As August is coming to an end, we hope to see another operational update from Silver X Mining (AGX.V) as the company has stepped up its efforts to be as transparent as possible. Earlier this month, the company released an operational update on the month of July confirming the total amount of processed tonnes as well as the silver (-equivalent) production are increasing.
In July, the Recuperada processing plant set another step forward with in excess of 12,000 tonnes of processed material (which works out to be around 400 tonnes per day). That’s approximately 50% more material than in June, and this resulted in a 58% increase in the silver-equivalent production which jumped to just under 124,000 ounces. That’s good news as this means the annualized production rate is now already exceeding 1.8 million silver-equivalent ounces per tonne. And although the silver price remains pretty weak, the high-grade nature of the Tangana rock and the combination of precious metals and base metals will be very helpful to reach the cash flow positive stage.
It will be interesting to see if the company can continue to gain momentum. While the processing plant is ramping up towards its full production rate of 720 tonnes per day, the underground development at Tangana is obviously still ongoing and the company planned to reach and reinforce the 700 level in August. That would allow the mining operations to further increase the output as additional stopes will be opened.
Disclosure: The author has a long position in Silver X Mining. Please read our disclaimer.
