A company called NORTH AMERICA COPPER is working on a project to find silver in a place called Tonopah West. They have found a lot of silver and they are ready to start planning how to get it out of the ground safely and quickly. This project is very important because it has a long history of silver discoveries and famous people like Wyatt Earp and Howard Hughes were involved in it before. Read from source...
- The title is misleading and sensationalized, as it implies that the project has already unlocked value when in reality it is still exploratory and developmental. A more accurate title could be "Exploring Potential Value With The Underdeveloped Tonopah West Silver Project".
- The article does not provide enough background information on the project's location, history, geology, or resource estimate. It relies heavily on anecdotal evidence and historical figures to create a sense of credibility and excitement, rather than presenting factual data and analysis.
1. Buy CBLT stock: CBLT is the company behind the Tonopah West Silver Project and has a strong upside potential due to its high-grade silver resource, historical significance, and strategic land position in Nevada. The recent bought deal shows investor confidence and provides liquidity for future capital raises if needed. The risk is moderate as the market cap is around $50 million and the stock price has been volatile lately.
2. Sell PAAS stock: PAAS is a silver miner with operations in Chile, Mexico, Peru, and Bolivia. It has underperformed the silver price and the sector due to production issues, labor disputes, and environmental concerns. The risk is high as the market cap is around $1.5 billion and the stock price has been declining steadily since mid-2020.
3. Invest in physical silver ETFs: Silver prices have rallied recently due to increased demand from industrial applications, especially in the renewable energy sector. Physical silver ETFs offer exposure to the silver price and can be a hedge against inflation and currency devaluation. The risk is low as these ETFs are backed by physical silver and have low fees.
4. Avoid gold miners: Gold miners have underperformed the gold price and the sector due to rising production costs, environmental regulations, and geopolitical risks. The risk is high as many gold miners have high debt levels, low margins, and negative cash flow.
5. Wait for better opportunities in other silver projects: The Tonopah West Silver Project has a lot of potential, but it is not the only game in town. There are other undeveloped silver projects with similar or higher grades that may offer better value or lower risk. Some examples are Great Panther Mining's Tucano project in Brazil, Fortuna Silver's Lindero project in Argentina, and Premier Gold's Cove project in Ontario. The risk is moderate to high as these projects have their own challenges and uncertainties.