GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GRSLF) received a boost for its Plomosas silver project in Mexico, saying it had found a new zone of high-grade polymetallic mineralization at the formerly producing Plomosas mine.
From channel sampling, a continuous intersection, measuring 15.7 metres (m) was found next to the existing "room and pillar" stope on the 775 RL level at the mine, and out into unmined zones, GR Silver said.
READ: GR Silver Mining releases new drill results showing significant grades near surface at Plomosas
Part of that length assayed 5.4m at 1,313 grams per ton (g/t) of silver-equivalent, the firm added, while the 15.7m overall length assayed 416 g/t silver equivalent.
"These new high-grade polymetallic underground channel sampling results are extraordinary, indicating the potential to define substantial new mineralized zones," noted GR Silver CEO Marcio Fonseca in a statement.
"The geological setting of these samples provides an opportunity to define large volumes of not only precious metals, but also base metals."
Fonseca added that the gold appeared to be associated with base metal mineralization and offered the firm immediate new underground and surface drilling targets.
"The presence of three styles of mineralization: (1) disseminated or massive sulphide-style mineralization adjacent to (2) the structurally controlled Pb-Zn-Ag-Au hydrothermal breccia and (3) high-grade Au-Ag low sulphidation mineralization, reinforces the potential for large-scale mining at Plomosas, in areas consisting of underground development completed by previous operators," he told investors.
GR Silver reckons the Plomosas mine area is part of a much larger epithermal system, as indicated by field evidence along 1 kilometer (km) of strike length, where only 400m of that strike has previously been drilled.
It is continuing detailed sampling and mapping to confirm the potential for expansion of polymetallic mineralization along strike. It has also now budgeted for a 1,400m underground drilling program to be completed using existing drill stations.
This 1,400m core drilling program is expected to continue through 2020 in a bid to delineate areas for resource estimation, combined with the recently announced surface core drilling program.
GR Silver Mining owns 100% of the 8,515-hectare Plomosas project, which hosts a mine which produced between 1986 and 2001. It lies near the historic mining village of La Rastra, within the Rosario mining district.
The firm's San Marcial project lies 5 kilometres (km) away and is a near-surface, high-grade silver, lead, and zinc property.
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.
Shares in Toronto nudged up 1.5% to C$0.67 on the day.
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