A lot of precious metals enthusiasts keep close tabs on developments affecting the silver industry. Sierra Metals Inc has recently made a very bullish announcement that may push prices higher in the near future.
SIerra Metals Inc and High-grade Silver
For a company that is currently running the Cusi Mine in Mexico, no one expected there to be news regarding a new high-grade silver zone. The news is exactly that: a large pay streak with up to 428 grams per ton silver has been discovered on the premises. THis will give the company ample room to mine everything out and streamline its overall operations accordingly.
Through an in-house exploration program, the company managed to confirm the existence of this high-grade silver mineralization. Following the results, company officials have highlighted the important potential of this new zone. More importantly, Sierra Metals Inc will leverage a new mining method to increase overall productivity. The Cusi Mine will be incredibly valuable in that regard alone.
Based on the results of the exploration, several big pay streaks have been identified. The highest-grade one will provide 428g per ton silver, and is 17.45 meters wide. Other areas of interest will contribute over 300g per ton silver. One smaller area has the potential to hold over 1,100g per ton, yet it is only 4.9 meters wide.
These discoveries follow months of preparation. Sierra Metal has been developing the area for mining since the second half of 2019. While the COVID-19 crisis might have delayed some of the operations, it was seemingly worth the wait. This discovered silver vein is of immense size, and extends to the North East side of the Cusi fault..
Before the actual mining will begin, Sierra Metals will drill more to gain a better understanding of the zone. As multiple veins extend over 300 meters in length in close proximity to existing operations, the Cusi Mine is far from a done deal.
Silver Price Momentum Remains Bullish
The year 2020 has been a bit of a mixed bag for all markets. No assets have remained stable due to the coronavirus crisis, and some have even seen violent price swings in the process. Silver saw its value drop from nearly $18.5 to $12 in quick succession, but has recovered nicely ever since.
As the silver price remains above $17.25 without much effort, the news by Sierra Metals may generate more bullish sentiment. Experts look favorable upon silver lately whereas the opinions on gold are more mixed. A push to $18 will not occur overnight, but the upward momentum appears far from over at this point.