Summa Silver Corp. (SSVR:TSX.V; SSVRF:OTC) is a Canada-based junior mineral exploration company engaged in acquisition, exploration, and evaluation activities at two U.S. sites: the Hughes property in Nevada and the Mogollon property in New Mexico.
The firm currently owns a 100% interest in the Hughes project, with the option to earn 100% interest in the Mogollon project.
The Mogollon project is approximately 120 km from Silver City in southwestern New Mexico and covers a silver-gold bearing epithermal vein field. The Hughes Property is located in central Nevada and consists of approximately 57 patented mining claims and 103 unpatented mining claims that together cover an area of some 5,504 acres.
The Catalyst: Ongoing Exploratory Drilling
On May 9, the Golden Opportunities newsletter reported that the Summa Silver team is "very excited to launch its Spring drill program in early May where it will be testing multiple high potential drill targets at the Hughes Project in Nevada."
The Golden Opportunities newsletter reported that the Summa Silver team is "very excited to launch its Spring drill program in early May where it will be testing multiple high potential drill targets at the Hughes Project in Nevada."
The newsletter reports the project is "fully funded with about US$10.5 million in working capital to systematically drill seven holes over five targets. With permits approved, drill rigs scheduled, and high-potential targets within sight of the historic Tonopah district, there is an extremely rare discovery opportunity."
The report explains that Summa Silver completed its drill program at the Mogollon Project in New Mexico at the end of February, with assays pending for eight holes. "In the meantime, multiple additional targets are being developed at the Mogollon Project as the company advances 3D geological modeling efforts."
Why This Sector? Continuing Demand Growth
Silver remains a minor money metal, with The Silver Institute reporting on February 8, "Silver is off to a good start in 2023. The year-to-date silver price average for 2023 (through to February 7) is more than 8% higher than the full-year price average for 2022. Silver is also expected to achieve a new high in industrial applications, the most important category in the demand complex."
Summa Silver's holdings offer USA-based investors an attractive onshore hedge against bipolar capital markets with known and predictable jurisdictional oversight.
Why This Company? New Promotion Partners in New Markets
Alongside its ongoing drilling program, Summa Silver announced on May 2 that it "has engaged [Toronto, Ontario-based] Capital 10X to provide marketing and investor relations services" to assist with "expanding investor awareness of its business and actively communicating with the investment community."
"In consideration for the C10X Services, the company will pay Capital 10X a monthly fee of US$2,500. The Company has engaged Capital 10X for a term of three months but has the right to terminate the engagement at any time upon giving 30 days' notice to Capital 10X."
Research Capital Corp. analyst Stuart McDougall rated Summa Silver a Speculative Buy, with a price target of CA$2.00.
In addition, Summa Silver has "engaged Scandinavian Alliance to provide business development, brand awareness, and consulting services. Scandinavian Alliance will undertake a comprehensive European awareness campaign for the Company, including consultation, advice, heightening brand awareness, broadening the Company's reach within the Scandinavian audience, and similar activities designed to further the business and development interests identified by the company."
"In consideration for the SA Services, the Company will pay Scandinavian Alliance a fee of US$88,500 and has granted Scandinavian Alliance 250,000 stock options with an exercise price of $0.67 vesting in equal tranches quarterly over a 12-month period."
Why Now? Even More Drilling
On April 20, Research Capital Corp. analyst Stuart McDougall rated Summa Silver a Speculative Buy, with a price target of CA$2.00. This was due in part to Summa's Mogollon underground silver-gold project yielding continually high grades.
The May 2 announcement also explained that an exploration drill program at the Hughes project was now well underway. "A reverse-circulation drill rig has been mobilized to the site and is currently advancing the first hole of the program," the announcement stated. "A core rig is also on-site and will be drilling core tails on select holes."
Five targets will be tested, with a minimum of seven holes planned, as well as additional drilling at the Ruby, Emerald, Diamond, Sapphire, and Topaz targets. These new target areas, previously unrecognized, represent significant discovery opportunities just outside the historic Tonopah mining district.
Summa Silver CEO Galen McNamara explains, "The targets we will be drilling at the Hughes Project this season were developed from a systematic, multi-layered approach which included detailed interpretations of structural geology, geophysics, and geochemistry."
"In our opinion, it's very rare that compelling undrilled targets can still exist within sight of a prolific historically producing mining district like Tonopah. The five targets we will be drilling at the Hughes Project this spring and summer represent opportunities for significant new discoveries that the team has been very much looking forward to testing for some time."
Streetwise Ownership Overview*
Ownership and Share Structure
According to Reuters, 6.46% of Summa's shares are with management and insiders. CEO and Director Galen Stuart Mcnamara has 2.78%, with 2.53 million shares. Director Thomas O'Neill has 1.80%, with 1.64 million. CFO and Director Martin Bajic has 1.48%, with 1.35 million. Director Brian Goss has 0.27%, with 0.25 million, and Director Michael Konnert has 0.14%, with 0.13 million.
18.58% is with strategic investor 2176423 Ontario Ltd, with 16.97 million shares.
12.20% is with institutional investors. Sprott Asset Management is the largest institutional shareholder at 8.43%, with 7.70 million shares. ETF Managers Group LLC. has 2.79%, with 2.54 million. U.S. Global Investors Inc. has 0.88%, with 0.80 million, and Palos Management Inc. has 0.11%, with 0.10 million.
The rest is in retail.
Summa Silver Corp. has a market cap of CA$$51.7 million, according to Market Watch. The company has 90.71 million shares outstanding, with a free float of around 66 million, and trades in the 52-week range between CA$0.49 and CA$1.14.
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1) Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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