Production / Operations
Silver Storm Conducts First Pour of Silver-Gold Dore at La Parrilla
Silver Storm pours first metal at La Parrilla, marking the restart of the project despite ongoing dilution and ramp-up risks.
Executive Summary
- Silver Storm Mining successfully completed its first silver-gold doré pour at the 100%-owned La Parrilla Silver Mine Complex in Durango, Mexico, on June 11, 2026.
- The oxide processing circuit is currently commissioning using material from an open-pit stockpile. The company plans to transition to underground run-of-mine material as development progresses in the San Marcos area.
- Commissioning of the 1,250 tpd sulphide processing circuit is scheduled to begin in June 2026, followed by an estimated one-month ramp-up period.
- The company anticipates ongoing silver-gold doré pours following this milestone.
- The release also discloses the grant of 400,000 stock options to company personnel at an exercise price of $0.50 per share, with a five-year term and periodic vesting, subject to TSX Venture Exchange approval.
Material Impact
- The first pour is a critical operational milestone that confirms the company is executing on its Q2 2026 restart timeline. This aligns with previous announcements regarding plant rehabilitation, equipment delivery, and contractor mobilization.
- The milestone is expected and incremental. The market has already priced in the restart trajectory, as evidenced by the stock's run from $0.12 to $0.76 earlier in the year, followed by a 45% pullback to $0.42.
- The 400,000 stock option grant at $0.50 is slightly above the current trading price, minimizing immediate dilution. However, it adds to an already massive overhang of warrants and options.
- Financially, the company remains in a pre-revenue, cash-burn phase. The $34.9M cash balance provides a buffer, but the Samsung C&T debt repayment (SOFR + 4.75%) began in May 2026, meaning operating cash flow must now cover debt service alongside ongoing ramp-up costs.
- The Samsung offtake agreement guarantees a buyer for lead-silver and zinc concentrates but caps the company's upside during a potential metals rally, as Samsung retains exclusive purchase rights for two years.
SVRS · Price
Company Overview
- Silver Storm Mining Ltd. is focused on restarting the historic La Parrilla Silver Mine Complex in Durango, Mexico.
- The asset features a 2,000 tpd mill, three underground mines (Rosarios, San Marcos, Quebradillas), and both oxide and sulphide processing capabilities.
- Historical production exceeded 34 Moz AgEq (2006-2019), demonstrating a proven ore body.
- The company is also advancing the nearby San Diego high-grade vein project, which holds significant inferred resources (31.6 Moz Ag Indicated, 83.8 Moz Ag Inferred) and offers potential processing synergies.
- The strategy relies on leveraging ~$150M of existing infrastructure, securing a Samsung C&T offtake, and financing rehabilitation to achieve near-term production.
More from Silver Storm Mining Ltd.
Jun 18, 2026 · 07:00