Tuesday June 26, 2012
by Brien Lundin, editor Gold Newsletter
The long-term future outlook for Silvercrest Mines (SVL) is so bright and solid, that I simply can't see any reason why a serious resource investor wouldn't want to add it to their portfolio near current levels.
The company boasts a producing silver-gold mine in Mexico, a plan to double both production and resources at the project in the next few years and a large, earlier-stage project at which is has already outlines a large silver-equivalent resource.
The producing project is the Santa Elena mine; in the company's ost recent quarter, open-pit mining operations at Santa E;ena generated 134,000 ounced of silver and 9.405 ounces of gold.
Plans are currently in the works to transition the open-pit to an underground mining operations in the next few years.
The ore from from this underground operation, combined with a new open pit that the company envisiions building at Cruz de Mayo (a nearby deposit) should allow Silvercrest to more than double its production profile in the next few years.
And that doesn't consider the possibility of the company's earlier-stage La Joya project which could become a mine in its own right.
That's an exciting prospect, as the metal total outlines at La Joya dwarfs the combined silver equivalent within Santa Elena and the possible open pit at Cruz de Mayo. Based on the stock's current trading levels, you'll get the huge La Joya deposit essentially thrown in for free.
The company has C$36.5 million in the bank and steady cash flow, giving it ample resources to move these projects forward.
Simply put, Silvercrest offers us everything we're looking for in a long-term growth story. It has a producing asset with an enviable low cost profile, an expansion project on the verge if actualization and the ability to substantially grow its resource base via drilling in the months ahead.
There are plenty of potential catalysts for the stock in the short-term and a ton of growth potential in the long-term, making now an excellent time to jump on board. It's a buy.
Learn more about this financial newsletter at Brien Lundin's Gold Newsletter.