Exploring Silver47’s Red Mountain Project: Insights and Future Plans
Silver47’s Red Mountain Project in Alaska is generating significant interest in the mining community. With high-grade silver, gold, and base metal deposits, this strategic asset is shaping up to be a key player in the industry. CEO Gary Thompson shares insights into the project’s potential, the company’s growth strategy, and future plans for development.
An Overview of the Red Mountain Project
Located approximately 100 kilometers south of Fairbanks, Alaska, Red Mountain is positioned near essential infrastructure, including roads, railways, and power sources. This prime location minimizes logistical challenges, making it an attractive asset for exploration and potential mining operations.
Key Highlights of Red Mountain:
- 15.6 million tons of inferred resource
- 170 million silver equivalent ounces
- 2 million gold equivalent ounces
- High-grade poly-metallic deposit (silver, gold, zinc, copper, and lead)
- Historic investments exceeding $30 million
With a resource estimate equivalent to four grams of gold per ton, Red Mountain presents strong economic potential. Its location near critical infrastructure further enhances its development feasibility.
What Makes Red Mountain Stand Out?
Red Mountain is a silver-rich, poly-metallic deposit with substantial gold and base metal content. The combination of high-grade silver and gold with zinc, lead, and copper makes it an attractive project for multi-metal production. This allows for market diversification, reducing reliance on any single commodity and providing a buffer against fluctuating metal prices.
According to Thompson, underground mining costs average $100 per ton, while open-pit mining costs range from $20 to $30 per ton. Given Red Mountain’s high-grade mineralization, the potential for strong profit margins exists, even before full economic assessments are completed.
Advancing Toward Economic Viability
Silver47’s goal is to move Red Mountain towards preliminary economic assessments (PEA) as quickly as possible. The company aims to de-risk the project by conducting aggressive drill programs to upgrade the resource from inferred to indicated and measured categories.
Development Timeline:
- 2024-2025: Expanded drilling programs to increase resource confidence
- 2026-2027: Transitioning from inferred resources to measured reserves
- 2028+: Potential for mine development and permitting for production
Permitting and Infrastructure Development
One of the biggest advantages of Red Mountain is its location on state-managed land rather than federal land. This significantly reduces permitting challenges, as the state of Alaska is a pro-mining jurisdiction with a track record of fast-tracking permits.
Additionally, Alaska’s sovereign infrastructure fund (ADA) provides short-term funding for road and power development, further lowering financial risks associated with infrastructure investments.
Current Infrastructure Plan:
- Winter trail access and fly-in operations currently used
- Potential road development to connect to existing highways
- Diesel generation power at present, with future potential for grid connection
Other Assets in Silver47’s Portfolio
While Red Mountain remains the primary focus, Silver47 holds two additional assets:
- Adams Plateau (British Columbia):
- Early-stage exploration
- Potential for partnership or spin-off
- Michelle Project (Yukon):
- Significant silver discovery in early drilling
- Permitting delays have stalled development
- Under judicial review for regulatory approvals
Financial Strength and Shareholder Structure
Silver47 maintains a tight capital structure, positioning it as an attractive investment opportunity. With only 50 million shares outstanding and 64 million fully diluted, the company remains financially disciplined.
Key Shareholders:
- Gary Thompson and family: ~20%
- Eric Sprott (Billionaire resource investor): ~10%
- Crescat Capital (Denver-based metals fund): ~10%
Despite its strong resource base, Silver47’s stock remains undervalued due to recent market conditions. However, with gold and silver prices rising, the company expects renewed investor interest in the sector.
Upcoming Catalysts and Future Plans
Silver47 has multiple news catalysts lined up for the coming months, including:
- U.S. OTC QB listing (expected by Q2 2025)
- Expanded drilling programs (May-June 2025)
- Resource growth updates focusing on high-grade zones
- Potential M&A opportunities or new acquisitions
Final Thoughts: Why Investors Should Watch Silver47
Silver47’s Red Mountain Project presents an exceptional opportunity in the precious metals sector. With a substantial inferred resource, a pro-mining jurisdiction, and an aggressive growth plan, the company is well-positioned for significant value appreciation.
For investors looking to gain exposure to high-grade silver and gold assets, Silver47 is a company worth watching in the coming years.
To learn more, visit Silver47.com or contact info@silver47.com for updates and investor inquiries.
