GR Silver Mining Mobilizes Seven Drill Rigs in the Rosario Mining District and Announces Expanded 14,000 m Exploration Drill Program to Test New Ag-Au Vein and Breccia Targets
GR Silver Mining Mobilizes Seven Drill Rigs in
the Rosario Mining District and Announces
Expanded 14,000 m Exploration Drill Program
to Test New Ag-Au Vein and Breccia Targets
VANCOUVER, BC
,
June 21, 2021
/CNW/ -
GR Silver Mining Ltd.
(TSXV: GRSL) (OTCQB:
GRSLF) (FRANKFURT: GPE)
("GR Silver Mining" or the "Company")
– is pleased to announce
that it has initiated a
14,000 m
exploration drill program targeting newly identified and untested
silver-gold (Ag-Au) veins on its concessions within the Rosario Mining District,
Sinaloa, Mexico
.
Seven drill rigs are being mobilized to undertake this program at new project sites on the Company's
extensive Ag-Au vein systems that extend over structural trends covering a combined 75 km strike
length of the Plomosas, San Marcial and La Trinidad Project Areas (Figure 1).
After successful completion of the resource drill programs at the Plomosas Mine Area and the
San
Juan Area
(both within the Plomosas Project), exploration efforts are now focused on testing Au and
Ag-rich veins that have seen little or no exploration activity. While the program includes previously
identified veins, several of the targets to be drilled are new discoveries identified by the Company's
mapping and prospecting teams.
Among the recently discovered epithermal vein and breccia targets to be tested are the GAP Area
system, which connects the San Marcial and
San Juan
areas, and also Au-rich epithermal
mineralization identified to the south of the Plomosas Mine Area ("Plomosas South"). The first two
rigs have commenced a 16-hole drill program at Plomosas South that provides step-out extension
potential to the resource estimate currently underway on the Plomosas Mine Area.
The GAP Area was covered by the recently completed NW extension of the San Marcial ground
geophysical (IP and magnetometry) program (see
News Release dated
February 22, 2021
),
extending from the San Marcial Project northwesterly to the
San Juan Area
(Figure 1).
Another new area that is being prepared for drilling is the Loma Dorada structure, an epithermal Au
vein target which is on the northern extension of the
La Colorada
vein system, where the Company
recently released high grade results from LCS21-04 containing
0.65 m
at 10,777 g/t AgEq (see
News Release dated
June 10, 2021
). A significant mapping and drill program has commenced at the
El Saltito vein system in the western portion of the Plomosas concessions. Further details on specific
programs at the new drill target sites will follow.
GR Silver Mining VP Exploration,
Honza Catchpole
commented
, "
We are excited to commence
this new phase of our exploration program after the successful conclusion of the resource drilling
at the Plomosas Mine and San Juan Areas. With the mobilization of seven rigs, we can now begin
to test new Ag-Au vein targets that we have had our eyes on for some time. Our goal is to test a
series of new project drill sites that can prove we are dealing with an expansive Ag- and Au-rich
system of veins and hydrothermal breccias. Additionally, we aim to connect the proven mineralized
structures of the Plomosas and San Marcial Projects by filling the geological gaps in places where
we have already mapped important vein structures on surface. We expect our new drilling program
to significantly expand the strike length of our vein system in the key structural trends".
Figure 1: District Scale Ag-Au System Covering Three Key Trends – the Plomosas-San Marcial, La
Tigra and Trinidad Structural Trends (CNW Group/GR Silver Mining Ltd.)
Qualified Person
The scientific and technical data contained in this News Release related to the exploration program
was reviewed and/or prepared under the supervision of
Honza Catchpole
, P. Geo. He has approved
the disclosure herein.
About GR Silver Mining Ltd
.
GR Silver Mining Ltd. is
Mexico
-focused Company engaged in cost-effective silver-gold resource
expansion on its 100%-owned assets which lie on the eastern edge of the Rosario Mining District, in
the southeast of Sinaloa State,
Mexico
.
Plomosas Silver Project
GR Silver Mining's 6,574 ha Plomosas Silver Project is located near the historic mining village of
La
Rastra
and within 5 km of the Company's San Marcial Silver Project, in the Rosario Mining District.
The Project is a past-producing asset where only one mine, the Plomosas lead-zinc(-silver-gold)
underground mine, operated a 600 tpd crush-mill-flotation circuit from 1986 to 2001, producing
approximately
8 M
ounces of silver,
73 M
pounds of lead and
28 M
pounds of zinc.
The
March 2020
acquisition of the Plomosas Silver Project included 563 historical and recent drill
holes from both surface and underground locations. These drill holes represent an extensive
database allowing the Company to advance towards resource estimation and potential project
development in the near future.
The Company is completing a drilling program with surface holes focused on expanding known
mineralization along strike in two areas, the Plomosas Mine Area and the
San Juan Area
.
Underground drilling included in the program is targeting the extension of recent Au-rich discoveries
at the lowest level (
775 m
RL, or ~250 m below surface) of the Plomosas Mine Area and six low
sulphidation epithermal veins at the
San Juan Area
. Both areas are currently the subject of NI 43-
101 resource estimations.
The assets include all facilities and infrastructure including access roads, surface rights agreement,
water use permit,
8,000 m
of underground workings, water access, 60 km - 33 KV power line,
offices, shops, 120-person camp, infirmary, warehouses and assay lab representing approximately
US$30 M
of previous capital investments. The previous owners invested approximately
US$18 M
in
exploration, including extensive geophysics and geochemistry programs.
The silver-gold mineralization on this Project displays the alteration, textures, mineralogy and deposit
geometry characteristics of a low sulphidation epithermal silver-gold-base metal mineralized
vein/breccia system. Previous exploration was focused on polymetallic (Pb-Zn+/-Ag-Au) shallow
mineralization, hosted in NW-SE structures in the vicinity of the Plomosas Mine. The E-W portion of
the mineralization and extensions of the main N-S Plomosas Fault remain under-explored.
San Marcial Project
San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. The Company
filed a National Instrument 43-101 ("NI 43-101") report entitled "San Marcial Project Resource
Estimation and Technical Report,
Sinaloa, Mexico
" having an effective date of
March 18, 2019
and
an amended date of
June 10, 2020
(the "Report"), which contains a 36 Moz AgEq (Indicated) and
11 Moz AgEq (Inferred) resource estimate. The Report was prepared by
Todd McCracken
and
Marcelo Filipov
of WSP Canada Inc. and is available on SEDAR. The company recently completed
over
320 m
of underground development in the San Marcial Resource Area, from which underground
drilling is planned to expand the high-grade portions of the resource down-dip. The Company
recently discovered additional mineralization in the footwall, outside of the existing resource, and will
also be drilling this area. GR Silver Mining is the first company to conduct exploration at San Marcial
in over 10 years.
Recent exploration has identified silver and gold mineralization in areas previously defined as non-
mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and
associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource area.
La Trinidad Project
The La Trinidad Project was acquired in
March 2021
. While
La Trinidad
has been the focus of
artisanal mining activity over many decades, commercial operations began late in the 20th century.
Anaconda Minerals Corp. was first to drill the project in the mid-late 1980s. After initially taking up an
option on the Project in 1993, Eldorado Gold Corp. then commenced an open pit gold mine at
La
Trinidad
in 1995, known as the Taunus Pit, with ore being processed via a heap leach operation. The
mine operated until 1998, producing approximately 52,000 oz of gold
1
.
Exploration undertaken by
Oro Gold
from 2006 identified additional resources below the Taunus Pit
and operations recommenced late in 2014. Gold output from the heap leach pads continued until late
2019 for a total cumulative production by
Oro Gold
of 112,000 oz gold
2,3
. In addition to
La Trinidad
,
the portfolio acquired by GR Silver Mining includes an extensive regional database of geological,
geochemical and geophysical information resulting from historical exploration expenditure by
Oro
Gold
of more than
CDN$18.6 M
since 2006.
Cimarron Project
Cimarron is another advanced stage project that was acquired along with the La Trinidad Project in
March 2021
and is located 40 km to the NW of
La Trinidad
. A number of targets have been
identified at Cimarron including Calerita, El Prado, Huanacaxtle, Betty and Veteranos, however
Calerita is the only target to have been drilled to date. The near surface historical Inferred Resource
at the Calerita prospect contains 3.7 Mt at 0.65 g/t Au for approximately 77,000 oz of gold
4
, which
is considered to be open along strike and down dip.
While the 2011 resource is considered by GR Silver Mining to be a historical resource, the Company
considers the resource estimate as being relevant and reliable, considering a lack of significant
additional exploration work since its release. A key parameter in the historical resource is the usage
of a
US$1,200
/oz gold price compared to a much higher current spot gold price. A Qualified Person
(QP) would be required to review the historical resource report and make recommendations in order
to verify and upgrade it to a current resource. A QP has not done sufficient work to classify the
historical estimate as current mineral resources. The Company is treating the 2011 resource
estimate as a historical estimate. The company plans to re-assess the work completed by previous
owners and define the feasibility of additional drilling, aiming at identifying additional near-surface
mineralization.
The Plomosas, San Marcial and La Trinidad Projects collectively represent a geological setting
resembling the multi-million-ounce San Dimas Mining District which has historically produced more
than 600 Moz Ag and 11 Moz Au over a period of more than 100 years.
_____________________
1
Refer to Marlin Gold Mining Ltd. 2nd Amended NI 43-101 Technical Report dated February 1, 2013
2
Refer to Marlin Gold Mining Ltd. MD&A dated April 30, 2015, April 29, 2016, May 1, 2017, April 30, 2018, August 29, 2018
3
Refer to Mako Mining Corp. MD&A dated August 28, 2019, April 29, 2020
4
Refer to Oro Mining Ltd. NI 43-101 Technical Report dated March 18, 2011
Other Projects
GR Silver Mining's other projects are situated in areas attractive for future discoveries and
development in the same vicinity of Plomosas,
La Trinidad
and San Marcial in the Rosario Mining
District. Following the acquisition of Marlin Gold Mining Ltd. ("Marlin") in
March 2021
, GR Silver
Mining controls a concession portfolio of over 1,000 km
2
, two previously producing mines fully
permitted for future developments and a total combined 75 km of structures with field evidence of 24
Ag-Au veins in historic old workings.
GR Silver Mining Ltd.
Mr.
Marcio Fonseca
, P. Geo.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of
this press release.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements and information that are based on the
beliefs of management and reflect the Company's current expectations. When used in this press
release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict",
"may" or "should" and the negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and information.
Such statements and information reflect the current view of the Company. Risks and uncertainties
may cause actual results to differ materially from those contemplated in those forward-looking
statements and information. By their nature, forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause our actual results, performance or
achievements, or other future events, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements.
SOURCE
GR Silver Mining Ltd.
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For further information:
Brenda Dayton, VP Corporate Communications, Telephone:
+1.604.558.6248, Email: [email protected]
CO: GR Silver Mining Ltd.
CNW 06:45e 21-JUN-21