VANCOUVER, BC, March 3,
2025 /CNW/ - GR Silver Mining Ltd. ("GR Silver
Mining" or the "Company") (TSXV: GRSL) (OTCQB: GRSLF) (FRANKFURT:
GPE) – The Company is pleased to announce resumption of field
exploration and step out drilling targeting potential resource
expansion at the San Marcial Area.
Highlights
- After detailed geological, geochemical and geophysical data
modelling in partnership with leading geological experts, the
Company has identified multiple new drill targets in the vicinity
of the San Marcial Resource Area.
- The Company is commencing a step-out drilling program aiming to
expand the San Marcial mineralization footprint by as much as 350
metres northwest from the current NI 43-101 resource area, as well
as test potential new parallel zones.
- Initial reconnaissance of silver mineralized hydrothermal
breccias outcropping in the northwest and southwest areas on the
edge of a large chargeability anomaly has encouraged the Company to
continue surface exploration.
- To date, only 25% of the footprint defined by coincident
geophysical and geochemical anomalies and highlighted by the drill
hole SMS22-10 intercept that cut 101
m averaging 308 g/t Ag including 0.8
m grading 7,139 g/t Ag at shallow depth, has been
tested.
- A successful Bulk Sampling Test Mining ("BSTM") program
at the historical San Juan Mine has prompted the Company to further
evaluate high-grade silver-gold-lead-zinc mineralization. In
addition, metallurgical results from the production and delivery of
attractive concentrates to an off-taker, are being assessed. This
data is assisting the Company in its third-party discussions to
facilitate commencement of a BSTM program at the permitted former
Plomosas Mine.
- Positive corporate improvements during 2024 have positioned GR
Silver Mining for a return to exploration in 2025. Our corporate
successes included the sale of a non-core asset, elimination of its
working capital deficit, compensation from a third party for a
historical environmental impasse, a 106% uplift in the Company
share price and strengthened leadership through the recruitment of
new directors.
- GR Silver Mining saw the exercise of 11.9 million warrants
prior to their expiry on February 14,
yielding proceeds of $1.8 million at
an exercise price of $0.15.
- A strong round of consolidation in the Mexican mining industry
indicates improvement in the attractiveness of Mexico for future project developments and
assessments of new business opportunities. GR Silver Mining's
management is exploring opportunities to achieve critical mass
going forward.
Our Primary Objective for 2025: Expansion of the
Mineralization Footprint at San Marcial
Management recognizes that the Company's greatest value driver
is exploration of the highly prospective San Marcial system with
its silver-dominant, wide and continuous mineralization. GR Silver
Mining is conducting detailed data modelling studies in conjunction
with CODES, the globally regarded Centre for Ore Deposit and Earth
Sciences at the University of Tasmania (link). This partnership with Dr.
Paula Montoya unlocks key
information to assist the Company to define new mineralized zones
potentially comparable with other major silver districts in the
Sierra Madre Occidental. Importantly, fine-tuning of the geological
model at San Marcial has yielded several high-priority targets for
further drilling. Four of these targets (Figure 1) are currently
selected for new step-out and exploration drilling.
The Company has continuously increased resources at the
San Marcial Area since its acquisition. The Company believes
the studies in progress may catalyze the further expansion of the
San Marcial resource to the northwest and southeast. Step-out
drilling after the 2023 MRE continued to demonstrate wide,
silver-dominant mineralization at relatively shallow depths,
extending the mineralized footprint as much as 500 m to the southeast. We believe that follow up
drilling to depth and to the southeast is highly prospective at San
Marcial.
The identification of the controls on mineralization at San
Marcial resulted in the recognition of the presence of the wide
mineralized SE Discovery zone at a shallow depth but not
outcropping. Geological interpretation, lithogeochemical sampling,
and geophysical modelling together with the analysis of key
structural corridors provides a template for new exploration and
drilling, recognizing that mineralization can be blind, i.e., not
obvious at surface (Figure 2).
GR Silver Mining has been engaged in securing the necessary
permits for expanded drill programs on the San Marcial Area. As we
await these additional permits, our geologists have been active in
relogging core, analyzing data, and deposit modeling while based in
our offices in El Rosario. Drill
programs have been designed, and details will be provided as
programs are initiated. The first phase of 2025 drilling has
commenced with approximately 1,300 metres planned in up to seven
shallow holes targeting near surface, high-grade silver
mineralization.
Surface exploration efforts continue with the support of data
modelling and mineral prospectivity assessment along the major
regional structures in the San Marcial Area. Initial reconnaissance
of silver mineralized hydrothermal breccias outcropping in the
northwest and southwest areas on the edge of a large geophysical
anomaly (chargeability) has encouraged the Company to continue
surface exploration (see post on LinkedIn). To date, only 25% of
the footprint defined by coincident geophysical and geochemical
anomalies and highlighted by the drill hole SMS22-10 intercept that
cut 101 m averaging 308 g/t Ag
including 0.8 m grading 7,139 g/t Ag
at shallow depth, has been tested.
The Former Plomosas Mine: An Unrecognized Asset
As previously noted (news release, March 4, 2024), GR
Silver engaged private local operators (mining and milling) to
conduct a small-scale BSTM program at the historical San Juan mine site, which is located on a
parallel structure several kilometres west of the former Plomosas
Mine. The program yielded valuable incremental knowledge related to
high-grade modeling and targeting, grade reconciliation, and
mineral deposit modeling to define new drill targets. From January
to September 2024, 20,620 t of
material were mined and 20,430 t milled by the private local
operators. A total of 420 t (dry) of lead concentrate were sold,
averaging 10.43% Pb, 8,357 g/t Ag, and 8.19 g/t Au, with proceeds
contributing to Other Income in the Company's financial
statements.
Given the success of the San Juan BSTM program, management is
exploring similar options for the former Plomosas Mine. The former
Plomosas Mine offers,
- Broad lead-zinc-silver-gold mineralization over average widths
exceeding 20m.
- Existing infrastructure including road access, power to site,
7.4km of underground development with excellent ground
conditions,
- Mining licences and exploration and exploitation agreements
with ejidos in place and fully owned land, and
- Advanced geological, metallurgical and engineering knowledge
from recent studies as well as 15 years of production records by
the previous operator (1986 to 2000).
We believe that the market is focused on further exploration
results at San Marcial rather than the former Plomosas Mine,
despite the latter's positive attributes. To generate shareholder
value, management has signed several Non-Disclosure Agreements and
participated in due diligence exercises in support of a potential
BSTM at the former Plomosas Mine. Although management is encouraged
by our ongoing efforts, there are no guarantees that any of these
discussions will come to fruition on a forward-looking basis.
Achieved 2024 Objectives Position GR Silver Mining for an
Exciting 2025 Outlook
In 2023, GR Silver Mining met its key objective, delivering an
updated NI 43-101 Mineral Resource Estimate ("MRE") for the
Plomosas Project (news release, May 4,
2023). The updated MRE resulted in an increase in Indicated
resources to 85 million ounces AgEq (+84% relative to the 2021 NI
43-101 MRE) and an increase in Inferred resources to 49 million
ounces AgEq (+49% relative to the 2021 NI 43-101 MRE).
In 2023 and 2024, with changes in the Mexican Mining
Legislation, it was necessary for explorers in Mexico to re-evaluate their strategies in the
face of investment headwinds. The 2024 year became transformative
for GR Silver Mining and the Company has noticed improvements in
opportunities to continue advancing the Plomosas Project. We
defined several key objectives, and delivered on them, as outlined
following:
- Conducted a detailed review and modeling of exploration data
related to the discoveries in the San Marcial Area. In conjunction
with CODES and leading expert in Sierra Madre Occidental geology,
Dr. Paula Montoya, informing
upcoming drill programs aiming for new discoveries and resource
expansion.
- Negotiated and closed a Waiver and Release Agreement (news
release, April 1, 2024) by which the
Company received USD$500,000 cash and
296,710 common shares of Mako Mining Corp. at a deemed price of
$2.1007 per share (USD$460,000; CAD$623,300).
- In March 2024, the Company
engaged private local operators (mining and milling) to conduct a
small scale BSTM program at the historical San Juan mine site. For a very low cost, GR
Silver Mining gained incremental knowledge related to high-grade
modeling and targeting, grade reconciliation, and mineral deposit
modeling to define new drill targets.
- The Company's working capital deficit, which had reached
$27.4 million by the end of
June 2024, was driven by major
Mexican mining concession arrears, interest, and penalties related
to an earlier acquisition. By disposing of its non-core
Marlin Gold subsidiary in
July 2024 (news release, July 17, 2024), a positive working capital
position was achieved at September 30,
2024 without the loss of a single ounce of resource.
Expenses before depreciation, concession fees, and exploration
expenditures were reduced 33% over the two years to September 30, 2024, including a 55% reduction in
salaries and directors' fees. Near the end of 2023 and through
2024, we closed three non-brokered private placements, and we are
very grateful for the support of existing and new shareholders, as
well as our capital markets partners.
- We are extremely grateful to our Management and Board of
Directors for defining and successfully delivering on significant
corporate objectives, in the face of external challenges. In
August 2024 (news release,
August 6, 2024) we were pleased to
welcome Mr. Brent McFarlane, former
Vice President, Operations at SilverCrest Mines. We also welcomed
Ms. Jessica Van Den Akker, a
Chartered Professional Accountant with over 18 years of experience
and progressively increasing management and board responsibility,
to our Board. Combined, they strengthen mining engineering,
accounting, and capital markets expertise in the Company's Board
skills matrix.
As we successfully delivered on our objectives through the year,
aided by a strengthening silver price, GR Silver's share price
ended the year up 106%. Measured from the nadir of October 2023, the Company's share price gained
371%. Liquidity is attractive with a 30-day Average Trading Volume
of over 465,000 shares.
Since the beginning of 2025:
- The price of silver increased 14% to a peak of US$33.49/oz.
- GR Silver saw the exercise of 11.9 million warrants prior to
their expiry on February 14, yielding
proceeds of $1.8 million at an
exercise price of $0.15. The support
of our shareholders is greatly appreciated.
- First Majestic Silver Corp. closed (news release, January 16, 2025) the acquisition of Gatos
Silver, Inc. and Coeur Mining, Inc. closed (news release,
February 14, 2025) the acquisition of
SilverCrest Metals Inc., suggesting the potential for an incipient
wave of Mexican silver consolidation and an improvement in the
attractiveness of mining business opportunities in Mexico.
Upcoming Conferences
GR Silver Mining will be participating in the upcoming
conferences:
- The Prospectors and Developers Association of Canada's Convention in Toronto, February 28 to
March 5, Booth #2133.
- The Swiss Institute conference in Zürich, Switzerland, Attending March 18 and 19.
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 the Plomosas Project, including the
former Plomosas underground mine and wide, high-grade silver
mineralized zones at the San Marcial Area. Recent discoveries in
the 78 km2 of highly prospective advanced stage
exploration concessions, position the Company well in the pursuit
for resource expansion at the Plomosas Project.
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.