Project/Portfolio
Confidential Due Diligence and Investment Advisory

Overview

• CLIENT: Confidential Investor
• COMMODITIES: Gold, Silver
• LOCATION: Silver City, NV, USA

Project Description

SRK conducted a detailed Due Diligence study on a confidential low- to intermediate-sulfidation gold-silver epithermal project in the historic Comstock-Silver City mining district in support of a potential senior-secured debt facility.

The technical review focused on exploration strategy and potential, mineral resources, mine economics, environmental, social and regulatory risk, strategic considerations for mine development, economic modeling, and project execution. Information considered in the Due Diligence evaluation was provided by the target company in a virtual data room, gathered during an SRK site visit, and assembled from interviews with management and their consultants.

SRK’s scope of work included an assessment and detailed comment on the following critical factors outlined by the client investment team, relating to the target project:

Review of mineral resource estimation, completed and planned exploration drilling, and exploration potential on all tenements;

Overview of current project status, regional prospectivity, mine planning, capital/operating cost projections, metallurgical testing and process engineering, available and future infrastructure, and a valuation range estimated from comparable transactions;

Assessment of the progress, development strategy, and anticipated schedule of ongoing engineering scoping studies;

Identification and probability of fatal flaws that could result in an environmentally, socially, or economically unviable project;

Evaluation of metal pricing, other sensitivities and internal rate of return (IRR) targets, regarding several valuation outlook cases; and

Review budgeted project expenditures and planned corporate strategy, referencing recommended adjustments to the proposed future project scope of work.

SRK reported on the suitability of underlying work completed to date, the reasonableness of project assumptions, an overview of key points of uncertainty, risks and opportunities with the asset for investment, and recommendations for adjustments to the project economic model. Our detailed technical Due Diligence study assisted the client in making an informed investment decision./p>