This morning, Summa Silver (TSX-V:SSVR, OTC: SSVRF) announced that it has commenced a 10,000+ meter drill program at its Hughes Silver Project in Tonopah, Nevada. An RC rig is currently in full operation on the project and two additional core rigs are scheduled to arrive within the next few weeks. The focus of the 2021 drill program will be to test for continuity and the strike-extent of mineralization intersected during the 2020 drill program. Four primary targets will be investigated: Belmont Mine, Murray, Mizpah Extension and Ruby. Additional targets such as the 725 veins are being ranked and prioritized and may also be further tested.
Summa Silver CEO Galen McNamara stated:
“As we begin our 2021 drill program at Hughes, it is clear that the Tonopah Mining District still contains zones of substantial high-grade mineralization. Based on the drilling we completed in 2020 and subsequent surface exploration which is now on-going, it is our belief that we are only just beginning to scratch-the-surface here and extensive further work will be required before we can begin to understand the scale of the mineralized zones.”
Summa Silver had a successful first phase of drilling at its Hughes Project in Tonopah, Nevada last year. Drill results from the 2020 phase 1 program include:
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3,760 g/t silver equivalent (1,762 g/t Ag and 19.99 g/t Au) over 2.5 meters from 347.1 meters downhole within 596 g/t silver equivalent (286 g/t Ag and 3.10 g/t Au) over 18.5 meters from 347.1 meters downhole in SUM20-06
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6,220 g/t silver equivalent (2,910 g/t Ag and 33.1 g/t Au) over 0.7 meters from 397.4 meters downhole within 3,182 g/t silver equivalent (1,495 g/t Ag and 16.9 g/t Au) over 1.4 meters from 397.4 meters downhole in SUM20-20
Summa also drilled a 1.3 kilometer step-out at the Ruby Target which intersected 1,597 g/t silver equivalent (790 g/t Ag and 8.07 g/t Au) over 0.5 meters from 610.8 meters downhole within 522 g/t silver equivalent (258 g/t Ag and 2.63 g/t Au) over 2.0 meters from 610.8 meters downhole in SUM20-10.
It’s clear that the Belmont Mine and Murray targets can carry very high grades of gold and silver. The next phase of drilling at Hughes will be focused on building tonnage at these targets while continuing to explore to the east at the Mizpah Extension and Ruby targets.
The Ruby Target is particularly interesting because of the potential for the discovery of the eastward extension of the Tonopah Silver District. Summa Silver CEO Galen McNamara tells me that he has “never seen more smoke in my life than what I see out in that valley (around Ruby)” – this is a bold statement from someone who was part of the team that discovered NexGen Energy’s Arrow Deposit in Saskatchewan.
There is significant alteration in the under-explored area to the east of the Halifax Vein – alteration in this area of Nevada can often be indicative of a hydrothermal event, events that drove fluids rich in metals such as copper, gold, and silver closer to the surface.
Ruby is 1.3 kilometers from the Belmont Mine area, and Summa’s claims extend an additional 3.5 kilometers to the east of Ruby:
Many of the previously mined veins near Belmont remain open and 2020 drilling proved that plenty of high grade gold and silver was left by the old timers. However, the really juicy potential at Hughes exists to the east where very little exploration work has been carried out historically.
Summa is focused on Hughes but the company has a #2 project in New Mexico called Mogollon. Mogollon covers an extensive, silver-gold bearing epithermal vein field. Between 1904 and 1925 the district is reported to have produced 13,100,000 ounces of silver and 271,000 ounces of gold from 1.39 million tons of rock. Production stopped in 1942 due to the wartime cessation of all gold and silver mining in the United States, and it never resumed. Historical drilling intersected grades of up to 25 grams/tonne gold and 1,600 grams/tonne silver over vein widths ranging from 1 to 10 meters.
Mogollon features poorly explored to completely unexplored veins with strong potential for further mineralization immediately surrounding historically producing high-grade mines. There are also a number of undrilled veins with documented small-scale underground exploration workings that were driven above the main mineralized target elevation window. The depth projections of these veins represent strong conceptual drill targets.
Summa currently has C$13 million in cash and a C$60 million market cap at a C$1.00 share price. 2021 stands to be a big year for Summa with drill programs at both Hughes and Mogollon offering the potential for resource expansion and new discoveries.
SSVR shares can been oscillating within a range between $.80 and $1.40 since bottoming last November:
SSVR.CA (Daily)
Trading volume has steadily declined in recent months as price has made a series of higher lows – the $1.00 level has also become a pretty clear level of support. The resumption of drilling at Hughes and the prospect of a busy year for Summa with plenty of news flow should generate an uptick of interest in this high quality Southwest US focused silver explorer.
Disclosure: Author owns shares of SSVR.CA at the time of publishing and may choose to buy or sell at any time without notice.
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