NSX Silver – Near-Term Production Focus in Mexico
Overview
NSX Silver Inc. (TSXV:NSY) is a Canadian based mineral exploration company focused on the exploration and development of silver and associated metals properties in Mexico. Its main asset is the Dios Padre property, a historic silver producer currently being drill tested not only for its silver mineralization, but for polymetallic mineral deposit potential as well. Additionally the company holds approximately 5,000 hectares of prospective ground in the vicinity of the Dios Padre Project.
Investment highlights
- A large conductive anomaly discovered in 2011
- A historic silver producing property (16 million tonnes) from the 1600s onward
- Institutional investors hold significant shares
- Expert management team with deep ties to the hedge fund industry
Key Projects
Dios Padre
The Dios Padre property is located in the Eastern Sierra Madre Mountain range midway between Hermosillo and Chihuahua in east central Sonora State. It covers an area of 285 hectares on three contiguous claims, and is accessible via 18 km dirt and gravel road north of Hwy 16 via the turn off for the village of Santa Rosa, approximately 30 km west of the town of Yecora.
click to zoom
The property is within the prolific Sierra Madre Oriental in a Cretaceous aged volcanic rock sequence which is the host environment for significant gold and silver deposits, including those found in the nearby Sahuaripa, Mulatos, Dolores and Ocampo mining districts.
Initial discovery of the high grade silver property is thought to have occurred around the year 1640, and historic estimates of nearly 16 million ounces of silver, were reportedly mined between Jesuit operations in the 17th Century and by L.V. Limited between 1860 and 1910.
The last production on the property was in the mid-1960s from underground and open “slash” operations. In 1966 the property was subject to an extensive review by the UK consulting firm McKay and Schnellman. Very limited, modern exploration was conducted by Silver Standard in 1996 and First Majestic in 2006.
The Dios Padre porphyry mineralization hosts known high-grade silver within the property. It has been strongly modified by two distinct phases of brecciation, and argillic alteration. Silver occurs within pyrite, galena, tetrahedrite, Freibergite, sphalerite, mineralization along with traces of pyrargyrite and native silver. Traces of chalcopyrite, one of the chief gold indicator minerals is also present. Copper mineralization has also been found to increase with depth.
A 3D-IP geophysics and magnetic surveys, combined with a geochemical sampling program completed during the 4th quarter of 2011, identified a large conductive anomaly located just north of the most recent historic mining operations striking east – west. A drilling program commenced in Q1 2012 with the objective of testing these prospective targets.
NSX Silver drill holes DP-07-2012 and DP-09-2102 were aimed at down-dip extensions of the mineralized breccia body beneath the Santa Gertrudis open cut, and below the limits of the lowest known underground workings. This was counter to previous drilling, as NSX Silver geologists felt the combined drill data and sampling warranted drilling in a different direction.
In April 2012, NSX Silver reported that both of these drill holes successfully encountered mineralized breccia at depth. The mineral package identified in the drill core is consistent with silver-bearing minerals seen at upper levels of the Dios Padre Mine in pit walls, accessible underground workings and stockpiles. Assay results from these drill holes are pending.
The Company plans to carry out additional drilling to further define and extend these newly-discovered breccia zones. As well, other geochemically anomalous targets on the Dios Padre property will be drill tested.
Summary
NSX Silver is a well-funded, spin-off company of NS Gold Corp. Its management team has a track record of successful mine development and deep ties with the hedge fund industry. Its prospective Dios Padre property is a historic silver producer, and has assay results from a first quarter 2012 drill program pending. Upon positive results, the company plans further drill testing to delineate ore body potential, and possible bulk sample, which would enable the company to produce an NI 43-101 compliant resource estimate.
Management
Johannes (Hans) van Hoof – Chairman and CEO
Mr. van Hoof has held senior positions at various European financial institutions, including PVF Pension Funds, Paribas Capital Markets and Bankers Trust. His various roles during the past twenty-two years have included senior Portfolio Manager, senior Risk Manager, Deputy Head of global equity derivatives, Managing Director responsible for M&A arbitrage, derivatives arbitrage and venture capital investments as well as Chairman and Senior Executive Officer of Soros Funds Limited in London. In 2002, Mr. van Hoof founded VHC Partners alternative investment management group, active in hedge fund management, corporate and project finance advisory services, private equity investments and charitable projects.
Glenn Holmes – Vice President and CFO
Mr. Holmes has more than twenty-three years experience in the financial management of listed junior mining companies including equity financings, debt financings, corporate acquisitions, mining feasibility studies and financial restructurings. Mr. Holmes most recently served as Chief Financial Officer and Vice-President Finance of Etruscan Resources Inc. (TSX) where he played a lead role in securing a US$100 million combined structured debt financing and gold hedging facility for the development of an 80,000 ounce per annum gold mine located in West Africa. Previously Mr. Holmes was Vice-President Finance and Secretary-Treasurer for NovaGold Resources Inc. (TSX). He holds a B.Comm. and is a member of the Institute of the Chartered Accountants of Nova Scotia.
James Proudfoot – Director
Mr. Proudfoot has more that 45 years experience in the mining industry as both a mining engineer and independent consultant. He has held numerous senior management positions with several mining companies, including Noranda Mines as a production engineer and Mine Superintendent and Chief Engineer for Anaconda America Brass Ltd at their Caribou mine. His career encompasses all facets of the mining industry from exploration through project design, construction and operations management.
Grant Loon – Director
Mr. Loon has over fourteen years experience in trading and operations roles within financial institutions and alternative investment management firms. As Partner and Chief Operating Officer of VHC Partners, an alternative investment management group, Mr. Loon had responsibility for the establishment and oversight of the group’s operations. More recently, his roles have included establishing a multi-fund operations infrastructure and risk management framework while working as COO for a Stockholm based hedge fund management company. Mr. Loon is currently the Managing Director of VHC Sweden and holds several non-executive Board positions. Prior to joining VHC, Mr. Loon worked at Morgan Stanley & Co International, Commerzbank Global Equities and Soros Funds Limited.
Neil Weiner – Secretary
Mr. Wiener is a partner with the law firm Heenan Blaikie LLP. He practices exclusively in the area of securities law, with an emphasis on public financings. Mr. Wiener has been involved in numerous public offerings, for both issuers and underwriters. He has handled private placements, take-over bids, reverse take-overs, going-private transactions, stock exchange listings and a broad range of other securities matters.
