en.Wedoany.com Reported - Honey Badger Silver Inc. has engaged JDS Energy & Mining Inc. to lead the preparation of an updated preliminary economic assessment and mineral resource estimate for its Prairie Creek mine in Canada's Northwest Territories.
The company expects to complete these updates by the third quarter of 2026. Executive Chairman Chad Williams stated that the company is eager to initiate these updated technical studies and believes that current precious and base metal prices have the potential to significantly improve project economics.
According to the company, the Prairie Creek mine is one of the highest-grade undeveloped silver-zinc-lead projects globally. The mine features extensive infrastructure and existing development conditions, including approximately 5 kilometers of underground development, an operating processing plant, surface infrastructure, an airstrip, an advanced permitting stage, and established agreements with Indigenous governments related to the project and its transportation route. The project has received a C$25 million grant from the Canadian government's National Trade Corridors Fund.
Honey Badger Silver stated that current metal prices and revised technical assumptions could significantly improve the project's economic outlook compared to earlier analyses. The most recent mineral resource estimate, completed by Global Mineral Resources Services in October 2021, reported measured and indicated resources of 9.8 million tonnes grading 139 g/t silver, 9.7% zinc, and 8.8% lead; and inferred resources of 6.4 million tonnes grading 150 g/t silver, 12.9% zinc, and 6.7% lead, based on pricing of US$20/oz silver, US$1.15/lb zinc, and US$1.00/lb lead.
JDS Mining will work with a team of specialized consultants, including Global Mineral Resource Services (geology and mineral resource estimation), Knight Piesold (waste and water management, environment, and permitting), Giffen Consulting (process and infrastructure), and T Engineering (underground mine backfill). The updated mineral resource estimate and preliminary economic assessment will be based on historical technical reports and previous drilling work completed on the project. These studies are currently not expected to incorporate potential future upside related to critical mineral opportunities, including germanium and tungsten, nor new technologies.
According to related articles, management recently acquired the Prairie Creek project for a total of C$12 million (C$10 million in cash and C$2 million in shares/warrants). Legendary investor Eric Sprott purchased 8.5 million shares through the open market at an average price of C$0.72, investing C$6.12 million. The company's website shows that Sprott holds approximately 8% of the company's shares.
John Newell, an analyst at John Newell & Associates, stated that Honey Badger Silver has significantly advanced its strategic approach through the acquisition of the Prairie Creek project. The project contains approximately 240 million silver-equivalent ounces in the measured and indicated category, with an additional 167 million ounces in inferred resources. Acquiring such an asset for approximately C$12 million would cost multiples more to acquire or develop a similar project in today's market. The analyst assigned a speculative buy rating to the stock.
Honey Badger Silver Inc. has a market capitalization of approximately C$140.83 million, with approximately 155.04 million shares outstanding. Management and insiders hold approximately 23% of shares, institutions hold 9%, and the remainder is held by retail investors.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
