On Tuesday, Desjardins resumed coverage on Silver Tiger Metals Inc (SLVR:CN) (OTC: SLVTF), issuing a Buy rating and setting a price target of Cdn$0.80. The firm's analyst highlighted the company's potential as a near-term producer, with its primary focus on the El Tigre silver-gold deposit in Mexico, which is currently in the permitting phase to begin construction of an open pit project.
The analyst pointed out that Silver Tiger Metals could see multiple re-rate opportunities in the coming two years, the most significant being the anticipated receipt of its open pit mining permit. The permit is expected as early as the first quarter of 2025. The firm anticipates a more favorable permitting environment under Mexico's new president, Claudia Sheinbaum, compared to previous challenges faced in obtaining mining permits for open pit projects under the former administration.
The market is expected to watch for any mining permits issued in Mexico as an indicator of the new administration's stance towards mining. Such developments are seen as a positive catalyst for Silver Tiger Metals, particularly in anticipation of the company's own permit approval.
Additionally, Silver Tiger Metals is noted to have a considerable underground resource, with an estimated 113 million ounces of silver equivalent. A Preliminary Economic Assessment (PEA) for this underground resource is expected in the first half of 2025. Desjardins anticipates that the PEA will further reveal the potential of the El Tigre mine, enhancing the company's prospects.
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