GR Silver Mining Reports Wide and High- Grade Zones from New Underground Drilling in the Plomosas Mine Area: 83 m
GR Silver Mining Reports Wide and High-
Grade Zones from New Underground Drilling
in the Plomosas Mine Area:
83 m
@ 420 g/t AgEq
1
,
including
11 m
@ 1,596 g/t AgEq, and
4 m
@ 1,319 g/t AgEq
VANCOUVER, BC
,
Jan. 5, 2021
/CNW/ - GR Silver Mining Ltd
.
(TSXV: GRSL) (FRANKFURT: GPE)
(OTCQB: GRSLF)
("GR
Silver Mining" or the "Company")
– is pleased to report wide and high-
grade drill results from the Company's underground core drilling program in the Plomosas Mine
Area, as well as validation sampling results from historic drilling, at its 100%-owned Plomosas Silver
Project ("Plomosas Project") in
Sinaloa, Mexico
.
The underground drilling program is targeting bulk tonnage-style mineralization in the Plomosas Mine
Area (following the Company's recent discovery at level 775, approximately
250 m
below surface)
aiming to delineate high margin precious and base metals mineralization with potential for large
tonnage and scalability.
The successful underground exploration drilling program at the Plomosas Mine Area has discovered
extensions to the wide mineralization previously sampled at level 775, both below, and laterally to,
previously mined areas. The mineralization is represented by thick intercepts of Au-Ag-Pb-Zn-Cu
mineralization hosted in a series of hydrothermal breccias.
Drill intercept highlights from recently completed hole PLI20-04
2
include (see also Table 1):
83.0 m
@ 420 g/t AgEq (2.52 g/t Au, 33 g/t Ag, 0.9 % Pb, 2.9 % Zn and 0.3 % Cu, from
98.0 to
181.0 m
), including:
4.0 m
@ 1,319 g/t AgEq (9.35 g/t Au, 38 g/t Ag, 0.4 % Pb, 10.5 % Zn and 0.3 % Cu);
and
11.0 m
@ 1,596 g/t AgEq (9.41 g/t Au, 135 g/t Ag, 5.7 % Pb, 9.8 % Zn and 0.5 % Cu)
_________________________
1
AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound
lead and US$3.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu.
2
As final interpretation of the 3D orientation of mineralization is incomplete, true widths are unknown at this time and are reported as drilled widths.
Two oriented underground core drill holes (PLI20-03, PLI20-04), drilled by GR Silver Mining, have
provided important geological, structural and mineralization data, thus aiding the interpretation of
these wide, high-grade zones. This data is assisting in the investigation of additional broad zones of
sulphide-rich (sphalerite, galena and chalcopyrite) mineralization hosted in structurally controlled
hydrothermal breccias in the Plomosas Mine Area (
link to core photos
).
Four historic underground drill holes (PLI17-05, PLI17-08, PLI17-15 and PLI17-16), located nearby,
were also validated with new sampling by GR Silver Mining. All data and additional new sample
results are being incorporated into a 3D geological model (Figure 1).
GR Silver Mining President and CEO,
Marcio Fonseca
, commented,
"These are extraordinary
drilling results from the Plomosas Mine Area, indicating potential for size and scalability in the
geological model to host attractive precious and base metals mineralization in areas close to
existing underground development. We will continue with underground drilling in the vicinity of this
polymetallic mineralization in 2021 and will also apply the technical knowledge to look for similar
mineralization in other targets in the Plomosas Silver Project."
The drill hole PLI20-04 represents a
25 m
step-out from the previously released high grade
discovery at the deepest level (
775m
RL) of the Plomosas Mine Area (see
News Release dated
28 September, 2020
). The step-out area displays an intersection of two fault
systems: the low angle N-S trending Plomosas Fault and high angle NE oriented faults (
see cross section 2551950N
).
The wide mineralized zone is mainly comprised of high-grade Au-Ag-Pb-Zn hydrothermal breccia,
with late disseminated chalcopyrite (Cu) - pyrite rich veins/veinlets. A pervasive chalcopyrite-pyrite
quartz stockwork system is common not only on the footwall, but also on the hanging wall of the
mineralized hydrothermal breccia. This system is apparently hosted by the two fault systems and
also by specific geological units, oxidized andesites and andesitic tuffs, defining a prospective
corridor along strike. A similar style of mineralization was recently mapped in the upper levels of the
Plomosas Mine Area and is currently the subject of detailed exploration. Based on the recent
underground drilling results, GR Silver Mining is continuing the investigation of all historical
underground sampling in order to delineate new zones for drilling, aiming to incorporate all new
areas in the upcoming NI 43-101 resource estimation.
Table 1 and 2 summarize the most significant assay results for the underground drill holes reported
in this News Release.
Table 1: Underground Drill Hole Results - News Release
January 05, 2021
(Plomosas Mine
Area)
Hole No.
Type
From (m)
To (m)
Drilled width (m)
Ag g/t
Au g/t
Pb %
Zn %
Cu %
AgEq g/t
PLI20-03
UG
No significant assays
PLI20-04
UG
98.0
181.0
83.0
33
2.52
0.9
2.9
0.3
420
includes
99.0
103.0
4.0
38
9.35
0.4
10.5
0.3
1,319
139.0
150.0
11.0
135
9.41
5.7
9.8
0.5
1,596
Table 2: Historic Underground Drill Hole Results - News Release
January 5, 2021
(Plomosas
Mine Area)
Hole No.
Type
From (m)
To (m)
Drilled width (m)
Ag g/t
Au g/t
Pb %
Zn %
Cu %
AgEq g/t
PLI17-05
UG
120.0
125.0
5.0
58
na
na
na
na
PLI17-08
UG
80.0
98.7
18.7
31
0.21
1.5
1.6
na
152
includes
91.0
95.6
4.6
88
0.73
5.8
5.3
0.1
512
PLI17-15
UG
0.0
41.1
41.1
14
0.35
1.5
2.8
na
180
PLI17-16
UG
0.0
32.1
32.1
6
0.39
1.9
1.9
na
As final interpretation of the 3D orientation of mineralization is incomplete,
true widths are unknown at this time and are reported as drilled widths. AgEq is
based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead
and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn.and 70% Cu. "na" = no relevant assays. All
numbers are rounded. Results are uncut and undiluted. UG: Underground Drill Hole, SURF: Surface Drill Hole
The following table (Table 3) summarizes the collar locations for drill holes identified in this News
Release.
Table 3: Drill Hole Locations – News Release
January 5, 2021
(Plomosas Mine Area)
Hole No.
East (m)
North (m)
RL (m)
Azimuth
Dip
Depth (m)
PLI20-03
451152
2551934
748
270
-10
165
PLI20-04
451152
2551934
748
270
-30
230
PLI17-05
451022
2551887
705
0
-45
125
PLI17-08
450917
2551891
705
56
-45
159
PLI17-15
451022
2551887
705
0
-45
124
PLI17-16
451023
2551886
705
25
-55
104
All numbers are rounded.
GR Silver Mining believes that the Plomosas Mine Area is part of a much larger low sulphidation
epithermal system as indicated by field evidence along one kilometre of strike length, where only
400 m
of that strike had previously been drilled. The 2020 underground and surface exploration
program defined multiple styles of mineralization, creating an opportunity for the Company to
continue discovering new mineralized zones close to the surface.
Qualified Person
The scientific and technical data contained in this News Release related to the Plomosas Project
was reviewed and/or prepared under the supervision of Marcio Fonseca, P.Geo. He has approved
the disclosure herein.
Quality Assurance Program and Quality Control Procedures ("QA/QC")
The Company has implemented QA/QC procedures which include insertion of blank 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 4-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.
The recent drill holes, completed by First Majestic from 2016 to 2018, followed QA/QC protocols
reviewed and
validated by GR Silver Mining, including insertion of blank and standard samples in all sample lots
sent to First Majestic's Laboratorio Central facilities in La Parilla, Durango, for sample preparation
and assaying. Additional validation and check assays were performed by an independent laboratory
at SGS de México, S.A. de C.V. facilities in Durango, Mexico. The analytical methods applied for
these recent holes for Ag and Au assays comprised of Fire Assay with Atomic Absorption finish
for samples above Au >10ppm and Ag >300ppm and Gravimetric Finish. Pb and Zn were analyzed
using Inductively Coupled Plasma Optical Emission Spectrometry. GR Silver Mining has not received
information related to the Grupo Mexico QA/QC and assay protocols and at this stage is considering
the information historic for news release purposes.
About GR Silver Mining Ltd
.
GR Silver Mining Ltd. is a
Mexico
-focused company engaged in cost-effective silver-gold resource
expansion on its key assets which lie on the eastern edge of the Rosario Mining District,
Sinaloa,
Mexico
.
PLOMOSAS SILVER PROJECT
GR Silver Mining owns 100% of the Plomosas Silver Project located near the historic mining village
of
La Rastra
, within the Rosario Mining District. The Project is a past-producing asset where only
one mine, the Plomosas silver-gold-lead-zinc underground mine, operated a 600 tpd crush milling
flotation circuit from 1986 to 2001, producing approximately 8 million ounces of silver, 73 million
pounds of lead and 28 million pounds of zinc.
The Project has an 8,515-hectare property position and is strategically located within 5 km of the
Company's San Marcial Silver Project in the southeast of Sinaloa State,
Mexico
.
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 has commenced an
11,900 m
drilling program with surface holes focused on
expanding known mineralization along strike in two initial areas, the Plomosas Mine Area and the
San Juan Area
. Underground drilling included in the program will target the extension of recent
polymetallic 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
San Juan Area
. Both areas will be the subject
of NI 43-101 resource estimations following completion of this drill program.
The 100%-owned 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 million
of previous capital investments. The previous owners invested
approximately
US$18 million
in exploration, including extensive geophysics and geochemistry
programs.
The silver and gold mineralization on this Project display the alteration, textures, mineralogy and
deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal vein/breccia
mineralized system. Previous exploration was focused on Pb-Zn-Ag-Au polymetallic shallow
mineralization, hosted in NW-SE structures in the vicinity of the Plomosas mine. The E-W portion of
the mineralization and extensions for the main N-S Plomosas fault remain under-explored.
In addition to the resource potential at Plomosas, a review of the existing drill hole database,
geophysical surveys and geochemical data covering most of the concession, has defined 16 new
exploration targets from which 11 have high priority for future exploration programs.
SAN MARCIAL PROJECT
San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project, which contains
a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) NI 43-101 resource estimate. 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. The NI 43-101 resource estimate (San Marcial Project –
Resource Estimation and Technical Report) was completed by WSP Canada Inc. on
March 18,
2019
and amended on
June 10, 2020
.
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.
Plomosas and San Marcial collectively represent a geological setting resembling the multimillion-
ounce San Dimas Mining District which has historically produced more than 600 Moz silver and 11
Moz gold over a period of more than 100 years.
OTHER PROJECTS
GR Silver Mining's other projects are situated in areas attractive for future discoveries and
development in the same vicinity of Plomosas and San Marcial in the Rosario Mining District.
Mr.
Marcio Fonseca
P. Geo, President & CEO
GR Silver Mining Ltd.
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.
Figure 1: Location Map - 3D Image of the Plomosas Mine Area Underground Drilling Location (CNW
Group/GR Silver Mining Ltd.)
SOURCE
GR Silver Mining Ltd.
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For further information:
For Further Information: Contact: +1 (604) 202 3155, Email:
CO: GR Silver Mining Ltd.
CNW 07:30e 05-JAN-21