Since the summer of 2020, Blackrock Silver (TSX-V:BRC, OTC:BKRRF) has been focused on its Tonopah West Project, defining a gold/silver resource of nearly 50 million ounces silver-equivalent (Ag-Eq) at an average grade of ~450g/t Ag-Eq in the process. However, Blackrock CEO Andrew Pollard never forgot about the project that started it all, Silver Cloud. Pollard always knew that he would return to Silver Cloud to test some of his favorite targets, including Northwest Canyon.
This morning, Blackrock announced that it has drilled 52.62 g/t gold and 606 g/t silver over 1.5 meters (hole SBC22-020) in the Northwest Canyon area, representing a new high-grade vein discovery now known as Zeus.
Hole SBC22-020 targeted a structure that was projected based upon two historical drill intercepts (one drilled by Blackrock in 2019 and the other drilled by Placer Dome in the early 2000s). The bonanza grades are associated with a banded quartz vein which contains black sulphides, and the 606 g/t silver is the highest-grade silver intercept on the Silver Cloud property to date.
1.5 meters is a significant interval when it contains grades this high. Blackrock’s opportunity, and challenge, will be to now follow up on this intercept and demonstrate that the vein continues over a considerable strike length. The evidence that it does is encouraging based upon Blackrock’s 2019 hole #2 that intersected 8.32 g/t gold over 1.52 meters and Placer Dome’s SCP-15 that intersected 5.61 g/t gold over 12.2 meters. These assay intercepts represent a high-grade drill defined structure separated by 425 meters.
Based upon Tonopah West alone, Blackrock shares are attractively valued at C$.50 (C$90 million market cap). Even if we use a conservative US$2 per ounce valuation for BRC’s ~50 million Ag-Eq ounces at Tonopah West (conservative estimate), the share price has considerable upside. And that’s without factoring in any value for the new lithium discovery at Tonopah North and today’s news from Silver Cloud. Silver Cloud’s location, situated 20 kilometers south of the Midas mine and 3 kilometers west of the Hollister mine, only adds to the intrigue of this project’s potential.
BRC shares have formed a well-constructed H&S bottom pattern in recent months. A decisive breakout above $.55 is all that’s left to trigger this pattern with an upside objective ~40% above yesterday’s closing price:
BRC.V (Daily)
Traders can use the recent low at $.43 as an important downside support/risk reference point.
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