READ TIME: 8 MINUTES
Key Takeaways
- 1. Commitment to Production at Candalaria: Silver One’s CEO, Gregory Crowe, prioritizes advancing the Candalaria project towards production, indicating a commitment to long-term growth and value creation.
- 2. Strategic Insider Investment and Major Shareholders: Crowe and notable investor Eric Sprott hold substantial stakes, reinforcing credibility and signaling high-level interest in the company’s future.
- 3. Porphyry and Expansion Potential in Nevada and Arizona: Silver One is exploring significant porphyry potential at both Candalaria and Phoenix Silver, which could unlock large-scale silver and copper resources.
- 4. Enhanced Recovery Rates and Economic Potential: Recent metallurgical tests show a 15-point improvement in recovery rates, potentially strengthening the project’s economics and making it a more attractive target for development.
- 5. Flexible Strategy for Funding and Partnerships: While focused on advancing core assets independently, Crowe remains open to partnerships or asset sales to support capital-intensive exploration, especially for high-cost porphyry projects.
Who Is Gregory Crowe, and Why Should Investors Trust Him With Their Money?
Gregory Crowe, the CEO of Silver One Resources, brings over three decades of expertise in mining and exploration, with a track record of brokering high-stakes deals, notably negotiating Rio Tinto’s partnership with Entre Gold for the Hugo Dummett deposit in Mongolia. With this credibility in hand, Crowe stepped out of a brief retirement in 2016 to take the reins at Silver One Resources after a persuasive call from First Majestic Mining’s Keith Neumeyer. Crowe clarifies his motivation: “I’m not financially strapped if that’s what you mean, but I am committed to this project. I stayed committed to Entre for 12 and a half years, and I think I did a good job at building that company and building the worth of that company.”
Crowe owns around two million shares and holds several million options in Silver One but has limited his recent participation in private placements due to their oversubscription. This conservative approach, while strategic, raised investor questions about the 3% insider ownership figure, to which Crowe responded that his investment represents a “significant position” with enough personal financial incentive to see the company succeed.
What’s Driving Interest in Silver One’s Flagship Asset, the Candalaria Project?
The Candalaria mine, situated in Nevada’s prolific silver-producing region, is Silver One’s flagship project. The historic mine produced nearly 70 million ounces of silver, making it one of Nevada’s hallmark sites. Today, Candalaria has an updated resource estimate from 2020 showing over 45 million ounces of silver and nearly 90,000 ounces of gold in above-ground material. According to Crowe, “The mine’s history goes back to the 1850s…we believe there is significant potential for more.”
The company is betting on three main factors at Candalaria:
- Expansion of the existing open-pit resource: Silver One is focused on defining further mineralization along strike and at depth.
- Heap leach pad reprocessing potential: Using new metallurgical techniques, the company hopes to extract more silver from existing leach pads, which showed a 15-point improvement in recovery rates in recent tests.
- Porphyry exploration upside: Geophysical anomalies suggest a potential buried porphyry system that could signal a large-scale copper-silver target. Crowe notes that porphyry exploration is expensive and acknowledges it could warrant a future partnership.
Crowe articulates the ambitious multi-phase plan, stating, “Candalaria is the flagship project. It’s the most advanced and closest to development.” He explains that the company’s 2025 Preliminary Economic Assessment (PEA) could reveal the project’s economic potential as they analyze each element, from near-surface oxides to potential deeper sulfides.
What Is the Strategy for the Phoenix Silver and Cherokee Projects in Arizona?
Phoenix Silver, a high-grade silver project in Arizona, sits within a region rich in both historic silver and copper production. “This property has yielded some very high-grade silver samples, and we believe there’s more to discover,” Crowe says. The company has launched a 2,500-meter drill program to explore the project’s vein potential, aiming for average hole depths of 60-65 meters across 40 planned holes. Crowe describes the site’s strategic location near major porphyry copper operations, including Freeport-McMoRan’s Miami Mine, which adds regional credibility.
Despite its potential, Phoenix Silver is earlier-stage compared to Candalaria. Crowe remains flexible about the prospect of bringing in a joint venture (JV) partner if the exploration program indicates a large-scale porphyry target, a common path for juniors to reduce financial risk. As Crowe puts it, “Porphyry exploration is expensive, you’re talking hundreds of millions of dollars.”
Cherokee, the third asset, is in Nevada and offers high-grade surface silver-copper and gold samples. Crowe describes it as “early-stage with intriguing potential,” citing surface values that extend across a 12-kilometer strike. Cherokee’s deep potential aligns with the company’s long-term strategy but remains lower on the list of priorities for capital allocation.
Could Silver One’s Metallurgical Testing Unlock Greater Value at Candalaria?
A key differentiator for Candalaria’s economic potential is its metallurgical testing results, which demonstrated a 30% increase in silver recovery rates from the heap leach pads compared to historical operations. This boost moves the project closer to an economically viable production model, which will be quantified in the anticipated PEA.
Crowe acknowledges the potential for multiple mineralization zones, from near-surface oxides to sulfides deeper underground, which may require distinct processing methods. The company’s studies will determine whether to continue re-leaching as Kinross did or shift to updated technologies for better recovery efficiency. Crowe notes, “The economics will dictate what we do next, and that will come out in the study.”
Crowe estimates that under a million dollars will be needed to complete the PEA, suggesting that significant fundraising will likely wait until market conditions are more favorable or further technical advancements warrant it.
How Does Silver One Manage Cost Volatility and Foreign Exchange Risks?
A recent quarter showed significant currency translation losses due to fluctuating exchange rates between Canadian dollars, in which funds are raised, and U.S. dollars, in which the company incurs exploration expenses. These translation losses, totaling nearly $720,000, were largely due to a substantial reclamation bond payment. Crowe assures that this is a “one-time expense” but acknowledges that currency fluctuation remains an ongoing challenge in the absence of U.S.-dollar fundraising.
Cost control remains a focus, with Silver One reporting that approximately 72% of spending goes toward exploration and evaluation, a relatively high exploration-to-administration ratio indicative of a field-focused approach. Crowe emphasizes that achieving the PEA without excessive dilution or unnecessary capital raises is a priority.
What Does Success Look Like for Silver One Over the Next Year?
Silver One’s near-term goals include completing the Candalaria PEA by Q1 2025, with improved metallurgical results that could make the project more attractive to potential partners or acquirers. Crowe suggests that a silver price above $30 would ideally support the company’s value as it progresses toward development.
For Phoenix Silver, success would involve confirming the presence of high-grade silver mineralization and potential porphyry targets through the ongoing drill program and geophysical surveys. These results would not only enhance Phoenix’s standalone value but also support Crowe’s broader vision for a multi-asset silver portfolio capable of attracting institutional and strategic investors.
Reflecting on Silver One’s core objectives, Crowe concludes, “I would like to see good metallurgical results at Candalaria, silver prices stay healthy above $30, and confirmation of some solid exploration results at Phoenix Silver to set us up for a strong 2025.”
Are There Strategic Shareholders Positioned to Support Future Development?
Silver One benefits from a shareholder base that includes Eric Sprott, a 15% holder and a prominent figure in the silver space, as well as institutional investors like London-based Jupiter Asset Management. Crowe credits these investors for providing the company with financial stability without reliance on brokerage houses. Sprott has participated in four financings, though his continued participation may depend on silver market conditions.
Crowe explains, “We have a good following, with over 20 funds invested in Silver One. They understand what we’re trying to do and have been supportive through various stages of our development.”
Conclusion: Silver One’s Roadmap Balances Development with Exploration Flexibility
Silver One Resources’ strategic roadmap presents a balanced approach that prioritizes the flagship Candalaria project while maintaining upside potential in the Phoenix Silver and Cherokee assets. With a track record of advancing projects toward production and a clear focus on capital efficiency, Crowe aims to steer Silver One through the next phase of development with minimal dilution while leaving the door open for strategic partnerships.
Investors in Silver One can anticipate several milestones over the coming year, from the release of the Candalaria PEA to exploration updates at Phoenix Silver, as the company builds toward establishing itself as a competitive name in the North American silver sector.
Silver One Resources CEO Interview With Gregory Crowe
This is a very brief summary of what was a lengthy interview. Don’t rely on this summary. Watch the full interview which is linked above.
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