Permits Cleared for 56 Drill Targets as Silver District Expansion Plans Advance

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Silver Storm Mining Ltd (SVRS:TSXV; SVRSF:OTCQX; SVR:FSE) announced that it has secured permits for the construction of 62 drill pads and 27 access roads at its 100%-owned, past-producing La Parrilla silver mine complex in Durango state, Mexico. The permits were issued by Mexico's Secretaria de Medio Ambiente y Recursos Naturales (Semarnat) and are valid for four years.

According to the company, the permits authorize the construction of surface drill pads and access roads to support drilling at 24 sites within the La Ilusion-Argenis target area and 32 sites at the 14 Marcos and Rosarios-C340 western extension targets.

Greg McKenzie, president and chief executive officer, stated in the news release, "Securing the permits to conduct surface drilling is an important milestone for our 2026 exploration program at La Parrilla. With multiple promising surface exploration targets on the La Parrilla land package, we are excited about the potential to grow the resource footprint on the property."

Silver Storm said it has developed an initial exploration plan for the C340 and 14 Marcos targets. At C340, the company plans to upgrade inferred resources at the past-producing Rosarios mine to the indicated category, extend known mineralization to the west, and test high-grade mineralization in the upper levels of the C193 zone. Approximately 3,600 meters of surface drilling are planned in the target area.

At the 14 Marcos target, the company said historical artisanal mining was conducted on two levels to a depth of approximately 100 meters. The expected downdip projection of the mined vein lies approximately 140 meters south of mine development within the Rosarios mine. Silver Storm plans an initial 3,000-meter surface drilling program to test mineralization to a depth of 300 meters.

The company also reported that Semarnat has authorized continued operation of the existing tailings storage facility at La Parrilla for an additional 10 years. The previous authorization was scheduled to expire in the third quarter of 2026. Silver Storm said the renewed authorization will allow the facility to maintain its environmental operating license and support operational continuity at La Parrilla.

Silver Market Digests a Powerful Multi-Year Run

In a June 18 edition of the What's Chen Buying? What's Chen Selling? newsletter, Chen Lin wrote that "gold rebounded to the exact down trend line yesterday and shorts showed up at the Fed meeting." He added, "I remain cautious on gold and silver for this summer," while noting ongoing developments in broader commodity markets.

A June 19 commentary from Excelsior Prosperity's Shad Marquitz examined the performance of various segments of the precious metals market over multiple years. Marquitz wrote that silver "put in a key low during the March 2020 'Pandemic Crash' at US$11.64, and then rallied up 10.4X to the recent peak in January at US$121.64." He also noted that using a later reference point, silver "still rallied almost 7X over the next 3.5 years." Discussing silver-focused equities, Marquitz wrote that the Amplify Junior Silver Miners ETF "moved up over 5X over the next two years," describing the move as "essentially a mass re-rating and re-pricing of silver equities."

Marquitz also observed that silver equities had experienced a significant correction in recent months despite strong underlying metal prices. He wrote that "the silver equities never got much past pricing in US$50-$60 silver into their valuations as producers or as the best development projects." According to Marquitz, the sector had undergone a cyclical correction over the previous several months following strong gains across silver, gold, and precious metals equities.

Additional commentary on June 19 highlighted continued movement in precious metals markets. Mining.com reported that gold finished the week near US$4,200 per ounce after experiencing significant price swings. According to the report, a rally earlier in the week was followed by a pullback after the U.S. Federal Reserve held interest rates steady. The publication wrote that "what comes next for the gold price appears far from certain."

Restart Milestone Highlighted by Third-Party

In a June 17 edition of Silver Stock Investor, Peter Krauth discussed operational developments at La Parrilla and wrote that Silver Storm "has achieved an exciting milestone with the first silver-gold doré pour at its fully owned La Parrilla Silver Mine Complex in Durango, Mexico."

Krauth stated that the pour "marks the successful restart of operations and a major step forward for the company." He noted that the first pour was completed during commissioning of the oxide processing circuit and that the company expected to produce silver-gold doré on an ongoing basis.

According to Krauth, the oxide circuit began commissioning in early June using material from the open-pit oxide stockpile and would continue processing that feed until underground development at the San Marcos area provided access to additional run-of-mine oxide material.

Krauth also commented on the pace of the restart effort, writing, "We're impressed because, as President and CEO Greg McKenzie highlighted, this achievement was reached less than three years after acquiring La Parrilla." He added that "the team delivered its first silver safely and successfully while opening a new chapter for the company and its stakeholders."

Discussing future operational activities referenced in the company's update, Krauth wrote that commissioning of the 1,250-tonne-per-day sulphide processing circuit was expected to begin in June with an estimated one-month ramp-up period. He stated, "I am glad to own shares as this next phase should further strengthen production and support La Parrilla's continued growth."

Krauth did not disclose a formal rating or target price.

Exploration and Rehabilitation Activities Advance at La Parrilla

The newly issued permits allow Silver Storm to construct 62 drill pads and 27 access roads in support of drilling programs across multiple target areas at La Parrilla. As per their latest materials, the company plans approximately 3,600 meters of surface drilling at the C340 target, where objectives include upgrading inferred resources at the Rosarios mine, extending known mineralization westward, and testing high-grade mineralization within the C193 zone.

At the 14 Marcos target, Silver Storm plans an initial 3,000-meter surface drilling campaign to evaluate mineralization associated with a historically mined vein. The drilling program is designed to test the target to a depth of 300 meters.

Separately, the company reported that rehabilitation activities are underway at La Parrilla. These include expansion of the sulphide circuit to 1,250 tonnes per day, representing a 25% increase in capacity. Silver Storm stated that long-lead equipment, including eight new Wemco-style sulphide flotation cells, a vibrating grizzly screen, and a primary jaw crusher, is already on site.

Underground rehabilitation work is also in progress and includes drift cleaning, scaling, ventilation upgrades, and recommissioning of underground services. The company reported that ball mill testing has been completed successfully and that counter-current decantation tanks have been filled in preparation for oxide circuit commissioning. 

In addition, Semarnat has approved continued operation of the existing tailings storage facility for an additional 10 years, extending authorization beyond its previously scheduled third-quarter 2026 expiry. The company said this authorization maintains the facility's environmental operating license.

Ownership and Share Structure¹

Management and insiders hold 1.64% of Silver Storm, with strategic entities owning 27.34%, and institutions owning 10.58%. The rest is retail.

Silver Storm has a market cap of CA$260.21 million, 809.33 million outstanding shares, and a 52-week range of CA$0.12 – CA$0.80.