Report

CAPT: Drill Results Start to Roll In; New High-Grade Zone Discovered

What you need to know:
• Capitan Silver announced its first set of drill results from its ongoing 10,000m phase 1 drill program.
• Drilling intersected a new high-grade intercept (2,636 g/t Ag over 1.5m) ~150m east, expanding the Jesus Maria zone.
• Drilling continues with 6,700m of 10,000m completed to date, and assays are pending for 30 holes.
• We are maintaining our BUY rating and increasing our target price to $2.40/share (previously $1.30/share) on CAPT.
• We recently published an interview with CEO Alberto Orozco, view here.

This morning, Capitan Silver (CAPT:TSXV) announced assay results from 11 of the first 12 drill holes of its planned phase 1 10,000m drill program at its Cruz de Plata silver-gold project in Durango, Mexico. This first batch of drill results from the 2025 drill program highly impresses, as the results have widened the known mineralization by ~150m and uncovered a brand-new high-grade zone. 6,700m of the 10,000m phase 1 drill program have been completed across 41 RC drill holes. Assays from 30 holes have been completed, with assays pending. We expect drill results to be steadily released throughout the rest of the year. We are maintaining our BUY rating and increasing our target price to $2.40/share (previously $1.30/share) on Capitan Silver.

Key Highlights:
• Hole 25-ERRC-12: 370 g/t Ag over 19.8m, including 1,400 g/t over 4.6m, including 2,636 g/t Ag over 1.5m
o This hole also expands the Jesus Maria zone 150m east, along strike and towards, surface
• Hole 25-ERRC-08: 456 g/t Ag over 1.52m and 382 g/t over 1.52m, both within a broader zone of 109 g/t over 16.8m
• Hole 25-ERRC-10: 316 g/t Ag over 3.0m, including 502 g/t over 1.52m
• Hole 25-ERRC-09: 79 g/t Ag over 13.7m, including 427 g/t over 1.52m

Cash Inflow
On July 18th, Capitan announced that it generated $6.6M in cash through the accelerated exercise of 13.25M warrants at $0.50/share. Note that this is not reflected in the current cash balance, as this was announced after the quarterly financials were published. The Company is cashed up to drill well into 2026.
Underlying
CAPITAN SILVER CORP

Provider
Atrium Research Corporation
Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists. 

Analysts
Ben Pirie

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