Expert Says Exploration Co. Could Become a Star Performer in the PM Sector
Technical Analyst Clive Maund takes a look at Tier One Silver Inc. (TSLV:TSX; TSLVF:OTCQB) to explain why he believes it is a strong investment opportunity.
Tier One Silver Inc. (TSLV:TSX; TSLVF:OTCQB)
For reasons that we will not go into here, the bull market that has just started in silver (and gold, copper, and other metals) and the future should be very promising, and clearly, this will be beneficial for the entire precious metals sector and in particular for silver explorers like Tier One Silver Inc. (TSLV:TSX; TSLVF:OTCQB), especially as silver looks to be one of the best-performing metals (+30% YTD).
Silver's appeal as a safe haven investment is set to explode, but in addition to this, it has many other uses, most of which are set to expand rapidly, as this slide from the company's investor deck shows.
It is certainly worth noting that while silver has performed poorly in recent years as the metals sector has gone nowhere, during dynamic precious metals sector bull markets such as we have just begun, it generally outperforms gold over time, as this slide shows.
Tier One Silver is an exploration company that was spun out from Auryn Resources in October 2020. The company is focused on creating significant value for shareholders through the discovery of world-class silver, gold, and base metal deposits in Peru.
The company's flagship project, Curibaya, is located in southern Peru. Based on early exploration, it has generated very exciting targets; even the majors are watching.
Why Peru?
Peru is a world-class mining jurisdiction with some of the largest silver, gold, and copper deposits globally. Peru is a stable, mining-friendly country with excellent physical infrastructure.
The company's Curibaya Project is located in southern Peru, north of the city of Tacna, in the broad mineralized porphyry belt, as shown on the following slide.
Curibaya is located in a belt of major mines and deposits.
It has some heavy-hitting neighbors nearby, and they wouldn't be there without good reason.
At Curibaya, the company has found some impressive silver and gold rock samples at surface, so it's not hard to see how Tier One could end up being a star performer.
Here are highlights of the inaugural drilling program and it is of note that 30% of the holes hit high-grade intercepts.
Highlights from the maiden drill program at the project included:
1.5m of 1,129 grams per tonne silver (g/t Ag)1.04 g/t gold (Au) in a larger interval of 7m of 272 g/t Ag, 0.33 g/t Au
The Curibaya Project is well situated with respect to infrastructure, which is perhaps not surprising given how important mining is to the Peruvian economy.
Tier One has a leadership team with a track record of monetizing discovery success and a depth of technical knowledge and experience. Tier One's multi-disciplinary Peruvian technical team comes with major mining experience from Bear Creek Mining, BHP, Newmont, and Anglo, to name a few.
Peter Dembicki - CEO, Director
+10 years at Canaccord Genuity, deep understanding of capital markets and corporate finance. Structured and oversaw numerous multi-million dollar private, public, and bought-deal financings in the mining and natural resource sectors.
Ivan Bebek, Co-Founder & Chairman
Former President, CEO, and co-founder of Cayden Resources, which was sold to Agnico Eagle Mines for US$205M in November 2014, and a co-founder of Keegan Resources (now Galiano Gold).
Fundamentally, Tier One is strong, and its biggest strength is its diverse shareholder mix. Currently, the company has over 14,000 shareholders and trades millions of shares monthly. The company is primed for re-rating, especially with a strong silver market.
The company just announced the closing of its US$1.48 million oversubscribed private placement offering, which is impressive for a junior mining company in these markets.
Christian Rios - SVP, Exploration
Ex Vice President of Exploration at Bear Creek Mining, where he was directly involved in the discovery of the world-class Santa Ana and Corani silver-lead-zinc deposits in Peru and was on the team that delivered the feasibility study on the Corani deposit.
Turning now to the stock charts for Tier One, we see on its 3-month chart that the price responded in a very positive manner indeed to the strong gains in the silver price, especially early in April, rising on very heavy volume, which is bullish.
This is most positive as it is an early sign that the stock will benefit in a big way from the expected continuation of the accelerating bull market in silver, which is hardly surprising as the company's projects will become much more economically viable and attract major investor interest.
On the 6-month chart, we can see technically why the stock reacted back as it did from the April high at CA$0.19 it had risen steeply higher to drive through not just the resistance level shown without a pause but then pushed past its still falling 200-day moving average to become heavily overbought, and with its moving averages still in unfavorable alignment this made a reaction back almost inevitable.
However, the volume pattern continues to be very bullish, with strong volume driving the vigorous upleg followed by a marked dieback as it reacted, and then a strong upside volume reappeared as it started higher again in May.
In addition, the Accumulation line, whose multi-month uptrend from December presaged a reversal, has held up well on the reaction, all of which suggests continued advance. With the price having reacted back in recent days to the rising 50-day moving average, this is a good point from which to start another upleg.
The 4-year chart should be a source of good cheer to new investors here because it shows that you can pick the stock up now at less than 10% of its price at its June 2021 peak, thanks to the terrible bear market that persisted until late February of this year.
On this chart, we can see that it attempted a reversal in June of last year, with a deceptive high volume rally, but the time wasn't right because silver was still drifting lower, so down it went again. This time is completely different, with the recent strong rally occurring against the background of a vigorous break higher by silver as it commences a bull market that should prove to be of historic proportions, and that means that Tier One has just commenced a bull market that is likely to be of historic proportions too, and the best news of all is that it's still at a great entry point.
Tier One Silver Investment Highlights:
Curibaya is on a world-class porphyry belt with equivalent aged mineralization to nearby major minesInitial surface sampling programs at Curibaya returned high-grade samples of silver, gold, and copper over a 4 km x 5 km alteration system, including 298,000 g/t Ag and 940 g/t AuThe 2021 maiden drill program returned multiple significant intercepts, including 1.5 m of 1,129 g/t silver, 1.04 g/t Au, and 1 m of 1,431 g/t Ag, 0.39 g/t Au, with a larger interval of 7 m of 272 g/t Ag, 0.33 d/t AuProject in a very favorable mining jurisdiction and has exceptional access to infrastructure: roads, power, portsLeadership with a track record of monetizing discovery success: Keegan Resources and Cayden Resources Entry point provides tremendous upside potential as they look to progress flagship projects and enhance the portfolio of projectsTier One Silver is therefore a strong investment opportunity. If the price of silver continues to break out, which we expect it to do, Tier One Silver is in a great position to benefit.
Tier One Silver Inc. (TSLV:TSX, TSLVF:OTCQB) closed at CA$0.14, US$0.1011 on June 7, 2024.
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Important Disclosures:
For this article, the company has paid Street Smart US$1,500.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Tier One Silver Inc.Author Certification and Compensation: [Clive Maund of clivemaund.com] was retained and compensated as an independent contractor by Street Smart to write this article. Mr. Maund is a technical analyst who analyzes historical trading data and he received his UK Technical Analysts' Diploma in 1989. The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.