Silver Viper CEO: Early Precious Metal Discovery Sets us up for Success

Silver Viper CEO: Early Precious Metal Discovery Sets us up for Success


Were coming to you from VRIC 2019 right here in Vancouver. Joining me now is Steve Cope from Silver Viper. What exchange are you on and what’s your symbol? We’re on the TSXV under the symbol VIPR, and we’re also on the OTC pinks sheets under VIPRF. Tell me a little bit about your company. What is Silver Viper? Silver Viper operates in Sonora, Mexico. We have the La Virginia Project, which we just finished the acquisition on a couple of months ago. And the company? How long has the company been– The company’s been around since September 2017 when we did our IPO at 25 cents. You talk about the Belcarra Group. For those who are unfamiliar with who the Belcarra Group is, what is it about the expertise that the Group brings to his project? The Belcarra Group has four public companies under its management, Silver Viper being the newest. We’ve got four senior geologists, each one
takes the lead on one of the four companies that we have in the Group. Those guys have worked for all the major miners. They’ve worked for Goldcorp and Teck, they’ve worked all over the world. I mean, we joke about, sometimes, that they must be 200 or 300 years old, because they seem to have experience all over the world, and it just kind of lines up that way. I note also that you didn’t mention Pan American Silver in that list of companies or majors that you’ve worked with. But, as far as your property here in Mexico, there is a connection here to Pan American Silver, isn’t there? Well, in this case, yeah, I mean, they are. Our geologists haven’t worked for Pan American, but we’ve certainly done deals with Pan American in the past. They were a joint venture partner at Oracle Silver and now we’ve just optioned the perimeter claims from Pan American at La Virginia. Why is it important that we understand what that relationship is between Silver Viper and Pan American. What does it help bring to this project? What the relationship brought, in this case, was that because we had a familiarity with Pan American, we’ve done business in the past, we’re currently doing business with them and Orex Minerals in our group, as well. It was an open door, and we were able to get the project for a deal that I don’t think a lot of other people would have been able to do. In our case, it was just a flat two percent NSR project wide that we gave them. In the case of our story, it was a bit of
a complex deal because the internal Mexican group that we optioned the project from – That was where the bulk of the historic drilling had been done, but they didn’t have access to the data. Where in this case, Pan American had the project in the past and still held all of the drill core, still had all of the data. It was vitally important to bring Pan American in and have that relationship to get access to that data, do our due diligence, then ultimately do a deal with Pan American and the internal stakeholders. Silver Viper’s still a junior mining company? Yes. But because of this relationship with Pan American, what does that say, should you get the results that you’re looking for? Well, in this case, Pan American made it very clear to us that they’re not just giving up on this project. They have the NSR. If we go and make the discovery and do what we’re very good at, they’ll still be very interested in ultimately doing a deal and be very comfortable buying it back from us if we get to that point. I think that you answered an important question for somebody who’s watching, going: “Well, hang on a second, Pan American wasn’t involved in this and now they’ve said, ‘Okay, well we’ll let you take that’, is that
because they’ve lost interest?”. But, no, this gives them an opportunity where they don’t have to focus on it. Yeah. I mean, it was the deal – Pan American got the project in the past from Minefinders, who had done the bulk of the work on the project. And if you remember, Pan American bought Minefinders for $1.5 billion in 2012 and this was the number one exploration asset in Minefinders, but the deal was done for the Dolores mine. That was worth the bulk of the $1.5 billion and it was done. In this case, it became a non-core asset as metal prices continued to move down in 2013. All of Pan American’s exploration efforts were focused around their existing mines. They weren’t going to spread themselves too thin. That’s why we’ve partnered with them in the past, like with Oracle, and we’ve done it with Orex, and they can see that our group is a very good exploration group. It’s better for us to come in and do the exploration work and for them stick and be the very good miners that they are. You started in 2017, where are we at right now? We originally listed with the Clemente project. We’ve since returned that back. We did our deal with Pan American and finally came out with a definitive agreement a few months ago. Now we did our first drill program on the
La Virginia project. We made a brand new discovery that was announced last Thursday. Tell us about it. The discovery was in the El Rubi area of the project. It had previously not been sampled, it hadn’t been mapped, the reasons were it’s very difficult to get into it. But our team was relentless, and went in,
and said, “This is where we’re going to add value to this project. We’re going to go out, map and sample and we’re going to drill a lot of these targets that hadn’t previously been tested on the project.” And lo and behold, one of the main targets they identified, we put five holes into. All five hit a brand new zone, as well as a parallel zone down deeper that was a bit narrower. But our feature hit was 13 meters of six grams. Wow. It’s a pretty good discovery on a brand new target and it’s got the size potential. They’ve identified it’s got the potential to run 2.2 kilometers to the north and an additional kilometer to the south. So, next steps at this point? Currently, we’re continuing to map and sample that area rather vigorously. There’s potential for additional structures parallel to it, as well as really sampling that potential strike length. There’s a target on the other side of that valley that lines up very nicely with El Rubi that we’ve called Macho Libre. We’ve already seen some very promising initial surface sampling from there. Give me a timeline. Where do we go to next? At what point do you then move to the next stage in the development of the property? At this point, I would anticipate that we get a drill turning again probably in the next month. Going back to El Rubi, starting to define further the strike length that we’ve already seen there. Our five holes established a 100 meters of strike length, but with those originals – there are potential numbers that we talked about are 2.2 kilometers to the north and one kilometer to the south. I mean, that’s a lot of area that we potentially have to define. I think the plan would be to systemically step out by 50 meters at a time, especially on the stuff to the north, because it kind of goes under cover. You don’t get to follow the structure as well on surface because you’re sitting on a plateau. We can see the structure and where it peters out at the end of that plateau. As it comes off of a cliff, you can still see the structure there. Map that. But moving forward, we will be drilling again here probably in a month and continue to define, show the potential of that particular target, as well as some of the other exploration targets that exist around the project. When do you anticipate that you’ll have a really good sense of what the potential is of that property? I mean, I would think for that target,
anyway, certainly by the end of this year. We would have a pretty good idea of the potential of that. I mean now, there would probably be infilling and other drilling that would be certainly required after that to define it and maybe bring it up to a level that you would be including it in a resource and doing some of that work. But there’s a lot of other untested targets, as well. I think our main focus right now is to
continue to show the potential of the project, do our exploration work, exploration drilling to define and show the potential. Then whether we, at that point, look to bring a major in as a partner, or potentially option the project off, we’ll see. The drill will tell us where we’re going to go from there. You always look at jurisdictions, the regulatory environment, political, and of course, weather. What are the advantages that Mexico, especially this part of Mexico, bring to a project of this nature? Well, Sonora certainly been known for mining. There’s a lot of existing mines in production in the State of Sonora. From a security standpoint, it’s a lot safer
than certain other states in Mexico, and some of the problems that we’ve seen in our sector down or toward southern Mexico. There’s no royalty in Sonora on a state level. It’s friendly. It’s a cheap workforce. You can operate there a lot cheaper than you can in a lot other parts of the world. From that perspective, those are all very attractive to us, coming and getting involved. As a group, as a whole, you can see it across all four of our companies. We’re very cautious about which jurisdictions we want to be involved in. We don’t want that risk for investors that you see in other parts of the world. When countries are taking projects back or applying very aggressive royalties. We’ve all seen those issues. Across the board in our group, we’re in
Sweden, we’re in BC and we’re in two very friendly states in Mexico, are where we’re focused. Of course it dawns on me that somebody who’s watching this might go, “Well, hang on a second, what are you drilling for?” What is the mineral that you’re planning on bringing out of the ground, here? Our result was on a gold equivalent. It was split. It was more gold, but it also had some very significant silver credits associated with that, as well. Right. So it’s looking promising. The good thing about that, is that it gives you access into a couple of different markets that might be in different life cycles. Yeah, absolutely. I’m happy to have a project that we can play both sides of the precious metal spectrum. Our main focus everywhere has always been precious metals. But you’re right, sometimes a project is predominantly silver with very little or no gold, like we have in Dolly Varden in BC. Here, it’s split pretty evenly between
the gold and the silver credits. And yes, it opens up the market to double the majors when you start talking about the gold-producing companies and the silver-producing companies. Your smile would suggest that you’re feeling pretty optimistic about 2019. We’re very happy and we’re very enthusiastic about this discovery and the impact it has on this project. As a new company, it’s a great start. We make a brand new discovery on a project that have had both Pan American and Minefinders exploring on it and they did very good work in the existing area that they defined. But for us to come in and use our expertise to identify some of these new targets and then have success at them, we’re very happy. Well, of course we’ll be watching. Thank you very much for coming in. Thanks, it was a pleasure.

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