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GR Silver Mining looking to define a 'substantial' new resource at exciting Plomosas project in Mexico

Snapshot

The firm now has100% ownership of a 29,000-hectare portfolio in a prolific mining district

GR Silver Mining -

Quick facts: GR Silver Mining

Price: 0.51 CAD

TSX-V:GRSL
Market: TSX-V
Market Cap: $63.08 m
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  • Accomplished board with extensive Mexico experience
  • 100% control of key assets in historic district
  • Fully funded path to rapid resource expansion

What GR Silver Mining does:

GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GLYXF) is a precious metals explorer, which is consolidating assets in the eastern edge of the well-known Rosario mining district in Mexico, where it now controls the most attractive ground.

It says it now has 100% ownership of a 29,000 hectare (Ha) portfolio in a prolific mining district. Its main assets are the Plomosas silver project, which hosts a former producing mine, and the San Marcial project, which lies 5 kilometres (km) away and is a near-surface, high-grade silver, lead, and zinc property, amenable to becoming an open-pit mine.

The firm also has other projects attractive for future development near Plomosas and San Marcial. For example, it has the Rosario-gold project, which lies adjacent to Fresnillo PLC's (LON:FRES) historical multimillion-ounce Rosario mine.

GR Silver says its Plomosas and San Marcial assets collectively represent a setting resembling the multi-million-ounce San Dimas district in Durango, north-west Mexico. This area historically produced over 620 million ounces (Moz) silver and 11 Moz gold over around 100 years.

The Plomosas project was operated for 15 years by Grupo Mexico as a lead, zinc mine but was never explored or exploited for gold, silver or copper.

The company says its main strategy is to pick up low cost, quality assets, which already have data and quickly boost group resources.

How is it doing:

Most of 2020 has been characterized by exciting exploration results at the Plomosas project, the most recent being from channel sampling.

The work identified a new zone of high-grade polymetallic mineralization, with a continuous intersection, measuring 15.7 metres (m) found next to the existing "room and pillar" stope on the 775 RL level at the former mine. Part of that length assayed 5.4m at a very robust 1,313 grams per ton (g/t) of silver-equivalent.

"The geological setting of these samples provides an opportunity to define large volumes of not only precious metals, but also base metals," GR Silver said, noting that the gold appeared to be associated with base metal mineralization and offered the firm immediate new underground and surface targets for drilling.

In mid-September, the group said an initial two holes sunk into the Plomosas Mine area, targeting expansion of the mineralization footprint along strike, had confirmed attractive near-surface mineralized zones. Highlight intervals included 5.1m at 19.2 g/t gold, and 18m at 554 g/t silver equivalent (AgEq).

The work was part of the firm's initial 4,500m surface core drilling program this year, which has two aims -  shallow drilling up to 150m below surface to expand the known mineralized zones along strike at the Plomosas Mine and San Juan-La Colorada areas, and follow-up drilling on new high-grade gold-silver low sulphidation epithermal vein occurrences at Yecora and El Saltito.

The company has said it believes that San Juan-La Colorada is geologically similar to the Plomosas Mine Area on the wider Plomosas silver project, which has more than 500 recent and historical drill holes in six areas.

In terms of a timeline, GR Silver is looking towards new resource estimates within the next six to nine months and defining a district-scale silver-gold system within the next nine to 12 months. The integration of San Marcial and Plomosas and desktop economic studies are expected within the next one to two years.

Inflection points:

  • Further exploration results
  • Precious metals moves
  • New resource estimates

What the boss says:

On September 29 this year, the chief executive of GR Silver, Marcio Fonseca explained how when the group took hold of complete ownership of Plomosas, it also got access to the results from 262 previous drill holes, which it then reassessed using 3D software, coming to the conclusion there was more than just lead and zinc present.

"We are integrating all the data and we are discovering silver and gold and defining what can be a sizeable mineralized system, with multi-commodities and many opportunities to define a much larger resource in a project that we control 100% of and the infrastructure is in place - low risk for future development," he told Proactive's Steve Darling.

He also pointed out the different "economic reality" for those who were mining in 2001 when silver was a mere US$5 an ounce, while gold stood at just US$290 an ounce.

"What was not mineable in those years completely attractive today," Fonseca said. 

Contact the author at giles@proactiveinvestors.com

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GR Silver Mining (CVE: GRSL-OTCQB: GRSLF) CEO Marcio Fonseca joined Steve Darling from Proactive Vancouver to share details that channel sampling has led them to announce that wide, high-grade polymetallic, disseminated and massive sulphide-rich mineralization has been discovered in their...

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