{"id":5616,"date":"2025-12-11T12:31:35","date_gmt":"2025-12-11T17:31:35","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=5616"},"modified":"2025-12-11T12:31:37","modified_gmt":"2025-12-11T17:31:37","slug":"ctgo-is-nia-next-discovery-silver","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/ctgo-is-nia-next-discovery-silver\/","title":{"rendered":"CTGO Is NIA’s Next Discovery Silver"},"content":{"rendered":"\n
\n

How Discovery Silver Reached a $6.423 Billion<\/span> Valuation…<\/strong>
\nAnd Why Contango ORE (NYSE American: CTGO) May Be Next<\/strong><\/p>\n\n

Most investors have no idea why Discovery Silver (TSX: DSV)<\/strong> is worth $6.423 billion<\/strong><\/span> today. They assume it is because the company purchased<\/strong><\/span> the Porcupine<\/strong> assets<\/strong><\/span> from Newmont<\/strong>… but that is not<\/strong><\/span> the real<\/span> reason<\/strong>.<\/p>\n\n

Porcupine<\/strong> is a solid<\/span> mid-tier gold complex<\/span><\/strong>, but it was non-core<\/strong><\/span> to Newmont<\/strong>. If the market truly wanted<\/strong><\/span> Porcupine exposure<\/span><\/strong>, they could simply buy<\/strong><\/span> Newmont<\/strong> itself, which owns higher quality<\/strong><\/span>, larger scale<\/span> projects<\/strong> with lower costs<\/strong><\/span>.<\/p>\n\n

The reality is this:<\/p>\n\n

At least $1–$2 billion<\/span> of Discovery Silver’s valuation is driven by “future belief<\/span>” in the development<\/span> of the Cordero Silver Project<\/span>.<\/strong><\/p>\n\n

And that belief only exists because Eric Sprott<\/strong> backed the deal, Discovery gained<\/span> credibility<\/span><\/strong>, and Discovery gained<\/span><\/strong> the ability<\/strong><\/span> to fund development<\/strong><\/span>.<\/p>\n\n

\n

NIA’s President discovered<\/span> Cordero<\/strong> long before Eric Sprott<\/strong>. On July 1, 2014<\/strong>, NIA publicly suggested<\/span><\/strong> Levon Resources<\/strong> at $0.285 per share<\/strong> at a market cap<\/strong> of $57 million<\/strong>, when Levon<\/strong> had $41 million<\/span> in cash<\/span><\/strong>. That meant Levon’s enterprise value<\/strong> for the Cordero Silver Project<\/span><\/strong> was an insanely low<\/strong><\/span> $16 million<\/strong>.<\/p>\n\n

Eric Sprott’s Discovery Silver<\/strong> later acquired<\/span> NIA’s Levon Resources<\/strong> for 0.55 shares of Discovery for each Levon share<\/strong>. Discovery Silver’s recent<\/span> all-time high<\/span><\/strong> of $8.48 per share<\/strong> × 0.55<\/strong> = the equivalent of $4.664 per Levon share<\/strong>, a gain of 1,536.49%<\/span><\/strong> since NIA’s Levon suggestion<\/span><\/strong> at $0.285 per share<\/strong>.<\/p>\n\n

The rocks at Cordero<\/strong> have not changed. What changed was the market’s belief that Cordero<\/strong> could actually<\/strong><\/span> be financed<\/span><\/strong>, permitted<\/strong><\/span>, and built<\/strong><\/span>.<\/p>\n\n

This is the blueprint<\/strong><\/span> for massive wealth creation<\/strong><\/span> in the silver<\/strong><\/span> and gold<\/span> sector<\/strong>:<\/p>\n\n

Optionality + Credibility + Capital = Multi-Billion Dollar<\/span> Re-Rating<\/strong><\/p>\n\n

\n

Right now, NIA believes the same formula<\/strong><\/span> is setting up again — this time with Contango ORE (CTGO)<\/strong> and the Dolly Varden<\/strong> assets.<\/p>\n\n

Dolly Varden<\/strong> controls one of the highest-grade<\/span> undeveloped<\/span> silver districts<\/span><\/strong> in North America:<\/p>\n\n

    \n\t
  • Average<\/strong><\/span> silver<\/span> grades<\/strong> often around 300 g\/t<\/strong><\/span>, with intervals exceeding 1,000 g\/t<\/strong><\/span>.<\/li>\n\t
  • Multiple<\/strong><\/span> past-producing high-grade<\/span> mines<\/strong> on the same structural trend.<\/li>\n\t
  • Roughly 200,000 meters of drilling<\/strong> that have not yet<\/strong><\/span> been incorporated into its NI 43-101 resource<\/strong>.<\/li>\n\t
  • Tier-one<\/span> jurisdiction<\/strong> in Canada’s Golden Triangle<\/span><\/strong>.<\/li>\n\t
  • Backed by major<\/span> institutional shareholders<\/strong> including Hecla<\/strong>, Fidelity<\/strong>, BlackRock<\/strong>, and Eric Sprott<\/strong>.<\/li>\n<\/ul>\n\n

    Yet the market still valued Dolly Varden<\/strong> like “just another silver explorer<\/span> that will never<\/span> build<\/span> a mine.”<\/strong><\/p>\n\n

    Why? Because Dolly Varden lacked<\/span><\/strong> the same<\/strong><\/span> things Levon lacked<\/span><\/strong>:<\/p>\n\n

      \n\t
    • No<\/span> operating cash flow.<\/strong><\/li>\n\t
    • No<\/span> proven development\/production team.<\/strong><\/li>\n\t
    • No<\/span> internal ability to fully self-fund a mine build.<\/strong><\/li>\n\t
    • No<\/span> permitting tailwinds like FAST-41.<\/strong><\/li>\n\t
    • No<\/span> flagship producing asset that the market could anchor valuation to.<\/strong><\/li>\n<\/ul>\n\n

      That changes<\/span> instantly<\/span> with the merger into Contango.<\/strong><\/p>\n\n

      \n

      With this business combination<\/span><\/strong>, the new<\/span> Contango Silver & Gold<\/strong> will have:<\/p>\n\n

        \n\t
      • $100+ million<\/span> per year of free cash flow<\/span><\/strong> from the Manh Choh DSO operation<\/strong> at current metal prices, giving the company the internal cash it needs to aggressively explore<\/strong><\/span> and develop<\/strong><\/span> its pipeline without heavy dilution<\/span><\/strong>.<\/li>\n\t
      • A dual listing<\/strong> on the NYSE American<\/strong> and the TSX main board<\/strong>, with combined trading liquidity<\/strong><\/span> estimated at roughly $9 million<\/span> per day<\/strong> and growing<\/span> ETF inclusion<\/strong>.<\/li>\n\t
      • Dolly Varden’s<\/strong> ultra-high-grade<\/span> silver<\/span><\/strong> and gold-rich<\/strong><\/span> Kitsault Valley<\/strong> district, which has the potential to become one of the most attractive<\/span> silver development<\/span> projects<\/strong> in the world outside of Mexico.<\/li>\n\t
      • FAST-41<\/strong> permitting support<\/strong><\/span> for Johnson Tract<\/strong>, placing<\/strong><\/span> one of CTGO’s key U.S. assets<\/strong> inside<\/strong><\/span> the federal government’s top-tier<\/span> project coordination<\/span> framework<\/strong>.<\/li>\n\t
      • Contango’s proven<\/span><\/strong> Direct Shipping Ore (DSO)<\/strong> model, which eliminates<\/strong><\/span> the need for on-site mills<\/strong> and tailings facilities<\/strong>, cutting capex<\/strong><\/span>, shrinking<\/span> environmental footprint<\/strong>, and accelerating permitting<\/strong><\/span>.<\/li>\n\t
      • A 20+ year project pipeline<\/strong> that includes Manh Choh<\/strong>, Lucky Shot<\/strong>, Johnson Tract<\/strong>, and Kitsault Valley<\/strong>, with additional M&A potential<\/strong>.<\/li>\n\t
      • A leadership team with multiple<\/span> billion-dollar wins<\/span><\/strong>, including NovaGold (NG)<\/strong> and Trilogy Metals (TMQ)<\/strong> combined with Dolly Varden’s Golden Triangle<\/span> discovery team<\/strong>.<\/li>\n<\/ul>\n\n

        This is exactly how Discovery Silver<\/strong> went from pure optionality<\/strong><\/span> to a $6.4 billion<\/span> market cap<\/strong>: first by acquiring<\/span> Cordero<\/strong>, then by adding<\/span> credibility<\/span><\/strong> and cash flow<\/strong><\/span>, and finally by convincing<\/strong><\/span> the market<\/strong> that Cordero<\/strong> would realistically<\/strong><\/span> be built<\/strong><\/span>.<\/p>\n\n

        The path is now structurally similar<\/strong><\/span> for Contango<\/strong> — but with even higher grades<\/strong><\/span> and lower capex<\/strong><\/span> thanks to the DSO model<\/strong>.<\/p>\n\n

        \n

        Discovery Silver’s multi-billion-dollar<\/span> valuation<\/strong> is driven largely by investor belief that the Cordero Project<\/strong> will ultimately be permitted<\/strong><\/span>, financed<\/strong><\/span>, and brought into production<\/strong><\/span>.<\/p>\n\n

        Just like Levon before<\/span> Discovery<\/strong>, Dolly Varden<\/strong> was never<\/strong><\/span> fully valued<\/strong><\/span> on its own. As part of a cash-flowing<\/strong><\/span>, development-focused<\/span> Contango<\/strong>, NIA believes the market<\/strong> will now begin to assign<\/strong><\/span> the type of long-term premium<\/span><\/strong> that has already been awarded<\/strong><\/span> to Discovery Silver<\/strong>.<\/p>\n\n

        Past performance is not an indicator of future returns. NIA is not an investment advisor. Always do your own research. NIA’s President has purchased 5,000 shares of CTGO in the open market and intends to buy more shares. NIA has received compensation from CTGO of US$80,000 cash for a ten-month marketing contract. This message is for informational and educational purposes only.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

        How Discovery Silver Reached a $6.423 Billion Valuation… And Why Contango ORE (NYSE American: CTGO) May Be Next Most investors have no idea why Discovery Silver (TSX: DSV) is worth $6.423 billion today. They assume it is because the company purchased the Porcupine assets from Newmont… but that is not the real reason. Porcupine is […]<\/p>\n","protected":false},"author":1,"featured_media":5617,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[47,97,9,17],"class_list":["post-5616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-ctgo","tag-dsv","tag-gold","tag-silver"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/5616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=5616"}],"version-history":[{"count":1,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/5616\/revisions"}],"predecessor-version":[{"id":5618,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/5616\/revisions\/5618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/5617"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=5616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=5616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=5616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}