Zacatecas Silver Corp (ZAC.V): Deep Dive Analysis
Eric Sprott-backed junior explorer with 20.5M oz silver resource in Mexico's legendary Fresnillo Belt. Trading at extreme discount with +200% YTD momentum.
Deep Analysis: Zacatecas Silver Corp (TSX-V: ZAC)
Eric Sprott's backing validates strong geological assets, while market indifference creates significant valuation disconnect in a world-class Mexican silver district.
Zacatecas Silver Corp operates premium real estate in the legendary Fresnillo Silver Belt with 20.5 million ounces, yet still trades at a 97% discount from 2021 highs amid complete absence of coverage from precious metals analysts.
With silver now trading at $70/oz—14-year highs—and the stock up +200% YTD, recent leadership changes, successful financing, and active drilling programs position the company for potential re-rating in 2026.
Key Metrics at a Glance
| Metric | Value |
|---|---|
| Ticker | TSX-V: ZAC | OTC: ZCTSF | FSE: 7TV |
| Share Price | CAD $0.150 |
| Market Cap | CAD $32 million |
| YTD Performance | +200% |
| Silver Resource | 20.5 Moz AgEq (Zacatecas) |
| Gold Resource | 956 Koz AuEq M&I (Esperanza) |
| Land Package | 7,826 ha (silver) + 14,337 ha (gold) |
| Shares Outstanding | 146M (182M fully diluted) |
| Cash Position | ~CAD $3.75M (post-financing) |
Expert Validation: Anchored by Eric Sprott's Conviction
Eric Sprott's 2 million share position represents the strongest endorsement Zacatecas Silver has received in the mining investment community.
The legendary precious metals investor, who has deployed over $100 million USD across Mexican silver projects, made his ZAC investment before the company went public in March 2021. This ground-floor backing mirrors his successful pattern with companies like MAG Silver ($60M invested) and Discovery Metals, where early positioning proved prescient.
Strategic Shareholders
Beyond Sprott, Alamos Gold is listed as a large shareholder—providing additional institutional validation for the company's asset quality.
Keith Schaefer of SmallCapPower provided compelling analysis of Sprott's investment thesis:
"More than 10% of the silver ever produced in recorded history has been produced here."
He was referring to the Fresnillo-Zacatecas district where ZAC's property sits—a district that has produced over 6.2 billion ounces of silver historically.
Peter Krauth's Macro Thesis Supports the Sector
Peter Krauth's broader silver outlook strongly supports the sector. His $70+ silver target by end of 2025 has been validated, with emphasis on supply-demand fundamentals.
Krauth notes:
"Cumulative deficits of around 800 million ounces over 4 years—80% of annual supply—with record deficits expected for the next 5 years."
World-Class District Positioning
The Zacatecas Silver Project is strategically located in the heart of Mexico's premier silver belt:
- 25 km southeast of MAG Silver Corp.'s Juanicipio Mine
- 25 km southeast of Fresnillo PLC's Fresnillo Mine
- Shares boundaries with Pan American Silver Corp. claims
- Adjacent to Endeavour Silver's El Orito property
This neighborhood of major producers and developers validates the geological prospectivity of ZAC's ground.
Nearby Deposits for Context
| Deposit | Owner | Resource |
|---|---|---|
| Fresnillo | Penoles | >200 Moz Ag |
| Veta Grande | SantaCruz | >200 Moz Ag |
| Del Toro | First Majestic | 205 Moz AgEq |
| La Colorada | Pan American | >100 Moz AgEq |
| Avino | Avino | 90 Moz AgEq |
Leadership: K92 Mining Pedigree
The management team and advisors bring exceptional credentials, including direct ties to K92 Mining—a company that grew from explorer to $2.5 billion market cap producer.
Executive Team
Eric Vanderleeuw — CEO & Director
- Track record raising $100M+ in venture financings
- Subscribed 1.25M shares in recent private placement
- Capital markets, IR, and business development expertise
Chris Wilson — Chief Geologist & Director
- 35+ years exploration experience
- 75+ countries worldwide
- Former Ivanhoe Mines Mongolia Exploration Manager
- Specialist in epithermal vein systems
Alastair Brownlow — CFO
- CPA (Canada & U.S.)
- CFO for multiple TSX-V mining companies
- Resource-sector accounting specialist
Board & Advisors (K92 Mining Connection)
Nancy La Couvée — Director
- Corporate Secretary, K92 Mining Inc.
- 25+ years governance in resource sector
Mario Vetro — Advisor
- Partner, Commodity Partners (Vancouver merchant bank)
- Co-founded K92 Mining Inc.
Bryan Slusarchuk — Advisor
- Co-founder, K92 Mining Inc.
- Former President & Director
- Led K92 to cash flow positive operations and $2.5B market cap
This K92 connection is significant—the team has demonstrated ability to take an explorer to producer status with exceptional shareholder returns.
Dual Asset Portfolio
Zacatecas Silver offers exposure to both silver and gold through two flagship projects.
1. Zacatecas Silver Project (Flagship)
Location: Zacatecas State, Fresnillo Silver Belt
Resource: 20.5 Moz AgEq (3.41 Mt @ 187 g/t AgEq)
The property covers 7,826 hectares with multiple epithermal vein systems—several never effectively drill tested.
Vein Systems
| System | Description |
|---|---|
| Panuco | 20.5 Moz resource, open at depth and along strike |
| El Cristo | New discovery, 2 km strike, extension of Veta Grande (>200 Moz historic) |
| Muleros | 3 silver-gold-base metal veins over 3 km strike |
| San Manuel | Numerous unexplored silver-base metal veins |
| San Gill | 800m gold-anomalous hematitic breccia, up to 40m wide |
High-Grade Intercepts
- 1.25m @ 1,440 g/t AgEq (1,423 g/t Ag + 0.23 g/t Au)
- 2.17m @ 823 g/t AgEq (798 g/t Ag + 0.34 g/t Au)
- 9.53m @ 174 g/t AgEq from 40.03m (El Cristo)
- 4.36m @ 242 g/t AgEq from 54.34m (El Cristo)
2. Esperanza Gold Project
Location: Morelos State, Guerrero Gold Belt
Resource:
- M&I: 956,000 oz AuEq @ 0.97 g/t (30.5 Mt @ 0.93 g/t Au + 8.7 g/t Ag)
- Inferred: 276,000 oz AuEq @ 0.98 g/t
Project Highlights
- Near-surface oxide gold — amenable to open-pit mining
- Heap leach potential — low technical risk extraction
- 70,000 metres of historic drilling (~$25M value)
- Excellent strip ratio — high-grade near surface
- Multiple exploration targets within 14,337 ha concessions
Esperanza Transaction Structure
Total consideration: ~US$60 million (mostly milestone-based)
| Payment | Trigger |
|---|---|
| $5M cash + $10M shares + $6M stream | Acquisition |
| $5M cash | Environmental approval |
| $14M cash | Feasibility study |
| $20M cash | Commercial production |
This structure minimizes upfront capital while providing significant upside if the project advances.
Active Drilling Programs (2025)
Completed/Underway
| Milestone | Status |
|---|---|
| Design drill plan | COMPLETED |
| Secure Major Drilling contract | COMPLETED (Nov 2025) |
| Community access agreements | COMPLETED (Ejido Panuco) |
| 4,000m drill program | UNDERWAY (Aug 2025) |
| 2,500m El Cristo follow-up | PLANNED (Dec 2025) |
Drill Targets
- El Cristo Vein System — Extension of Veta Grande (>200 Moz historic production)
- Panuco North — High-grade near-surface discovery, open along strike and at depth
- Panuco Central — Resource expansion at depth
Financing Success: $3.75M Over-Subscribed
In September 2025, Zacatecas Silver closed an over-subscribed private placement of CAD $3.75 million—a strong signal of institutional confidence.
CEO Vanderleeuw stated:
"Today, Zacatecas Silver is revitalized and fully funded to aggressively advance drilling in what appears to be the early innings of a historic metals market."
Capital Structure
As of February 2025:
| Category | Amount |
|---|---|
| Shares Outstanding | 146M |
| Warrants | 22M |
| Options | 8.8M |
| RSUs | 5M |
| Fully Diluted | 182M |
Key Shareholders: Eric Sprott, Alamos Gold
Valuation Context
At CAD $32 million market cap with combined resources:
| Asset | Resource | Implied Value |
|---|---|---|
| Zacatecas Silver | 20.5 Moz AgEq | CAD $1.56/oz |
| Esperanza Gold | 1.23 Moz AuEq | Essentially free |
Peer Comparison (exploration-stage):
- Typical range: CAD $3-8 per silver resource ounce
- Premium assets: CAD $10+ per resource ounce
This suggests 50-80% potential upside to peer multiples—before any resource expansion from current drilling—plus the Esperanza gold asset is essentially unvalued.
Investment Thesis
Bull Case (emoji thumb up)
- 20.5 Moz silver + 1.2 Moz gold resources in premier districts
- Eric Sprott + Alamos Gold shareholder backing
- K92 Mining team pedigree (proven explorer-to-producer track record)
- CAD $1.56/oz valuation — massive discount to peers
- +200% YTD momentum with silver at $70/oz
- Fully funded for aggressive drill programs
- Zero analyst coverage = discovery potential by institutions
- Esperanza gold essentially free at current valuation
Bear Case (emoji thumb down)
- Pre-production explorer = no cash flow
- Execution risk on drilling and permitting
- Dilution risk from future financings (182M fully diluted)
- Small market cap = latent volatility
- 3-year return still -81% from 2021 highs
Catalysts to Watch
- Q1 2026: Results from 4,000m drill program
- Q1 2026: Results from El Cristo 2,500m program
- 2026: Updated resource estimate (potential)
- 2026: Esperanza Gold PFS progress
- Ongoing: Silver price above $70/oz supports sector sentiment
Key Takeaways
- Eric Sprott + Alamos Gold validate the geological thesis
- K92 Mining team connections bring proven explorer-to-producer expertise
- Dual asset exposure: 20.5 Moz silver + 956 Koz gold M&I
- World-class neighborhood: Adjacent to MAG Silver, Pan American, Endeavour
- +200% YTD performance reflects renewed interest as silver hits $70/oz
- $3.75M financing (over-subscribed) funds aggressive drill programs
- 6,500m drilling in late 2025 provides near-term catalysts
- CAD $1.56/oz valuation represents significant discount to peers
- Esperanza gold project essentially unvalued at current market cap
CONCLUSION : bullish on this silver junior explorer -> ZAC trading on tsx-v is part of our long-term silver miners portfolio.
Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Junior mining stocks carry significant risks including total loss of capital. The author may hold positions in securities mentioned. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.