Metalsource Hits 434 g/t AgEq at Silver Hill, Extends Mineralization

Metalsource Mining (CSE: MSM, OTCQB: MSMMF, FSE: E9Z) reported another batch of high-grade drill results from its Silver Hill project in British Columbia. The stock traded around $1.65 at the open Friday, well below its $2.28 52-week high. Spot silver was at $64.35 an ounce, gold at $4,147.99.

The headline intercept came from hole SH26-11: 434 grams per tonne silver equivalent over 10.64 metres, including a 1.52-metre section that ran 2,050 grams per tonne AgEq. That is not a typo – 2.05 kilograms per tonne over a metre and a half. The company said the hole was drilled 45 metres down-dip from an earlier step-out and 18 metres south of hole SH26-07.

The broader set of six holes released Thursday shows the system is widening and strengthening at depth. SH26-10, a 10-metre step-out from SH26-05, returned 147 g/t silver with 31% combined lead-zinc over 4.6 metres. SH26-15 extended mineralization about 315 metres below surface, with 8 g/t gold, 16% combined lead-zinc and 5% copper. SH26-16, 40 metres down-dip from SH26-08 and 17 metres north of SH26-15, returned 11 g/t gold, 146 g/t silver and 58% combined lead-zinc.

Near-surface results also appeared. Holes SH25-03 and SH25-04, drilled 150 metres north of the inclined shaft, returned 103 g/t silver and 10% combined lead-zinc.

The silver-equivalent numbers are being lifted by gold and base metals, not just silver. That polymetallic mix means a smaller move in silver prices can still keep the project economics interesting. At current spot prices, a tonne of that 58% combined lead-zinc material carries significant by-product credits.

What would confirm the story in coming weeks? More step-out holes that hit similar or better grades, and the induced polarization survey results the company said it completed. What would weaken it? Intercepts that narrow or drop in grade as drilling moves further from the known zone. The widths reported are core lengths; true widths are not yet determined, so the actual geometry of the mineralized body is still uncertain.

Metalsource has not said when the remaining assay results will arrive. The market will watch for the next batch and for any plan to fund further drilling beyond the current campaign.