Silver prices have inched higher in recent trading sessions, as the U.S dollar index dropped sharply in late-January and the latest US inflation data marks its highest level in 40 years.
The latest numbers show that consumer prices jumped 7.5 per cent last month compared with 12 months earlier, the steepest year-over-year increase since February 1982. The acceleration of prices ranged across the economy, from food and energy to apartment rents and electricity.
Investors have also viewed the geopolitical tension between Russia and Ukraine as another driver for the precious metals rally. Russia has amassed more than 100,000 troops near Ukraine's border in recent weeks, according to U.S. estimates.
“Investors are rushing to precious metals to shield themselves from the rise in uncertainty that is likely to put downward pressure on stock markets over the next few days” – stated Naeem Aslam, chief market analyst at AvaTrade.
ONE SILVER STOCK FOR YOUR WATCHLIST?
Silver last traded at $23.80, the 52 week High/Low is $28.16/$21.52 respectively.
Golden Tag Resources (TSX.V: GOG) (OTC: GTAGF) is an exploration company focused on delivering the next potential silver mine located in the Velardena Mining District, Durango, Mexico.
As of today, Golden Tag Resources (TSX.V: GOG) (OTC: GTAGF) is sitting on one of the largest undeveloped silver equivalent deposits globally, with over 115M ounces of Silver, and 1.5 Billion pounds of zinc in total resources. Based on an Enterprise Valuation (EV)/Ounces metric, Golden Tag Resources (TSX.V: GOG)(OTC: GTAGF) is ranked as one of the most undervalued assets on the market.
Golden Tag Resources (TSX.V: GOG) (OTC: GTAGF) is strategically located in one of the most prolific mining belts where multiple world-class deposits have been discovered and mined.
Golden Tag’s (TSX.V: GOG) (OTC: GTAGF) San Diego Project is 12km NE of Peñoles, Velardeña Mine, which is the company’s largest mine and the second largest zinc mine in Mexico and has been in operation since 2013. This mine has over 600 employees and has a mining capacity of 2.3Mt/year with reserves of 36.7Mt of ore.
Penoles trades on the Mexican stock exchange under the symbol PE&OLES and is the second largest Mexican mining company, trading at a US$4.58B market cap. The company is also one of the two largest producers of refined silver in the world, while being a leading producer of refined Zinc worldwide (all information is based of Penoles website).
Golden Tag (TSX.V:GOG) (OTC: GTAGF) is fully permitted to resume its exploration drilling to move their inferred resources into the measured and indicated categories, once proven up and other aspects are de-risked, Peñoles would have to take a serious look at San Diego as an add on to their current portfolio. The Velardeña Mine started producing in 2013 and has a mine life of 14 years, the miner will have to look at nearby assets to replenish their resources. Penoles has poured over US$200M into construction of Velardeña Mine.
CURRENT RESOURCE & POTENTIAL
Golden Tag(TSX.V: GOG) (OTC: GTAGF) current resources stand at over 115M ounces of Silver, and 1.5 Billion pounds of zinc in total resources:
Golden Tag (TSX.V: GOG) (OTC: GTAGF) has been working with SGS Canada who is the world’s leading testing, inspection and certification company, with over 93,000 employees and 2,600offices/laboratories.
SGS Canada believes with additional exploration work, a potential of 20-50 million tonnes grading at100-150 g/t silver equivalent can be added to the current resources. Four key exploration targets remain open laterally and at depth:
- 1849Target Area within 250 vertical metres between holes SD-12-49 (20.4 m @ 73 g/tAg, 1.81% Pb, 0.89% Zn & 14.9 m @ 72 g/t Ag, 1,86% Pb, 1.94% Zn) andSD-07-18 (14.5 m @ 82 g/t Ag, 1.78% Pb, 1.94% Zn & 15.8 m @ 34 g/t Ag,0.49% Pb, 0.62% Zn), and along the 350 metre up-dip extension to surface. Mineralization encountered at the bottom of hole SD-07-18 is similar to Fernandez Zone.
- Fernandez:200 m Upward Extension Zone located between two major structures, offers bulk mining potential, and remains open to the west, up-dip and at depth. Top of the zone was interpreted by SGS in 2013 at a vertical depth of 450 metres below surface, but no drilling has been conducted in this area to verify the upward extent of the zone. Impressive historical holes include: SD-12-47: 212 m @ 54 g/t Ag, 0.48% Pb, 1.28%Zn, SD-12-49: 238 m @ 64 g/t Ag, 0.77% Pb, 1.59% Zn, SD-12-50A: 257 m @ 66 g/tAg, 0.74% Pb, 1.69% Zn, SD-12-50W2: 186 m @ 53 g/t Ag, 0.56% Pb, 1.20% Zn
- Trovador Zone Target is 400 x 400 m area between indicated resources located 150 m below surface), and above inferred resources estimated in 2013 at depth. Open along strike to the west with historical drill intercepts ranging from 7 m to over 50m (SD-12-47: 6.92 m @ 66.9 g/t Ag, 0.9% Pb, and 3.22% Zn: 1004.4-1011.3 m) (SD-11-40:56.12 m @ 42.9 g/t Ag, 0.57% Pb, and 0.77% Zn: 782.1-838.2 m
- Arroyo Zone Discovered in 2007 in hole SD-07-27 (166 g/t Ag over 4.60 m, including 776g/t Ag over 0.6 m with 1.55% Cu). Vein traced over 525 m strike length from the surface to shallow depths with few, widely spaced drill holes from previous program
Golden Tag(TSX.V: GOG) (OTC: GTAGF) is run by a team of extraordinary successful mining executives:
GREG MCKENZIE – DIRECTOR, PRESIDENT & CEO
Former senior investment banker with > 20 years of experience with Morgan Stanley, CIBC World Markets and Haywood Securities, with transactions in excess of $18 billion. In addition to his capital market experience Mr. McKenzie previously practiced corporate law with a leading Canadian securities and M&A law firm.
CARMELO MARRELLI – CHIEF FINANCIAL OFFICER
Principal of The Marrelli Group, a Chartered Professional Accountant (CPA, CA, CGA) and a member of the Institute of Chartered Secretaries and Administrators. Mr. Marrelli also acts as the chief financial officer to a number of issuers on the TSX, TSX-V and CSE, as well as non-listed companies, and as a director of select issuers.
WILL ANSLEY – VICE PRESIDENT CORPORATE DEVELOPMENT &INVESTOR RELATIONS
20+ years of industry experience, including development& construction of seven mines in the Americas, including six mines in Ontario; Director of Business Development for FNX Mining and the VP of Corporate Planning & Strategy for Lake Shore Gold, and was the COO of Mineral Streams Inc., which was sold to AuRico Metals Inc. in 2015.
CHAD WILLIAMS – CHAIRMAN
Chairman and founder of Red Cloud Klondike Strike, former Head of Mining Investment Banking at Blackmont Capital Inc., and a highly ranked mining analyst at TD Bank and other Canadian brokerage firms, and CEO of Victoria Gold Corp. Mr. Williams holds both a P.Eng in Mining and an MBA from McGill University.
TOM ENGLISH – DIRECTOR
20+ years experience in the financial industry at investment banks including CIBC World Markets and Salman Partners covering both small and large cap companies.
DWAYNE MELROSE – DIRECTOR
30 years of international mining experience in Central Asia, China, Africa, and North and South America. Former President and CEO of True Gold Mining, and Gold Reach Resources, VP of Exploration of Minco Silver, part of team awarded China Mining Explorer of the Year. Exploration Manager at the Kumtor Gold Mine in Kyrgyzstan, instrumental in the discovery of the high grade SB Zone and as mine increased reserves by +7 M oz.
Golden Tag (TSX.V: GOG) (OTC: GTAGF) currently has 194.2M shares outstanding and is trading at $0.25 per share, giving it a market cap of $48.55M.
The current top shareholders are:
- Eric Sprott 19.3%
- Institutions 18%
- High Net Worth ~10%
- Insiders 5%
Golden Tag (TSX.V: GOG) (OTC: GTAGF) currently sits as one of the most undervalued silver stories on the street. With over US$6 billion in gross metal value, the potential economics of the San Diego project would very robust, and would potentially attract major mining companies or strategic investors into the story.
Disclaimer: Golden Tag is a paid marketing client*