Silver Hammer Mining Corp. (HAMR:CSE; HAMRF:OTCQB) has found encouraging results from their Phase II drilling program on Silver Strand near Coeur d’Alene, Idaho. The drilling was performed by a local contracting company, Nasco Industrial Service and Supply (NISS), which established nine holes from an underground station. According to Silver Hammer Mining Corporation, “eight of the nine holes . . . encountered mineralization within the anticipated structural and silicified zone, which measures 30 meters wide over a 170-meter strike length to date."
Silver Hammer Mining Corp. is a mining company primarily based in Idaho and Nevada, which are known as tier-one mining-friendly jurisdictions. The company’s flagship operation resides at Silver Strand near Coeur d’Alene. In addition to the Idaho site, the company has two major operations in Nevada: the Eliza Silver Project in Eureka, Nevada, and the Silverton Silver Mine in Silver Alley, Nevada.
Silver Hammer Mining Corp. has an experienced team, some of whom have extensive technical expertise in the industry, such as their director, Ron Burk. Their Interim CEO is Warwick Smith, though they have indicated an upcoming leadership change to a permanent CEO.
Drill Results
The drilling found three gold (Au) dominant intercepts and six silver (Ag) dominant intercepts. According to Silver Hammer, six of the nine drill holes returned greater than 100 grams per ton of silver or greater than 1 gram per ton of gold (1 g/t Au). A few of the drill holes returned particularly interesting finds.
SS22-017 seemed to indicate further potential for gold at Silver Strand, as it returned 2.9 g/t over 8.4 meters.
SS22-015 found three mineralized zones and found 613 g/t Ag over 0.5 meter. According to the company, it extended mineralization to 65 meters below what has previously been found.
SS22-18 also found multiple mineralized zones, with 212 g/t Ag and 0.67 grams per ton over 1.5 meters and 2.45 g/t Au and 8.9 g/t Ag, over approximately four and a half meters.
SS22-011 found 115 g/t Ag and 2 g/t Au over 0.7 meter, and an additional 9.9 g/t Ag and 1.7 g/t Au over approximately 2 meters in an area with no previous drilling.
According to Silver Hammer Mining Corporation, “2022 drilling results extend mineralization further along the strike to the northwest, southeast, and to depth.” Overall, the company seems optimistic about future returns from their drilling on Silver Strand.
The company reported that the results from their drilling at Silver Strand demonstrated that the potential for mineralization remains far beyond the historically mined areas. SS22-009, SS22-011, SS22-012, and SS22-013 tested the southeast region beyond previously modeled Silver strand mineralization.
Overall, the region has proved a reliable source of precious metals and other valuable minerals. The company did experience troubling markets in June of 2022, but reports that their focus on “high impact, low-cost work,” in the words of Morgan Lekstrom during the September 2022 Metals Investor Forum, put them ahead of other companies that ceased operations in anticipation of better markets.
Why Silver and Gold?
Silver and other precious metals are often considered to be “safe haven” investments. In difficult markets, the value of these materials tends to remain relatively stable. Certain precious metals, including silver and gold, have applications in electronics because they are good electrical conductors.
According to Silver Hammer Mining Corporation, “the use of silver in printed and flexible electronics is forecast to rise 54% from 48Moz in 2021 to 74Moz in 2030.”
Sectors with increased demand for silver are green energy and antibacterial applications. There is also an investment demand in the form of silver-backed funds and physical bars and coins.
Silver Hammer Mining Corp. reports that they are well positioned in relation to rising silver prices and that they have exploration programs planned for 2023.
Catalyst: Leadership Change and Exploration Programs
Silver Hammer utilized existing underground sites to extend its new drilling operations and cut costs associated with establishing a new site. The company seeks to extend its explorations deeper in anticipation of richer mineral deposits further below the surface. According to Silver Hammer, this is to be expected of mineral-rich formations in the area, such as the Rivett formation. The company also seeks to extend its mining on the surface, and increase the total area covered by its mining operation on Silver Strand.
Silver Hammer is also looking forward to a leadership change, replacing the interim CEO, Warwick Smith, with a permanent CEO. The new leadership is focused on growth, advancement of assets, and capital markets.
Silver Hammer Mining Corporation received US$3 million of investment in June, and despite the rocky market, and the company reported that it still holds US$1 million.
Technical analyst Clive Maund indicated in November of 2022 that Silver Hammer Mining could be worth keeping an eye on. Maund listed Silver Hammer as one of nine stocks that should pique your interest.
“Whilst it could break lower from this pattern, this is only likely if a market crash forces the sector temporarily lower. Otherwise, it looks set to break higher,” Maund noted.
He continued saying, “We should note that it may take some more time to do so, given that the falling 200-day moving average is still some way above the price. Positives are that the Accumulation line has held up quite well on the decline from the peak last April, and downside momentum (MACD) has dropped out.”
Silver Hammer Mining will use the data yielded by this drilling operation to update their 3D model of Silver Strand. According to the company, “it is anticipated that a geophysical ‘signature’ will be defined for the Silver Strand structure, which will allow it to be traced across the property, a potential strike length of five kilometers. This will then translate into new high-potential drill targets being defined on the 5.85 kilometers squared property.”
Ownership and Share Structure
Silver Hammer Mining Corp. has a market cap of CA$12.6m, based on a 50-day moving average, and 46,713,662 shares, 11,289,538 warrants, and 2,400,000 options.
Warwick Smith reports owning 280,000 shares in the company, while Alnesh Mohan, the CFO, reports owning 175,000. Lawrence Roulston, Joness Lang, and Ron Burk, all directors, own 600,000, 73,000, and 75,000 shares, respectively. Silver Hammer Mining Corp. does not report any institutions or strategic investors.
They report that they are working with High Tide Consulting Corp., an IR firm, and Gold Silver Pros, an influencer.
Silver Hammer Mining Corp. reports CA$1 million and a monthly burn rate of CA$120k. They are not currently drilling but have plans for the summer of 2023.
