Sun Silver Limited [ASX:SS1]
Metals & Mining
ASX’s largest pre-production primary silver asset
We initiate coverage on Sun Silver Limited (ASX: SS1) with a 12-month target price of A$4.61, representing a ~484% upside from the current share price. Sun Silver is advancing its flagship Maverick Springs Project in Nevada, the largest pre-production primary silver asset listed on the ASX, boasting a JORC Inferred Resource of 480 Moz silver equivalent (AgEq) at 68.29g/t. SS1 is currently advancing with a focused two pronged strategy – 2025 drilling and re-assay programmes – to fast-track development of the Maverick Springs Project.
Maverick Springs: A Tier-1 silver deposit with high growth potential
Maverick Springs is a high-potential, large-scale silver-dominant deposit located ~85km southeast of the town of Elko in Nevada – a Tier-1 mining jurisdiction known for its established infrastructure, streamlined permitting and supportive regulatory environment. Following a successful 2024 drilling campaign of 23 RC holes totalling 7,724m, which resulted in an increased Mineral Resource Estimate (MRE) in March 2025, Sun Silver commenced its ongoing 2025 drilling programme at the Project. Results from the first extensional drill hole of the 2025 drill programme – MR25-211 returned the highest-grade silver equivalent intercept in Maverick Springs’ history – 70.10m at 160 g/t AgEq from 255.12m, including 22.4m at 460 g/t AgEq and 0.76m at a record 10,548 g/t AgEq. Given the Project’s location, large size, and higher-than-average grade, the Maverick Springs Project provides a rare opportunity to advance a silver-dominant system at a time when the silver market fundamentals are compelling.
High-grade antimony to transform Maverick Springs’ economics
Alongside its 2025 drilling campaign, Sun Silver is re-assaying ~35 historical holes to upgrade silver grades and identify additional critical minerals, notably antimony (Sb) – a US-designated critical mineral for national security and clean energy. Results include high-grade intercepts, like 0.18m at 7.8% Sb – the highest antimony grade recorded at Maverick Springs. With antimony prices at all-time highs, incorporating this critical mineral into future resource estimates will significantly enhance project value and establish Maverick Springs as a multi-commodity asset of national strategic importance.
Valuation range of A$4.29–4.94 per share
Using a resource-based peer-comparable-driven methodology, we value Sun Silver at a midpoint target of A$4.61/share. This implies a Price/NAV of 0.17x and offers a massive 4.8x upside potential. We support this substantial upside given the combination of (i) consistent high-grade step-out drilling beyond the existing resource, (ii) a re-assay program demonstrating a 25% uplift in silver grades, (iii) antimony discoveries with grades exceeding comparable North American projects, and (iv) a fully funded A$30m placement de-risking exploration and technical work. We anticipate that the rising interest in silver assets will prompt market participants to reexamine SS1 stock with renewed interest. It offers a unique opportunity to play silver on the ASX. Notable risks to our investment thesis include fluctuations in commodity prices, metallurgical challenges, and possible delays in project execution.