This morning, Summa Silver Corp. (TSX-V: SSVR, OTC:SSVRF) announced that it has discovered two new high-grade silver-gold veins in wildcat-style exploration holes at its Hughes Project near Tonopah, Nevada. New vein discoveries were made at both the Ruby and Sapphire Targets to the east of the historic Tonopah mining district.
When I visited Tonopah in mid-June, Summa was just beginning to drill hole 59 using a core rig, and it is likely the discovery was made shortly after the mining tour left the area.
The fact that Summa is making mineralized gold/silver vein discoveries more than 4 kilometers from the historic Tonopah mining area is extremely encouraging. It is also a testament to the Summa team’s methodical approach to exploration. Today’s discoveries are the product of more than three years of work that includes creating a proprietary 3D geological model of the entire Tonopah Mining District.
The new vein discovery at Ruby intersected 3 meters grading 1,450 g/t silver equivalent (812 g/t Ag, 8.4 g/t Au), including 2,959 g/t silver equivalent over 0.6 meters (1,635 g/t Ag, 17.4 g/t Au), in core hole SUM23-59. The vein discovery was intersected approximately 200 meters above the targeted Ruby horizon, is open in all directions, and represents a 1.5 km step-out from the historic Tonopah mining district.
The above cross-section illustrates how this new vein zone at Ruby was intersected 200 meters above the previously interpreted Ruby Horizon (where gold and silver mineralized intersections were drilled in 2020/2021).
The new vein flanks a compelling geophysical target – an additional 650-meter step-out hole is now in progress targeting the center of this prominent area of high resistivity at depth:
Hole 23-60 is in progress using a diamond drill rig, following an RC pre-collar of the hole.
The new vein discovery at Sapphire (the easternmost target ever drilled at Tonopah, a 4.2 km step-out from the historic Tonopah mining district) intersected 376 g/t silver equivalent over 1.5 meters (175 g/t Ag, 2.56 g/t Au) in reverse-circulation hole SUM23-62.
These results represent only the first hole into Sapphire where SUM23-62 was drilled as a wild-cat hole to test coincident soil and geophysical anomalies with approximate dimensions of at least 500 meters x 500 meters.
Summa CEO Galen Macnamara stated, “The new discoveries across the eastern extension of the Tonopah mining district are a testament to our systematic and methodical approach to exploration. From the beginning, we have strongly believed the productive veins of Tonopah continued to the east under cover. Results from our exploration drilling to-date so far support that hypothesis and confirm the significant big picture prospectivity of the Hughes Project. The Company continues to be well financed and remains in the strong position of having two American high-grade, district-scale silver projects, both of which continuously show strong zones of mineralization hole after hole.”
The fact that broad zones of strong hydrothermal alteration have been intersected in every hole of this drill program suggests the eastern extension of the Tonopah district represents a highly prospective area for additional gold & silver discoveries. So far, the market has yawned at the discovery news from Summa. However, the precious metals mining sector is getting sold-off pretty hard today and investors are in a dour mood.
Summa had C$9.5 million in working capital as of the end of June. Later this month, the company is expected to exercise its option to increase its ownership percentage of the Mogollon Project in New Mexico to 75%. Summa will then have until late October to decide whether it wants to increase its ownership to 100% of the project for cash & share payments totaling C$3 million.
I added to my SSVR position following the market’s muted response to today’s news of new vein zone discoveries at Ruby and Sapphire.
SSVR.V (Daily – One Year)
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