Summa Silver Corp. (SSVR:TSX.V; SSVRF:OTC) is advancing its Hughes and Mogollon silver-gold projects in the southwestern United States, with inaugural mineral resource estimates (MREs) scheduled for release in early 2025. These updates follow extensive exploration work and represent a significant milestone in defining the scale and grade of these high-grade silver-gold deposits.
The Hughes project in Nevada, located within the historic Tonopah mining district, is based on approximately 31,000 meters of drilling across 60 holes. Highlights from this drilling include intercepts of 3,912 grams per tonne (g/t) silver equivalent (AgEq) over 2.8 meters and 1,450 g/t AgEq over 3.0 meters, demonstrating substantial mineralization. The Mogollon project in New Mexico, similarly underpinned by extensive drilling, includes intercepts such as 426 g/t AgEq over 31.5 meters and 640 g/t AgEq over 9.9 meters, reflecting its potential as a significant silver-gold resource.
Key Highlights From The News Release:
- Substantial Drilling Already Completed: The MREs will be based on approximately 40,000 m of drilling by the company, from 60 holes at the Hughes Project and 22 holes at the Mogollon Project.
- Historic Data Verified for Inclusion: The company's drill results have successfully verified the results of multiple historic drill holes and underground channel samples completed by former operators, and some of this data will be incorporated into the MREs.
- Additional Upside is Clear: The MREs will be based on previously completed drilling and will therefore not include results from the ongoing exploration and discovery-focused drill program currently underway at the Hughes Project.
- "Apples-to-Apples" Comparison with Tonopah West: The MREs are being completed by RESPEC, the same independent firm that completed the mineral resource estimate for Blackrock Silver's Tonopah West Deposit adjacent to the Hughes Project.
- The Hughes Project MRE will focus on defining the size and grade of significant silver-gold mineralization at the Murray, Belmont and Ruby targets where previous drilling intersected:
- 3,912 g/t AgEq* (2,276 g/t Ag, 21.8 g/t (gold) Au) over 2.8m (Belmont, SUM21-30)
- 522 g/t AgEq* (286 g/t Ag, 3.10 g/t Au) over 18.5m (Belmont, SUM20-06)
- 1,494 g/t AgEq* (913 g/t Ag, 7.86 g/t Au) over 4.3m (Belmont, SUM21-31)
- 444 g/t AgEq* (253 g/t Ag, 2.53 g/t Au) over 6.1m (Murray, SUM21-40)
- 1,450 g/t AgEq* (813 g/t Ag, 8.41 g/t Au) over 3.0m (Ruby, SUM23-59)
- The Mogollon Project MRE will focus on defining the size and grade of strong silver-gold mineralization on the Queen Vein where previous drilling intersected:
- 426 g/t AgEq* (123 g/t Ag, 3.70 g/t Au) over 31.5m (Consolidated, MOG22-05)
- 640 g/t AgEq* (306 g/t Ag, 4.26 g/t Au) over 9.9m (Consolidated, MOG22-10)
- 433 g/t AgEq* (134 g/t Ag, 3.66 g/t Au) over 23.2m (Consolidated, MOG22-16)
- 1,133 g/t AgEq* (421 g/t Ag, 8.81 g/t Au) over 1.65m (Eberle, MOG23-21)
- 393 g/t AgEq* (64 g/t Ag, 3.92 g/t Au) over 7.4m (South Queen, MOG23-20)
Historical data from both projects have been verified and incorporated into the MREs, allowing for continuity with modern exploration results. The estimates are being conducted by Respec, the same firm responsible for the Tonopah West resource model. Importantly, these MREs will not include results from Summa Silver's ongoing exploration activities, indicating potential upside beyond the initial resource calculations.
CEO Galen McNamara stated in the news release, "Work at both Hughes and Mogollon has not only demonstrated tremendous scale but also benchmarked our projects against our peer group. Both districts provide a truly unique opportunity with their primary silver focus, world-class grade, excellent metallurgy, and top-tier jurisdictions."
Silver Market Trends
In a December 14 post, Excelsior Prosperity emphasized the potential in silver exploration and development companies, highlighting how their projects contribute to addressing global supply constraints. The analysis underlined that advanced exploration and development companies often manage risks while leveraging high-grade silver deposits. The report noted, "Silver remains a critical mineral for both industrial and investment purposes," driven by its indispensability in green technologies and electronics.
In a December 17 newsletter, Jeff Clark of The Gold Advisor praised Summa Silver for its upcoming inaugural mineral resource estimates (MREs) for both the Hughes and Mogollon projects, set for early 2025.
On December 16, Midas Touch Consulting reported that silver prices rose 31.75% in USD terms, reaching a 12-year high of US$34.86 in October before stabilizing near US$30. They noted that this consistent price range reflects "a balance between supply and demand at current levels," indicating that silver remains a strong investment amid a volatile economic landscape. Despite the pullback, technical indicators suggest that silver's upward trajectory, bolstered by industrial and investment demand, may continue into the coming year.
Finally, on December 19, 321Gold highlighted seasonal trends, stating that the period from mid-December to February has historically been "the best time of the year for gold and silver." The report described the silver market as poised for significant gains, supported by strong fundamentals and technical factors. It also noted that the industry faced challenges such as tax-loss selling, which created buying opportunities for investors.
The article asserted, "Once silver makes a new all-time high, I think it will be off to the races," emphasizing the long-term potential for price growth.
Upcoming Milestones and Growth Catalysts for Summa Silver
Summa Silver's investor presentation highlights key catalysts for growth as the company advances toward 43-101-compliant resource estimates and further development of its assets. At the Hughes project, current drilling targets mineralization extensions from the Ruby discovery across a 600-meter horizon, with assays expected in early 2025. The Mogollon project, meanwhile, is exploring only a fraction of its 77-kilometer vein system, leaving substantial room for resource expansion.
Strong metallurgical results underpin both projects, with recoveries averaging 90% for silver, 97% for gold at Hughes, and 97% for silver and 98% for gold at Mogollon. These metrics, according to Summa Silver, suggest potential for efficient future production scenarios. Additionally, the company highlights that both sites benefit from stable jurisdictions, established infrastructure, and access to utilities, which it believes provide operational advantages.
Looking ahead, Summa Silver is poised to release assay results from its ongoing drill campaigns, assess the potential for formal resource classification, and expand its exploration footprint. These milestones align with the company's stated goal of becoming a leading precious metals developer in the U.S., offering investors leverage to silver and gold price movements.
Expert Insights Highlight Strong Potential for Summa Silver Projects
On November 7, Research Capital Corporation reiterated its "Speculative Buy" rating and CA$1.30 price target for Summa Silver Corp. The report highlighted the company's renewed drilling efforts at the Hughes project in Nevada, focusing on the Ruby area, which demonstrated significant silver and gold mineralization in previous campaigns.
According to the analysis, the Hughes project holds the potential for "65 million ounces of silver equivalent" when combined with the Mogollon project. The report emphasized the high-grade nature of the assets, stating that recent financing had secured sufficient funds to advance exploration efforts. The analysts also underscored the stability provided by the projects' prime locations in established mining jurisdictions.
Streetwise Ownership Overview*
Summa Silver Corp. (SSVR:TSX.V; SSVRF:OTC)
In a December 17 newsletter, Jeff Clark of The Gold Advisor praised Summa Silver for its upcoming inaugural mineral resource estimates (MREs) for both the Hughes and Mogollon projects, set for early 2025.
The analysis emphasized the significance of 40,000 meters of drilling completed across both projects and the high recovery rates for silver and gold, which stood at 90% and 97% for Hughes and 97% and 98% for Mogollon, respectively.
Ownership and Share Structure
According to Refinitiv, 5.05% of the company is owned by management and insiders. CEO and Director Galen McNamara holds 2.19%. Director Thomas O'Neill owns 1.39%. CFO and Director Martin Bajic holds 1.14%.
A strategic investor, 2176423 Ontario Ltd, owns 16.92% of the company.
Institutional investors hold 4.73% of Summa Silver Corp. Sprott Asset Management LP owns 2.37%. ETF Managers Group LLC holds 1.60%. The remaining shares are held by retail investors.
Summa Silver Corp. has a market cap of CA$32.45 million. The company has 81.65 million shares outstanding, with a free float of 69.16 million.
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