In a March 2 research note, Red Cloud Securities analyst David Talbot reported that Silver Viper Minerals Corp. (VIPR:TSX.V; VIPRF:OTCQB) announced "spectacular" 2020 drill results from the El Rubi prospect at La Virginia, including the highest grade and deepest interval encountered thus far.
"We expect the stock to rerate towards our target of CA$1/share as drilling success continues to demonstrate the scale potential of La Virginia," Talbot wrote. Currently, Silver Viper is trading at about CA$0.60 per share.
Talbot presented the new results, of six holes drilled in the El Rubi prospect as part of the explorer's 2020 phase 2 drill program. Holes were designed to test three targets: the intersection of the El Rubi and Western zones at depth (LV21-289, a record hole), the Western zone (LV20-284 and -285) and the southern projection of the main El Rubi area (LV20-286, -287 and -288).
Highlight hole LV21-289 set a project record for the highest grade and widest silver and gold hits to date. Specifically, the hole demonstrated 18 grams per ton (18 g/t) silver and 0.69 g/t gold over 130 meters (130m), including 363 g/t silver and 21.2 g/t gold over 19.3m.
Along with high grades of precious metals, including 10,681 g/t silver and 738 g/t gold, LV21-289 encountered high grades of base metals, including 6.74% lead and 7.11% zinc over 0.5m.
"Results from the upper portion of the hole (thought to represent the southern projection of the Western zone) continue to represent the open-pit potential of the El Rubi area," noted Talbot.
Drill results also returned multiple broad, mineralized intercepts in the Western zone, Talbot relayed. This was exemplified by hole LV20-284 that showed 44 g/t silver and 0.77 g/t gold over 47m ( true width of 28.95m) as well as 42 g/t silver and 1.06 g/t gold over 16.5m (true width of 10.16m).
"Results from this round of drilling indicate that management has determined the structural controls on the property, leading to positive exploration results," Talbot wrote.
Now, the mineralization at El Rubi extends for more than 500m along strike and 300m vertically, Talbot indicated. Silver Viper intends to continue exploration and infill drilling at the prospect and release a maiden resource estimate for La Virginia in H1/21.
Red Cloud has a Buy rating on Silver Viper.
"Silver Viper has several attributes that should appeal to investors: friendly jurisdiction, high quality assets, potential from multiple newly identified anomalies, quick resource delineation and a strong management and technical team that is well aligned with shareholders at 23% interest," Talbot wrote.
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