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Silver Co. Makes New Plan For Its Operations in Peru
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The objectives of the Canadian miner's fresh strategic direction are to improve production and reduce costs, noted a Red Cloud Securities report.

Silver X Mining Corp. (AGX:TSX.V) restarted operations at its Nueva Recuperada property in Peru after putting them on hold in July to develop a plan for moving forward, reported Red Cloud Securities mining analyst Timothy Lee in a September 20 research note.

During the pause, management created a plan for mining Tangana, identified ways to improve efficiencies, and filled its chief operating officer (COO) position.

"We view these developments positively as they signal a prioritization of improvement in operations in light of issues, such as grade variability, which have impacted earnings in H1/23," Lee commented.

Potential 270% Gain

Given this news, Red Cloud maintained its CA$0.85 per share target price on the silver producer, the current share price of which, in comparison, is about CA$0.23 per share, Lee noted.

The difference between these two prices implies a significant return for investors of 270%.

Silver X is a Buy.

Production Schedule Revised

Management's new plan for mining the Tangana sector at Nueva Recuperada is to pursue the areas of higher certainty first, and the team revised the production schedule accordingly, reported Lee.

The company will use feed mainly from the Tangana 1 and 2 veins and use stockpiled material when milling resumes. These efforts should boost production rates.

"Surface exploration of the Morlupo and Cauca veins has revealed promising high-grade areas that could significantly improve the base case," Lee added.

Efficiencies To Be Made

Silver X also identified areas where costs could be reduced and came up with ways to achieve these, wrote Lee.

Specifically, headcount will be reduced, a type of sublevel stoping will be executed, and underground transportation and mineral handling will be minimized.

"The principal contractor is being engaged to produce a collaborative work environment and successfully implement these initiatives," reported Lee.

New COO Chosen

Silver X appointed seasoned mining professional and long-time associate, Freddy Mayor Zavellos, as the COO and general manager of its Peruvian subsidiary.

Zavellos was one of the company's founding members and its general manager from 2019 to 2021.

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Important Disclosures:

  1. Silver X Mining Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000. 
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver X Mining Corp. 
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

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Disclosures for Red Cloud Securities, Silver X Mining Corp., September 20, 2023

Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Investment Industry Organization of Canada (IIROC). Part of Red Cloud Securities Inc.'s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. Red Cloud Securities Inc. has prepared this document for general information purposes only.

This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided has been derived from sources believed to be accurate but cannot be guaranteed. This document does not take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud Securities Inc. will not treat recipients of this document as clients by virtue of having viewed this document. Red Cloud Securities Inc. takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment decisions based on the content of this report. 

Company Specific Disclosures

The analyst has visited the head/principal office of the issuer or has viewed its material operations.
2. The issuer paid for or reimbursed the analyst for a portion, or all of the travel expense associated with a visit.
3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has
performed investment banking services for the issuer.

Analysts are compensated through a combined base salary and bonus payout system. The bonus payout is determined by revenues generated from various departments including Investment Banking, based on a system that includes the following criteria: reports generated, timeliness, performance of recommendations, knowledge of industry, quality of research and client feedback. Analysts are not directly compensated for specific Investment Banking transactions.

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