Blackrock Silver Corp. — 3-Year Valuation, Permitting & Per-Share Analysis

1. Project Overview

Blackrock Silver Corp.’s flagship asset, Tonopah West, is a high-grade silver-gold development project located in Nye and Esmeralda counties, Nevada, within the historic Tonopah mining district and the Walker Lane trend. The project is situated largely on patented mining claims, providing jurisdictional and permitting advantages relative to projects located on U.S. federal land.

The project hosts a large, high-grade silver resource and has been advanced to the Preliminary Economic Assessment (PEA) stage, positioning it as one of the most significant undeveloped primary silver assets in the United States. Could produce as much as 15-25% of the US produced silver.

Eric Sprott owns 15% and bought stock in Dec 2025.

Resource and Production Base

Mineral Resource (Indicated + Inferred): ~108 million silver-equivalent ounces.
PEA annual production rate: ~8.6 million silver-equivalent ounces.
Base AISC (PEA): $11.96 per silver-equivalent ounce.
Implied mine life: ~12–13 years at PEA throughput.

This scale places Tonopah West among the largest prospective U.S. silver mines by contained ounces and potential annual output.

2. Strategic Importance

U.S. Silver Supply

Tonopah West has strategic relevance as a potential contributor to domestic U.S. silver production, reducing reliance on foreign supply chains. Silver is a critical industrial metal with increasing importance in electronics, solar energy, electrification, and defense-related applications.

Jurisdictional Advantages

Nevada is a well-established, mining-friendly jurisdiction.
Patented land reduces exposure to federal permitting complexity.
Existing infrastructure and historic mining activity lower execution risk relative to greenfield projects.

These factors can support higher long-term valuation multiples compared with projects in higher-risk jurisdictions, assuming successful development.

3. Permitting Status and Timeline

Blackrock Silver has initiated formal permitting activities, including engagement of specialized environmental and engineering consultants to support underground development and test mining.

Permitting Scope

Environmental baseline studies
Hydrology and groundwater assessments
Engineering design for underground decline and bulk sampling
State and county permitting processes

Expected Timeline

2025–2026: Completion of baseline studies and updated technical/economic assessments.
2026: Submission and advancement of key permit applications.
2027: Targeted receipt of permits for underground development and bulk sampling.
Post-2027: Potential transition toward construction and early mine development, subject to financing.

While the permitting pathway is more streamlined than for federal-land projects, approvals are unlikely to be fully completed before 2027. Consequently, Tonopah West remains a development-stage asset through at least 2026.

4. Valuation Methodology (2026–2028)

Core Assumptions

Silver price: $100/oz (constant).
Inflation: 7% per annum, applied to AISC only.
Annual production: 8.6 million oz.
Valuation approach: Enterprise Value (EV) derived from EBITDA × multiple.
Multiples applied: 10×, 15×, and 20×.
Net debt: Assumed negligible for illustrative purposes.

5. Projected Operating Results

Annual Operating Metrics

| -------- | ----------- | ------------ | ------------------- | ----------- |

| 2026 | 11.96 | 860 | 102.9 | 757.1 |

| 2027 | 12.80 | 860 | 110.1 | 749.9 |

| 2028 | 13.69 | 860 | 117.8 | 742.2 |

6. Enterprise Value Scenarios

| Year | EV @ 10× ($B) | EV @ 15× ($B) | EV @ 20× ($B) |

| 2028 | 7.42 | 11.13 | 14.84 |

These figures represent theoretical operating enterprise values assuming the project is fully built and operating at PEA parameters.

7. Per-Share Valuation With 50% Dilution

Share Count Assumptions

Current basic shares outstanding (assumed): ~335 million
Dilution prior to 2028: +50%
Post-dilution share count: ~500 million shares

(Assumption reflects equity financings required for permitting, feasibility, and early development.)

2028 Valuation (Inflation-Adjusted Costs)

| -------- | ---------- | ---------- | ------------------- |

| 10× | 10.24 | 500 | $20.48 |

| 15× | 15.36 | 500 | $30.72 |

| 20× | 20.48 | 500 | $40.96 |

These values represent fully-diluted, project-level equity value under the stated assumptions and do not reflect development risk discounting typically applied by public markets to pre-production mining companies.

8. Key Risks and Adjustments

Development risk: The valuation assumes successful financing, permitting, construction, and ramp-up.
Dilution risk: 50% dilution is material but may prove conservative or insufficient depending on final capex and market conditions.
Commodity price volatility: Silver price assumptions dominate valuation outcomes.
Permitting and timeline risk: Delays beyond 2027 would materially affect realized value and investor multiples.
Capital cost inflation: Inflation may affect capex more severely than operating costs, reducing net project returns.

9. Conclusion

Under a sustained $100/oz silver price environment, Tonopah West demonstrates the potential for multi-billion-dollar operating enterprise value, even after applying 7% annual operating cost inflation. After assuming 50% dilution, implied per-share values range from approximately $20 to $40 per share across 10×–20× EBITDA multiples.

However, these outcomes depend critically on successful permitting (targeted around 2027), financing, and execution, and therefore represent long-term, risk-adjusted potential value, not near-term fair market pricing.

If needed, the analysis can be extended with:

A discounted cash-flow (DCF) incorporating capex and taxes
A silver-price sensitivity matrix
A stage-weighted valuation applying probability discounts by permitting and construction phase

Strategic silver project that could become one of the US biggest silver mines