Impact: Very Positive
Blackrock announced results from an RC scout drill program on its 100%-owned Tonopah West project in Nevada. Results confirmed the discovery of high-grade Au-Ag in a structural zone extending 1.2km east from the existing resource shell. We view these results very positively and believe that with sufficient drilling, Blackrock could incorporate the new zone into an updated MRE and increase the total resources and mine life at the project. We expect ounces from this new zone to initially be added to the inferred category given the short timeline to deliver the next MRE update in Q3/25. We continue to believe that Blackrock remains a prime takeout candidate given its large, high-grade resource in a world-class mining jurisdiction. In our view, Tonopah West is one of the best primary silver projects in the hands of a junior.
