Sampling at Mining Asset Returns High Grades
Research Report

Summa Silver Corp. (SSVR:TSX.V; SSVRF:OTC) discovered several new, high-grade surface showings at the  Mogollon gold-silver project in New Mexico, on which the company has a 100% interest earn-in option, reported Research Capital Corp. analyst Stuart McDougall in a July 20 update note.

"We reiterate our Speculative Buy recommendation," McDougall wrote.

264% implied return

Upon the news, Research Capital also maintained its CA$2 per share target price on the Canadian explorer. Its share price now, in comparison, is CA$0.55.

The return to the target from Summa Silver's current price represents a substantial return for investors, of 264%.

Samples show high grades

Summa Silver's discovery came during reconnaissance work in advance of anticipated drilling in the fall. These recent efforts included testing 126 surface samples of old dumps, outcrop and float in the Silver Bar, Great Western and highly prospective Queen vein systems.

Sample results "all point to their continuation beyond historic underground workings," wrote McDougall. Grades varied, as expected, but included high ones, of silver, gold and copper.

Some of the highlight results of sampling, from all three veins, were:

• From the Silver Bar vein: 8,373 grams per ton silver (8,373 g/t Ag), 5.39 g/t gold (Au) and 4.43% copper (Cu) (float sample) and 2,332 g/t Ag, 0.67 g/t Au and 6.06% Cu (grab sample).
• From the Great Western vein: 812 g/t Ag, 3.8 g/t Au and 18.4% Cu (dump sample) and 89 g/t Ag, 0.07 g/t Au and 8.77% Cu (grab sample).
• From the Queen vein: 221 g/t Au, 39.3 g/t Au and 0.83% Cu (dump sample) and 38 g/t Ag, 4.52 g/t Au and 0.16% Cu (grab sample).

"Summa Silver intends to follow up the results with more detailed geological mapping, rock chip sampling and soil geochemical surveys to better define the structural controls on mineralization and their orientations," wrote McDougall.

Further exploration upside

Ultimately, the new showings expanded Mogollon's cumulative vein potential to 75 kilometers (75 km). Only 0.5 km of that has been drilled, thus the remainder represents exploration upside.

Drilling progress at Hughes

In other news, reported McDougall, at its Hughes silver-gold project in Nevada, Summa Silver completed several drill holes, results of which are pending.

"Meter-scale quartz veins, breccias and stockworks with silver sulphide minerals were noted from the Ruby and Sapphire targets located east of the core historic mine area," the analyst noted.