Mines aren't always discovered by donkeys.
Silver dropped from $1/oz… to just $0.35/oz. The mines cost too much to operate—and the processing mills were too far away. Production fell off a cliff.
For thirty years, no one touched it. Then in 1969, Howard Hughes—the Elon Musk of his day—sent a few of his minions to buy every Tonopah mining claim they could. The city's population exploded in anticipation, but Hughes remained tightlipped about his plan. In fact, it's still unclear whether he had a plan… His people performed tests, identified large deposits of silver, and recommended a resumption of mining.
In 2019, a single company Blackrock Silver (TSX-V BRC | OTC BKRRF) came in and bought the largest claim package in the district, most of which have been privately owned, and never touched since production shutdown during the Great Depression due to the low metal prices of the day.
And you better bet they plan on doing something big with it. They started drilling right where mining stopped eighty years ago…
They were supposed to drill only 7,500 meters in 2020… and the results meant they just couldn't stop. They ended up drilling 30,000 meters. The forty holes showed world-class results in terms of grade and size. With results like that, why stop? The company went from one rig at the start of 2020 to four today—they're planning on hitting 60,000 meters of drilling this year.
It's an incredibly ambitious program in a place where ambition—even by a donkey—pays off big.
When it's time for them to start mining, it could just be the Roaring 20's Take Two.
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