@CapitanMining
Overview
- Capitan Mining is a new and exciting high grade silver opportunity for investors
- The project is located in Durango, Mexico; in the heart of a prolific silver belt that runs across the country. Mexico is the world’s largest producer of silver
- The recently announced asset acquisition from Fresnillo PLC (FRES.L) is a real game changer for the company and its investors. It has allowed Capitan Mining (CAPT-TSX.V) to consolidate the 3km high grade silver trend which is now known as the Cruz de Plata (Silver Cross) Project
- Like Mag Silver’s Juanicipio Project, Silvercrest Metals’ Las Chispas Project and Vizsla Silver’s Panuco Project, Capitan Mining’s Cruz de Plata Project will be the next major high-grade silver vein field that will create meaningful wealth for investors
- Capitan Mining is led by a very experienced management team with a track record of success in Mexico.
- The Capitan Mining has a disciplined approach which it feels differentiates itself from other junior exploration companies and truly aligns its interest with that of its shareholders. Specifically:
- No free shares: No founder shares. The cheapest shares ever issued were at $0.20/share
- Premium leverage for silver exploration: Premium share structure with only 69.7M shares outstanding. Silver explorer group has an average +200M shares outstanding
- No warrants outstanding: Warrants
- No Outstanding Royalties: All royalties have been acquired subject to modest schedule of future payments. This enhances the return and economics of the Cruz de Plata project to our shareholders
- Top shareholders include: Michael Gentile +18%, Gordon Fernandes +6%, Construplan 5%, Sprott Asset Management 5%
- Capitan Management is focused on building the premier investment vehicle for high-grade silver exploration.
Management Team with a Track record
- The company is led by CEO, Alberto Orozco. Alberto is a former senior executive from Argonaut Gold (AR-TSX) who managed the company’s exploration efforts in Mexico. With him, he has brought over several key members of the Argonaut exploration team who all worked together to advance and expand 4 projects in Mexico, including 2 in Durango
- CEO, Alberto Orozco is also the President of the Sonoran Mining Cluster- one of Mexico’s most influential mining lobby groups. He works alongside the CEO’s from Fresnillo, Penoles, Grupo Mexico and others key executives advocating for the interest of the mining industry to the government and industry regulators.
- Gordon Fernandes from Phoenix Advisors is a key member of the Capitan Mining team. He’s a seasoned capital markets executive having worked in precious metals private equity and held senior roles at independent investment banks focused on the mining sector.
Robust Silver Project with Scale
- The Cruz de Plata Project comprises of three (3) historic high grade silver mines; these were the first mines operated by the Penoles Mining Company (PE&OLES.MX) 1887-1908 with grades ranging from 300 g/t silver to 2,000 g/t silver.
- To date, exploration efforts has identified a 3km high grade silver trend which hosts a robust mineralized silver system.
- Along the 3km trend, Capitan has identified numerous targets and parallel vein sets which remain to be tested
- Mineralization begins at surface and can be traced visually along the strike of the project
- Two (2) distinct types of mineralization have been identified at Cruz de Plata:
- High grade silver with base metals
- High grade silver with gold
- Early days at the project with only 12,000m drilled to date. Capitan Mining’s Cruz de Plata Project remains open in every direction (along strike and at depth)
Bonanza Grades at Cruz de Plata are Impressive
- Cruz de Plata is characterized by wide zones of high-grade silver mineralization close to surface with bonanza grades within
Highlights Drill Results Include:
- 16.8m of 332 g/t Silver Eq. including:
- 9.1m 538.7 g/t Silver Eq. which includes:
- 1.5m of 2,406.3 g/t Silver Eq. Best Intersection to date at Jesus Maria
- 11.8m of 333.9 g/t Silver Eq. including:
- 0.9m of 3,845.8 g/t Silver Eq.,
- 42.7m @ 224.3 g/t AgEq including:
- 1.5m @ 1,352 g/t Silver Eq.,
- 1.5m @ 1,177.2 g/t Silver Eq.
- 10.7m @ 435.02g/t Silver Eq. including:
- 1.5m @ 789.3 g/t Silver Eq.
- 1.5m @ 860.2 g/t Silver Eq.
- 1.5m @ 641 g/t Silver Eq.
- 8m of 224.3 g/t Silver Eq., including:
- 0m of 978.7 g/t Silver Eq.,which includes:
- 5m of 1,532.8 g/t Silver Eq.
- 70.8m of 177.4 g/t Silver Eq. including:
- 7.15m of 1,087.2 g/t Silver Eq.
- 4m of 545 g/t Silver Eq. including:
- 2m of 1,006.9 g/t Silver Eq.
- 40.6m of 167.1 g/t Silver Eq. including:
- 4.25m of 828.2 g/t Silver Eq.
Recent Property Acquisition from Fresnillo is a Game Changer:
- The recent property acquisition from Fresnillo (area shaded green) is a game changer as it allows Capitan to consolidate the 3km high grade silver trend.
- The long section for the high-grade silver mineralization at the Jesus Maria silver vein has been expanded to a strike of 1300 metres. Recent step-out drilling, indicates that mineralization continues to remain strong, open along strike and at depth
Vizsla Silver Case Study:
- To better understand the opportunity at Capitan Mining for investors its important to look at the success story of Vizsla Silver Corp (TSX-V: VZLA, NYSE: VZLA). Vizsla is a high grade silver explorer who was focused on advancing its flagship, 100%-owned Panuco silver-gold project located in Sinaloa, Mexico. To date, Vizsla has completed over 250,000 metres of drilling at Panuco and has + 218M oz of silver Eq in all categories. At the time, Vizsla had the benefit of a constructive precious metals market and was able to create meaningful wealth for all its shareholders.
- On, Oct 6th 2020 – Vizla Silver (VZLA.V) published their first long section on the main Napoleon vein at their Panuco Project. The images below compare Capitan’s current Long section to mineralization identified by Vizla. The images below use the same scale and legend (colouring) showing the mineralization in the ground (grade x width)
- At a glance, you can see from the image above that Capitan Mining has currently identified a larger strike length of continuous mineralization than Vizsla Silver had as of Oct 6th 2020 (when they published their first long section). Despite this, Capitan Mining trades for just C$14M vs Vizsla Silver which was valued at C$147M on Oct 6th, 2020 (+10x Capitan’s current valuation).
- Capitan Mining’s progress to date is more comparable to Vizsla Silver’s success at Sept 2nd At this point Vizsla Silver provided the market with an update long section of the Napoleon vein which had identified continuous silver mineralization along a 1,000m strike. Looking at the scaled comparison below, the current vein definition at Capitan’s Jesus Maria is closer to reported size of Napoleon vein in September 2021 and remains open, of particular interest is to the west which has only had shallow drilling.
- Once again, despite the close similarity, Capitan currently trades for C$14M vs Vizsla Silver which was valued at approx. $350M or just over 24x Capitan’s current valuation. Similar to Vizsla Silver, Capitan also has multiple silver vein targets at Cruz de Plata in addition to Jesus Maria that remain untested.
- It is clear to see the impact that a good precious metals market has on junior exploration companies. Vizsla Silver has been very successful in creating wealth for its investors and Capitan hopes to follow a similar path.
- Capitan Mining’s silver exploration story has only had a challenging market to work with. Management believes that if they continue to have drill success and maintain their disciplined approach, investors will benefit greatly from an improving sentiment in precious metals and the leverage that Capitan shares offer.
I welcome the company as a blog sponsor of mine.
