- Advanced stage, high grade, low-cost assets
- Commanding position in historical mining district with artisanal workings and multi-million ounces exploited from the Rosario mine
- Experienced management with15 years in mining-friendly Mexico
What GR Silver Mining does:
GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GLYXF) is a precious metals explorer, which is aiming to consolidate assets in the eastern edge of the well-known Rosario mining district in Mexico, where it says it now controls the most attractive ground.
The main assets are its recently acquired 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 says it also has other projects in areas attractive for future development near Plomosas and San Marcial in the Rosario district and that it's over 250 square km exploration portfolio covers some of the most prospective areas in the district. 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 multimillion-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 main aim of the company is to pick up low cost, quality assets, which already have data and quickly add to group resources.
How is it doing:
On March 30, GR Silver said it had completed its acquisition of Plomosas from major producer First Majestic Silver Corp (NYSE:AG) (TSE:FR). The latter becomes the group's largest shareholder with a 19.9% stake.
GR Silver paid C$100,000 and granted a 2% net smelter return (NSR) royalty on the asset with half of the NSR being subject to a buy-back option for US$1 million. It also issued more than 17 million shares to First Majestic.
Plomosas, the firm highlighted, includes six areas that are at the drilling/resource stage with 563 recent and historical drill holes and a series of high-grade silver and gold intersections. There are 16 exploration targets and over 30,000 metres (m) of under-explored veins and structures with around US$18 million spent on exploration until 2019.
The purchase, notably, comes with facilities and infrastructure, including an underground mine, a fully operational 60 km power line, fully equipped offices and shops and a 120 person camp. The acquisition, when combined with nearby San Marcial, provides GR with control of 9,764 hectares as well as the chance to cut costs and blend the two assets into future development.
Exploration has already kicked off at Plomosas and on April 2, the firm said channel sampling had returned high-grade gold and silver from the San Juan underground workings - one of the six priority areas at the project. Results included up to 6,128 grams per ton (g/t) silver over 0.2 m. The firm is aiming to move towards a resource estimate in the next three to six months.
Meanwhile, the company published a maiden NI 43-101 resource for its San Marcial project in February last year, which showed 36 million ounces of silver equivalent in the indicated category and 11 million ounces in the lower confidence inferred, with 98% of those 36 million ounces potentially mineable by open pit.
Resource expansion drilling is ongoing, targeting new zones and the firm has reported several significant assays since the maiden resource.
Last July, the firm said a first hole at San Marcial had hit a one-metre intersection at an impressive 204.6 g/t of the yellow metal at the Faisanes target. Other drill intersections outside the resource area have included 28.7 m at 92 g/t silver, including 13.75 m at 154 g/t silver.
- More news flow from Plomosas and a new resource estimate
- Exploration results from San Marcial
What the boss says:
On April 1, GR Silver's CEO Marcio Fonseca told Proactive: "The Plomosas silver project is important for the company because together with the San Marcial it consolidates our ownership of the most important silver and gold mineralized systems in the Rosaria mining district."