GR Silver Mining Outlines its Vision for 2023
GR Silver Mining Outlines its Vision for 2023
VANCOUVER, BC
,
May 8, 2023
/CNW/ -
GR Silver Mining Ltd.
("GR Silver Mining" or the
"Company") (TSXV: GRSL) (OTCQB: GRSLF) (FRANKFURT: GPE) – today outlined its vision to
continue resource growth on its wholly owned Plomosas Silver Project in
Sinaloa, Mexico
, through
the remainder of 2023, including an update on exploration plans and corporate initiatives.
Highlights
A sound geological model with proven efficacy based on modern exploration has provided a
foundation of growth for GR Silver Mining.
One of the Company's drill rigs has been mobilized to cost-effectively test the highly prospective
target contact to the southeast of the SE Area discovery, aiming for further resource expansion
while generating continued news flow.
Based on the recently filed National Instrument 43-101 Technical Report, a 12,500-metre drill
program has been recommended pending board approval, largely in the San Marcial Area,
stepping out along strike from the mineral resource eastern limit in the SE Area discovery,
targeting incremental resource growth.
GR Silver owns 100% of the Plomosas Project with title and operating permits for core
concessions granted under the previous mining law regime. We currently see no immediate
impact from changes in Mexican mining legislation.
Cash management initiatives have commenced to reduce overhead and prioritize funds
dedicated to exploration and drilling in
Mexico
.
Plomosas Silver Project update
On
May 4
, GR Silver Mining announced (
News Release
) the filing of the National Instrument 43-101
Technical Report (NI 43-101) for the wholly owned, 432 km
2
Plomosas Silver Project in
Sinaloa,
Mexico
. The full NI 43-101 dated
May 3rd, 2023
, with an effective date of
March 15th, 2023
, is
entitled "Technical Report and Mineral Resource Update for the Plomosas Project". The report was
prepared for GR Silver Mining by Dr.
Gilles Arseneau
, P.Geo. of ARSENEAU Consulting Services
Inc. The resource update resulted from the talent, experience, and hard work of our geological team
as they made an important new discovery successfully applying modern exploration on this
prospective district-scale project. A total of 75 GR Silver Mining drill holes (10,500 metres) were
added to the 52 holes used in the previous resource estimate, totalling 122 holes (19,000 metres)
for the San Marcial Area including the SE Area discovery. At the Plomosas Mine Area, a total of 223
drill holes (16,380 metres) were drilled in specific areas of the existing underground historical mine
as part of the infill drilling program.
A total of 424 drill holes (60,020 metres) comprises the database supporting the new 3D geological
modelling including the SE Area discovery and Resource Estimate. The total Indicated resource
grew to 15 million tonnes averaging 117 g/t silver (Ag) for 55 million ounces Ag, or 179 g/t silver
equivalent (Ag Eq) for 85 million ounces Ag Eq. The total Inferred resource grew to 9 million tonnes
averaging 78 g/t Ag for 22 million ounces Ag, or 171 g/t Ag Eq for 49 million ounces Ag Eq. Relative
to the previous resource estimates, Indicated Ag ounces grew 72% while Ag Eq ounces grew 83%.
On an Inferred basis, Ag ounces grew 20% while Ag Eq ounces grew 48%. The Plomosas Project is
distinct from many other projects in
Mexico
due to the existence of attractive mineralization at
shallow depths with exceptional widths: true widths of the modelled domains average 20 metres at
the Plomosas Mine Area and 22 metres at the San Marcial Area. In general, wide mineralized widths
allied with shallow depth could indicate amenability to more mechanized mining methods and,
consequently, potentially lower mining costs.
The district contains intermediate to low sulphidation epithermal silver and gold mineralization hosted
in hydrothermal breccias and veins. The identification of high-grade precious metal bearing veins
associated with younger, cross-cutting structures is an important evolution in the understanding of
the controls on mineralization in the district. Recent success in exploration and drilling, with an
associated increase in drill hit rate, has delineated wide, high-grade, shallow hydrothermal breccias
in the San Marcial Area including the SE Area discovery. The Mineral Resource Estimate completed
in the SE Area discovery zone covers only
300 m
of a total
900 m
known strike length (Figure 1), as
defined by GR Silver Mining's 2022 exploratory program. There is surface evidence in the additional
600 m
strike to the southeast, of potential silver mineralization at shallow depth hosted in wide
hydrothermal breccias like those encountered in the SE Area discovery. The Company is also
completing extensive detailed mapping and surface sampling in the vicinity of the SE Area discovery,
including historical old workings, aiming to define new drilling targets (Figure 2).
The company currently owns 5 drill rigs, which can be cost-effectively deployed to continue drilling in
the SE Area discovery and vicinity. The Company has already mobilized one drill rig to conduct initial
step-out drilling on the prospective
600 m
strike to the southeast of the SE Area discovery, based on
attractive preliminary silver and base metal values from the 2023 surface exploration program in
2023 target area. Assays are pending from multiple holes.
In addition to the exploratory drilling along strike to the southeast of the SE Area discovery, the NI
43-101 recommends that GR Silver Mining continue to drill test the extensions of known
mineralization at the San Marcial, Plomosas Mine, and
San Juan
-
La Colorada
areas, which remain
open. A 12,500-metre program has been recommended pending board approval. It is primarily
comprised of shallow drilling for resource expansion and exploration with key objectives as follows:
San Marcial Area, SE Extension
5,000 m
of step-out drilling along strike to the southeast, outside of the Mineral Resource in
the SE Area discovery zone.
GR Silver Mining has identified anomalous silver mineralization in a setting along the target
contact consistent with the demonstrably successful geological model.
San Marcial Area, Resource Extension and Infill Drilling
5,000 m
of infill drilling aiming to upgrade resources from the Inferred category to the
Indicated category.
Plomosas Mine Area, Incremental Infill Drilling
2,500 m
of short underground drilling at the Plomosas Mine Area aiming to continue to
increase the silver grades at the lower levels of the historic mine.
Early-Stage Exploration and Drill Target Generation
The area to the south of San Marcial has received little exploration despite evidence of
historical and artisanal mining activities.
Advance the surface exploration program with geological mapping, lithogeochemical
sampling in the target contact zone and around intrusive bodies known to be associated
with positive geophysical anomalies. Lithogeochemical and geological mapping programs
are time- and cost-effective means to efficiently test large unexplored areas of the
Plomosas Project that aim to generate new targets for future exploratory drilling.
Over the next few months, it is management's goal to conduct several small, cost-effective technical
studies to ascertain economic parameters in advance of a potential Preliminary Economic
Assessment that may be initiated in the future. The Plomosas Project features several competitive
advantages including road access, power direct to site, land ownership, 7.4 km of underground
development in excellent condition, and existing mining permits and long-term ejido agreements.
These features suggest the potential for lower costs, shorter timelines, and mitigated risks relative
to comparable greenfields projects.
Figure 1: View southwest of the San Marcial Area showing the SE Area discovery, the target
contact extending to the southeast, and the surface silver anomalies identified along the contact.
(CNW Group/GR Silver Mining Ltd.)
Figure 2: Northward view of the Plomosas Project showing exploration targets in the San Marcial
Area with the potential to add to SE Area discovery resources. (CNW Group/GR Silver Mining Ltd.)
Figure 3: Plomosas Project core concessions, as well as non-core concessions available for
partnership or purchase (CNW Group/GR Silver Mining Ltd.)
Legislative Changes in
Mexico
The Mexican Senate has approved modifications to its mining law, which will likely receive final
approval from authorities in the near term. The mining reforms will then be enacted in new policies
and regulations, the exact impacts of which are not clear at this time. GR Silver Mining remains in an
attractive position under the modified legislation in that it wholly owns concessions in the Rosario
Mining District for which titles and operating permits are held. GR Silver Mining, since its
foundation, has nurtured excellent relationships with in-country stakeholders, enjoying recent
success in the granting of permits from Mexican authorities and securing long term agreements with
neighbouring ejidos. GR Silver Mining's track record of local employment and the achievement of
high health, safety, and environmental standards has placed it as a respected and well-established
company in
Sinaloa
, Mexico. The Plomosas Project is at an advanced stage with historical mine
operations, including permits and infrastructure for potential development of a modern mining
operation. Nonetheless, these modifications to mining legislation require attention and the Company
will continue to monitor the situation closely.
Cash Management
Over the past year, GR Silver Mining committed to the delivery of a resource update for the
Plomosas Project by the end of March. The Company successfully delivered the resource update
(see
New Release
, dated
March 20, 2023
) on time and exceeding the expectations published by
covering analysts. Further, the resource estimate increment was delivered efficiently and cost-
effectively at an attractive exploration cost of
US$0.23
/oz Ag Eq. Despite difficult markets, GR Silver
Mining's management adhered to its commitment to delivering an important resource estimate
update on time, requiring significant funding and commensurate dilution.
Despite its commitment to deliver the resource update, GR Silver Mining's management also
embarked on a cost reduction program last year. The staff head count in
Mexico
has been reduced
by 38% since the beginning of last year. The number of vehicles used in support of field activities
has been reduced by 50% over the same period. Head office and overhead costs are being reduced
with executives taking reduced cash salaries and directors waiving cash fees. There is a growing
commitment to address the burden of mining concession fee arears over the year ahead while
maximizing exploration expenditures as outlined above. The Company's non-core concessions of
over 300 km
2
(Figure 2) remain available for partnership or outright purchase and outreach has been
made to encourage potential monetization. The recent
$3.03 million
non-brokered private placement
that closed
February 16
(see
News Release
) bought the Company the ability to deliver the promised
resource and provided some flexibility in timing for further financing to meet our objectives for the
remainder of 2023.
The Company has had several inquiries from independent parties interested in facilitating small-scale
mining at the former Plomosas Mine at no cost to the Company, with the processing of mined
material at third-party mills in the region. Given the state of the capital markets at present, the
Company's board of directors has instructed management to explore this option based on minimizing
risk regarding financial, technical, environmental, health and safety exposure. There are no
guarantees that discussions with these parties, subject to negotiating acceptable terms and
conditions, as well as the entering into of definitive documentation, will come to fruition.
About
the Plomosas Project
The Plomosas Project, including the recent high-grade silver SE Area discovery in the San Marcial
Area, is an emerging high-grade silver district located in southern
Sinaloa, Mexico
. The 43,187 ha
Plomosas Project includes past-producing historical mining sites benefiting from previous mine
infrastructure, road access and existing permits. The district contains intermediate to low
sulphidation epithermal silver and gold mineralization hosted in hydrothermal breccias and veins.
Recent success in exploration and drilling has delineated wide, high-grade, shallow hydrothermal
breccias in the San Marcial Area, including the SE Area discovery, where initial drilling incorporated
in the updated resource estimation for the Plomosas Project unveils an exploration opportunity for
continuous resource growth.
QA/QC Procedures
The Company has implemented QA/QC procedures which include insertion of blank, duplicate and
standard samples in all sample lots sent to SGS de México, S.A. de C.V. laboratory facilities in
Durango, Mexico
, for sample preparation and assaying. For every sample with results above Ag
>100 ppm (over limits), these samples are submitted directly by SGS de
Mexico
to SGS Canada
Inc. at
Burnaby, BC
. The analytical methods are four acid Digest and Inductively Coupled Plasma
Optical Emission Spectrometry with Lead Fusion Fire Assay with gravimetric finish for silver above
over limits. For gold assays the analytical methods are Lead Fusion and Atomic Absorption
Spectrometry Lead Fusion Fire Assay and gravimetric finish for gold above over limits (>10 ppm).
Qualified Person
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects
for this news release is
Marcio Fonseca
, P. Geo., President & COO for GR Silver Mining, who has
reviewed and approved its contents.
About GR Silver Mining Ltd.
GR Silver Mining is a Canadian-based,
Mexico
-focused junior mineral exploration company engaged
in cost-effective silver-gold resource expansion on its 100%-owned assets, located on the eastern
edge of the Rosario Mining District, in the southeast of Sinaloa State,
Mexico
. GR Silver Mining
controls 100% of two past producer precious metal underground and open pit mines, within the
expanded Plomosas Project, which includes the integrated San Marcial Area and
La Trinidad
acquisition. In conjunction with a portfolio of early to advanced stage exploration targets, the
Company holds 734 km
2
of concessions containing several structural corridors totaling over 75 km in
strike length.
GR Silver Mining Ltd.
Eric Zaunscherb
Chair & CEO
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable
Canadian securities legislation 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this press release.
SOURCE
GR Silver Mining Ltd.
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For further information:
Eric Zaunscherb, Telephone: +1.647.293.8457, Email:
CO: GR Silver Mining Ltd.
CNW 06:15e 08-MAY-23