Silver Miners Enter Parabolic Phase as Analysts Eye $40 Breakout

Rhea-AI Summary

Silver miners are experiencing a significant upward trend as silver approaches a potential $40 breakout level. Industrial demand is driving momentum, with fabrication volumes expected to exceed 700 million ounces in 2025. Major investment banks including Citigroup, Bank of America, and Saxo Bank have set $40 price targets for silver, citing supply deficits and increasing demand from renewable energy and electronics sectors.

Magma Silver Corp. (TSXV: MGMA) has announced plans for a Q4 2025 diamond drilling campaign at its Niñobamba project in Peru. The company has secured crucial access rights through 2026 and established a Lima office with a local operational team. The project encompasses 4,100 hectares with three contiguous deposits, building on previous exploration work by Newmont that yielded significant results including 17.4 metres of 3.06 g/t gold and 128 metres of 1.31 oz/t silver.

Positive

• Multiple major banks converge on bullish $40 silver price targets
• Industrial silver fabrication volumes projected to reach record 700M+ ounces in 2025
• Supply deficits expected to continue for fifth consecutive year
• Magma Silver secured key community access rights through 2026
• Previous exploration by Newmont showed high-grade results (17.4m @ 3.06 g/t Au, 128m @ 1.31 oz/t Ag)

Negative

• Drilling campaign not starting until Q4 2025
• Environmental and community permit approvals still pending
• Project requires significant additional exploration to fully define resource potential

News Market Reaction

+1.88%

11 alerts

+1.88% News Effect

+$31M Valuation Impact

$1.67B Market Cap

0.3x Rel. Volume

On the day this news was published, EXK gained 1.88%, reflecting a mild positive market reaction. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $31M to the company's valuation, bringing the market cap to $1.67B at that time.

Data tracked by StockTitan Argus on the day of publication.

Issued on behalf of Magma Silver Corp.

USA News Group News Commentary

VANCOUVER, BC, Aug. 20, 2025 /PRNewswire/ -- Silver miners are early in a parabolic move higher as the precious metal pushes toward what analysts describe as a decisive $40 breakout. Industrial demand is creating momentum for the white metal, with fabrication volumes forecast to surpass 700 million ounces for the first time ever in 2025. Market technicians note that silver has cleared key resistance levels while establishing bullish momentum patterns, positioning several miners for potential outperformance, including Magma Silver Corp. (TSXV: MGMA) (OTCQB: MAGMF), Argenta Silver Corp. (TSXV: AGAG) (OTCQB: AGAGF), Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR), Silvercorp Metals Inc. (NYSE-American: SVM) (TSX: SVM), and McEwen Inc. (NYSE: MUX) (TSX: MUX).

 

 

Multiple investment banks have converged on $40 price targets for silver, with Citigroup, Bank of America, and Saxo Bank citing tightening supply alongside accelerating demand from renewable energy and electronics sectors. Supply deficits are expected to persist for the fifth consecutive year, creating what industry observers call a uniquely compelling backdrop for silver equity leverage plays.

Magma Silver Corp. (TSXV: MGMA) (OTCQB: MAGMF) has confirmed that a diamond drilling campaign is expected to begin in Q4 2025 at its strategically positioned Niñobamba project in Peru. The upcoming program will initially target Jorimina, a deposit where Newmont previously invested millions in historic drilling, before expanding to test Randypata and additional high-priority zones.

While the company prepares for this pivotal drilling phase, Magma is conducting intensive geological mapping and rock sampling to sharpen drill targets and enhance its structural understanding. With environmental and community consultation requirements now fully satisfied, drill permit approvals are anticipated imminently.

"We are excited to start a work program at the advanced Niñobamba silver-gold project focused on the Jorimina and Randypata deposits," said Stephen Barley, Chairman and CEO of Magma Silver. "As announced in our news release dated July 23, 2025, the Tunsulla community access agreement is in place for these two project areas, allowing the Company full access to conduct exploration activities. The work being carried out will assist in refining drill targets for our planned Q4 drill program as well as expand our overall knowledge of the deposits."

These crucial access rights were secured through a surface access rights agreement with the Comunidad Campesina De Tunsulla, which remains in good standing through the 2025 season and into 2026. The Jorimina and Randypata deposits represent a compelling exploration target, having attracted over CAD$10 million in historic exploration by Newmont, with standout results including 17.4 metres of 3.06 g/t gold and 128 metres of 1.31 oz/t silver.

The broader Niñobamba project encompasses 4,100 hectares and is anchored by three contiguous deposits—Main, Randypata, and Jorimina—believed to form part of an extensive high-sulfidation epithermal system with significant untapped potential.

This operational milestone builds on Magma's logistical expansion into Peru, including the establishment of a Lima office and assembly of a seasoned in-country team.

Magma's Peru-based operational team includes General Manager Carlos Agreda Minaya, legal counsel Dentons, environmental partner Ecosoul, and field geology expert Edgar Leon Choque. Their immediate priority involves advancing Jorimina toward drilling readiness while simultaneously executing comprehensive mapping and surface work across the mineralized corridor.

"The establishment of an experienced operations team we can trust will make a significant contribution to our success in Peru," added Barley. "Peru is a sophisticated, mining-friendly jurisdiction with detailed regulatory requirements that must be strictly adhered to. The experienced team we are involved with will ensure smooth operations for Magma."

With a share structure of just over 34 million shares outstanding and all mineral claims secured through mid-2026, Magma is transitioning from asset assembly to active exploration in one of South America's most mining-friendly jurisdictions. As groundwork intensifies and drill targets are finalized, the company stands poised to unlock value from a system that major mining companies spent years defining but never fully developed.

CONTINUED… Read this and more news for Magma Silver at:
https://usanewsgroup.com/2025/06/04/mining-giants-missed-the-big-prize-a-juniors-back-for-the-precious-metals/ 

In other industry developments and happenings in the market include:

Argenta Silver Corp. (TSXV: AGAG) (OTCQB: AGAGF) has delivered exceptional high-grade results from its ongoing drill program at the El Quevar project in Argentina, intercepting 1,026 g/t silver over 40 meters, including an extraordinary 18,467 g/t silver over 1.05 meters. The results demonstrate the exceptional grade continuity and expansion potential of the high-grade silver system at one of Argentina's premier undeveloped silver assets. These intercepts significantly extend the known mineralization and confirm the robust nature of the deposit's silver-rich zones.

"These results are exceptional and represent some of the highest-grade silver intercepts we have ever reported at El Quevar," said Joaquín Marías, CEO of Argenta Silver. "The consistency of high-grade silver mineralization across multiple drill holes continues to validate our geological model and reinforces our confidence in the significant resource expansion potential at El Quevar."

The company is advancing toward an updated resource estimate while continuing to expand the footprint of high-grade mineralization across the project. Argenta maintains a strong financial position to support ongoing exploration and development activities at this world-class silver asset.

Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) has reported strong Q2 2025 financial results with revenue of $43.4 million and adjusted net income of $2.7 million, driven by silver production of 1.48 million ounces across its Mexican operations. The company achieved consolidated production of 2.53 million silver equivalent ounces, representing a 13% increase year-over-year, while maintaining strong operational performance at its Guanaceví and Bolañitos mines. Endeavour continues to advance its flagship Terronera project toward commercial production, with the operation making significant progress on startup activities and processing optimization.

"We delivered strong and consistent production in the second quarter," said Dan Dickson, CEO of Endeavour Silver. "The integration of Kolpa is progressing smoothly, with output already trending above initial expectations. At the same time, Terronera continues to move steadily toward commercial production. This is a pivotal time for Endeavour as we build operational momentum and position the Company for meaningful, long-term growth."

The company is positioned for substantial production growth as Terronera ramps toward full commercial production capacity. Endeavour maintains a diversified portfolio of silver-focused operations with significant expansion potential across its Mexican asset base.

Silvercorp Metals Inc. (NYSE-American: SVM) (TSX: SVM) has achieved strong Q1 fiscal 2026 results with adjusted net income of $21.0 million and robust cash flow from operating activities of $48.3 million, demonstrating the strength of its silver-focused operations in China. The company produced 1.8 million ounces of silver during the quarter while maintaining its position as one of the few profitable primary silver producers globally. Silvercorp has also received positive regulatory developments in Ecuador, where the Constitutional Court upheld the environmental license for its El Domo silver-gold project.

"We are pleased to report another quarter of strong operational and financial performance," said Rui Feng, CEO of Silvercorp. "Our consistent cash generation capabilities continue to support our strategic initiatives while we advance development projects like El Domo in Ecuador, which represents a significant growth opportunity for the company."

The company continues to optimize its existing silver operations while advancing development of El Domo, which could become a significant addition to Silvercorp's production profile. Silvercorp maintains a strong balance sheet and proven track record of generating consistent cash flows from its silver-focused mining operations.

McEwen Inc. (NYSE: MUX) (TSX: MUX) has reported Q2 2025 results showing continued momentum toward its goal of doubling gold and silver production by 2030, with the company advancing multiple development projects across its portfolio. The quarter demonstrated operational progress at its silver-producing assets, including the San José mine in Argentina and advancement of the Los Azules copper-gold-silver project. McEwen continues to build production capacity while maintaining focus on its precious metals strategy and long-term growth targets.

"We continue to make meaningful progress on our strategic goal to double gold and silver production by 2030," said Rob McEwen, Chairman and CEO of McEwen Inc. "Our focus remains on advancing our development projects and optimizing our existing operations to create long-term value for shareholders."

The company is positioning for significant production growth through development of its Los Azules project and optimization of existing silver operations. McEwen maintains a diversified portfolio of precious metals assets with substantial expansion potential across multiple jurisdictions.

Article Source: https://usanewsgroup.com/2025/06/04/mining-giants-missed-the-big-prize-a-juniors-back-for-the-precious-metals/ 

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FAQ

What is the silver price target set by major investment banks for 2025?

Major investment banks including Citigroup, Bank of America, and Saxo Bank have converged on a $40 price target for silver, citing supply deficits and increasing industrial demand.

What are the expected silver fabrication volumes for 2025?

Silver fabrication volumes are forecast to exceed 700 million ounces in 2025, marking a historic high driven by industrial demand from renewable energy and electronics sectors.

When will Magma Silver (TSXV: MGMA) begin drilling at the Niñobamba project?

Magma Silver plans to begin its diamond drilling campaign in Q4 2025 at the Niñobamba project in Peru, initially targeting the Jorimina deposit.

What were the historical drilling results at Magma Silver's Niñobamba project?

Previous exploration by Newmont yielded significant results including 17.4 metres of 3.06 g/t gold and 128 metres of 1.31 oz/t silver, with over CAD$10 million invested in historic exploration.

How long are Magma Silver's access rights secured for the Niñobamba project?

Magma Silver has secured surface access rights through an agreement with the Comunidad Campesina De Tunsulla that remains valid through the 2025 season and into 2026.