Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:08 Hello everyone and welcome to Silverhammer Mining's live summit today hosted by 6. Today I'm joined by Morgan Lextrom, the company's president and CEO. Morgan is going to walk us through his company's presentation today and after we'll be accepting questions. Like always you can submit your questions using the Q&A panel found on the right hand side of your screen and this summit is being recorded and will be available to watch in the coming days on Six.com so without further ado Morgan, floor is yours. Yeah thanks for hosting and thanks everybody for joining Silver Hammer and our update summit here on, mainly focused on Silverton and a bit
0:41 of SilverStrand update on our drilling program. So what I'm gonna do is I'm gonna walk us through the quick presentation here. It's 8 slides. It's not our whole corporate presentation. So I don't know, I want to definitely bore everybody to death, but it's exciting update on where we're at with Silverton and that news release that we just had this week. So just going to make a few forward looking statements here. And I just want to recap our share count. You know, it's actually around 38 million shares outstanding right now. We've had some warrants come in, so 2.7 million options, 7.5-ish, 7.8 million warrants, and fully diluted 48.2 million. You want a smart cap of roughly $31 million. So we've been very happy with how that's been performing. I want to talk quickly about Silverton.
1:27 So we did that, we had that news release this week about Silverton and about our sampling, our chip sampling, our geochemistry. And I always like to preface this, there's a big difference between chip samples and grab samples. You know, chip samples are a systematic program of going out, looking at the rocks, having geologists understand what's there, and taking samples systematically by following veins, by following structure. So that's what our geologists did at Silverton, obviously yielding some really good results, you know, up to 692 grams a tonne silver from surface, and, you know, multiple 100-plus grams per tonne silver samples including gold samples as well so that that gold target you know we talk about that on our property having 0.5 silver and 0.5 golden and we're slowly proving that out I wouldn't say slowly we're actually quickly proving that out obviously a lot more work is required in that portion of the Silverton property, but we're really excited to see what that's going to yield us to look like that round mountain style gold deposit, but also having that unique silver deposit that was the Silverton mine, you know, how we're going to expand that, how we're going to drill target that, that kind of stuff is what this initial program was all about. So it's, it seems like a small release, but it was actually a very big one for us. I mean, it just proves exactly what we're doing with this company, which is pushing forward at record record speed
2:58 and actually all of our assets concurrently. So just a little bit more about the Silverton mine. It was a past producer up to 1933. 933 grams a ton had come out of it, silver. And it had been only mined down, Like you can see one of the shafts here. There's multiple adits in the hills. I've walked the ground significant, spent a lot of time on that ground walking it with our geologists. There was a significant mining operation there, but as you come up the hill, Our geologists have seen this interesting silver system, which obviously we sampled and we've had good results for. So we're looking forward to drill targeting out there in very short order, especially first thing in the new year, actually.
3:44 We talked about that Round Mountain style gold deposit as well. That's that half the east side of the property. There's been a lot of work done in the area, just not on the flatter portion of the property which we hold. And the geochemistry and The chip samples that we were collecting have anything from 0.1 to 6.1 grams a ton. And for reference, Round Mountain, their cutoff or their head grade is 0.7 grams a ton. And their reserve grade is 0.52 grams a ton, as they've indicated on their news release in 2017. So really interesting. You think about that as lower grade, but on a massive scale, it's Definitely mineable and definitely profitable, obviously, for Kinross.
4:35 Quickly talk about our catalysts here. Our catalysts and milestones, I'm really pleased to tell everyone that Silver Strand, we've wrapped up the drilling for the year, yeah, for this year, and we have successfully demobilized and all our core is now in the lab. So we're, like we said before, we're waiting on lab results and we will continue to wait on lab results. But I'm happy that we were successful in finishing and completing a drill program in such short order from starting this company 6 months ago to having a permit, rehabilitating an underground, mobilizing a drill. Thank you to our drilling contractor for working day and night to get up there with us. And anyone in this industry knows getting a drill right now is next to impossible in short order.
5:23 So really thankful that we were able to work with such great partners in this, you know, the US Forest Service, as well as our partners in the drilling, and successfully and safely, and I really emphasize that safely, we safely executed on our plan to drill, and we're really excited and looking forward to what we're gonna get from the core. So in saying that, the next catalyst will be from Eliza, most likely. We were analyzing the results right now. We're doing a little bit of some hyper spectral work and trying to understand really that large system, that massive past producing silver rush system that was Treasure Hill, Mount Hamilton, south of the Everhart fault, the California line area. So we're pretty excited what we're seeing and we're really looking forward to what We're going to show the market on that one.
6:17 And obviously more work at Silverton,
6:21 more sampling, more detailed geophysics and then drill targeting in early 2022 at both Eliza and Silverton. So we'll have no shortage of catalysts coming out of all 3 of our properties in the next 3 to 6 months, and even near term. But as a company, we are aggressively moving these projects forward, and we're well capitalized to do it.
6:47 This would be Christina's contact information. Christina's our head of IR. So if you have any IR questions or questions that you'd like to relate to me, please absolutely reach out to Christina, phone number or email, and they get related to me right away. And I'm more than happy to answer any questions that we can accommodate. So we'll go to the Q&A section now. Awesome, great. Thanks, Morgan, for the great presentation. Before we get into the Q&A properly, I'm going to remind the audience members that please use the Q&A tab found on the right-hand side of your screen. If you'd like to submit questions live to Morgan and Time Allowing, we'll absolutely address them. But Morgan, we have some questions that have come in in advance, so let's dive into those right now. Sure. Which project do you see the most potential?
7:30 Where's the focus? Silver strand right now, it's funny. So silver strand is our flagship. That's obviously we're drilling there. That's our large exploration payoff and near-term production potential. But Eliza and Silverton really do hold an immense amount of value, especially Eliza. Eliza has huge, huge potential to be a very large-scale tier 1 asset. So as much as I say Silver Strand itself right now is the focus, and it really is, that quickly gets put together into a massive package with Eliza and Silverton. So having the ability to focus on all 3 assets concurrently is something that is unique for us. Absolutely, great.
8:16 So what's the path to production at Silver Strand then? What size of resource would you need to see to justify putting it back into production? That's a really good question. I like that one. So I wouldn't put it into production in small scale. And I say that, I don't say that reluctantly. I mean, I would want to be meaningful in the way we go into production. So obviously, defining a resource, I like to think about starting a mine the same way as the big guys at Goldcorp, Barrick, all these companies. They didn't define a massive resource. They defined a very mineable resource with a good ROI and good payback with potential to expand and put it into production. So,
8:56 you know, similar to like Lucky Friday, similar style war body, we're hoping. So, you know, a couple of million ounces a year of silver equivalent would be a very mindable path to production and a number of years to look into that. Like we've talked about, there's a mill close by. There's a lot of the engineering stuff we can do in the background pre-large resource to accelerate that. So for me it's all about making sure that the return on investment for shareholders is probably under that two-year mark. So the work we're gonna do to define the size of resource will really depend on that. Okay, fair enough. Derek in the audience asks, what's the company's cash situation and is it funded into 2022?
9:43 Yeah, good question. Yeah, so we raised 3.5 in May. Our last financials were about 2.8. We burned about 400,000 a month during the drilling season. So I would say we're definitely very well capitalized going into 2022, obviously with warrants coming in and options being exercised. We're excited about that as it adds to it. And our burn rate will slow down here. Obviously now that drilling has wrapped up for the season, our burn rate slows right down. And I think we're pretty well capitalized to go into 2022 very strong. Sounds great. Allison in the audience wants to know how you feel, or if you feel, that the share price should be higher since the acquisition of the 2 additional assets in August.
10:30 I can't say exactly where I would hope the share price would be, but I know in a very strong, I would hope in a very strong bull market and in a strong market with the type of assets that we have and the type and the quality and the high quality of team that we have in the background, yeah, it would be much higher. But I'm very happy with where we're at. Like I said, we started this company roughly 6 months ago, and we have 3 potential tier 1 assets. So I think the market's starting to catch up to us, as you can see by the share appreciation, how it's gone over the last 3 weeks. And I look forward to seeing where it's going. OK. So, Morgan, your background is in building mines. Do you see advancing these projects into production yourself, Or is it likely that a mid-tier or a major would take out the company prior to getting into production, assuming that the deposits prove to be mineable?
11:23 Listen, I want to build mines. We at Silver Hammer want to build a mid-tier silver mining company. And I will always say that and I will always and will try to strive for that. That being said, things happen, right? I mean, if someone comes in, it's beyond my hands, it's up to the shareholders. But no, our goal right now is to turn all 3 of our projects eventually into production, but right now focusing on that large exploration payoff. Right. Absolutely. Listen, Moring, before we wrap up today, I'd like to pass things back to you just for some final words, and any highlights that you want to reiterate to the audience here today. You know, I just I want to thank everybody for coming on, taking time out of their day. I know it's a Thursday. It's getting close to the Christmas holidays.
12:12 It's 11:00 Pacific time. It's beautifully Sunny out here in Vancouver for once. And I know it's a lot and we really value the shareholders. You guys are really making this company what it is today. And we look forward to bringing an immense amount of value through all 3 of our properties. And now including people like Ron Burke on our management team is showing you where we're gonna be going and how we're gonna get there. Accelerating these projects in the timeframes that we have, looking at just from SilverStrand and getting drilling within such a short order, rehabilitating underground. I mean, I know that I say these and they sound like small feats, but organizing contractors and consultants and all that really is a team effort. And I mean, that's right from the board, right down to the labor on the ground.
13:06 I mean, every person in our company has a value and a very important position in our company. So we will always focus on that. So I just, again, Thank you everybody for coming today and any more questions please reach out to Christina, reach out to myself, hit us on Twitter,
13:24 anywhere like that, Instagram, Twitter, Facebook. We're looking forward to the interactions. Wonderful. Well, thank you for Morgan again. And I'd like to also thank, of course, everyone in the audience who's joined us here today. As Morgan said, feel free to get in contact with them. We'll also be sending out a short survey after this where you can get in contact that way. But otherwise, Morgan, I hope you have a good rest of your day. Cheers. Thank you everybody. See you later.
