Silica Project Grows by 40% with Strategic Land Acquisition in BC

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* Disclosure for the quote from the Bob Moriarty article published on November 7, 2024

Silicon Metals is an advertiser. I have bought shares in the open market and I almost certainly would participate in any upcoming private placement. Do your own due diligence since I am obviously biased.

Silicon Metals Corp. (SI:CSE) announced it has acquired approximately 919 hectares of contiguous claims, increasing its land holdings by roughly 40% at its 100%-owned Ptarmigan Silica Project in British Columbia. This expansion brings the Ptarmigan property's total area to around 4,000 hectares. The project, located in the Rocky Mountain Trench near the Fraser River valley and roughly 130 kilometers east of Prince George, BC, is strategically situated along the Yellowhead Highway.

The Ptarmigan Silica Project is primarily underlain by metasedimentary rocks of the Proterozoic to Lower Cambrian age Cariboo group, with a focus on the Yanks Peak formation, which is noted for its high-quality quartzite deposits. Silicon Metals' new claims expand the project to the south and southwest, areas identified by the company's technical team as potentially hosting quartzite ridges.

CEO Morgan Good expressed confidence in the project's prospects, stating in the press release, "Adding approximately 40 percent of expanded contiguous claims gives comfort to the optimism our vending partners at Cronin, and the company, have in the belief and exploration potential that may be present at this project."

The company recently completed a Phase 1 exploration program at Ptarmigan from October 22 to November 3, 2024. Conducted by Hardline Exploration, the program included rock, channel, and chip sampling, as well as drone imagery. A total of 225 samples were collected, with chip sampling along Highway 16's quarry and channel sampling using a diamond saw at two silica-enriched quartzite sites. Drone imagery provided orthorectified photos and videos of the property's quartzite ridges, offering insights into the silica deposits' extent and accessibility.

Additionally, Silicon Metals has engaged Fairfax Partners Inc., a Vancouver-based investor relations consultancy, for a 31-day marketing campaign. Fairfax will provide social media influencer marketing services across multiple platforms, with a contract valued at US$27,935 plus GST (Goods and Services Tax).

What Is High-Purity Silica Mining?

According to the Business Research Insight's Ultra High Purity Colloidal Silica Market Report (updated in October 2024), the global ultra-high purity colloidal silica market was valued at US$274.2 million in 2022 and was projected to reach US$403.95 million by 2031, driven by increasing demand in electronics, semiconductors, and investment casting industries. The report explained that ultra-high purity colloidal silica, with purity levels up to 99.999%, plays a crucial role in these sectors, especially as "the demand for reinforcing elements for paints and coatings increases." Colloidal silica, often used in wafer polishing and CMP slurries, is in high demand within electronics due to its unique properties, which offer both stability and versatility for high-precision applications.

The Mineral Education Database described silica, also known as silicon dioxide (SiO2), as one of the most significant components of the Earth's crust. The mineral is often sourced from quartz sand and quartzite, similar to the Yanks Peak formation underlying Silicon Metals Corp.'s Ptarmigan project. This database highlighted silicon's role across multiple applications, from improving steel strength in ferrosilicon alloys to serving as a crucial element in semiconductor manufacturing and solar cell production. It emphasized that "silica mining uses open pit or dredging mining methods," and these processes have been widely adopted due to silica's importance in electronics, solar energy, and specialized industrial uses.

Company Catalysts

According to the company's investor presentation, Silicon Metals' recent acquisition of contiguous claims is expected to bolster the Ptarmigan Project's exploration and development potential significantly. With the additional land, management anticipates a more extensive area for future sampling and trenching, increasing the project's prospects for a high-grade silica resource. The increased land position aligns with management's belief that the silica market is on a rapid growth trajectory, driven by demand in industries such as renewable energy, electronics, and EV battery manufacturing.

Silicon Metals' strategic acquisition positions the company to potentially capitalize on silica's critical role in various industries, particularly as a component in solar and battery technology. The recent addition to Ptarmigan's footprint enhances the project's value proposition by expanding the potential for high-purity silica extraction, which Silicon Metals expects will drive shareholder value as global silica demand continues to rise.

Experts on Silicon Metals

*Bob Moriarty, writing for 321Gold on November 7, expressed a favorable outlook on Silicon Metals Corp., emphasizing the company's potential in the silicon market.

Moriarty stated that with a market cap of CA$1.92 million, Silicon Metals appeared "absurdly cheap" given its recent shift into the high-purity quartz (HPQ) space, where price increases significantly with purity level. Moriarty highlighted that Silicon Metals' Ptarmigan property in British Columbia had shown promising initial sample results with SiO2 levels of 98.68%, 98.44%, and 99.52% — indicating potential for high-grade silica material, which could command substantial value if further purified. Moriarty noted, "They have a solid handle on what it would take to make the company a hit in the silicon space."

Moriarty further pointed out the company's cost-effective exploration strategy, remarking that "exploration and sampling is cheap, so they will get a lot of throws of the dice." Citing the company's "young and hungry" management team led by CEO Morgan Good, Moriarty shared that he had personally invested in Silicon Metals on the open market, viewing the company as "worth buying" due to its low entry valuation and potential for growth.

Ownership and Share Structure

According to Refinitiv, Individual Investors own 9.63% of Silicon Metals. Of those, the top three holders are Kevin Dodds at 3.72%, Paul Reynolds with 2.79%, and Paul John holding 1.86%. The rest is retail.

The company has a market cap of CA$1.46 million with 24.29 million free float shares. The 52 week range is CA$0.04–0.15.