Been doing some research on a silver stock which seems to be overlooked by the market. Southern Silver Expo had a nice run up during the $50 silver rush but has not participated in the 2012 rally thus far. It seems to have an interesting story and might be a nice bet for a company that only has a $15m market cap. The company is run by essentially the same management of Western Silver (part of Manex Group) which was acquired by Glamis Gold which was then acquired by Goldcorp. The company's chief geologist found Penasquito, which many know is Goldcorp's flagship project. Southern Silver's flagship property is near Durango in Mexico in the silver belt. Management seems excited by this property and have 13,000 meters of drilling planned for 2012. Some drilling results from the property include:
11CLM-008 intersected a 1.8 metre interval averaging 1400g/t Ag, 19.7% Pb and 14.5% Zn within a 3.3 metre interval averaging 818g/t Ag, 12.9% Pb and 10.9% Zn which forms part of a 10.9 metre interval averaging 268g/t Ag, 4.5% Pb and 3.8% Zn.
-- a 5.0 metre interval averaging 214g/t silver, 0.4g/t gold, 4.1% lead and 5.8% zinc from drill hole 11CLM-011, and -- a 4.4 metre interval averaging 141g/t silver, 0.5% copper, 5.0% lead and 7.1% zinc from drill hole 11CLM-012
Add this to their other property in southern AZ where they are partnered with a little known outfit called Freeport McMoran, where Freeport is doing all the spend for drilling the property in 2012 ($3 million) for a option of 70% of the property.
They also have a silver-gold property in New Mexico which is also being explored which management seems equally excited about.
Wondering if anyone else has this one on their radar and their thoughts.