Silver Miners Pulling Development Strings- A Look at Adriatic Metals & Argent Minerals

Summary

• The silver spot has been under a consistent rally for quite some time now with the price even reaching a record value of ISD 29.863 per ounce.
• Currently, the surge in silver spot prices is leading the precious metals space with strong demand from global physical silver-backed ETFs.
• An impeccable rally in silver has fetched ample interest of the global investing community and general public in silver mining stocks.
• Moreover, many industry experts anticipate that the silver spot could average ~ USD 19.0 per ounce in 2020, providing much room for silver mining companies to build a strong financial position and the production line.
• Two ASX-listed silver mining stocks developing assets are Adriatic Metals PLC and Argent Minerals Limited.

Silver spot has been rallying for quite some time on the international front and has inked a record high of USD 29.863 per ounce (as on 7 August 2020). Subsequently, surge in silver spot prices is now leading the precious metals space, backed by strong demand from physical investment and structured products such as physical silver-backed ETFs.

To Know More, Do Read: Silver Catches up With Gold and How!

The fundamentals behind the rally in gold and silver are rather equivalent, i.e., a large capital influx in structured products, leading to a demand surge amidst supply disruptions. However, silver is also deriving its support from an expensive gold, which is now fuelling FOMO buying in silver, prompting the white patina to shine better than the yellow lustre of the gold.

Also Read: Australian Gold-Backed ETFs – Massive Capital Influx, Impeccable Performance, And Record Values

Naturally, the impeccable rally in silver has primarily led the interest of the global investing community and the general public in silver mining stocks, which could be inferred from a strong performance delivered by silver mining stocks in the recent past.

To Know More, Do Read: Silver Mining Stocks Beating Gold Top Guns – Adriatic PLC, Aeon Metals, and Silver Mines Turn Multibaggers

Furthermore, the surge in the silver spot market had rooted many silver mining companies to fast track development and secure funding to increase production and lock-in higher market prices.

Several industry experts anticipate that the silver spot could average around USD 19.0 per ounce in 2020, providing much room for silver mining companies to build a strong financial position and the production line.

In this backdrop, let us cast an eye on two ASX-Listed silver mining stocks developing assets-

Adriatic Metals Plc (ASX:ADT)

During the June 2020 quarter, the Company completed drilling of 4,976m while securing additional permits for additional drill pads in anticipation of further exploration activity during the coming month.

• The primary aim of the ongoing drilling at the Rupice deposit of Vares Project is to convert inferred resources into indicated for the purpose of a Pre-Feasibility Study (PFS), which the miner would incorporate with the test work results for mine planning.
• The Company suggested that ongoing drilling work at the deposit would end around mid-August 2020.
• Expansion drilling will continue at Rupice, Jurasevac Brestic and Borovica during the next quarter.

Additionally, in June 2020 quarter, ADT received significant results from drilling at the Rupice deposits:

• The drill hole identified as BR-02-20 intercepted mineralisation along the strike to the south, extending the known mineralisation with 20m down-dip returning 8.9m @ 2.40 gram per tonne of gold, 398 gram per tonne of silver, and 1.79 per cent zinc.
• At the central part of the deposit, drill holes identified as BR-06-20 and BR-07-20 confirmed continuity of high-grade mineralisation, with results as strong as 5.81 per gram of gold and 502 gram of silver per tonne.

The market seems to be taking a strong interest in the stock with its price rallying from $0.780 (intraday low on 17 March 2020) to the recent high of $2.570 (intraday high on 11 August 2020), marking a price appreciation of over 229.0 per cent while delivering a YTD return of 49.07 per cent (as per the closing on 12 August 2020).

ADT traded at $2.6 on 14 August 2020, up by 1.5 per cent relative to its previous close on ASX.

Argent Minerals Limited (ASX:ARD)

• The Company commenced stage 1 of reverse circulation drilling at Kempfield in late June 2020 while securing the Board’s approval for Kempfield Stage 2 RC and combined diamond drilling program, planned for February/ March 2021.
• The primary aim of Kempfield Stage 2 RC and combined diamond drilling program is to extend current polymetallic resource while allowing diamond drilling over successful assay results from the August 2020 RC drilling.
• During the June 2020 quarter, ARD secured approval from the NSW Government for 2,200m reverse circulation drilling at the Pine Ridge Gold Mine, which is now a high priority project for the miner.
• Moreover, ARD has approved funding for a 3000m reverse circulation and diamond drilling program that will target the new geophysical anomaly adding to the high-grade historic percussion drilling results and assisting in the identification of regional and project size structures.

In April 2020, Argent Minerals fetched $200,000 funding from the NSW Government for drilling at the West Wyalong silver and copper porphyry project.

The miner has approved a 3,000m reverse circulation and 1500m diamond drilling, due to commence in early November 2020.

The market has responded relatively well to the private placement of the miner running oversubscribed. The Company raised $1.15 million from sophisticated and professional investors during the June 2020 quarter, ensuring available funding for high impact drilling programs over all projects.

MD & CEO Mr Karageorge’s Comments (Source: ARD’s Report, 29 July 2020)

The stock of the Company has been under a consistent rally from the level of $0.009 (intraday low on 23 March 2020) to the present high of $0.064 (intraday high on 28 July 2020) to mark a price gain of ~ over 600.0 per cent and a YTD return of 194.12 per cent.

ARD traded at $0.063 on 14 August 2020, up by 8.6 per cent relative to its previous close on the ASX.