Sierra Nevada Gold to Follow Up on High-Grade Silver Occurrences Amidst Metal Rally

Sierra Nevada Gold Ltd’s (ASX: SNX) shares have soared 70% to $0.07 in early trade, as investors transition in to silver stocks.

The price of silver has rallied around 50% over the past four months, with the July futures currently trading above US$32 an ounce on COMEX.

Silver is invaluable to solder and brazing alloys, batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic energy, RFID chips, semiconductors, touch screens and more.

Sierra and the silver situation

The company is now preparing plans to follow up results including 1270 g/t silver from its Blackhawk Epithermal project in Nevada, U.S.

For those new to the mining story in Nevada, the state is the leading U.S. producer of gold, silver and barite.

Along with being the second largest producer of diatomite and lithium and the sole producer of mined magnesite and mercury.

Blackhawk previous results

Previous drilling by Sierra beneath the Endowment mine at Blackhawk returned 12 metres at 219 g/t silver from 250 metres.

This drill intercept is 150 metres vertically below the deepest portion of the mine and includes higher grade intersections of: 0.5 metres at 1270 g/t silver from 256.5 metres.

Opportunity

Peter Moore, executive chairman, commented:

“We’ve identified 22.5-line kilometres of veins at Blackhawk, but this known mineralisation has sat largely untouched since mining ceased in the area in the 1920’s.

“We have two shallow oxide resources which have not been defined to a JORC-compliant level but this provides us the opportunity to deliver value from an existing project with further drilling and mineral resource definition.”

The company’s 20-hole drill program is permitted and ready to drill, providing an opportunity to apply modern exploration techniques.

Blackhawk background

The Blackhawk epithermal project hosts eight mining centres of note with main production coming from the historic Endowment, Silver Gulch and Blackhawk mines

The Endowment mine was discovered in the 1860’s with most mining completed by the 1880’s, achieving reported production of 70,000 ounces gold equivalent.

 

 

Disclaimer

JustStocks provides data and commentary that constitutes general information only. This does not constitute personal, financial or professional advice or assistance. The data and information compiled do not consider your investment objectives or your financial circumstances. JustStocks cannot guarantee this website’s accuracy, completeness, or timeliness. JustStocks accepts no responsibility regarding any inaccuracy, omission, or change in information or articles or the data provided. The information published on this site/page should not be relied upon as a substitute for personal financial or professional advice. The information provided may not be appropriate for your circumstances or needs. JustStocks recommends that you seek professional advice from a qualified advisor before you make any decisions.

Articles of Interest