➡ The company is actively expanding its mining operations, particularly at Red Mountain in Alaska, with the aim to increase its silver reserves. They are also exploring growth opportunities in Nevada and New Mexico. The company believes it is undervalued compared to its peers and is seeking additional partners to further expand. They are focusing on jurisdictions with strong property rights and good environmental and labor standards, despite the potential for more red tape. The company’s primary project, Red Mountain, has significant growth potential and they hope to start production in a few years.

➡ The text discusses the potential increase in demand for precious metals like gold and silver. It highlights the scarcity of silver mining companies and the importance of mining in countries with strong property rights. The text also mentions the emerging trend of sourcing important metals domestically, particularly in the U.S. and Canada. Lastly, it talks about the value of critical metals found in deposits like Red Mountain and the balance needed in small mining companies to avoid shareholder dilution.

Hey guys, Raf here from The Endgame Investor, and this interview was actually recorded a few weeks ago with CEO of Silver 47 Galen McNamara. They are a sponsor. At the time he was the CEO of Suma Silver, which has since merged with Silver 47. And now Galen is the CEO of the combined company. They have assets in Alaska as their primary asset and Nevada as well, and one other state in the U.S. I do own shares in Silver 47. The importance of these companies will become apparent, I believe, in the endgame, obviously.

So I believe the assets, which are now exploration assets, will rise in value as the entire world suddenly realizes that gold and silver are money by market forces. They will realize this, and these companies become very attractive for those other miners that have a lot of capital with which to acquire new assets. There really is no other way for these companies to become known other than through channels like this one and others. I do not take more than one sponsor at a time on this channel. I try not to overload it, but I do believe that the ones that I pick are responsible and they are administered by people that are trustworthy.

So if you are interested in silver-facing companies, that is the primary silver miners or primary silver explorers, then take a listen to this interview. And if you’re interested in the company, then it’s your decision whether to invest or not. In any case, here’s Galen McNamara of Silver 47. Enjoy. Hey, guys, Raf here from The Endgame Investor, and I’ve got the incoming CEO of Silver 47, the current CEO of Suma Silver on the line. This is Galen McNamara, and he’s got assets in Alaska, Nevada, and New Mexico. We’re going to talk to him about why he’s in the silver business.

Silver breaking through 38 today could break through $40 any time now. We know how volatile this thing is, how he got into the silver business, and what is going on with Silver 47 slash Suma Silver. There’s a merger involved. There’s a lot of ounces in the ground here and a lot of potential. So we’re going to talk about all that and what to look out as shareholders. So Galen, how are you doing today? How do you feel today that silver broke through 38? Do you think this is a dream come true? Or is this just normal? Well, you know what, Raffy, the best is yet to come.

Let’s put it that way. And thanks for having me on the show. I just got a notification on my phone before we signed on that said that SILJ was at a new high. So things are looking great. And I hope everyone’s feeling well. Yeah. The first thing I wanted to know is how did you get into this business of digging silver out of the ground? It’s very obscure, especially these days when you think silver sucks and it’s not money anymore. And who needs it? Yeah, you know what, to start from the very beginning, I’m a geologist, going back, well, geez, almost 20 years now.

And I’ve always been focused on exploration. But I’m Canadian. So I started my career looking in different places in Canada for different metals. I started in copper and zinc, looked quite a lot at uranium, have a lot of experience in uranium, but I was always, from the beginning, really quite interested in precious metals, you know, I used to stake claims and do stuff like that when I was still in school, never really made any money, but at least I learned something. And then you know what, I first got interested in these old silver districts, probably around 2010, when I did a trip to Nevada, when I was still a student, or maybe when I was very, very, very, very, pretty much right after I finished school, excuse me, where I did this trip to Nevada, and we got to see all these mines in action.

And I just thought to myself, geez, like, I just saw a lot of opportunities. So I kept that in my mind. And I had seen discoveries like silver crest. And I had read a lot of Peter McGaugh’s work from his discoveries in Mexico and his accounts of those discoveries and how they happened. And then it just planted a seed. So fast forward to about 2019, late 2019, I was looking for projects, I’m looking to put a new company together, build a new exploration vehicle, and came across this thing in Nevada in the eastern half of the Tonopah Mining District, and that’s our Hughes property today, where it was this old Wild West mining place, that prolific historic silver producer, but hadn’t really seen much or any modern exploration, you know, and a little bit of a light bulb went off for me there.

And I thought, okay, well, I think with a modern approach, with all the tools we have now that they didn’t have 100 years ago, and ideas, there’s a pretty good chance we could be successful here. So pulled the trigger on that project, and then staked a bunch of claims along strike, you know, the eastern extension of that district, because you may have heard that the best place to find a new mine is right next to an old mine, just under that principle. And it was open ground, which surprised me. And fast forward to today, you know, we’ve built out a decent sized resource on that project.

And we’ve made some new discoveries on those claims that were staked. So, you know, that was a nice proof of concept, and a nice discovery success that’s going to be ongoing for the next amount of time. And yeah, that more or less takes us to today, Raffi. Is there any, like, systemic excitement going on in the mining sector and the exploration sector now that you didn’t see in 2021? I remember 2021 was like a little bit more feverish for Silver Explorers, and I haven’t seen that lately. Also in 2011, but now Silver has gone from 25 to now $38, and it still seems kind of subdued.

Is that what you’re still seeing now, or are you still seeing, are you seeing some kind of pickup in interest and money flows? And if not, when do you think that’s going to happen? I think we’re, yes, you know, all of those things, the waves in 2010, 2011, the wave in 2020, 2021, maybe a little bit into 2022, you know, we’re starting to see that now. And we’re starting to see the window open for investors saying, hey, you know, we want to take Silver really seriously again. And a lot of that’s driven by not just by, you know, the monetary nature of the metal, but by new industrial demand, you know, that we’ve been hearing about it for the past few years, you know, especially the solar stuff, you know, the increased solar demand, substantial increased solar demand.

But it hasn’t, I haven’t really felt like it’s been taken that seriously, you know, until recently, and that’s been building over the last several months. But, you know, I think more, perhaps more importantly, we can we can look back through the last month or two here. And there’s been, you know, we’ve seen money flow into the sector, you know, and companies are financing and companies are starting to think big about exploration. I think that’s just this, the start, I hope it’s just the start, you know, you, we all kind of just focus on what we can control as CEOs, at least I try to.

But my my feeling here is that, you know, it’s coming in waves over the last little while, it will continue to, to happen in waves, it won’t be straight up. But you know, all signs point to the fact that we’re in the start of a cycle. What assets do you have? What needs to be developed? What’s the business plan? And what’s the general timeline here? Yeah, so what we’re doing right now is Silver 47 and Suma Silver, of which I’m the CEO, are moving towards closing and a merger that we announced a couple months ago, we’re targeting close for early, very early August.

So say three, four weeks away from now. And the idea is that we’ll have three American high grade silver facing assets, that total total ounce endowment is 237 million inferred ounces on the silver equivalent basis at over 300 grams per ton, and then an additional 10 million indicated ounces, also at over 300 grams per ton silver equivalent, excuse me. So hey, like if you look at our valuation on a per ounce basis relative to our peers, you know, we’re very, very undervalued. And that information is on our deck and our website, I don’t have the exact numbers, right in front of my face.

But you know, many of our peers on a per ounce basis on the ground, in the ground, get two to three times our valuation, our valuation or more. So that’s one interesting part of this company. But of course, we’re not just going to sit here and say, okay, we’re undervalued relative to our peers and Silver’s hot, so therefore buy our stock, like that’s just not, you know, that doesn’t make too much sense. So what we’re also doing is really aggressively advancing our assets. We are drilling right now at Red Mountain in Alaska, stepping out from around the deposit so we can grow it, you know, one hole at a time.

There’s great growth potential on the projects in Nevada and New Mexico, which also hosts significant numbers of ounces that we can very, very easily get back to and plan to in the not too distant future, once we get our feet under us in Alaska a little bit more. So that’s it. Like, it’s number one, we’re very undervalued relative to our peers. Number two, it’s aggressive growth from, you know, the team looking to grow those ounces. And number three, hey, look, like we don’t just want to sit back and say, okay, we just did our transaction, our merger and stop there.

You know, we’re also looking for additional partners who may think the same way that we do. And hey, we’re at around 250 million Silver equivalent ounces. Now, how do we get to 500? How do we get to a billion? In the high grade environment, in good jurisdictions, we’re keeping our options open, but we think now is the time to really build the next Silver company for the 21st century. Okay, so about jurisdiction, I want to ask you a question about that. You know, there’s pluses and minuses, advantages and disadvantages to every jurisdiction.

How I assume the general outlines of this is, these things are, is that, you know, America would be safe jurisdictionally, but I would assume that because of regulation, because everything is so cluttered legislatively in America, that it costs more red tape in time and aggravation to actually get a mind started in America, whereas maybe in some African country, it’s easier, but then it’s the perception, and Mexico is maybe somewhere in the middle. Can you just tell us about how you think of these things? What are the advantages and disadvantages of these American minds? And why did you pick America over, let’s say, in Mexico or Africa? Yeah, yeah, that’s like, it’s a definitely, I totally agree with you.

It’s like pros and cons of every place. But the first thing I’m asking myself right now is like, are we looking in places where property rights matter? That’s like the big, it’s a very good question. Yeah. And I think the United States, like that’s like the top of that list, right? I think that’s pretty fair to say it is the top of that list. But I mean, where you are in each jurisdiction matters. So we’re looking in Alaska, in Nevada, in New Mexico, and even where you are in each of those states also matters.

You know, like I wouldn’t try to, I wouldn’t want to build, if I’m in Nevada, and it’s, you know, always in the top three of jurisdictions, you know, I probably wouldn’t try to build a mine right beside Las Vegas or Reno, you know, that that might not go over too well, right? So where you are matters. And also the type of property that you know, the type of land that you own matters and where it is, you know, is it private property or is it public lands? And that on our projects in the lower 48 in Nevada, New Mexico, where all the ounces are, where the vast majority of the ounces are, I should say, is actually private property.

So it really comes down to that. And we also want to work in places where like environmental standards are good, or labor standards are good, you know, that matters. So does that take a little bit more time on on permitting? Does it cost a bit more money to hire good people? Yes. But we think on the balance that that’s worth it. So what does mining on a private on a private on private land versus public land, how does that affect the regulation and the permitting process? Does it cut how much is it cut time? It’s it’s really hard to say like gave us gay, it’s going to cut X amount of years off, but I’ll use Nevada as an example.

We’re when we’re drilling on private land there, we don’t even need a we don’t even need a permit, you know, we can just show up and and build our drill pads and start drilling. And coming from Canada, for me personally, like that was five years ago, that was a little bit surprising. So it’s just it’s things like that. The permitting timelines are just shorter. There’s not there’s there’s simplified permitting tracks that will definitely save X amount of years. So your primary resource, I understand, is in Alaska right now. That’s the one that’s getting the most attention and the most work.

Yeah, that’s correct. Okay, so tell me about about that specific project. And what are the steps that you want to see happen? And let’s say the next two, three years? And how does that affect the company? When can you start producing? Generally speaking, I know you can’t get me a specific timeline. But like, what do you what’s your what’s your aim here, broadly speaking? Yeah, so the project in Alaska is called Red Mountain. It’s not to get too technical and get too far into the geology of it. But it’s a sulfide deposit that’s similar to something like Greens Creek, or maybe an SK Creek, you know, if we’re being aspirational, because those are very large deposits.

But we know we have a big deposit up there. That’s very, very open for additional growth. So the Red Mountain project is the is the focus right now. And what we’re doing up there is is really, number one, trying to grow it significantly. It’s it’s a large and not to get too far into the technical details. It’s a large what we call VMS deposit, what geologists call a VMS deposit, you know, akin to things in the area, say, like, Greens Creek or SK Creek, that’s very aspirational, because those are very large and have been very successful minds for a very long time.

But, you know, number one, we see the growth potential around it, just by stepping out and drilling holes around where we already know there’s good stuff. But also zoom out and on the entire property, we know that these types of deposits form in clusters. And there’s lots of very prospective targets where we can see some interesting features on surface, maybe some high grain on surface that they just haven’t been drilled. Which is like, okay, I’ve even found the biggest deposit in this area yet. Who knows? That’s not something we’re going to focus on this summer, because we want to focus right on the deposits where we know they are themselves.

But that’s something perhaps for subsequent drill seasons. But bringing it back to what we want to do here and push this deposit forward, you know, number one, we’re stepping out and building ounces there, you know, as aggressively as we can this summer. We think and hope that will support an updated resource, say, within the next, you know, eight months or 12 months or something like that. And from there, we’ll be looking to put out, you know, an economic study, like a PEA, or something similar, that can start to show the market, okay, like, we have value here, there’s good potential to mine it.

And then really, like, continue the development of it from there. But in terms of when this could go into production, it’s certainly, you know, years away. But the value right now for us is number one, growing it and number two, showing that can be potentially profitable, profitably mined in the future. And that’s, that’s really it. Okay, so in terms of the silver price, if it stays above for personally, I’ll just tell you what I think I think we broke a 13 year trend, 13 year resistance, I think we broke above 3725, I think it was 3740, whatever, it was from 2012, that was the last high.

I think once we break above 40, I don’t think we’re going to go significantly below 40. In this dollar scheme. Again, I think, I think the floor is going to be somewhere on 3637, where the, you know, the resistance support, that’s how it usually happens. I think this is the last break. So if silver trades around, let’s say 5060 over the next year or two, which I think is totally reasonable, I don’t think that’s a pie in the sky assumption at all. Then where does that put silver 47? Yeah, I mean, that I think that analysis of prices is very interesting.

Like I also yesterday, silver was breaking through 37. And today it’s running again. You know, like, I don’t think that 50 or $60 silver, you know, is crazy at all. You know, and where does that put us? Okay, well, let me just game this out in my head and think this out, you know, with you and that. Okay, well, then I think we start to see the generalist type investor come into this market and say there say that type of person is allocating, I don’t know, 0.1, 0.2, 0.3% of their portfolio to precious metals right now.

You know, what happens when they get back to what, you know, a lot of people used to do, which was like 234% more than that, a little bit less than that in that neighborhood. In any case, it doesn’t matter. We’re talking about a 10x, you know, increased potentially investor demand for precious metals. Okay, well, like gold and silver, right, there’s lots of gold deposits out there, relative, relatively, relatively, but there’s very, very few silver facing companies and deposits out there were one of them. By silver facing, you mean primary mean primary or prospective primary miners, right? Yeah, exactly.

And like, whoever decided that they were going to put silver in the ground also decided that it would 90% of the time 95% of the time go with other things, you know, you’re talking about God being God isn’t easy. You have to use a light touch like a safe cracker or a pickpocket or a guy who burns down a bar for the insurance money. Yes, if you make it look like an electrical thing. All right. Yeah, yeah. When you do things right, people won’t be sure you’ve done anything at all. So that’s fine.

So that’s what I mean, when I say silver facing, it almost always comes with other things. But if you take our company and we just play that out a little more, well, like if I’m an American generalist investor, or if I’m just an investor in general, like I want to own things in countries where property rights matter, right, I want to own things in countries where I don’t feel like it’s dollars for dictators. And there’s this really emerging investment theme in the last several years that like, we need to be getting our important metals.

You know, I think much more domestically. And there’s just there’s lots of great exploration potential in the United States and in Canada, especially in the United States, actually. But, you know, we haven’t really, we haven’t really gone after mining here as much, I think, as we should. So that’s a little bit of like philosophy, but also where I think investor demand is going. And then the last thing I just want to say on on that topic is that a deposit like Red Mountain, you know, we like it for the precious metal content, but it’s also full of critical metals.

There’s seven critical metals in it. Zinc, antimony, gallium, you know, things that especially on the antimony and gallium front that aren’t really studied too well in this deposit yet, but need to be and could be really good value drivers, value add for it. Do you know why antimony has the symbol SB? I never understood that. I don’t really. It must go back to Latin or something, though. Yeah, okay. I’ll look it up. Sorry. So my last question is just to sum it up for shareholders, potential shareholders. I do own some shares because you’re a sponsor and I only buy, I only accept sponsors where I’m willing to take the same risks that you are, at least, you know, pro rata.

Your risk is much more than mine, but, you know, I’ll shoulder some of it. So for shareholders and they buy some shares, whatever, you know, the amount they want to put in, they feel comfortable with. What can they expect? Just like hold on to it for the next five, six, seven years until something happens. Like what, what, what should you think they should expect from the stock? Because people are often worried about dilution with small miners and it makes the nervous and some people shy away from it from that reason. But why, why should people risk their capital on you? That’s, that’s, of course, like the most important question.

And, you know, the dilution thing with small miners is something that we all have to really do our best to balance because we want to add value for shareholders. Right. And of course, that takes additional investment in our projects. But for us, it’s, it’s number one, we think we’re under a real bit going forward and advancing our projects. And then number three, looking for an additional potential partner to continue this growth strategy together. So, and then number four, I think put that at the beginning of a, of a good precious metals market.

And I think, and I hope we’re poised for success going forward. All right. Well, I will be following you. I’ll be tracking all the news and I’m sure I’ll speak with you again soon. Good luck up there in Alaska. Watch out for the bears. Are there any walruses there? It could be. No, no, no, there’s mountains. So yeah, there are bears, but thank you. Okay. And watch out for Putin. Don’t let him cross. Yeah, sounds good. When you do things right, people won’t be sure you’ve done anything at all. [tr:trw].

See more of Rafi Farber on their Public Channel and the MPN Rafi Farber channel.