(Kitco News) – Industrial use of silver is likely to increase over the next five years, especially as we move towards a low-carbon economy, said Dr Mark Cruise, CEO of New Pacific Metals.
“Silver has its usual store of value against inflation, and we certainly see a lot of global headwinds and inflationary pressures for gold and silver,” Cruise told David Lin, presenter and producer of Kitco. News at the Denver Gold Forum. “But what makes silver unique is also its industrial end use. It is an essential commodity for fundamentally shifting to a low carbon economy, especially solar and wind power.”
Cruise described the many uses of money in the modern world. “Silver has two main uses. Silver has very high conductivity, it’s great for soldering electronics and is used in solar power and wind power generation. What people don’t realize is that it has very strong antibacterial properties, ”added Cruise. “Silver is infused into sports equipment as well. And we’re seeing an increased use of silver in medicine and in water filters. It’s kind of a unique metal, a store of wealth.”
On the New Pacific Metals flagship project, “This is one of the world’s largest discoveries of silver deposits in the past decade,” said Cruise, describing a huge global silver discovery in Bolivia that has was acquired by New Pacific Metals in 2017.
The silver mine site is only 35 kilometers from Cerro Rico, one of the largest silver mines in the world, in operation for 500 years.
In the past, Bolivia’s unstable politics, difficult geography and dizzying heights discouraged many miners.
“If you step back and look at the silver industry, there have been few major discoveries for silver miners. If you count the potentially important development projects that could move the needle forward, there are very few in the world, and we think we have one of them, ”said Cruise. “This is a very exciting time for New Pacific Metals and our shareholders.”
Cruise said the company is focused entirely on Bolivia. “We’ve been to where the merchandise is. It’s a huge silver district that’s historically under-explored for the past 20-30 years. It’s one of the few areas that remains like this. “Cruise explained. “There are very few places in the world where you can find large deposits that have no modern exploration at all and result in a discovery. That’s why we went there – it’s all about prospectivity. . “
In terms of financing, New Pacific Metals has two major shareholders. Silvercorp Metals, which owns 30 percent of the company, and Pan American Silver, which owns nearly 10 percent. “It’s a great vote of confidence in the management team and the project,” Cruise said. “We are very well funded, with almost $ 46 million. It is certainly enough to aggressively reduce the risk of the project.”
New Pacific Metals leverages 100% silver, not the silver equivalent. “This makes New Pacific Metals unique. We don’t produce any by-products, whether it’s a base metal by-product or others,” Cruise said. “Money is our main product, and streaming companies or a royalty don’t make sense to us because we don’t have any by-products. A combination of traditional sources of debt and equity works for us.”
For more on Cruise’s opinions on silver mining, watch the full video above. Follow David Lin on Twitter @davidlin_TV.
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