Sun Silver Ltd (ASX: SS1) shares have experienced phenomenal growth, rising 160% over the past 12 months.
East Coast Research thinks there is more room to run for this ASX silver share, despite volatility in the commodity price.
In a new note, East Coast Research has revealed a 12-month price target of $6.54 for Sun Silver shares.
This tip implies a staggering 235% potential upside from the stock's closing value of $1.955 on Tuesday.
Before we find out why East Coast expects such strong growth, let's check in on Sun Silvers' recent performance.
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How did Sun Silver shares survive the commodities rout?
Sun Silver shares reached an all-time high of $2.73 on 29 January.
That was the same day that the silver price reached a record of US$121 per ounce.
Then came the fall.
A major metals market sell-off last week saw the silver price nearly halve to a low of about US$67 per ounce, before rebounding.
Sun Silver shares followed suit, and remain nearly 30% off their historical high now.
The silver price is US$81.51 per ounce at the time of writing, down 2.2% and up almost 160% year over year.
Silver retains an impressive 2026-to-date growth rate of 15.5%.
What's the latest news with Sun Silver?
Sun Silver is developing the Maverick Springs Silver-Gold Project in Nevada, US.
The project has a JORC Inferred Mineral Resource Estimate of 539 Moz silver equivalent (AgEq) at 71g/t AgEq.
This includes 347.2Moz of silver (Ag) at 45.5g/t Ag and 2.25Moz of gold (Au) at 0.30g/t Au.
Sun Silver says this makes Maverick Springs the largest pre-production primary silver project on the ASX and within the US.
Last month, Sun Silver tripled its landholding by staking 427 additional lode claims to the north and south of the existing project.
Sun Silver also announced that further drilling had uncovered more thick silver-gold and antimony mineralisation at Maverick Springs.
In its December quarterly update, Sun Silver said it expects "further significant growth" for the silver/gold mineral resource estimate on the back of recent drilling results, as well as the potential for a maiden antimony mineral resource estimate.
Why will this ASX silver share rocket 235%?
In its note, East Coast Research praised Sun Silver for adding 59 Moz to its mineral resource estimate in the December quarter.
SS1's impressive recent 3rd Mineral Resource upgrade in under 2 years since listing places its Maverick Springs Project as a standout, strategically significant U.S. primary silver asset at a time when silver is becoming an important element of the North American / western-based secure supply chain thematic.
East Coast said the scale of Maverick's growth potential was unusual for an already large silver mining project.
Maverick Springs continues to reaffirm our original thesis that, apart from just peer set leading primary silver asset scale, the asset is still open for notable further exploration upgrade.
SS1's last 2 Mineral Resource upgrades have increased both scale and silver equivalent grades, which is an uncommon facet of large projects.
Sun Silver began trading on the US OTCQX market under the code (OTCQX: SSLVF) during the December quarter.
East Coast says this is "setting the stage for an eventual material rerate that rewards SS1 stockholders from the U.S. markets' silver premium".
East Coast said it viewed the recent pullback in the silver price as "an opportune time to increase exposure to silver, given that the medium- to long-term structural thesis supporting silver remains intact".
The silver price is supported by continuing safe-haven demand and rising industrial use in the green energy transition.
Given all these tailwinds, East Coast said its most conservative estimate for the Sun Silver share price is $5.96 within 12 months.
Its bull case is $7.11, a whopping 264% higher than where the ASX silver share closed yesterday.
