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Highlights:
- Silver Elephant mined 28,879 tonnes of oxide materials with an average grade of 189 g/t silver in September 2024.
- The company has shipped over 205,682 tonnes of silver-bearing materials since October 2023, yielding over 1 million ounces of silver.
- Silver Elephant plans to deliver up to 800,000 tonnes of oxide materials to Andean Precious Metals for significant revenue.
Silver Elephant Mining Corp. has announced impressive production results from its Paca project in Bolivia, showcasing the company’s strong operational capabilities and commitment to becoming a leading silver producer. In September 2024, the company mined a total of 28,879 tonnes of oxide materials, achieving an average grade of 189 grams per tonne (g/t) silver. This production milestone reflects the company’s effective mining strategies and the high-quality resources available at the Paca site.
Since the commencement of operations in October 2023, Silver Elephant has mined and shipped a total of 205,682 tonnes of silver-bearing oxide materials. The average grade for these materials is 181 g/t silver, which translates to a remarkable output of approximately 1,105,401 ounces of silver, as verified by government tax records. This consistency in grade and production efficiency has enabled the company to position itself as a significant player in the silver mining sector.
The company has ambitious plans for revenue generation, aiming to sell and deliver up to 800,000 tonnes of Paca oxide materials to Andean Precious Metals Corp. This arrangement is expected to generate between US$5 million and US$7 million in total proceeds. Silver Elephant anticipates receiving approximately US$2.5 million before January 31, 2025, based on current silver prices and its production run rate. Additionally, Andean has agreed to reimburse Silver Elephant for operating expenses under their sales and purchase agreement, further bolstering the company’s financial outlook.
John Lee, CEO and Chairman of Silver Elephant, expressed optimism about the company’s trajectory, stating, “Today's production milestone is a step towards re-crowning Pulacayo-Paca as a major silver producer with its illustrious silver production history. Silver Elephant is ramping up Paca silver production with the support from our partners and local communities.” He further emphasized the company’s strategy of minimizing share dilution while remaining debt-free, allowing for sustainable growth moving forward.
In addition to the ongoing oxide operation, Silver Elephant has initiated tunnel development for the Paca sulfide operation, which commenced in August 2024. The company expects to begin revenue generation from this sulfide operation by the end of 2024, which is outside the scope of its agreements with Andean. This diversification into sulfide production may significantly enhance Silver Elephant's overall output and revenue streams.
The Paca project boasts a high-grade silver resource, as detailed in a technical report by Mercator Geological Services. The report, effective October 13, 2020, outlines substantial indicated and inferred resources within both the oxide and sulfide zones. The potential of the Paca project underscores Silver Elephant’s growth prospects and positions it favorably within the competitive silver mining landscape.
