Grafton Resources Announces LOI to Acquire Silver One Project in Chile
Grafton Resources Announces LOI to Acquire
Silver One Project in Chile
January 20, 2026
Vancouver, British Columbia – January 20, 2026 – Grafton Resources (CSE:GFT; OTCQB: GFTFF)
("Grafton Resources" or the "Company") is pleased to announce that the Company has entered into
a non-binding letter of intent (the “LOI”) with Asesorias e Inversiones Sol SpA (the “Vendor”) pursuant
to which the Company proposes to acquire a direct 100% interest in the Silver One project (“ Silver
One” or the “Project”) located in Chile (the “Proposed Acquisition”).
Highlights
Potentially high-grade silver-copper veins as waste dump vein m aterial averages 296 g/t Ag
and 2.6% Cu
Historic mining district hosts many Au-Ag-Cu epithermal vein systems
Silver One Project hosts an undrilled and open-ended mineralizing system
Campbell Smyth, CEO and Chairman, commented: “ Silver One offers the opportunity to explore a high‐
grade silver‐copper target that is uniquely well suited for development. The project is located in a well‐
established mining area and Silver One has the potential to be the next high‐grade Ag‐Cu deposit in this
district.
Grafton now has two ideally located projects in a premier mining jurisdiction. There is a global shortage
of silver and copper assets with good grade, clean metallurgy and simple geometry. We plan to drill Silver
One in the second half of 2026 and are currently building up our local exploration team. Silver One is also
accessed from the same logistical hub as the recently signed Alicahue Copper project offering further
logistical synergies.”
Merlin Marr-Johnson, Technical Advisor, commented: “ Silver grades of almost 300 g/t in the waste
material are highly encouraging. The hope is that the primary material is even higher grade. The high
tenor of the target, coupled with good access means that significant value can be created within a
compact package.”
Silver One Project Overview
Location
The Silver One Project is centered on the San Lorenzo 1-18 conc ession located in the historic Au-Ag-
Cu mining Pedernal district of the Petorca Municipality, centra l C h i l e . T h e p r o j e c t i s a c c e s s e d v i a
established gravel roads from Chincolco and Pedernales, with sh ort private-road access to the site.
Historic work was carried out by Eagle Rock Resources SpA (“ Eagle Rock”) under a lease agreement
with S.C.M. Cerro Pedernal Dos.
Background
The Silver One Project is located in the region around Petorca which hosts nearly 90 ore bodies, mostly
polymetallic veins, some copper veins, and one copper breccia p ipe. The area is characterised by
epithermal low sulfidation vein systems hosted by Cretaceous volcanic andesitic sequences (Camus et
al., 1991) in the western foothills of the Andean Cordillera of central Chile.
The Silver One Project targets silver-copper-bearing sulphide v ein systems historically exploited by
underground methods. The adit mouth is located at 332,252 E; 6, 448,714 N (WGS 84, UTM Zone 19
South) Historic workings indicate the presence of structurally controlled mineralization hosted within
volcanic and volcaniclastic sequences, with mineral assemblages consistent with Ag–Cu sulphide
systems typical of the region. Work completed by Eagle Rock foc used on integrating modern survey
techniques with geological mapping and targeted sampling:
High-resolution drone-based topographic survey, generating 2 m contour intervals and a 3D
surface model.
Surface geological mapping identifying a volcanic–volcaniclastic stratigraphic sequence
dominated by andesitic lavas, volcanic breccias, and tuffs.
Rehabilitation and LIDAR survey of the Esperanza Adit (~400 m), enabling accurate 3D
modelling of underground access.
Detailed underground geological mapping of the adit, identifying a vertically stacked
sequence of grey to red andesites overlain by thick volcanic breccia and tuff units.
Trenching and channel sampling of historic mine waste dumps to establish a proxy for grade
where direct access to old stopes was not possible.
Geological Interpretation and Results
The underground mapping identifies that mineralized veins are h osted within grey volcanic breccias
with reducing characteristics, interpreted as the favourable ho rizon for Ag–Cu sulphide deposition.
The absence of surface exposure implies mineralization is blind and structurally controlled, potentially
confined to a coherent zone with a probable SW–NE structural orientation.
A detailed evaluation of a historic waste dump combined trenchi ng, systematic sampling,
granulometric analysis, topographic surveying, 3D modelling, and volumetric estimation. Ten pits (1–
3 m deep) and 24 samples defined an estimated 8,120 tonnes of h istoric mine waste, with average
grades of approximately 96 g/t Ag and 0.80% Cu, calculated usin g a loose bulk density of 1.43 g/cm³.
The location of the waste dump and associated samples is 332,245 E; 6,448,707 N (WGS 84, UTM Zone
19 South).
The waste material was screened using a 5 cm mesh to obtain sam ples suitable for manual sorting.
Vein material (silica–carbonate) was separated from host rock (andesite), and each fraction was sent
to the laboratory for analysis as separate samples. The vein ma terial showed sulphide mineralization
dominated by tennantite–tetrahedrite (locally freibergite), cha lcocite–covellite, chalcopyrite, galena,
and rare bornite. The veins include abundant barite and banded quartz, consistent with epithermal to
mesothermal vein systems. 13.85 k g of vein material was assayed at AAA Laboratories and returned
an average grade of 296 g/t Ag and 2.6% Cu.
Project Potential & Next Steps
Although the historic workings are not fully accessible, the co mbination of underground geometry,
favourable lithological hosts, and multi-element sulphide miner alization confirms the presence of an
open-ended mineralizing system. Potential next steps include:
Securing safe access to historic stopes and raises to directly sample in situ vein material.
Targeted geophysical surveys (IP/resistivity) to define sulphide structures beneath
cover.
Focused drilling to test continuity, thickness, and grade of interpreted vein zones.
Transaction Terms
Under the terms of the LOI, the Company proposes to acquire the Project in exchange for total deemed
consideration of C$820,000 comprised of:
(i) a cash payment of C$100,000 to the Vendor; and
(ii) the issuance of 800,000 common shares in the capital of the Com pany (the “ Consideration
Shares”) to the Vendor at a deemed price of $0.90 per Consideration S hare having an
aggregate deemed value of C$720,000. The shares issued will be subject to voluntary escrow
provisions and will be released over 36 months.
The final structure of the Propo sed Acquisition is subject to, among other things, the negotiation and
execution of a definitive agreement, completion of satisfactory due diligence, and the satisfaction of
customary closing conditions. There can be no assurance that a definitive agreement will be entered
into or that the Proposed Acquisition will be completed.
The Proposed Acquisition is consi stent with the Company’s strat egy focused on the discovery and
development of mineral assets in the Americas. Subject to closing, the Company intends to advance the
Project through systematic technical review and disciplined exploration planning.
OTCQB Symbol Change
The Company is also pleased to announced that its common shares will commence trading under its
new OTC ticker symbol “GFTFF", effective January 20, 2026.
The change from the previous symbol "PMSXF" to "GFTFF" is part of the Company's ongoing efforts to
align its U.S. market identity with its current corporate name and Canadian Securities Exchange ticker
"GFT." The Company's CUSIP number remain unchanged.
QA/QC Procedures
E a g l e R o c k f o l l o w e d r o b u s t Q A / Q C p r o c e d u r e s . T h e a i m w a s t o c h aracterise silver, copper, and
associated metal content of historic waste dump material throug h s y s t e m a t i c c h a n n e l a n d r o c k
sampling. Channel samples were cut using hand tools to a consis tent width (~10–20 cm) and depth
(~3–5 cm). Material was collected continuously along the channe l and placed directly into labeled
sample bags. The rock chips were screened to be greater than 5 cm and samples are intended to be
indicative, not representative of bulk grade. The fragments wer e separated into vein, wall rock, and
unmineralized host rock by hand, weighed by rock type, and samp les were assigned a unique sample
ID at the time of collection. The s a m p l e s w e r e s e a l e d i n h e a v y -duty plastic sample bags, tagged
internally and externally, and transported by company personnel to the certified, independent AAA
Laboratory in Chile. After standard sample preparation at the laboratory, silver and base metals were
analysed using ICP-MS following four-acid digestion.
Qualified Person
G i l b e r t o S c h u b e r t ( B . S c . , M . S c . , M B A , M . S c . M i n E c . ) , a Q u a l i f ied Person as defined by National
I n s t r u m e n t 4 3 - 1 0 1 a n d a n i n d e p e n d e n t T e c h n i c a l A d v i s o r t o t h e Company, has reviewed and
approved the technical informati on provided in this news releas e, including the sampling, analytical
and test data underlying the technical information contained in this news release. Specifically, the QP
verified selected laboratory assay certificates against the reported rock samples.
About Grafton Resources
Grafton Resources is a Canadian exploration company listed on t he Canadian Securities Exchange
(CSE), focused on the discovery and development of mineral asse ts in the Americas. The Company is
committed to responsible explorat ion, strong community partners hips, and generating shareholder
value through disciplined project advancement.
On behalf of Grafton Resources.
Campbell Smyth
Interim Chief Executive Officer, Chairman and Director
For further information, please contact:
Campbell Smyth
+61403203402
CAUTIONARY STATEMENT REGARDING FORWARD‐LOOKING INFORMATION
This news release includes certain statements and information that constitute forward‐looking
information within the meaning of applicable Canadian securities laws. All statements in this news
release, other than statements of historical facts are forward‐looking statements. Such forward‐looking
statements and forward‐looking information specifically include, but are not limited to, statements that
relate to the Proposed Acquisition, potential mineralization at the Project, future exploration plans on
the Project and the timing and results of future exploration..
Statements contained in this release that are not historical facts are forward‐looking statements that
involve various risks and uncertainty affecting the business of the Company. Such statements can
generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends",
"estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur. All statements that describe the Company's
plans relating to operations and potential strategic opportunities are forward‐looking statements under
applicable securities laws. These statements address future events and conditions and are reliant on
assumptions made by the Company's management, and so involve inherent risks and uncertainties, as
disclosed in the Company's periodic filings with Canadian securities regulators, including without
limitation, risks related to the completion of the Proposed Acquisition; the dangers inherent in
exploration, development and mining activities; actual exploration or development plans and costs
differing materially from the Company’s estimates; the ability to obtain and maintain any necessary
permits, consents or authorizations required for mining activities; environmental regulations or hazards
and compliance with complex regulations associated with mining activities; climate change and climate
change regulations; fluctuations in exchange rates; the availability of financing; operations in foreign and
developing countries and the compliance with foreign laws, remote operations and the availability of
adequate infrastructure; fluctuations in price and availability of energy and other inputs necessary for
mining operations; shortages or cost increases in necessary equipment, supplies and labour; regulatory,
political and country risks, including local instability or acts of terrorism and the effects thereof; the
reliance upon contractors, third parties and joint venture partners; challenges to title or surface rights;
the dependence on key personnel and the ability to attract and retain skilled personnel; the risk of an
uninsurable or uninsured loss; adverse climate and weather conditions; litigation risk; and competition
with other mining companies. As a result of these risks and uncertainties, and the assumptions underlying
the forward‐looking information, actual results could materially differ from those currently projected,
and there is no representation by the Company that the actual results realized in the future will be the
same in whole or in part as those presented herein. the Company disclaims any intent or obligation to
update forward‐looking statements or information except as required by law. Readers are referred to the
additional information regarding the Company's business contained in the Company's reports filed with
the securities regulatory authorities in Canada. Although the Company has attempted to identify
important factors that could cause actual actions, events, or results to differ materially from those
described in forward‐looking statements, there may be other factors that could cause actions, events or
results not to be as anticipated, estimated or intended. For more information on the Company and the
risks and challenges of its business, investors should review the Company's filings that are available at
www.sedarplus.ca.
The Company provides no assurance that forward‐looking statements and information will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements or information. Accordingly, readers should not place undue reliance on forward‐looking
statements or information. The Company does not undertake to update any forward looking statements,
other than as required by law.