VANCOUVER, May 13, 2020
VANCOUVER, May 13, 2020 /CNW/ – GR Silver Mining Ltd. (TSXV: GRSL, FRANKFURT: GPE, OTCQB: GLYXF) (“GR Silver Mining” or the “Company”) – is pleased to report high-grade drill results at its 100% owned Plomosas Silver Project (“Plomosas Project”) in Sinaloa, Mexico. These results are located in the Plomosas Mine Area, one of six priority areas with a combination of recent (2016 to 2018) and historical drill data being released by the Company (See Drone Image).
These additional drill hole results confirm the presence of high-grade gold-silver mineralization in the Plomosas Mine Area in un-mined zones, representing Au-Ag enrichment in vertical faults cross-cutting the main shallow-dipping Plomosas Fault. The drill section discussed in this news release is a step-out section (Figure 1), 100 m south of drill holes reported in a previous news release (see April 23, 2020).
GR Silver Mining President and CEO, Marcio Fonseca, commented, “With the confirmation of the new high-grade Au-Ag zones hosted in subvertical faults, 100 m along strike from the previously released cross section, we envisage an increased potential for definition of multiple high-grade mineralized veins for future resource estimation. These results confirm multiple mineralization styles at the Plomosas Project, outside of the previously mined polymetallic high-grade Pb-Zn-Ag-Au breccia that was typically hosted in shallow-dipping regional faults. GR Silver Mining is the first company to fully integrate and place all data in a 3D model allowing interpretation of a wide footprint of high-grade multiple veins. This modelling allows us to plan future expansion drilling and resource estimation. Our investigations of the extensive unreported drill database covering the Plomosas Mine Area continue to support a model with potential for mineralization not only hosted within a single high grade structure but within multiple cross-cutting high-grade veins (See high-grade core photo intervals).”
Table 1 summarizes the most significant drill assay results for the second group of holes released for the Plomosas Mine Area.
Table 1: Summary Drill Hole Results – News Release May 13, 2020 (Plomosas Mine Area only)
|Ag g/t||Au g/t||Zn %||Pb %||Ag Eq
|Ag g/t||Au g/t||Zn%||Pb%||Ag Eq
|Ag g/t||Au g/t||Zn%||Pb%||Ag Eq
|*AgEq is based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc and US$0.95 per pound lead. The metallurgical recoveries are assumed as 100%. “na” = no relevant assays. All numbers are rounded. Results are uncut and undiluted.|
The existing drill holes for the Plomosas Project were generated by drill campaigns completed by Grupo Mexico between 1982-2000 and First Majestic Silver Corp. (“First Majestic”) between 2016-2018 and form an extensive database which GR Silver Mining is consolidating and validating. The primary objective of Grupo Mexico was the discovery of Pb and Zn mineralization as potential feed for their historical flotation plant operations nearby. First Majestic drilled the Plomosas Mine Area aiming to define new mineralized zones down dip and along strike from the surface and underground sites. Wherever assay intervals are identified as missing within the drill hole database, the relevant drill holes will be re-examined, sampled, and assayed using the remaining core to complete the sequence of results.
Table 2 summarizes the historical drill hole intervals previously not sampled (“NS”) for the second group of holes released for the Plomosas Mine Area.
Table 2: Plomosas Mine Area Drill Holes – Historical Drill Hole Intervals Not Sampled (Intervals greater than 20 m)
|All numbers are rounded|
The high-grade Au-Ag vein intersections consist of mineralization hosted on high angle faults cross cutting the shallow angle regional faults (Plomosas Fault). Mineralization consists of 0.6 to 1.8 m wide banded quartz-acanthite-argentite-pyrite veins and breccias, dipping at an estimated 70° ESE. Conceptually, since the historical Plomosas operation only mined the polymetallic shallow dipping breccia, this new interpretation defines a series of low sulphidation epithermal veins, proximal to each other, close to existing underground infrastructure and accessible for drilling and potential future exploitation. The Plomosas Mine Area has a high-grade footprint approximately 300 m along strike, as defined by interpretation of released drill holes and historical underground sampling, and is open in most directions, Figure 2. Further drilling for potential expansion of the high-grade footprint is currently being planned.
The Company continues to validate all drill hole results in the extensive Plomosas drill database aiming to fully integrate them in a 3D Model. Other ongoing site activities include underground mapping and sampling on the Plomosas Mine Area, drill core sampling and assaying, and initial bulk sampling of selected underground areas for future metallurgical testwork
Table 3: Drill Hole Locations
|Hole No.||East||North||RL||Azimuth||Dip||Depth (m)|
|All numbers are rounded.|
The Company also announces that, pursuant to the Company’s 10% rolling stock option plan and in compliance with the policies of the TSX Ventur Exchange, it has granted incentive stock options to certain directors, officers, and consultants of the Company to purchase up to an aggregate of 1,385,000 common shares of the Company. These options are exercisable for a period of 5 years at a price of $0.335 per share.
The scientific and technical data contained in this News Release related to the Plomosas Project was reviewed and/or prepared under the supervision of Marcio Fonseca, P.Geo. He has approved the disclosue herein.
Quality Assurance Program and Quality Control Procedures (“QA/QC”)
The recent drill holes completed by First Majestic followed QA/QC protocols reviewed and validated by GR Silver Mining, including insertion of blank and standard samples in all sample lots sent to First Majestic’s Laboratorio Central facilities in La Parilla, Durango, for sample preparation and assaying. Additional validation and check assays were performed at independent laboratory by at SGS de México, S.A. de C.V facilities in Durango, Mexico. The analytical methods applied for these recent holes for Ag and Au assays comprised of Fire Assay with Atomic Absorption finish for samples above Au >10ppm and Ag >300ppm and Gravimetric Finish. Pb and Zn were analyzed using Inductively Coupled Plasma Optical Emission Spectrometry.
GR Silver Mining has reviewed information related to the historic Grupo Mexico drill holes and believes the results are of sufficient quality and suitable for disclosure. GR Silver has not verified the results. The following drill holes were drilled by Grupo Mexico, SD-3, SD-4, SD-5, SD-8, SD-21, SD-27,SD-51, SD-53,73, 139, 190 and 191.
About GR Silver Mining Ltd.
GR Silver Mining Ltd. (GRSL.V) is a Mexico-focused company engaged in cost-effective silver-gold resource expansion on its key assets which lie on the eastern edge of the Rosario Mining District, Sinaloa, Mexico.
PLOMOSAS SILVER PROJECT
GR Silver Mining owns 100% of the Plomosas Silver Project located near the historic mining village of La Rastra, within the Rosario Mining District. The Project is a past-producing asset where only one mine, the Plomosas silver-gold-lead-zinc underground mine, operated from 1986 to 2001. The Project has an 8,515-hectare property position and is strategically located within 5 km of the San Marcial Silver Project in the southeast of Sinaloa State, Mexico. The Plomosas Project comprises six areas with an average of 100 surface and underground drill holes in each area, geophysical and geochemical data covering most of the concession, and the delineation of 16 exploration/drilling targets.
The 100% owned assets include all facilities and infrastructure including: access roads, surface rights agreement, water use permit, 8,000 m of underground workings, water access, 60 km – 33 KV power line, offices, shops, 120-person camp, infirmary, warehouses and assay lab representing approximately US$30m of previous capital investments. The previous owners invested approximately US$18 million in exploration.
The silver and gold mineralization on this Project display the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal vein/breccia mineralized system. Previous exploration was focused on Pb-Zn-Ag-Au polymetallic shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas mine. The E-W portion of the mineralization and extensions for the main N-S Plomosas fault remains under-explored. The Plomosas Silver Project has more than 500 recent and historical drill holes in six areas – Plomosas Mine, San Juan, La Colorada, Yecora, San Francisco and El Saltito. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.
SAN MARCIAL PROJECT
San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. GR Silver Mining is currently expanding its NI 43-101 resource estimate at the San Marcial Project, which contains 36 Moz AgEq (Indicated) + 11 Moz AgEq (Inferred), by defining new high-grade gold and silver targets along the project’s 6 km mineralized trend. GR Silver Mining is the first company to conduct exploration at San Marcial in over 10 years. The NI 43-101 resource estimate (San Marcial Project – Resource Estimation and Technical Report) was completed by WSP Canada Inc. on March 26, 2019.
Plomosas and San Marcial collectively represent a geological setting resembling the multimillion-ounce San Dimas Mining District which has historically produced more than 620 Moz silver and 11 Moz gold over a period of more than 100 years.
GR Silver Mining’s other projects are situated in areas attractive for future discoveries and development in the same vicinity of Plomosas and San Marcial in the Rosario Mining District.
Mr. Marcio Fonseca
P. Geo, President & CEO
GR Silver Mining Ltd.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.
Disclaimer for Forward-Looking Information
This press release contains forward-looking statements 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.
SOURCE GR Silver Mining Ltd.
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