Canaacord Comments on Huldra Silver this morning:
Huldra Silver touched an eight-month high as investor’s take notice of this near term silver producer. At a time when cash is king and financing opportunities in the junior space have been difficult to come by, real production has become particularly attractive. Huldra is focused on developing its 100%-owned Treasure Mountain Mine and its Merritt mill and tailings facility, located approximately three hours east of Vancouver, B.C. The Treasure Mountain Mine is a high-grade silver/lead/zinc (24.2 opt silver) resource that currently has about two years of resources outlined (based on 200 tpd million operation). The deposit currently has over 4,000 m of underground development on four levels, over a vertical strike of 295 m. The company has been underground mining since May 2012 under a 60,000 tonne per year small mines. permit and has already mined the equivalent of approximately a years worth of mill feed. Additionally, the company began commissioning the fully permitted mine facility in August 2012. Once testing of the new 200 tonne per day grinding, crushing and floatation mill is complete, the company intends to transition into processing the 10,000 tonne bulk sample and to commence commercial production in the first quarter of 2013.
A Bay Street analyst notes that assuming Huldra can feed its mill with a head-grade similar to its current resource grade, it could produce at least 1.5 Moz Ag in 2013. The analyst lso sees the potential for the company to target 2 Moz production this year (not including lead and zinc credits) by either increasing its mill though-put (Huldra has installed a 500 tpd ball mill) or milling higher than average grade material. As the company progresses towards full-scale commercial production, we could see a material re-rating of this stock. Additional catalysts include: 1) Assay results from its underground and exploration drilling. 2) An updated NI-43-101 resource estimate is expected in Q2/13.