Silver prices struggled during Q4 2021, but with rising inflation and uncertainties within the macro markets, Silver could potentially be the top performing asset of 2022. Silver’s 52 week high/low is $28.55/21.52 respectively, and last traded at $23.03.
Silver has lagged behind gold over the summer, with the gold-silver ratio rising from 67 to 77. The ratio refers to the number of ounces of silver needed to buy one ounce of gold. Unlike gold, which is primarily traded for investment or jewelry production, silver is used in a range of industrial applications. That means silver price news could be affected by the outlook for global industrial activity.
One Silver Stock For Your Watchlist?
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) is currently sitting on an impressive 79.3Moz Silver Equivalent resource (46.3Moz AgEq indicated and 33.0MozAgEq. inferred) at the San Marcial, Plomosas mine and San Juan areas, located within less than seven km of each other. This is the first time the entire district has been consolidated and 100% controlled by one single company. The Company plans to infill drill to expand the current resource base and will continue surface drilling exploration in the vicinity of the existing resource targeting new discoveries.
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) hosts rich mineralization throughout their 100% owned district scale land package (700 sq.km). The company initiated a 14,000 metre drill program during 2021, with roughly 7,000 metres of results still pending.
Based on its peer group, GR Silver (TSX.V: GRSL)(OTCQB: GRSLF) is currently trading at a discount, with companies in the region trading as high as a $400M market cap. As of today, GR Silver (TSX.V:GRSL) (OTCQB: GRSLF) is trading at $0.265 and has 167.4M shares outstanding, giving it a market cap of $44.36M. The current ownership is:
- First Majestic (TSX:FR) 12.9%
- Management & Insiders 7.5%
- Institutions & Funds 29.3%
- Other Investors 50.3%
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) Upside Potential?
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) has three structural trends, with multiple veins and historical Ag-Au showings providing investors massive exploration upside potential:
- Plomosas & San Marcial
- La Tigra
- La Trinidad
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) currently has two past producing sites, with existing infrastructure and permits in place allowing the Company to get back into production with ease.
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) 2022 Outlook?
GR Silver’s (TSX.V: GRSL) (OTCQB: GRSLF)2022 outlook is to grow the current resource base by infill drilling, targeting higher grade silver mineralization, as well identity new gold and silver zones to further expand the current geological model.
The current resource (79.3Moz Silver Equivalent resource) is just the beginning for the company, multiple veins have been identified adjacent to the current resources. With ongoing exploration work being done, GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) could potentially define a large hydrothermal system connecting all 3 targets.
GR Silver’s (TSX.V: GRSL) (OTCQB: GRSLF) Corporate Overview
GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) currently has tremendous support from the street, with Beacon Securities and Echelon providing analysts coverage. On January 7th 2022, Echelon Capital Markets analyst Gabriel Gonzalez believes GR Silver Mining shares are "undervalued." The Globe's David Leeder writes in the Eye On Equities column that Mr. Gonzalez commenced coverage on GR Silver Mining with a "speculative buy" recommendation and with a 60-cent share target. Analysts on average target the shares at $1.09. GR Silver is focused on its 100-per-cent-owned Plomosas project in Mexico. Mr. Gonzalez says in a note: "The Plomosas project currently hosts a combined 46.3Moz AgEq [silver equivalent] indicated and33.0Moz inferred (79.3Moz AgEq total) resource at the San Marcial, Plomosas and San Juan mine areas, located within less than seven km of each other. Given the pervasive hydrothermal breccia and vein hosted mineralization throughout the Plomosas project, we see continued attractive resource growth potential for the company. GR Silver shares are heavily discounted... Visibility on a growing property-wide resource and improved grade at the Plomosas resource could help to catalyze an increase in the company's EV/oz value relative to peers."
One of the Most Robust Team’s in the Business
The GR Silver (TSX.V: GRSL) (OTCQB: GRSLF) team comprises of some of the biggest players in the mining space, with a strong track record in exploration through to production of world-class assets with a focus on Latin America, particularly Mexico:
Eric Zaunscherb, Chairman
Mr. Zaunscherb is focused full time as an independent director. He is a Canadian geologist with over thirty-two years, and six cycles, of experience as a mining analyst. He most recently served as Managing Director, Research – Metals &Mining Analyst at Canaccord Genuity where he coordinated the firm’s global mining equity research team. He has enjoyed experiencing best practices in Capital Markets at several leading firms, and reviewing and evaluating hundreds of exploration, development, and mining projects globally. He embraces new technologies and industry initiatives in diversity and socially responsible investing, ensuring that local communities receive lasting benefits from mineral resource development.
Marcio Fonseca, CEO and Director
20+ years of mining and financial industry experience; Former Division Director for Macquarie Bank – Metals and Energy. 10+ years assessing/leading/ investing in business opportunities in Mexico and Latin America. Extensive experience in many jurisdictions through all phases of mineral asset development including senior positions with Vale, Phelps Dodge, and Echo Bay Mines in Latin America. Track record of successful transactions while managing natural resource portfolio at Macquarie Bank, key role in the recent CDN$155M acquisition of SilverCrest by First Majestic Silver Corp. (Mexico, 2015).
Laura Diaz, Director
Ms. Diaz is a lawyer in Mexico City, Mexico, and serves as a Mining Project Advisor in the areas of production, exploration and development. She is a well-renowned lawyer, expert in corporate commercial and mining law in Mexico. Ms. Diaz has served in the mining and exploration industry for over 25 years as Legal Counsel to several Canadian/US public companies. She served as an Independent Director of Marlin Gold Mining Ltd. (formerly Oro Mining Ltd) and of Magna GoldCorp. Ms. Diaz was also an Independent Director of the Company from March 2013– November 2018. Thereafter, Ms. Diaz held the position of General Director of Mines, within the Ministry of the Economy (Mexico) (December 2018 to June2019).
Jonathan Rubenstein, Director
Mr. Rubenstein practiced law for 18 years and held several mining director positions during that time. In 1994, he became a full-time mining executive and mining director. He has served on numerous mining company boards during the last 40 years and was actively engaged in the strategic, commercial, governance and government relations aspects of permitting, property acquisition, exploration, development, and operations for these companies. He has negotiated and completed property acquisitions, joint ventures, development agreements, financings and takeover bid transactions, for both major and junior companies and has dealt with foreign and Canadian domestic regulators, banks, and financial institutions, as well as the mining investment community. He has had active roles in dealings with local populations, in compensation matters, in the management of litigation and arbitrations, and in regulatory compliance. He was directly involved in negotiating or supervising acquisitions, mergers and takeover transactions totaling more than $5 Billion.
Gino DeMichele, Director
Engaged in global and financial markets with 25 years of corporate finance and M&A expertise. During his incumbencies as vice president and investment advisor he managed assets in excess of $250 million and was consistently recognized as a top investment advisor nationally and with Macquarie Private Wealth Inc. DeMichele has lead, structured and financed dozens of public and private deals spanning the last 22 years, a number of which exceeded market capitalization of $500 million.
Michael Thomson, Director
Mr. Thomson has over 30 years of experience in the securities industry as a lawyer, regulator, investment banker, Vice President with two securities dealers, and an entrepreneur. Mr. Thomson has been the President and principal of Independent Capital Partners Inc., a corporate finance consulting and advisory company since May 1998. He is also a past independent director of the Lil’Wat Business Corporations, the business arm of the Mt. Currie (Pemberton) First Nations Band. Mr. Thomson obtained a Bachelor of Law degree from the University of Ottawa in 1983.
Trevor Woolfe VP Corporate Development
25 years experience in exploration, mining, and public company management. He holds a Bachelor of Science (Honours) degree, majoring in geology, from Monash University (Australia). His previous positions with Australian companies included CRA, Metana Minerals NL and Newcrest Mining Limited, as well as four years with Canadian major, Placer Dome in Chile and Brazil. He is a Member of the Australasian Institute of Mining and Metallurgy (MAus IMM – 27 years),Australian Institute of Geoscientists (MAIG – 4 years), a Graduate of the Australian Institute of Company Directors (GAICD – 10 years), and also holds a Graduate Certificate in Applied Finance and Investment (SIA).
Mr. Woolfe’s most recent experience involved Managing Director and CEO positions of Australian (ASX) listed and unlisted companies including Oro Verde Limited, Serena Resources Limited and Anchor Resources Limited, as well as the founder of his independent consultancy company. Most recently he led the Oro Verde Limited exploration efforts in Nicaragua. Mr. Woolfe is a Latin American specialist and speaks fluent Spanish and Portuguese.
Honza Catchpole, PhD, VP Exploration
Honza Catchpole is an exploration geologist with 15 years of experience working in Mexico, USA, Canada, Andean South America and Europe. Honza Catchpole received his Ph.D. in Earth Sciences from the University of Geneva, Switzerland. His research focused on the relationship of zoned epithermal silver and base metal mineralization to porphyry-type mineral deposits at Moro cocha, central Peru. Hehas extensive experience in mineral exploration with porphyry Cu, skarn(Zn-Pb-Ag-Cu), epithermal precious (Au-Ag) and base metal (Ag-Zn-Pb-Cu)deposits. In former roles he worked for Teck Resources Limited, Sumitomo Metal Mining Canada and Vale Exploration Canada in project generation, exploration and project evaluation of precious metal and porphyry Cu projects.
Prior to joining GR Silver Mining, he was managing Teck Resources’ epithermal Au-Ag and porphyry Cu generative and drill programs in northern Mexico and managing exploration and geoscience activities at the advanced-stage San Nicolas VHMS project in Zacatecas, Mexico.
Derek White, Advisor
Derek White is President & CEO of Ascot Resources Ltd. (TSX-V: AOT) and has over 30years of experience in the mining and metals industry. He holds a degree in Geological Engineering from the University of British Columbia and is also a Chartered Professional Accountant. Prior to joining Ascot Resources Ltd., Mr. White was the Principal of Traxys Capital Partners LLP, a private equity firm specializing in the mining and minerals sectors. Mr. White was President and CEO of KGHM International Ltd. from 2012 to 2015, and also held the positions of Executive Vice President, Business Development and Chief Financial Officer of Quadra FNX Mining Ltd. from 2004 to 2012. Mr. White has held executive positions with International Vision Direct Ltd., 2 BHP-Billiton Plc, Billiton International Metals BV and Impala Platinum Ltd., in Vancouver, Toronto, London, The Hague, and Johannesburg. Mr. White is also an ICSA Accredited Director.
Final Thoughts On GR Silver (TSX.V: GRSL) (OTCQB: GRSLF)
GR Silver (TSX.V: GRSL) (OTCQB:GRSLF) offers investors huge upside potential based on the current valuation. The company has a material back log of samples at the lab, which will be announced shortly. In addition to the samples, underground drilling at San Marcial has been completed, aiming to delineate high grade silver for the first time ever, creating a major catalyst for future potential share value appreciation.
The company has already defined a large epithermal system and has the potential of connecting three targets to define a massive hydrothermal deposit.
Disclaimer: GR Silver is a paid marketing client