Just reviving this thread with an outline of the Silver Bull asset. S32 already owns 70% of the Sierra Mojada JV.
About Silver Bull Resources:
Silver Bull’s primary asset is the Sierra Mojada deposit located in Coahuila, Mexico. Sierra Mojada is an open pittable oxide deposit with a NI 43-101 compliant Measured and Indicated “global” Mineral Resource of 70.4 million tonnes grading 3.4% zinc and 38.6 g/t silver for 5.35 billion pounds of contained zinc and 87.4 million ounces of contained silver. Included within the “global” Mineral Resource is a Measured and Indicated “high grade zinc zone” of 13.5 million tonnes with an average grade of 11.2% zinc at a 6% cutoff, for 3.336 billion pounds of contained zinc, and a Measured and Indicated “high grade silver zone” of 15.2 million tonnes with an average grade of 114.9 g/t silver at a 50 g/t cutoff for 56.3 million contained ounces of silver. Mineralization remains open in the east, west, and northerly directions.
The constraining pit was optimised and calculated using a NSR cut-off based on a silver price of US$15/oz, and a zinc price of US$1.20/lb and assumed a recovery for silver of 75% and a recovery for zinc of 41%. Approximately 60% of the current 3.2 kilometer mineralized body is at or near surface before dipping at around 6 degrees to the east.
CATEGORY
TONNES (MT)
AG (G/T)
CU (%)
PB (%)
ZN (%)
AG (MOZS)
CU (MLBS)
PB (MLBS)
ZN (MLBS)
MEASURED
52.0
39.2
0.04
%
0.3
%
4.0
%
65.5
45.9
379.1
4,589.3
INDICATED
18.4
37.0
0.03
%
0.2
%
1.9
%
21.9
10.8
87.0
764.6
TOTAL M&I
70.4
38.6
0.04
%
0.3
%
3.4
%
87.4
56.8
466.1
5,353.9
INFERRED
0.1
8.8
0.02
%
0.2
%
6.4
%
0.02
0.04
0.4
10.7
For a full summary of the Sierra Mojada resource, please refer to Silver Bull’s press release dated October 31, 2018 and filed on its profile atwww.SEDAR.com, or by visiting the following link:
Silver Bull Resources has temporarily suspended all work on the Sierra Mojada project due to a blockade by a cooperative of local miners called Sociedad Cooperativa de Exploración Minera Mineros Norteños, SCL (“Mineros Norteños”).
Silver Bull has an agreement with Mineros Norteños for two mineral licenses covering the eastern part of the Sierra Mojada deposit. These licenses are subject to a 2 percent production royalty, capped at $6.875 million, for Mineros Norteños if a mine goes into production.
Since 2014, Silver Bull has been fighting a lawsuit by Mineros Norteños seeking payment of royalties, including interest at a rate of 6 percent per annum since August 30, 2004, despite the fact that no payments have been made. income from the applicable mining concessions.
Mineros Norteños also requested payment of wages from August 30, 2004, under said agreement, despite the fact that none of the persons were hired or performed work for Silver Bull and Silver Bull did not promise to hire them.
On October 4, 2017, the court ruled that Mineros Norteños was barred from filing the case. On October 19 of the same year, Mineros Norteños appealed this decision and, finally, on July 31 of the current year, the Federal Court of Appeals upheld the original ruling, which has subsequently been questioned by Mineros Norteños. If the Northern Miners challenge is unsuccessful, Silver Bull will win the lawsuit.
In an attempt to force Silver Bull to settle before this final court ruling is issued, Mineros Norteños has agreed to illegally block access to the project, so in order to ensure the safety of all involved, Silver Bull has chosen to halt all operations of the project until a resolution can be found.
I understand Silver Bull won the appeal yet the blockade continues.
Sierra Mojada is Silver Bull's only asset, after splitting off a Kazakhstan project into Arras Minerals, also, ahem, a disappointment for holders.
SM is shallow, open cut with good Zn grades and attractive Ag credits. The deposit is open in three directions and begs for more drilling, which would have to be fully funded by S32. It sits just across the Mexican border from Hermosa.
Perhaps, by agreement, S32 could take Silver Bull out and reset the argument with the artisanals.
Market Cap is around $C9.5m.
Ash
S32 Price at posting:
$3.48 Sentiment: Buy Disclosure: Held
(20min delay)