Sierra Nevada Gold (ASX:SNX) is undertaking a strategic review of its five copper, gold and silver projects in Nevada, and is considering options including potential sales and joint venture partnerships.
The company previously prioritised work at its Warrior Gold Project, located in the Walker Lane Trend of southern Nevada, but more recently reviewed the potential at its Blackhawk Project given the historic high-grade intercept of 0.5m @ 1,270 grams per tonne (g/t) returned in a 2017 drilling program.
The intercept was a subset of a broader intercept of 12m @ 219g/t silver, 0.36g/t gold, 3.05% lead, and 8.54% zinc from 250-262m.
Sierra Nevada has identified 22.5-line kilometres of high-grade silver-gold-lead-zinc veins which have remained relatively untouched since mining ceased in the area in the 1920s.
The company says following up this intercept at Blackhawk, which is fully permitted and ready for drilling, is a key priority.
The silver price finally punched through US$30 ($45) per ounce in mid-May, and is now sitting just below US$31. It has advanced nearly 28% since the start of this year versus gold’s gain of just shy of 13% so far this year.
Silver’s dual purpose as both a precious and industrial metal is what will drive demand, particularly its role in solar cell production.
This strong demand growth has led to a physical deficit in the past two years which is only set to widen further this year.
Sierra Nevada believes its Blackhawk Project could deliver further high-grade silver results, leading to a “company making” discovery.
“The objective is to allow the company to focus its resources on projects with greatest potential and strengthen its position as a junior explorer.”
The Blackhawk Project is located within the Excelsior Mountain Range, Mineral County, Nevada.
Write to Angela East at Mining.com.au
Images: Sierra Nevada Gold
