The company's core assets are its mineral exploration properties located within the Rosario Mining District in Sinaloa, Mexico, collectively referred to as the Plomosas Project.
The Plomosas Area represents a substantial land package, encompassing 43,187 hectares, with a core continuous area of 9,764 hectares. This includes the advanced-stage Plomosas Mine Area, the San Marcial Area, and the San Juan-La Colorada Area. The project is known to host significant mineralization of silver, gold, lead, and zinc.
The San Marcial Area, located within Mexico’s prolific Rosario Mining District, hosts a significant high-grade silver resource with strong development potential. Anchored by the San Marcial deposit—a well-preserved, Ag-rich hydrothermal breccia formed during the Oligocene—the property lies at the structural intersection of a major E-W crustal fault and a N-NW trending fault zone.
In August 2022, exploration success at the SE Area expanded the property's upside, highlighted by a drill intercept of 101 metres grading 308 g/t silver, including 17 metres at 414 g/t. The current NI 43-101 resource footprint covers just 25% of a broader zone of strong chargeability anomalies. Recent geological work has identified multiple intrusive-related epithermal silver-gold targets, suggesting room for substantial resource growth.
The foundation for the valuation and future growth potential of GR Silver Mining's mineral assets lies in its National Instrument 43-101 (NI 43-101) compliant Mineral Resource Estimate. The most recent estimate, released in March 2023, updates resources for the San Marcial, Plomosas Mine, and San Juan-La Colorada Areas, providing a comprehensive assessment of the Plomosas Project's mineral endowment.
Mineral Resource Estimates (NI 43-101)
The combined Plomosas Project is estimated to contain 85 Moz AgEq in the Indicated category and 49 Moz AgEq in the Inferred category. These silver equivalent (AgEq) calculations are based on specific metal prices: US
22.00/ozAg,US1,750/oz Au, US1.10/lbPb,US1.30/lb Zn, and US$4.20/lb Cu, incorporating metallurgical recoveries for the Plomosas Mine. This transparent reporting of underlying assumptions is essential for stakeholders to evaluate the resource value and its sensitivity to market fluctuations.
San Marcial Area: This area contributes significantly to the overall resource, with indicated mineral resources of 10 million tonnes (Mt) at 148 g/t AgEq and inferred mineral resources of 3 Mt at 145 g/t AgEq. Notably, silver accounts for 88% of the value within the San Marcial Resource Estimate, and the resources are potentially amenable to open pit extraction.
Plomosas Mine Area: The resource estimate for this area is supported by an extensive database comprising 424 drill holes, totalling 60,020 meters. This includes 223 drill holes (16,380 meters) from an infill drilling program, enhancing the confidence in the resource definition.
The NI 43-101 report provides quantified mineral resources, which are crucial for assessing the company's primary assets. These estimates, prepared under a standardized instrument, offer a credible basis for valuing the company's mineral properties. The categorization into Indicated and Inferred resources reflects varying levels of geological confidence, guiding future exploration and development priorities. This information forms the bedrock for any subsequent economic studies, such as Pre-Feasibility Studies (PFS) or Feasibility Studies (FS), and underpins the company's long-term growth potential.
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