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Silver Range Resources says 'grade is king' as it follows the prospect generator model in the US and Canada

Snapshot

Silver Range has 45 prospects and is focused on high grade, surface assets, located in mining friendly locations

Silver Range Resources Ltd. -

Quick facts: Silver Range Resources Ltd.

Price: 0.17 CAD

TSX-V:SNG
Market: TSX-V
Market Cap: $13.94 m
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  • Focused on high grade, surface assets
  • Experienced technical and management team
  • Working in favorable mining jurisdictions

What Silver Range Resources does:

Silver Range Resources Ltd (CVE:SNG) is a high-grade precious metals prospect generator, which means it has stakes in, or has acquired, a large portfolio of exploration projects.

The company itself does not generally undertake drilling, it leaves that to partners who fund and carry out the work in return for earning a share in the property.

This business model is nothing new but it works because it mitigates the inherent risk of exploration, improves the odds of success, and puts a lid on capital spend and therefore limits shareholder dilution.

Silver Range has 45 prospects (eight are optioned to others) and is focused on high grade, surface assets, located in mining-friendly, gold and silver-rich jurisdictions, namely Nevada in the USA and Nunavut, North West Territories (NWT) and Yukon in Canada.

In Nevada, the company has the East Gold Point, which is an extension to a historic camp, and has analogs with the Mineral Ridge mine, where to date 697,715 ounces of 1.87 grams per ton (g/t) gold have been mined. 

In the US state, the firm also has the Cold Springs, Skylight, Strongbox (surface gold found here up to 27 grams per ton  (g/t)), Stinson (high grade surface grabs found here up to 248 g/t gold), Kawich and Gold chief prospects.

In Nunavut, it has the Grumpy (high-grade gold vein system), Hard Cash (optioned to Canarc Resources), Tree River (described as North America's only Pilbara-style target) and the Ennadai-Rankin belt.

The Northwest Territories projects comprise Cabin Lake, in which Silver Range has a royalty interest, the Up Town Gold project and the Itchen project

In the Yukon, the firm has the KEG project, the BARB deposit and the MEL deposit.

Significantly, near term catalysts for growth, the company says, are drill-ready prospects Cold Springs and Skylight in Nevada, while at East Gold Point and Stinson, among others, drill targets are being developed.

How is it doing:

In February this year, Silver Range revealed it had optioned its East Goldfield property in Nevada to a well-funded, aggressive exploration firm, ATAC. The property is next to the Gemfield project, currently being developed by Waterton Global Resource Management, which has a measured and indicated resource of 1.57 million ounces of gold at 1.03 g/t.

The deal grants ATAC two options, the first of which allows it to earn 75% by spending C$400,000 by April 1, 2024, and exploration expenditures of C$10 million by the end of 2025 with annual minimum expenditures of C$200,000 in each of the first two years.

On February 11 this year, the company announced a C$600,000 financing to be used for working capital and exploration across its project territories. And on April 6, it said it had closed a first tranche, bringing in C$104,000.

The company jas also provided an update on its response to the coronavirus pandemic, saying it had suspended work in Nevada and was rescheduling planned work in Nunavut, pending lifting of public health orders in the North-West Territories and Nunavut.

The company said it had redirected resources to project generation and target identification "in anticipation of favorable business and market conditions in the days ahead."

Inflection points:

  • More options, partnerships, prospects
  • Exploration results
  • Precious metals price changes

What the boss says:

Silver Rage president and CEO Mike Power recently summarized to Proactive's Steve Darling what the firm is all about:  "We are a high-grade prospect generator. We need to see 5 g/t gold or gold-equivalent, so we look for prospects that have surface mineralization of that grade and they need to be in a deposit class, that could host a deposit of that grade.

"We don't look for the lower grade stuff regardless of the tonnage size... in the hope that eventually we can put a portfolio of these together. In good times or bad grade is king."   

Looking ahead this year, Power said the aim was to move the East Gold Point project in Esmeralda County, Nevada to drill-ready status, and to advance its Nunavut projects and some projects in Nevada, also to drill-ready status after technical data has fallen into place

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