Nick Hodge,
Publisher
Nov. 18, 2021
Publisher's Note: Silver Hammer Mining (CSE: HAMR)(OTC: HAMRF) is aiming to build the world's next mid-tier silver producer. The market thinks it's the real deal, with shares rising from C$0.25 to C$1.08 in the past seven months. Members of my Hodge Family Office were able to finance Silver Hammer at the C$0.25 IPO level. They also have warrants to buy more stock at C$0.50. Six times your money in seven months is good work if you can get it. If you're interested in those kinds of investments, be sure to check out the Hodge Family Office. And check out my interview with Silver Hammer President & CEO Morgan Lekstrom below, as he outlines the drilling that's underway now and the plan to develop the three past-producing silver mines the company controls.
--Nick
Nick Hodge: Nick Hodge here with Daily Profit Cycle, sitting down with Morgan Lekstrom, who's the new President and CEO of Silver Hammer Mining, which trades in Canada under the ticker HAMR, and just got an OTC listing, which is very important — HAMRF, if I am not mistaken.
Morgan Lekstrom: Correct.
Nick Hodge: Morgan, thanks for coming to Spokane to see me.
Morgan Lekstrom: Thanks for having me, buddy.
Nick Hodge: So it hasn't been so long. We got to catch up at the New Orleans conference just a little bit ago. And before that, we had dinner here in Spokane at a steakhouse, when you were conducting a site tour back in the summer. That's when it was a hundred degrees. I think we were under the heat dome, and now there's snow up at the Silver Strand Mine. You were just showing me some videos. So, thanks for coming again.
Morgan Lekstrom: No problem, man. It was, you know what, natural to come here. It's easy.
Nick Hodge: That's exactly right. So, your flagship is the Silver Strand Mine, past producer in Idaho. You have two other assets, past producers in Nevada. Tell me what you're doing now at Silver Strand? Why are you in Coeur d'Alene?
Morgan Lekstrom: Well, I mean, we've been saying this to everybody. We're going to start drilling. And we did. I wanted to make sure our underground drill was working well, and working with our team on the ground. Everyone is very busy, so I thought I'd come down here, show my support to the team, and really take that boots-on-the-ground approach with everyone. So, we're core drilling in the underground and we should have some pretty good core and, hopefully, some results sooner than later. I just really like being on-site. You know, I really like connecting with the people that are the drillers, and my geologists, all of them. I think it's so important, as a leader, to spend a lot of time with your people.
Nick Hodge: Absolutely.
Morgan Lekstrom: I don't arm-chair quarterback, and I never have, and I never will, so it is really nice to get down to... Plus, I love Idaho. It's unbelievable. This whole area is beautiful. So Coeur d'Alene and the Silver Strand site is stunning in this weather. It's been pretty nice.
Nick Hodge: And it's a wonderful place to explore for and develop silver mines, obviously. One of the most prolific silver districts in the world, and the market — shareholders, prospective shareholders, retail — are obviously excited about the prospectivity of what's going on. You were releasing grab samples, thousands of grams per tonne silver. And so, we all know the Silver Strand was only mined down to about 90 meters, and other deposits, mines in the same formation, the Revett Formation, go down thousands of meters.
So I guess, congratulations on the share price so far, with what's gone on. I mean, we were able to finance it at 25 cents, and the shares have been over a $1.00, and we're still approaching catalysts. We haven't really gotten to the news flow, so well done. And if the silver market continues to break out as it has here in November, I think that there are many winds in your direction, I guess. Tell us about the catalysts that are upcoming, not just at Burnt Cabin, but a little bit about the other projects as well.
Morgan Lekstrom: Yeah, I think it's something that's really interesting to remember too. You mentioned a lot of these monster mines go down to 1800 meters plus, and they do, and being only 90 meters. But having those high-grade silver samples, but also gold, right? I mean, there's old drilling that have four to six grams a tonne gold. We have grab samples that have nine grams plus a tonne gold from the underground. So having that gold credit, we call it, on the mine, it only enhances the exposure to gold and silver for people as well. I mean, being our flagship mine, but yeah, the catalyst coming up are quite a few.
We just finished our programs at Silverton and Eliza, our new Nevada assets. We picked those up, formally, two months ago, and conducted a geochem program at Silverton, including sampling and mapping. Conducted a sampling and mapping program and some satellite imagery work at Eliza. And I'm really excited for those catalysts. Those are things that take a company from just being a baseline exploration company to give us a path forward, how we're going to drill it, how we're going to eventually put it into production. I mean, that is my background, right?
So we'll have those coming up. We'll have core samples coming out of Silver Strand, so hopefully, December, January, depending on the assay labs. They like to take time. They're very busy. There's a lot going on in the industry. But yeah, I think ... Thanks again for the congrats on the share price. We're really excited. And, obviously, it seems like the market's pretty excited for what we're doing too. And, just keep on it, keep going. It's going to be a fun ride.
Nick Hodge: Sure. I mean, you guys structured it well to have success in the capital markets. It's 37 million shares outstanding, and so you're well funded. You raised money over the summer. And I should also point out that things have happened quite quickly. You've only been trading for six or seven months, have gone from 25 cents to $1,00, like I say, so this is still very early in the story's life, in the company's life. And you have a lot of goals and ambitions yet to hit. I mean, you don't make a secret that you guys want to become a mid-tier silver producer, right?
Morgan Lekstrom: Absolutely.
Nick Hodge: And so, you have past-producing assets that'll do that. We just said Silver Strand is the flagship. It's being drilled. Talk to me about the other project a little bit, since they are newer. Can you give us a little bit of background on Eliza and Silverton?
Morgan Lekstrom: Yeah, absolutely. They're super interesting. Eliza's in the historic Hamilton district, and this district was mine from 1860 to mid-1870s. And that was the big monster mines, like Treasure Hill. It was the largest silver rush in the US at the time. That area is the reason Nevada is called the "Silver State." So it has not been looked at since late-1800s. You know, they thought they mind out the Northern part of it. Were on the Southern side of the fault. There's a couple little mines in there, one being the California Mine, and it produced grades up to 18,500 grams a tonne in silver equivalent. And to put that in perspective, you need to about 200 grams a tonne to build an underground mine successfully, but depending on the economics.
It's an incredible opportunity to use modern geology, modern technology, including satellite imagery in these types of understandings to, hopefully, build out a large exploration payoff resource there, and put something unique into production.
Nick Hodge: I think I saw in your slide deck that adjusted for today's prices, it's like $15,000 a ton rock or something they were mining there.
Morgan Lekstrom: Yeah. It was insane. It was insane. There's some very trusting old texts that talk about geological associations and how much they had mined there. I don't even want to talk the numbers because they're so big. But the potential on that side of the fault, it's in the late-Devonian limestone. It's the same limestone they were mining at Treasure Hill in the 1800s, so there's no reason it doesn't go down. We've had grab samples on surface that are just very high grade, 500 to almost 2,000 grams, 1,500, 16,00 grams a ton. And it's where it's pretty consistent, so we're excited for Eliza.
And then, Silverton is about an hour to Tonopah. All around Silverton is these mountains, right? And it's kind of volcanic around it, and there's been a lot of geochem work done around there, and there's some drilling up in the mountains, and they found gold. And we picked up the lower portion, which was a past-producing silver mine. So 30 ounces or 933 grams a ton. And we got down there, and the gentleman we picked them up from, Dave Forest, him and I went down — again, boots on the ground — went down there. We walked these for a week, and we're like, "Wow." Dave thought there was a bit of a gold system, so we start looking at it, and we start sampling it, and we just released some samples. You know, that 0.2 to 6.1 grams a tonne gold. When you think about pits, giant open pits like Kinross' Round Mountain pit, their head grade's 0.7 grams a tonne. That should give you the potential size and mass of that area, so we're excited to be chasing that down as well as the silver portion of that property. It's really unique.
Nick Hodge: So we have news flow coming on three past-producing mines, the core's going, the assays going from Silver Strand soon, and then mapping geochem sampling from Eliza. And was it mapping from Silverton?
Morgan Lekstrom: Yeah. Mapping, geochem sampling from Silverton. Mapping, sampling, and satellite imagery work from Eliza. So, a unique approach. We're trying to do things in a way that accelerates, as we've done with this company, as we've done with Silver Strand, getting an old past-producing mine, rehabilitating it, driving a new drift, putting a new drill, getting a drill on site. These are very collaborative events. They don't just happen by themselves, and being in the mining industry for so long, it's more natural, right? It works quick when you know what you're looking for.
Nick Hodge: Well, like I say, the market is anticipating the results. You can tell by the share price. You can tell by the number of newsletter writers and things you've been able to gather so far. So not only was the company structured well, but you've approached it right, I think, from a capital market sense. And so, I said, the silver price is starting to cooperate. We can only hope that the rocks cooperate. We don't control that. So, that could be sort of the feather in your cap here in the next couple of months. I'm really excited about the assays coming out of Silver Strand. Anything else we need to know about from Silver Hammer Mining?
Morgan Lekstrom: No. I mean, we love connecting with everybody out there, all our shareholders and prospective shareholders. We do have a lot of catalysts coming out, and we really enjoy going to these conferences, and talking about our story because I firmly believe we are building, and we are going to be building, a mid-tier silver mining company. And that doesn't just start with one asset. That starts with multiple assets in high-potential districts, like we have, Idaho and Nevada. Nevada being the number one mining jurisdiction in the world. Idaho number nine. I mean, you're getting the hint. We're Western US-focused, all past-producing mines.
We have a three-pronged approach with our management team. We just added Ron Burk to the board. Ron is an exploration expert, and he used to work for Silver Standard, right? And he was their chief geologist before he was a VP of Exploration. The type of team we're putting together with the top-quality assets that we're putting together, you bet you but we're going to be building a mining company.
Nick Hodge: Well, I'm happy to be a shareholder. I know my subscribers are happy, people that got in at that 25 cent level. I look forward to continuing to be a shareholder, helping to tell the story and make sure you hit me up the next time you're back in Coeur d'Alene.
Morgan Lekstrom: Always do.
Nick Hodge: Thanks, Morgan.
Morgan Lekstrom: Thanks, Nick.
This transcript is unedited. Please excuse grammatical errors and run-on sentences.