Silver Storm Mining Ltd. TSXV: SVRS / OTCQX: SVRSF / FSE: SVR
Introduction
Silver Storm Mining Ltd. is a Canadian silver-focused mining company whose primary assets are located in Durango State, Mexico. Its flagship asset is the 100%-owned La Parrilla Silver Mine Complex, a past-producing underground silver-lead-zinc-gold operation acquired from First Majestic Silver in August 2023.
La Parrilla is the core investment story. The complex includes established underground workings, processing facilities capable of treating oxide and sulphide material, tailings and water-management infrastructure, offices, workshops, power connections, roads, and other equipment from its previous operating history.
Under First Majestic ownership, La Parrilla produced approximately 34.3 million silver-equivalent ounces between 2005 and 2019. During the more representative 2012-2018 period, the operation processed approximately 642,000 tonnes per year and produced an average of 2.37 million ounces of silver and 3.52 million silver-equivalent ounces annually. Historical cash costs averaged approximately US$8.46 per silver ounce after by-product credits. These figures are historical and should not be treated as guidance for the restarted operation.
The investment thesis has materially changed during 2026. Silver Storm completed its first silver-gold dore pour in June 2026, began hot commissioning of the sulphide circuit in July, and completed its first shipment of lead-silver and zinc concentrates later that month. Management now describes La Parrilla as an operating asset undergoing ramp-up and is targeting steady-state operations by the first quarter of 2027.
The bull case is straightforward: Silver Storm has restarted a past-producing mine with substantial existing infrastructure, a history of producing more than three million silver-equivalent ounces annually, strong silver leverage, a Samsung C&T concentrate-offtake agreement, and significant drilling potential around existing mine workings.
The risk is equally important. La Parrilla was restarted without a current feasibility study, preliminary economic assessment, or mineral reserves. The production decision is based largely on internal mine planning, historical operating information, current mineral resources, and management technical assessment. There is no independently demonstrated current capex, AISC, NPV, IRR, reserve mine life, or economically optimized production schedule.
This makes Silver Storm a higher-risk mine-ramp-up story. The company has crossed the line from developer to pre-commercial producer, but it has not yet demonstrated steady-state production, positive operating cash flow, sustainable costs, or commercial profitability.
Projects / Location / MRE / Grades
Project 1: La Parrilla Silver Mine Complex, Mexico – Flagship and Operating Asset
Main Asset
La Parrilla is located approximately 76 kilometres southeast of Durango City in Durango State, Mexico. Silver Storm latest regulatory disclosure describes the property as comprising 40 contiguous mining concessions in good standing, covering approximately 38,128 hectares.
| Item | Details |
| Ownership | 100% owned La Parrilla Silver Mine Complex, acquired from First Majestic Silver in August 2023 |
| Location | Durango State, Mexico, approximately 76 km southeast of Durango City |
| Concessions / land package | 40 contiguous mining concessions covering approximately 38,128 hectares |
| Primary current resource areas | Rosarios, San Marcos, and Quebradillas |
| Processing infrastructure | Parallel oxide and sulphide circuits; sulphide circuit expanded from about 1,000 tpd to nominal 1,250 tpd |
| Historic plant context | Broader plant historically described as about 2,000 tpd across oxide and sulphide circuits |
| Royalty | 2% net smelter return royalty retained by Metalla Royalty & Streaming Ltd. |
Current Operating Status
| Period / Milestone | Status |
| October 2025 | Processing-plant and underground rehabilitation commenced. |
| Q1-Q2 2026 | Underground equipment, flotation cells, ventilation equipment, laboratory facilities and processing circuits were installed or rehabilitated. |
| June 2026 | First silver-gold dore poured from oxide stockpile material. |
| July 2026 | Hot commissioning of the sulphide circuit commenced. |
| July 2026 | First shipment of 105 dry metric tonnes of lead-silver concentrate and 70 dry metric tonnes of zinc concentrate completed. |
| H2 2026 | Underground mining and plant throughput are being ramped up. |
| Q1 2027 target | Management target for steady-state operations. |
The first concentrate shipment demonstrates that the plant can produce saleable concentrate. However, as of the June 2026 interim filings, the company had not declared commercial production; proceeds from pre-commercial dore and concentrate sales were credited against capitalized mine-development costs rather than recognized as operating revenue.
Grade Feel
La Parrilla is a relatively high-grade underground silver-polymetallic system when measured on a silver-equivalent basis. The December 2024 mineral resource estimate reported 280 g/t AgEq in the Indicated category and 255 g/t AgEq in the Inferred category.
Approximately 90% of the indicated AgEq ounces and 85% of the inferred AgEq ounces are contained in sulphide material. Silver represents around 64% of indicated resource gross metal value and 67% of inferred resource gross metal value, while lead, zinc, and gold provide by-product exposure.
The oxide zones can carry particularly high silver grades. The indicated Rosarios oxide resource grades 636 g/t silver, while the indicated San Marcos oxide resource grades 253 g/t silver. However, these oxide resources are relatively small compared with the sulphide resource.
La Parrilla Mineral Resource Estimate
The latest La Parrilla mineral resource estimate has an effective date of December 31, 2024 and is supported by an independent technical report prepared by SRK Consulting dated March 24, 2025.
| Resource Category | Tonnes | Ag Grade | Au Grade | Pb Grade | Zn Grade | AgEq Grade | Contained Ag | Contained AgEq |
| Indicated | 1.197 Mt | 187 g/t | 0.10 g/t | 1.56% | 1.69% | 280 g/t | 7.20 Moz | 10.77 Moz |
| Inferred | 1.988 Mt | 175 g/t | 0.12 g/t | 1.27% | 1.42% | 255 g/t | 11.17 Moz | 16.27 Moz |
| Resource Category | Contained Gold | Contained Lead | Contained Zinc |
| Indicated | 3.9 koz | 18.6 kt | 20.3 kt |
| Inferred | 7.7 koz | 25.3 kt | 28.2 kt |
The estimate uses cut-off grades of 165 g/t AgEq for oxide resources and 145 g/t AgEq for sulphide resources. Resource-price assumptions were US$24.00/oz silver, US$2,000/oz gold, US$1.00/lb lead and US$1.35/lb zinc.
The updated estimate increased indicated silver-equivalent ounces by approximately 107% and inferred silver-equivalent ounces by approximately 58% compared with the preceding estimate. An additional approximately 3.8 million silver-equivalent ounces were identified in pillars but excluded from the mineral resource; those ounces must not be treated as a resource or reserve.
Overall, La Parrilla has a relatively small currently defined tonnage but attractive grades and excellent proximity to existing underground development. The key question is whether drilling and underground development can continuously replace and expand mineable inventory fast enough to support several years of steady-state production.
Latest Drilling
Silver Storm expanded its initial 2026 drilling program from 6,000 metres to 15,000 metres following positive results. The work combines resource-conversion drilling, near-mine extensions and testing of new surface targets.
| Area | Selected Results / Interpretation |
| Rosarios Zone – August 2026 | IDP-RO-26-004: 215 g/t AgEq over 11.90 m; IDP-RO-26-007: 200 g/t AgEq over 15.35 m; IDP-RO-26-005: 297 g/t AgEq over 7.30 m; IDP-RO-26-008: 481 g/t AgEq over 1.65 m. Management believes results could extend indicated resources about 100 m toward surface over roughly 125 m of strike. |
| San Marcos – July 2026 | IDP-SM-26-003A: 661 g/t AgEq over 3.70 m, including 1,231 g/t AgEq over 1.60 m; EDP-SM-26-006: 328 g/t AgEq over 15.35 m, including 1,461 g/t AgEq over 2.00 m; IDP-SM-26-015: 617 g/t AgEq over 3.90 m. |
| C535 and C550 Zones – May 2026 | IDP-QB-26-021: 441 g/t AgEq over 21.72 m, including 771 g/t AgEq over 9.27 m, but estimated true width was narrower at about 3.8 m. IDP-QB-26-041 returned 513 g/t AgEq over 2.00 m. |
| San Nicolas – April 2026 | IDP-SN-26-001: 473 g/t AgEq over 3.60 m, including 740 g/t AgEq over 1.65 m; IDP-SN-26-003: 137 g/t AgEq over 11.95 m; drilling confirmed a high-grade block above the last mined stopes and additional mineralization below historical workings. |
The 2026 results are positive because much of the mineralization is close to established underground development. That could reduce the time and cost required to incorporate successful drilling into future mine plans. Investors must still distinguish reported core length from estimated true width, and the results must be incorporated into an updated resource and executable mine plan before the economic contribution can be properly assessed.
Project 2: San Diego Silver-Zinc Project, Mexico – Long-Term Optionality Asset
San Diego is located in the Velardena Mining District of northeastern Durango State, approximately 75 kilometres southwest of Torreon and 160 kilometres northeast of Durango City. The property covers approximately 91.65 hectares through four mining concessions and is 100% owned by Silver Storm, subject to a 2% NSR royalty payable to Golden Minerals.
Approximately 33,000 metres of surface diamond drilling have been completed. Mineralization consists of silver-lead-zinc veins, replacement zones, mantos, disseminated mineralization and larger skarn-style zones at depth.
Important classification warning: Silver Storm current MD&A classifies the 2013 San Diego estimate as a historical mineral resource estimate. The company is not treating it as a current mineral resource. Additional verification, drilling, technical work and resource modelling would be required before it could be classified as current.
| Historical Category | Tonnes | Contained Silver | Contained AgEq |
| Indicated | 16.5 Mt | 31.6 Moz | 55.5 Moz |
| Inferred | 42.1 Mt | 83.8 Moz | 155.3 Moz |
| Category and Material | Tonnes | Ag Grade | Au Grade | Pb Grade | Zn Grade | AgEq Grade |
| Indicated oxide veins | 0.31 Mt | 211 g/t | 0.43 g/t | N/A | N/A | 234 g/t |
| Indicated sulphide veins | 1.38 Mt | 123 g/t | 0.20 g/t | 1.23% | 1.85% | 197 g/t |
| Indicated Fernandez sulphide | 14.8 Mt | 51 g/t | 0.06 g/t | 0.65% | 1.17% | 94 g/t |
| Inferred oxide veins | 0.29 Mt | 238 g/t | 0.43 g/t | N/A | N/A | 261 g/t |
| Inferred sulphide veins | 13.1 Mt | 93 g/t | 0.11 g/t | 1.41% | 1.83% | 171 g/t |
| Inferred Fernandez sulphide | 28.7 Mt | 46 g/t | 0.05 g/t | 0.70% | 1.08% | 88 g/t |
San Diego is potentially valuable silver-zinc optionality, including approximately 438 million pounds of zinc in the historical indicated category and approximately 1.21 billion pounds in the historical inferred category. However, it is not a near-term production asset, the technical information is old, and La Parrilla currently receives the company capital and management attention.
Share Structure / Ownership / Insiders
Capital Structure
Silver Storm September 2026 corporate presentation provides the following capital structure as of September 1, 2026.
| Share-Structure Item | Securities / Value |
| Issued and outstanding shares | 870.4 million |
| Warrants | 189.5 million |
| Stock options | 61.1 million |
| Fully diluted shares | 1,120.9 million |
| Reported cash on hand | Approximately C$32 million |
| Presentation share price / basic market cap | C$0.56 / approximately C$487 million |
| September 10, 2026 close | Approximately C$0.50 |
| Basic market capitalization at C$0.50 | Approximately C$435 million |
| Fully diluted market capitalization at C$0.50 | Approximately C$560 million |
| FD market capitalization in US dollars at 1.38 CAD/USD | Approximately US$406 million |
Ownership / Insider Alignment
| Shareholder Group | Approximate Ownership |
| First Majestic Silver | 15% |
| Eric Sprott | 13% |
| Insiders | 2% |
| Other shareholders | 70% |
First Majestic held approximately 128 million shares as of June 30, 2026. Its position provides strategic credibility and aligns the previous owner of La Parrilla with the restarted operation. Eric Sprott is another meaningful strategic shareholder and participated in multiple Silver Storm financings, including the August 2026 placement.
People / Management
| Person | Role | Details / Management Feel |
| Greg McKenzie | President, CEO and Director | Former senior investment banker with more than 20 years of financing, M&A, valuation and strategic advisory experience. Previously held positions with Morgan Stanley, CIBC World Markets and Haywood Securities and reportedly participated in transactions valued at more than US$18B. Strong capital-markets profile for funding and restart execution. |
| Will Ansley | Chief Operating Officer | More than 20 years of mining-industry experience and has participated in the development and construction of seven mines in the Americas. Previously held roles at FNX Mining and Lake Shore Gold and served as COO of Mineral Streams, helping execute its sale to AuRico Metals in 2015. Very relevant mine-build and operating experience. |
| Fernando Ragone | Chief Financial Officer | More than 28 years of mining and finance experience. Previously SVP and CFO of Wesdome Gold Mines, CFO of Baffinland Iron Mines and Glencore North American zinc division, with senior roles at First Majestic Silver and Primero Mining. Strong finance background for a restart story with debt/offtake complexity. |
| Arturo Zamudio | General Manager, Mexico | Mining engineer with more than 36 years of Mexican operating experience. Former General Manager at Pan American Silver La Colorada underground silver-lead-zinc mine and at Argonaut Gold El Castillo and San Agustin operations. Highly relevant local operating experience. |
| Shane Ghouralal | Director of Technical Services | Professional mining engineer with more than 16 years of experience, including project leadership at BBA Consultants and WSP and senior mining-engineering roles at Vale Thompson underground nickel mine. Important for underground planning and technical execution. |
| Bruce Robbins | Chief Geologist and Qualified Person | M.Sc.A. from McGill University with more than 30 years of geological experience. Has managed large exploration budgets and served as an executive and director of public companies. Important for resource replacement and mine-life extension. |
| Dwayne Melrose | Director | More than 30 years of international mining experience. Previously President and CEO of True Gold Mining and Gold Reach Resources; also VP Exploration at Minco Silver and involved in the high-grade SB Zone discovery at Kumtor. Adds exploration and corporate-development depth. |
| Tom English | Director and Audit Committee Chair | More than 20 years of financial-industry experience, including roles with CIBC World Markets and Salman Partners covering small- and large-cap companies. Adds capital-markets and governance support. |
| Talal Chehab | Director | Ontario lawyer specializing in corporate and commercial law. Provides legal and governance support. |
Risks / Catalysts / Timeline
Key Risks
| Risk Category | Key Risk |
| No feasibility study or reserve | La Parrilla was restarted without a current PEA, PFS, feasibility study, or mineral reserve supporting the production decision. |
| Ramp-up risk | First dore and concentrate shipments do not prove that the mine can reach or sustain steady-state production. |
| Cost uncertainty | Silver Storm has not published current AISC, cash-cost guidance, sustaining capital, or unit-cost targets for the restarted operation. |
| Short current resource inventory | La Parrilla currently has only 10.8 Moz indicated and 16.3 Moz inferred AgEq. Continued drilling and resource conversion are important to mine-life sustainability. |
| Resource-to-mine-plan risk | Mineral resources are not reserves. Actual dilution, mining recovery, ground conditions and reconciliation may differ from the block model. |
| Metallurgical risk | The operation must reliably produce dore, lead-silver concentrate and zinc concentrate at acceptable recoveries and specifications. |
| Infrastructure risk | Existing infrastructure reduces restart capital but is older equipment that may require repairs, replacement and ongoing maintenance. |
| Water availability | Water availability is important for processing and expansion, and management identifies water as an operational risk requiring monitoring. |
| Financing and liquidity risk | Ramp-up and underground development consume capital before stable positive cash flow is established. |
| First Majestic loan | The US$5 million loan carries 15% annual interest compounded quarterly, creating meaningful financing cost. |
| Samsung repayment and security | The US$7 million prepaid facility is secured against La Parrilla-related assets and is repaid through concentrate sales. |
| Offtake concentration | Samsung has rights to purchase 100% of La Parrilla lead-silver and zinc concentrates during the supply period. |
| Dilution | Silver Storm has 1.12 billion fully diluted shares and may require further equity if operating cash flow is delayed. |
| Commodity prices | Silver, lead, zinc and gold prices directly affect revenue and the value of the polymetallic resource. |
| Mexico jurisdiction | Mining taxes, labour rules, environmental requirements, concession regulations and political policy can change. |
| San Diego technical age | San Diego 2013 estimate is historical and is not being treated as a current mineral resource. |
| Financial-reporting history | Silver Storm experienced delayed filings and a cease-trade order in 2024, although required filings were later completed and trading resumed. |
Catalysts
| Expected Timeline | Catalyst |
| Q3-Q4 2026 | Continued ramp-up of underground mining and processing at La Parrilla. |
| Q3-Q4 2026 | Additional dore pours and concentrate shipments. |
| Q3-Q4 2026 | Results from the expanded 15,000-metre drilling program. |
| Q3-Q4 2026 | Surface drilling at C340, 14 Marcos and La Ilusion-Argenis. |
| Q3-Q4 2026 | Development of additional mining faces and production stopes. |
| Q4 2026 | Increased sulphide-circuit throughput toward 1,250 tpd nameplate capacity. |
| Q4 2026-Q1 2027 | Improved disclosure of throughput, grades, recoveries, concentrate production and costs. |
| Q1 2027 | Management target to reach steady-state operations. |
| 2027 | Potential declaration of commercial production. |
| 2027 | Potential updated mineral resource incorporating 2025-2026 drilling. |
| 2027 | Updated mine planning and clearer mine-life visibility. |
| Medium term | Evaluation of plant and mining-capacity expansion opportunities. |
| Longer term | Technical updating or renewed advancement of San Diego. |
Expected Timeline to Production
| Timeline | Expected Progress |
| Q2 2026 | Restart commenced. First silver-gold dore was poured in June. |
| Q3 2026 | Sulphide circuit entered hot commissioning and first lead-silver and zinc concentrate shipment was completed. |
| Q3-Q4 2026 | Underground mining, development, plant throughput, concentrate output and operating efficiency are expected to ramp up. |
| Q1 2027 | Management is targeting steady-state operations. |
| 2027 onward | If ramp-up succeeds, focus should move toward commercial-production disclosure, stable costs, resource replacement, mine-life extension and possible capacity expansion. |
A precise long-term production profile remains uncertain because Silver Storm has not published a feasibility-supported reserve, mine life, or current production-and-cost forecast.
Valuation
CAD Share Price Sensitivity
Important note: Silver Storm has restarted La Parrilla, but it has not published current steady-state production guidance, AISC, free cash flow, reserves, or feasibility-level economics. The following is therefore an illustrative framework, not company guidance.
| Assumption | Value |
| Fully diluted shares | 1,120,900,000 |
| CAD/USD exchange rate | 1.38 |
| Illustrative AISC | US$35/oz |
| Silver-price case 1 | US$150/oz |
| Silver-price case 2 | US$200/oz |
The model treats annual production as payable silver-equivalent ounces and does not separately model lead, zinc, gold, treatment charges, royalties, taxes, corporate expenses, interest, working capital, or development capital. The 10x-20x FCF multiples retained from the template are aggressive for a cyclical mining company and should be interpreted as high-silver-price sensitivity scenarios rather than conservative fair-value estimates.
FCF Margin Assumption
| Silver Price | AISC | Illustrative FCF Margin / oz |
| US$150/oz | US$35/oz | US$115/oz |
| US$200/oz | US$35/oz | US$165/oz |
CAD Share Price Target – Per 1 Moz Annual Production
| Silver Price | Annual Production | Annual FCF | 10x FCF CAD/share | 15x FCF CAD/share | 20x FCF CAD/share |
| US$150/oz | 1 Moz/year | US$115M | C$1.42 | C$2.12 | C$2.83 |
| US$200/oz | 1 Moz/year | US$165M | C$2.03 | C$3.05 | C$4.06 |
CAD Share Price Target – Production Sensitivity
| Annual Production | Silver Price | Annual FCF | 10x FCF CAD/share | 15x FCF CAD/share | 20x FCF CAD/share |
| 2 Moz/year | US$150/oz | US$230M | C$2.83 | C$4.25 | C$5.66 |
| 2 Moz/year | US$200/oz | US$330M | C$4.06 | C$6.09 | C$8.13 |
| 3 Moz/year | US$150/oz | US$345M | C$4.25 | C$6.37 | C$8.49 |
| 3 Moz/year | US$200/oz | US$495M | C$6.09 | C$9.14 | C$12.19 |
| 5 Moz/year | US$150/oz | US$575M | C$7.08 | C$10.62 | C$14.16 |
| 5 Moz/year | US$200/oz | US$825M | C$10.16 | C$15.24 | C$20.31 |
Summary & Quick Scorecard
| Category | Assessment | Overall |
| Company Overview | Tickers: TSXV: SVRS / OTCQX: SVRSF / FSE: SVR. Main metal: silver with lead, zinc and gold by-products. Main project: La Parrilla, Mexico. Phase: pre-commercial production and ramp-up. | – |
| 1. Management | Previous successful company sale: Yes, through Will Ansley involvement with Mineral Streams. Exploration-to-development experience: Yes. Mine construction and operating experience: Yes. Big-company experience: Yes. Capital-markets track record: Yes. | Strong |
| 2. Projects | High grades: Yes, particularly on an AgEq basis and within selected oxide and sulphide zones. Current MRE above 50 Moz Ag: No; La Parrilla contains about 18.4 Moz silver or 27.0 Moz AgEq. Optionality: Yes, through San Diego, although its estimate is historical. | Good |
| 3. Cost Structure | Low current AISC: Unknown. Historical cash cost was attractive but cannot be assumed for the restart. Existing infrastructure: Strong. Current sustaining-capital requirements: Unknown. | Unknown |
| 4. Share-Structure Discipline | Issued shares: 870.4M. Fully diluted shares: 1,120.9M. Fully diluted market cap at C$0.50: approximately C$560M. The share count is high and reduces per-share leverage. | Strong |
| 5. Insider / Ownership | Insiders aligned: approximately 30% including strategic backing. Eric Sprott: approximately 13%. First Majestic: approximately 15%. Strategic support is strong even though direct insider ownership is only around 2%. | Strong |
| 6. Location | Country: Mexico. State: Durango. Tier 2 jurisdiction. Strong mining history and local infrastructure, balanced against regulatory and policy risk. | Good |
RT Rating and Commentary
Silver Storm Mining is on our watchlist.
We rate the company 5 out of 5 stars.
Silver Storm offers an interesting combination of near-term production, established infrastructure, high-grade silver-polymetallic mineralization, experienced management, and considerable exploration potential around historical underground workings.
The company has already achieved milestones that many junior developers never reach. It rehabilitated the La Parrilla plant and underground infrastructure, completed its first silver-gold dore pour, commissioned the sulphide circuit, shipped its first lead-silver and zinc concentrates, and secured strategic financial support from Samsung C&T, First Majestic Silver, Eric Sprott and other investors.
The 2026 drilling results also demonstrate meaningful potential to expand resources close to established mine development. This proximity could allow successful drilling to affect mine planning faster than a remote greenfield discovery.
However, there are a few reasons to be careful. First, La Parrilla was restarted without a feasibility study or mineral reserve. Current production rates, operating costs, AISC, mine life and steady-state economics remain unproven.
Second, the current La Parrilla resource is not large. The company must convert inferred material, expand the resource and replace mined ounces to support a sustainable long-term operation.
Join RockeTeller
At RockeTeller, we do not just chase stories. We hunt for rare mining stocks with the right mix of criteria. Every company is tested through our specific checklist before it earns a place on our watchlist.
We ask the hard questions that matter most: Is this a stock we would actually back, what is the realistic target price, and how strong is the risk-reward?
Our watchlist is reserved for high-quality setups with real multibagger potential, not hype. If you want serious deep-dive research with conviction, subscribe to RockeTeller.com.
