PEAK ASSET: MORNING WRAP 26 February: ASX 200 futures are pointing up 58 points or 0.6 per cent to 9138 | $A rises to multi-decade high v yen: NAB | The Silver State is shining and ASX companies are flocking to Nevada |

The Silver State is shining and ASX companies are flocking to Nevada

• Nevada ranked second in Fraser Institute survey with strong permit approval rates
• State is the largest gold and second largest silver producer in the US
• Multiple ASX miners exploring Nevada for gold, silver and tungsten deposits

US mining states dominated the top five jurisdictions for investment in the Fraser Institute’s most recent Annual Survey of Mining Companies, filing in behind top placed Finland.

Second placed Nevada, nicknamed the Silver State, certainly earns its position thanks to its mineral endowment rich in gold and silver, along with supportive policy.

Some 58% of respondents to the survey found that timelines for permit approval decisions were met between 60% and 100% of the time while 77% said they had high confidence or were confident that necessary permits would be granted.

Along with Federal Government incentives such as the Inflation Reduction Act tax credits and Infrastructure Investment and Jobs Act (IIJA) funding for critical minerals, the State itself offers sales tax abatements on capital equipment purchases and tax deferrals on capital equipment for mining companies.

Having some 87% of the State be under Federal management also provides relatively free access for the staking of mining claims.

Nevada is the largest gold producer in the US and second largest producer of silver in the US after Alaska.

Barrick and Newmont joint venture Nevada Gold Mines dominates gold production through its operation of 41 major mines including the high-grade operations in the Carlin Trend and Cortez region.

The state also has a long history of silver mining that started all the way back in 1858.

Australians sniffing out mineral riches

Nevada’s attractiveness has certainly proved irresistible to ASX-listed resource companies that are famed for their ability to sniff out mineral riches.

One notable player is Sun Silver (ASX:SS1), which holds the Maverick Springs silver-gold project in northeast Nevada about half-way between Elko and Ely.

It sits on the northwest flank of the Maverick Springs Range just off the southeast end of the Carlin Trend, a belt which hosts major gold-silver deposits.

Work carried out by the company resulted in the definition of an inferred resource of 539Moz silver equivalent at 71g/t, making it the largest pre-production primary silver deposit on the ASX and within the US.

Infill drilling is currently underway to upgrade resources to the higher confidence indicated category.

Potential also exists for growth as the deposit is open along strike and at depth while historical drilling has revealed mineralisation at or near surface.

Other studies are also underway including metallurgical testwork to support process design for future economic studies. Importantly, the company’s shares have more than tripled since its listing on the ASX in 2024.

Unsurprisingly, the scale of Maverick Springs has inspired its peers, several of which reference the proximity of their projects to Sun Silver’s flagship.

To read more, click here

Source: Stockhead