Another Growth Spurt for Silver Wheaton

Following up on a previous article discussing the Pascua-Luma deal with Barrick Gold (ABX), more good news keeps rolling in, but this time through a few streams previously in their pipeline. Aside from continuing to seek out additional acquisitions ( which they will succeed in doing yet again), they have the rights to purchase considerable portions from one of the largest undeveloped silver mines.

1) The Navidad project (Argentina), currently under construction by Aquiline Resources, is among the top 5 undeveloped silver mines in the world. It is comprised of seven zones, one of which Silver Wheaton (SLW) has the right to purchase 12.5% of the silver produced over the life of the mine. This may not sound all that big, but this zone is expected to produce 16 million ounces of silver per annum, with a potential expansion project that will increase this to between 20-22m oz. Though this will likely only add about 3m oz to Silver Wheaton, it has already been paid for (less the $3.90 cost of purchasing the silver. This may prove to have substantial upside as the seven zones already have a resource base exceeding 750 million ounces and operations have yet to commence.