Silver Co. To Drill Prospective Asset in Nevada This Summer
This program will help delineate the characteristics of the mineralization present there. Learn why one analyst has a Strong Buy on this Canadian explorer.
Of its four projects, Reyna Silver Corp. (RSLV:TSX.V; RSNVF:OTCMKTS) will concentrate this summer on Gryphon, its most advanced asset, in Nevada, Lauren Megaw, the company's head of investor relations, said in a recent interview.
"It's essentially the size of two Manhattans," she told Steve Darling with Proactive Investors, referring to the New York City borough. "I mean, big project, huge potential, and if we're right about what's there, buckle up."
The silver explorer, headquartered in Vancouver, British Columbia, Megaw explained, focuses on large-scale, high-grade projects that generate value, and Gryphon could fit the bill.
Located between two mega gold districts in The Silver State, the Carlin, and Battle Mountain-Eureka trends, Gryphon is a Carlin-style gold system with a carbonate replacement deposit containing silver, lead, zinc, and critical metals. As such, noted Megaw, Reyna Silver's approach with Gryphon it is to explore for all of these metals rather than just gold as was done historically.
To start, the mining company recently re-logged all 23 historical core drill holes, which it will use as a foundation on which to build.
Near-Term Catalysts
Now, the team is identifying targets for drilling that it will then carry out this summer.
"We're currently out there mapping so that we have the tightest targets possible, that are the most strategic, to answer the questions that we need to, early on," Megaw said. "That will help us determine, you know, is this as big as we think this could potentially be."
Ultimately, Reyna Silver intends to complete an NI 43-101 compliant technical report on Gryphon.
Growing Silver Supply Deficit
One of the main reasons to invest in silver now is the growing demand for it as an industrial metal, according to The Pure Gold Co., a provider of gold and silver investment services. New applications of silver continue to be discovered, in biotech for example.
More than 50% of the white metal serves industrial needs in many sectors, reported Carbon Credits. These include including electronics, jewelry, photography, three-dimensional printing, plastics, and metalworking. Given its use in electric vehicles and photovoltaic panels, silver is critical to the global green energy transition.
The Silver Institute forecasts demand for silver to grow 2% this year over last, as reported in a recent Reuters article. At the same time, total supply is expected to drop by 1%. The institute projects this supply-demand imbalance will increase the global silver deficit by 17% to 215,300,000 ounces. This year would be the fourth year the metal is in undersupply.
Technical Analyst Clive Maund discussed in a March report the reasons Reyna Silver is an "extraordinary opportunity" for investors."There's simply not enough silver to meet this growing demand, which makes physical silver an attractive investment," wrote The Pure Gold.
Also, this company purported, silver is a way to hedge against inflation, and the metal's value as a store of wealth ensures long-term investment assurance.
Right now, silver is affordable and underpriced, despite its recent gains, having broken US$30 an ounce (US$30/oz) for the first time in more than 10 years, according to a May 21 Seeking Alpha article. The gold-to-silver ratio indicates, however, that the price of silver must make a big leap to close the gap. Experts predict it will get there.
"The recent silver rally has been impressive, and there is reason to believe it still has legs," the article author, Money Metals Exchange, wrote. "If you're bullish on gold, you should probably be even more bullish on silver."
InvestingHaven predicts the silver price will reach at least US$34.70/ounce in 2024, then hit US$48-50/oz this year or next, the investing research firm wrote on May 23. It bases its bullish stance on these influencing factors: "gold's secular bull market, yields setting a top, U.S. dollar lacking bullish momentum, and inflation expectations respecting their uptrend."
Similarly, Dominic Frisby opined in a May 22 issue of his publication The Flying Frisby, "US$50/oz [silver] is coming into view. And if silver goes north of $50/oz, and one day it will, then the sky really is the limit."
Strong Buy for All Time Frames
Technical Analyst Clive Maund discussed in a March report the reasons Reyna Silver is an "extraordinary opportunity" for investors. The company has a capable management team, strong insider support and, as shown with the rent large and upsized financing, broad investor confidence. Reyna will use some of the proceeds from the private placement for its upcoming summer drill campaign at Gryphon, which it will be undertaking at a time when gold and silver are on bull runs.
Also, Maund pointed out that the Canadian explorer's stock is far below its peak in mid-2020, and various technical factors indicate an upside breakout is to come.
Considering all of these factors, the analyst asserted that Reyna Silver is "a Strong Buy for all time frames."
Streetwise Ownership Overview*
Reyna Silver Corp. (RSLV:TSX.V; RSNVF:OTCMKTS)
*Share Structureas of 5/30/2024Source: Thomson ReutersOwnership and Share Structure
According to Reuters, in terms of ownership of Reyna Silver, seven strategic entities hold 7.05% or 20.15 million (20.15M) shares. The five investors with the greatest interest, from most to least, are Reyna Silver Ltd. with 5.56% or 11M shares, Chief Executive Officer Jorge Ramiro Monroy with 0.61% or 1.21M shares, Director Alexander Langer with 0.48% or 0.95M shares, Director Michael Wood with 0.19% or 0.38M shares and Director Peter Jones with 0.09% or 0.18M shares.
Total institutional ownership is 3.14% or 6.22M shares, held by four entities. They are Sprott Asset Management LP with 2.65% or 5.25M shares, Palos Management Inc. with 0.25% or 0.5M shares, U.S. Global Investors Inc. with 0.18% or 0.36M shares and Emerging Markets Capital with 0.06% or 0.11M shares.
Retail investors own the remaining 89.81% of the silver explorer.
Regarding its share structure, Reyna Silver has 197.69M outstanding shares and 183.76M free float traded shares.
The company's current market cap is CA$23.82 million. Its 52-week trading range is CA$0.11-$0.29 per share.
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Important Disclosures:
Reyna Silver Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Reyna Silver Corp.Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee. 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.