor base.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

For consumers and industrial businesses alike, silver is a critical component and prized precious metal. It is an efficient electric and thermal conductor, and it is highly valued for its electrical applications. The coming wave of electrification across broad swathes of the global economy is likely to continue pushing silver prices higher as demand picks up. This is not a trend that is going away any time soon. 

Silver investors love it as well because of its behaviour as a commodity and its investment characteristics. It has a similar perception as a safe-haven metal like gold, making it a solid hedge against inflation and economic bumps that might shake other assets like stocks. 

While investors might love silver, they almost always choose mining companies exploring, producing, or refining the metal. Whether it’s a big producer like First Majestic Silver or an exciting new exploration company like Tier One Silver, there are a few options for investors looking for exposure to silver in this trending market.

First Majestic Silver (TSX:FR) (NYSE:AG)

2020 was a tricky year for this popular Canadian miner, but silver generated 60% of the company’s revenue in 2020, making it a prime choice for silver investors. The company’s projects are focused in Mexico, with three mines operating in the country. It also has several other silver mines under development. 

The company is not shy about its ambitions to become the largest silver producer in the world, and these mines are sure to take it one step closer to its goal. While spot silver may rise and fall with a more macroeconomic dynamic in play, stocks like this one are able to outperform silver prices. The company’s returns are based on their production and progress. Therefore it is up to investors to decide whether the Mexican mines and new mines under construction are setting the company up for long-term success. 

The development of the new projects will likely be the catalyst for a run higher on the chart. Any sign that the company can increase its production while reducing mining costs either at existing sites or the new ones will likely give it a boost to outperform the precious metal. 

It should also be noted that a rising tide can lift all boats, and that the likely steady climb for silver over the coming decade could provide a strong tailwind for the company regardless of changes to operations or how closely it hews to its new development plans.

The RSI reading on First Majestic recently hit 28.7, a new low and a possible indication that it is oversold. Traders will be looking for any momentum higher, especially if recently heavy selling is in the process of exhausting itself. Entry point opportunities abound for silver stocks as averaging out the cost of these shares is a long-term choice for the inevitable green revolution coming down the pipeline right now.

Tier One Silver (TSXV:TSLV)

We move from Mexico to Peru next, with an exploration company showing promising progress on its multiple projects in Peru. Tier One’s strengths lie in the abilities of the management and technical teams, with a strong record of cap raises, discovery, and monetization of exploration successes. The company’s flagship project Curibaya has received a lot of attention globally lately, with the first drill program commencing recently, but the company’s impressive portfolio of projects also includes:

  • Hurricane Silver
  • Emilia
  • Coastal Batholith
  • Corisur

Its recent expansion of the land position at Curibaya now includes an extension of the mineralized system. The expansion gives Tier One 50% more land at the site, taking it from 11,000 hectares to 16,800 hectares. 

Spun out from Auryn Resources in October 2020, the company began trading on the TSX Venture Exchange on June 9, 2021, under the ticker TSLV on the TSX Venture and TSLVF on the OTC Markets. The company’s exploration plans and its strong ties with local communities, and commitment to environmental, social, and governance (ESG) principles are what has made it so attractive for investors. The company has also applied for listing on the OTCQB, to expand options for US investors and broaden the investor base.

The upside potential for an exploration company like Tier One is huge. While producers and established companies might be competing to see who can squeeze more profit from ever-changing margins, explorers have one important mission: get the discovery. Any progress on any of their projects or news of discovery would be massive for investors, and considering the price right now, this might be the silver value play for 2021.

Good Times Ahead

More than half of silver’s demand comes from the industrial sector. President Joe Biden’s recent Bipartisan Infrastructure Deal announcement has brought renewed attention to this particular area, as demand is likely to soar for silver imports to the US. Anything needed for EVs or EV infrastructure, electrification of power grids, charging station networks, and even clean energy production could see huge growth in 2021 and beyond. 

The World Silver Survey published last year made it clear that silver demand is ready for takeoff, and it has already begun to move. 2020 investor demand for silver bars and coins was up 8% YoY on “a growing appetite for safe-haven assets” as well as “the strength of the gold price”. While demand suffered due to COVID-19, with industrial demand dropping 5%, growth is expected to continue in 2021 that could more than offset any shrinking demand from the previous year. 

2021 could see the silver sector jump 26% to 252.8 million ounces, the highest level since 2015. Industrial demand should pick back up as well, with 8% growth estimated. The World Silver Survey predicted a silver price of US$32 by the end of 2021, but other analysts are more optimistic. CPM Group managing partner Jeffrey Christian says his firm “wouldn’t be surprised to see the price go back up and test US$30 or US$32 over the next several months”. A strong push to that level so early could mean a break through any technical resistance sitting at that level and a run higher. 

How High Could it Go?

Christian thinks the fundamentals are there to climb continuously through 2021: “At some point, we think the price of silver will rise and rise sharp. That increase we expect to coincide with the next financial and economic crisis”. 

All-time highs of nearly US$50 may not be out of the question. Investors consider silver to be an amplified version of gold that can hit multiples of the yellow metals price due to its wide use of applications and ability to provide a stable alternative to a shifting gold market. The resource space is often cyclical, meaning prices will inevitably rise and fall, and while timing the market is often a fool’s errand, the confluence of events approaching this year and next gives investors ample reason to believe the white metal could be primed for its next leg up. 

Investors looking for exposure will turn to silver, silver stocks, and ETFs as they look to capitalize on this trend.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

Exploration company Tier One Silver (TSXV:TSLV) began trading on the TSX Venture Exchange on June 9, 2021, under the ticker TSLV. Spun out from Auryn Resources in October 2020, the company is exploring assets in Peru for silver, gold, and base metal deposits. While maintaining its mission of generating shareholder value, the company is also committed to the shared value that comes from implementing sustainable and responsible development and mining practices. 

The pillars of the company’s environmental, social, and governmental (ESG) principles include health and safety, the protection of ecological and cultural heritage resources, social responsibility, as well as indigenous and local community engagement. Tier One Silver (TSXV:TSLV) is taking those principles into account at every one of its exploration assets in Peru, including Hurricane Silver, Emilia, Coastal Batholith, Corisur, and its flagship silver-gold project, Curibaya. 

A True Flagship Property

11,000 ha on a World-Class Metallogenic Belt. Source: Tier One Silver

The Curibaya property spans almost 11,000 hectares in a copper porphyry belt with some of the country’s largest porphyry deposits. Major mining companies are in the pophyry-rich area, including Freeport McMoRan, Southern Copper, and Anglo-American. The belt has returned high mineralization, and the deposits being within the same region, there is robust transportation and operational infrastructure in place, with easy access at multiple points. Located just 48 km north-northeast of the provincial capital Tacna, the property is accessible by road in just 1.5 hours.

Initial surface sampling programs have already returned multiple high-grade samples of silver, gold, and copper over a 4×5 kilometre alteration system. Although in its early stages, Tier One Silver (TSXV:TSLV) believes the Curibaya property holds precious metal intermediate sulfidation, epithermal, and copper porphyry targets. 

Last week Tier One received a Peruvian Inicio de Actividades permit, which authorized the company to begin the inaugural drill program at the property. The authorization signals the end of the permitting process with MINEM, the Peruvian mining regulator, and the go-ahead for the company’s drill program at this significant flagship project.

Liftoff

Large-scale chargeability and magnetic anomalies under high-grade surface results. Source: Tier One Silver

Yesterday, the company announced that it had begun the first-ever drill program at the Curibaya property. Tier One Silver’s balance sheet is strong and is well-capitalized for a drilling capacity of 10,000 metres, with the initial phase of diamond drilling consisting of approximately 6,000 metres. Tier One Silver (TSXV:TSLV) holds an FTA (Ficha Tecnica Ambiental) drill permit), allowing the company to drill up to 40 holes from 20 drill pads. The drill plan includes about two kilometres by 1.5 kilometres in an area with strong alteration and high-grade surface mineralization. As the flagship project for the company, Curibaya is an excellent opening salvo to show the world and investors what it can do. 

Peter Dembicki, President and Director of Tier One Silver, commented: “This is an exciting time for Tier One Silver shareholders as we begin diamond drill exploration at Curibaya – a project we feel has world-class potential due to its scale, exceptional high-grade silver and gold identified on surface over a significant area and the project’s location on a globally recognized prolific mining trend in Southern Peru. The detailed drill preparation completed by our technical teams will allow us to test multiple targets with each hole. This is the culmination of years of work at Curibaya by our team in Peru, and we couldn’t be more excited to test and gain an understanding of what we believe could prove to be a significant discovery.”

Expanding Tier One’s Reach, and Investor Options

Due to the success of the company’s listing on the TSX Venture Exchange, Tier One Silver (TSXV:TSLV) is also applying to list on the OTCQB Venture Market. This is a significant step for Tier One toward increasing its visibility within the U.S. capital markets. If listed on the exchange, the company will continue to trade on the TSXV. A listing on the American exchange would provide the company with greater exposure to the market and a platform to launch more drill programs and exploration as it raises more money. 

After just over a week on the TSXV, the company has hit an average trading volume of 660,830 and a market cap of $193.7 million, foreshadowing a run of investor interest in the company that could propel its projects far into the future. As exploration continues, investors will be watching Tier One Silver (TSXV:TSLV) closely for continued progress, particularly at the Curibaya site.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

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