Silver47 Achieves 80% Silver and 77% Gold Extraction from Belmont Tailings at the Hughes Project, Nevada

Silver47 reports strong metallurgical recoveries and commits US$1.5M to marketing, but value is long-dated.

What the company is saying

Silver47 Exploration (TSXV:AGA, OTCQX:AAGAF) presents detailed metallurgical test results from the Belmont mine tailings at the Hughes Project, highlighting 80% silver and 77% gold recoveries via fine grind agitated cyanide leach. The company frames these results as evidence of low refractory content and a foundation for further technical and economic evaluation, emphasizing the potential for conventional processing. The narrative stresses the consistency of mineralization, the improvement in recoveries with finer grinding, and the identification of agitated cyanide leaching as the preferred processing route after heap leach testing failed. CEO Galen McNamara is named as the qualified person who reviewed and approved the technical content, lending credibility to the technical claims. Silver47 also discloses a major marketing and advertising contract with CDMG, Inc., valued at US$1,514,578, for a campaign running from January to December 2027, subject to TSX Venture Exchange approval. The company positions both the technical and marketing initiatives as steps toward unlocking value, but acknowledges that further work and regulatory steps are required.

What the data suggests

The metallurgical program involved 21 auger samples averaging 3.3 m thickness, composited into west and east master samples with head grades of 0.27–0.28 g/t Au and 40.6–45.4 g/t Ag. Average grades across all samples were 0.30 g/t Au and 36.8 g/t Ag, with cyanide-soluble gold and silver at 85% and 90% of fire-assay head, respectively. Sulphide sulphur and organic carbon levels were low (0.50% and 0.13%), indicating minimal preg-robbing or refractory risk. Fine grind agitated cyanide leach testing at P80 53 µm achieved up to 80.7% silver and 77.3% gold extraction, with residues as low as 0.084 g/t Au and 10.4 g/t Ag. Reagent consumption was 1.7–2.1 kg/t sodium cyanide and 0.5–0.7 kg/t lime. Heap leach testing failed due to low permeability, confirming agitated leaching as the only viable processing route. The tailings host an inferred resource of 1.8 Moz silver and 11 koz gold (44 g/t Ag, 0.3 g/t Au, or 68 g/t AgEq) in 1.26 Mt, with silver equivalent calculated at US$20/oz Ag and US$1,800/oz Au, using 90% Ag and 95% Au recoveries. The marketing contract is a one-time US$1,514,578 payment for a year-long campaign starting January 2027, with no equity or options component and subject to regulatory approval. No economic study, development decision, or near-term cash flow is disclosed.

Analysis

The announcement provides detailed and credible technical results from metallurgical testing, including specific extraction rates, grades, and reagent consumption, which are all realised and well-supported. However, the narrative includes several forward-looking statements about further evaluation, process optimization, and future engineering studies, none of which are yet realised or scheduled. The marketing contract represents a significant capital outlay (US$1.5M) for a campaign that will not begin until January 2027, with no immediate earnings or operational impact. The technical results support the case for continued study but do not yet translate into a defined project, economic study, or near-term cash flow. The tone is positive and the technical data is robust, but the benefits to shareholders are long-dated and contingent on future work. The gap between narrative and evidence is moderate, with some language implying future upside that is not yet substantiated by economic analysis or project advancement.

Risk flags

• ●Project advancement is at an early technical stage, with only metallurgical testwork completed and no economic study, permitting, or development decision disclosed. This means there is no defined pathway to near-term cash flow or project construction.
• ●The marketing contract represents a significant capital outlay of US$1,514,578 for a campaign that will not start until January 2027, introducing execution risk if the campaign fails to generate investor interest or if market conditions deteriorate before launch.
• ●Heap leach processing was ruled out due to permeability issues, leaving only agitated cyanide leaching as a viable option, which may have higher capital and operating costs and could face permitting or technical challenges not yet addressed.
• ●The agreement with CDMG, Inc. remains subject to TSX Venture Exchange approval, so there is regulatory risk that could delay or alter the planned marketing activities.
• ●Resource figures are inferred only, with no measured or indicated resources or economic analysis, so the scale and value of the project remain highly uncertain until further work is completed.

Bottom line

Silver47's metallurgical results from the Belmont tailings at the Hughes Project show promising recoveries, with up to 80.7% silver and 77.3% gold extraction, but the project remains at a pre-economic study stage with no development timeline or cash flow in sight. The company has committed US$1,514,578 to a marketing campaign with CDMG, Inc., but this campaign will not begin until January 2027 and is still pending regulatory approval. The technical data is robust and supports further evaluation, but all value realization depends on future studies, permitting, and successful process optimization. Investors should recognize that the project is still early-stage, with heap leaching ruled out and only agitated leaching viable, which may carry higher costs and risks. The most important takeaway is that while technical progress is clear, both operational and marketing initiatives are long-dated, and near-term catalysts are limited to further study results and regulatory approvals.

Announcement summary

(TSXV:AGA, OTCQX:AAGAF) Silver47 Exploration announced results from a metallurgical testing program on the historic Belmont mine tailings at the Hughes Project, Tonopah, Nevada. Fine grind agitated cyanide leach testing achieved 80% silver and 77% gold extractions, indicating low refractory content and supporting further evaluation of conventional processing techniques. Twenty-one auger samples, averaging 3.3 m in thickness, were collected and composited into west and east master composites with head grades of 0.27 g/t Au, 40.6 g/t Ag and 0.28 g/t Au, 45.4 g/t Ag, respectively. The average of the 21 samples was 0.30 g/t Au and 36.8 g/t Ag, with cyanide-soluble gold and silver averaging approximately 85% and 90% of fire-assay head, respectively. Sulphide sulphur averaged 0.50% and organic carbon 0.13%. Grinding from P80 106 µm to 53 µm increased silver extraction by approximately 13 percentage points and gold extraction by 18 percentage points, with extraction still rising at the finest size tested. At P80 53 µm, the West composite returned 76.5% gold and 80.7% silver extraction (residues: 0.099 g/t Au, 10.4 g/t Ag), and the East composite returned 77.3% gold and 80.0% silver (residues: 0.084 g/t Au, 11.1 g/t Ag). Sodium cyanide consumption at P80 53 µm was 1.7-2.1 kg/t and lime addition 0.5-0.7 kg/t. Heap leach testing failed to sustain permeability, indicating agitated cyanide leaching as the preferred processing route. The inferred mineral resource associated with the tailings is 1.8 Moz silver and 11 koz gold (44 g/t Ag and 0.3 g/t Au, or 68 g/t AgEq) within approximately 1.26 Mt. Silver equivalent is calculated using US$20/oz Ag, US$1,800/oz Au, with metallurgical recoveries of Ag - 90%, Au - 95%. The company has entered into a service agreement with CDMG, Inc. for marketing and advertising services, with the campaign expected to run from January 2027 to the end of 2027. Silver47 paid CDMG US$1,514,578 for these services. The agreement remains subject to TSX Venture Exchange approval. Galen McNamara, CEO, reviewed and approved the technical content of the release.

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