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Silver Hammer Mining (CSE: HAMR)(OTC: HAMRF) CEO Morgan Lekstrom on Strategic Acquisition & Preparing for a Metals Bull Market
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Silver Hammer Mining, Mr. Morgan Lekstrom. Morgan, it is great to have you back on. Interesting times. How are you, sir?
Morgan Lekstrom: I'm fantastic. How are you doing?
Gerardo Del Real: I am well. We had a pretty good discussion here off air about the precious metal space, about the commodity space, and the sector rotation that's going on right now. Obviously there's volatility in the overall indices, and I think we both agree that commodities and the resource stocks and companies that have real assets that they can develop are going to catch a bid here in the not too distant future. You just had some news. You purchased the California Mine Patent claim, and then you also went ahead and reported up to 1,290 grams per tonne silver, that's 1,290, and 7.7% copper from a spring sampling program in Nevada. I would love to get your take on the strategic acquisition and then these phenomenal results, because not only do you have high grade silver here, 7.7% copper, even in just a sample is pretty darn impressive.
Morgan Lekstrom: Yeah, no, you're right. So, let's start with the California patent purchase. We've been working on that one for... it's just been a while now, right when we acquired the Eliza property in Nevada there in that historic Hamilton district. We identified the patent that's on the California mine, and purchased it from a very, very eager group. They were very easy to deal with.
And what that does is that gives us a strategic leg up on that project. And what I mean by that is now we are able to just go in there and drill it, right? Owning patent land in the U.S. allows you to permit in a different way, but also it has the past producing California mine on it. And what that means again for us is that with that high grade, ultra high grade silver equivalent mine, high grade silver came out of there, they really weren't looking for copper back in the day. They had a little bit, but they didn't know what it meant as much as we do nowadays.
So, we started sampling. We sampled the California patent. We got 1,290 grams a tonne of silver just on a couple of the samples. Another sample had just on the Northwest side of the patent; it had copper in it, and we followed that all the way up and across and confirmed what we saw last year but even more. Now we're seeing that 7.7% copper. When you look at a lot of these copper targets around the world, I mean, 7.7%'s astronomical. Those are not light numbers. I mean, most copper porphyrys are 0.5%, 0.2%. We're consistently getting multiple percentages of copper in every one of our samples. So, that's very exciting for us. And that’ll allow us to not only look at this as a silver play, but as a multi-element, copper, silver potential, with a lot of lead and zinc.
Gerardo Del Real: You mentioned the suite of metals in the news release and how it's characteristic of vein and replacement style mineral deposits, which we typically see on the edges of a porphyry copper deposit. Can you explain that for folks that may not be familiar with porphyry copper deposits, and the metal suite that tends to allow you to vector in towards those centers?
Morgan Lekstrom: Sure. I will give you my non-geology geology.
Gerardo Del Real: And I'm not a geologist either, so this will be great.
Morgan Lekstrom: Well, you sound like you almost know what you're talking about, Gerardo. It was great.
Gerardo Del Real: Tiny little bit, tiny little bit.
Morgan Lekstrom: When you look at a porphyry there, it pulls off in the system and it pushes out. So, you get a suite of metals that come along with it; and that's your lead, that's your zinc, that's your copper. A lot of times you're going to see... What they mean by replacement is you're going to see that the fracturing in the earth. A lot of the thermal veining systems that come up, they push out and they expand, and now you see silver, right? What often happens is you get these pods of silver on top of the outer extrudes of a porphyry, and then the center porphyry could be, it could be on our property, it could be just off our property, but we know we're right near it, that's for sure.
And that whole district has never really been looked at as a copper play, copper porphyry, nothing. It was high grade silver in 1800s, in the 1868 to 1872, and no one's really gone back there. They looked at the silver portion of Trevor Hill, which had been mined out significantly. But now with the new sampling methods, with new geophysics we're going to be running; we're going to be looking at that as, "Hey, there's a potential high grade silver district, but also a copper district here." I can tell you right now, without going into too much, there are majors snooping around that area.
Gerardo Del Real: What else can shareholders expect here in the second half of this year? Which I expect to be jam packed, by the way.
Morgan Lekstrom: Results, results, results. No. I mean, if you saw anything about when I joined the company last year in June, I think we had something like 42 press releases by the end of the year, and that was all results. I plan on kicking that up a notch this year now that we have these targets, now that we've had time to digest the information and really go through the historical databases.
We now have some good targets to vector in on for drilling. Got a silver strand in Idaho, we're going to start drilling there in very short order. Then we're going to look at our Eliza project with that California patent. Now we can look at how we're going to use that geophysics and start to vector in on where we want to drill there. And also our Silverton project, and the other part about an hour 20 from Tonopah. We're set up to drill there as well. We have the permits in place. We have the land's been expanded. Huge expansion on the claim pack, and we're seeing high grade samples over there.
We're running with haste here. We skipped the walking step. So, we're looking to build a meaningful mining company in short order, and that's my goal.
Gerardo Del Real: I'm a firm believer that the recent pullback in the resource space is allowing for some incredible opportunities. I'm also a firm believer in that the companies that catch the bid first are going to be companies with catalysts that are actually working to add value, not just waiting for the market to turn. Obviously Silver Hammer is one of those companies or I would not be speaking with you. Morgan, anything to add to that?
Morgan Lekstrom: I'd just say, watch us and watch the market. I am a firm, again, a firm believer that the tech sector was significantly oversold or over bought, and the leverage plays that were there had, the valuations didn't make sense. And now you're going to see, I think, people coming back to the resource sector, realizing that we're actually a commodity being used. We're physical, we're a part of a process, and we're a huge part of the green revolution. So, investing in commodities is actually supporting the green revolution.
Gerardo Del Real: Couldn't agree more. Morgan, thank you for your time. Appreciate it.
Morgan Lekstrom: Thanks, pal. Chat soon.
Gerardo Del Real: Cheers.