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Silver Co. Achieves Milestone With Social Agreement
Research Report

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The local community is on board with the mining firm's plans for one project of its flagship asset in Peru, noted a Red Cloud Securities report.

Silver X Mining Corp. (AGX:TSX.V) was afforded unrestricted access to explore and mine its Plata project through the just signed 15-year social agreement with the community of Carhuapata in Huancavelica, Peru, reported Red Cloud Securities analyst Timothy Lee in a May 24 research note.

This development follows a previous arrangement also pertaining to the company's flagship property in the Nueva Recuperada Silver district. That agreement, finalized in November 2023, was with the Peruvian community of Huachocolpa for 12 years, with respect to the Tangana mining unit, Red Silver, and processing plant areas.

"Both agreements highlight the strong social support for Silver X's activities in the region," Lee wrote.

188% Return Potential

Given the news, Red Cloud maintained its CA$0.75 per share target price on the Canadian silver company, trading at about CA$0.26 per share at the time of the report, noted Lee. This target implies a 188% potential return for investors.

Silver X remains a Buy.

With Historical Resource

Lee briefly described the explorer's Plata asset, noting that while it is a secondary project, "it could play an important role in Silver X's future growth plans.

The 3,829-hectare property has an existing historical resource consisting of 448,000 tons of 221 grams per ton silver, 2.55% lead and 4.58% zinc, containing 3,200,000 ounces of silver, 25,000,000 pounds (25 Mlb) of lead and 45 Mlb of zinc.

This resource estimate is based on about 30,000 meters (30,000m) of drill core and 8,000m of underground samples, indicating multiple high-grade silver and polymetallic veins are present.

"At least 17 known mineralized veins have been identified at surface, with widths ranging from 0.6-1.0m," noted the analyst.

What To Watch For

Moving forward, Lee pointed out, Silver X intends to focus in the near term on Tangana, "where operational improvements and cost control measures have begun bearing fruit."

The company is aiming to update the mineral resource estimate for the overall Nueva Recuperada project by year-end 2024.

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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.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Red Cloud Securities, Silver X Mining Corp., May 24, 2024

Disclosure Requirement Red Cloud Securities Inc. is registered as an Investment Dealer and is a member of the Canadian Investment Regulatory Organization (CIRO). Red Cloud Securities registration as an Investment Dealer is specific to the provinces of Alberta, British Columbia, Manitoba, Ontario, Quebec, and Saskatchewan. We are registered and authorized to conduct business solely within these jurisdictions. We do not operate in or hold registration in any other regions, territories, or countries outside of these provinces. Red Cloud Securities bears no liability for any consequences arising from the use or misuse of our services, products, or information outside the registered jurisdictions. 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 Disclosure Details

  1. 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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Analyst Certification Any Red Cloud Securities Inc. research analyst named on this report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the companies and securities that are the subject of this report. In addition, no part of any research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

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