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GR Silver Mining Reports High-grade Underground Sampling Results at Plomosas, Including Assays up to 6,128 gpt Ag over 0.2 meters.

GR Silver Mining Ltd. (TSXV: GRSLFRANKFURT: GPE, OTCQB: GLYXF) (“GR Silver” or the “Company”) – is pleased to announce assay results for initial underground channel sampling from the San Juan underground workings at the recently acquired Plomosas Silver Project (“Plomosas”), in Sinaloa, MexicoSan Juan is one of six priority areas with underground development not yet exploited by previous owners (view photo here). The underground workings at San Juan have recently been rehabilitated by GR Silver to allow for this initial sampling program. The company is currently validating all recent and historical information, including the review of over 500 drill holes in the six priority areas and sampling mineralized zones, aiming to complete multiple resource estimations in 2020.

The most significant sample results for this release returned high-grade intervals of 0.4 m at 3,003 g/t Ag and 0.2 m at 6,128 g/t Ag both within a composite sample of 2.1 m at 532 g/t Ag, defining in situ high grade silver veins/breccia along with high-grade gold, zinc and lead mineralization (Table 1). Other important intervals include 0.5 m at 1,142 g/t Ag within a channel composite of 9.3 m at 346 g/t Ag, hosted by a hydrothermal breccia, typical of low sulphidation epithermal mineralized systems. These results provide support for the potential definition of wide, mineable, underground zones at San Juan.

The following Table 1 and Figure 1 summarize significant (>300 g/t Ag) composited and un-composited assay results (uncut, undiluted) from continuous channel sampling on the initial 140 m of the San Juan Vein (upper level).

Table 1- Results Channel Sampling San Juan Vein

San Juan Underground Development – Upper Level – Channel Sampling > 300 g/t Ag

Channel
Sequence

Type

Width
(m)
***

Au g/t

Ag g/t

Pb %

Zn %

I

COMPOSITE

2.1

0.30

552

0.73

1.04

Incl.

0.4

1.20

3,003

2.91

3.08

Incl.

0.2

2.45

6,128

5.83

6.02

II

COMPOSITE

5.0

0.28

816

0.88

0.46

Incl.

0.4

0.18

1,804

1.47

0.25

Incl.

0.1

0.331

3051

4.470

0.340

Incl.

0.5

0.76

2343

1.420

0.522

III

COMPOSITE

2.0

0.51

1,145

0.92

0.37

Incl.

1.3

0.46

1,324

0.84

0.32

IV

COMPOSITE

2.8

0.42

482

0.45

0.37

Incl.

1.2

0.81

1,024

0.55

0.24

V

COMPOSITE

9.3

0.13

346

0.69

1.03

Incl.

4.8

0.17

416

0.86

0.53

Incl.

0.5

0.31

1,142

0.80

0.55

Incl.

0.2

0.25

609

0.89

0.44

VI

COMPOSITE

1.1

0.54

542

0.53

1.14

Incl.

0.2

0.38

1,541

0.61

2.20

VII

COMPOSITE A

1.2

0.19

535

1.05

1.05

Incl.

0.9

0.07

713

0.53

1.52

COMPOSITE B

1.1

0.54

1,810

0.49

0.28

Incl.

0.4

1.09

4,698

0.88

0.34

VIII

COMPOSITE (dil)

1.85

0.01

57.68

0.01

0.15

IX

COMPOSITE (dil)

1.7

0.40

205.82

0.12

0.35

X

COMPOSITE

1.3

0.54

341

0.09

0.19

XI

COMPOSITE

1.7

0.99

460

0.13

0.36

XII

COMPOSITE

2.0

0.85

511

0.08

0.38

XIII

COMPOSITE

3.0

0.11

485

0.16

0.32

Incl.

1.0

0.228

1410

0.28

0.40

Incl.

1.3

0.21

263

0.19

0.30

*** The underground channel sample width of the mineralization might not be indicative of the true width of mineralization. Ongoing sampling and review of recent+ historical drilling results may provide support for future definition of the true width. (dil):  internal dilution

Figure 1- Location – Underground Workings – Channel Sampling San Juan Vein

GR Silver Mining President and CEO, Marcio Fonseca, commented“It is very encouraging to receive the first high grade silver and gold results from our ongoing underground channel sampling at the San Juan area. This area is one of our six priority areas for resource estimation at the Plomosas Project in 2020. We continue to rehabilitate the underground workings at San Juan to facilitate further sampling along the strike of the mineralization and in the lower levels. This will allow the Company to integrate new channel sample data with the recent and historical drilling data (to be released) and thus gain further understanding of not only the high-grade silver results but also the relationship with attractive gold results. Our initial studies indicate the existence of multiple high-grade silver and gold vein/breccia systems at the Plomosas Project”.

The results presented in this news release are part of a systematic sampling program implemented at regular intervals along the strike of the silver-gold mineralization in the underground workings at San Juan area. The Company is currently upgrading the extensive underground areas to working conditions, to allow further sampling. The true thickness and extent of the mineralization hosted by veins and breccias will be fully determined once all recent and historical drill results in each area are reviewed and released.

One of the most remarkable discoveries in the sampling program at San Juan has been the presence of two mineralized systems. The first system is oriented NW-SE along major regional structures hosting polymetallic (Zn-Pb-Ag with minor Au) mineralization. The second system is hosts NE-SW oriented veins-stockwork with high grade Ag-Au. These two systems represent upside potential for delineation of new resource areas.

Qualified Person

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.

Quality Assurance Program and Quality Control Procedures (“QA/QC”)

GR Silver Mining has implemented QA/QC procedures which include insertion of blank and standard samples in all sample lots sent to SGS de México, S.A. de C.V laboratory facilities in Durango, Mexico, for sample preparation and assaying. For every sample with results above Ag >100 ppm (over limits), these samples are submitted directly by SGS de Mexico to SGS Canada Inc in Burnaby, BC. The analytical methods are 4-acid Digest and Inductively Coupled Plasma Optical Emission Spectrometry with Lead Fusion Fire Assay with gravimetric finish for silver above over limits. For gold assays the analytical methods are Lead Fusion and Atomic Absorption Spectrometry Lead Fusion Fire Assay and gravimetric finish for gold above over limits.

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.

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 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 remains under-explored. Plomosas and San Marcial collectively represent a geological setting resembling the multi-million-ounce San Dimas Mining District which has historically produced more than 620Moz silver and 11Moz gold over a period of more than 100 years.

SAN MARCIAL PROJECT

San Marcial is a near-surface, high-grade silver, lead, and zinc open pit amenable project. GR Silver Mining is currently expanding its NI 43-101 resource estimate at the San Marcial Project, which contains 36Moz AgEq (indicated) + 11Moz 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 undertake exploration work at San Marcial in over 10 years.

OTHER PROJECTS

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.

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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.

For further information: +1 (604) 202 3155, Email: info@grsilvermining.com

Related Links

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GR Silver Mining Closes Acquisition of the Plomosas Silver Project

GR Silver Mining Ltd. (TSXV: GRSLFRANKFURT: GPE, OTCQB: GLYXF) (“GR Silver” or the “Company”) – further to its news release of March 2, 2020, the Company is pleased to announce that it has now completed the acquisition of the Plomosas Silver Project (“Plomosas Project“) from First Majestic Silver Corp. (NYSE: AG,TSX: FR, FRANKFURT: FMV) (“First Majestic“).

As consideration, GR Silver and its Mexican subsidiary paid CDN$100,000; granted a subsidiary of First Majestic a 2% net smelter return (“NSR“) royalty on the Plomosas Project with half of the NSR being subject to a buy-back option for US$1,000,000; and issued to First Majestic 17,097,500 common shares of GR Silver.

The Plomosas Project is located within 5 kilometers of GR Silver’s San Marcial Project in the Rosario Mining District, Sinaloa, Mexico, bringing opportunities for cost savings and blended development of both projects. The Plomosas Project lies in one of the most prolific geological settings for the discovery of high-grade silver-gold epithermal mineralized systems in Mexico. This is evidenced by world class deposits discovered in similar mining districts along the western edge of the Sierra Madre Occidental.

The Plomosas project was a past producing Grupo Mexico S.A de C.V. silver (Ag) – gold (Au) – lead (Pb) – zinc (Zn) underground mine (Plomosas mine) inside 8,515 hectares of mining concessions with numerous drilled areas with potential for resource definition and future exploration (click here to view 3D video). The Plomosas Project together with the San Marcial Project provides GR Silver control of 9,764 ha, and most of the silver-gold-lead-zinc mineralized zones in the eastern section of the Rosario Mining District (Figure 1).

The Plomosas Project includes:

  • Six (6) areas that are at the drilling/resource stage with a total of 563 recent and historical drill holes, comprising of over 100,000 m of core drilling, including a series of high grade silver and gold intersections, which will be immediately integrated in a 3D model aiming to depict multiple resource estimations.
  • 16 exploration targets and over 30,000 m of under-explored mineralized veins/structures in a prolific geological setting with approximately USD$18.0 million of exploration investment by previous owners until 2019. These exploration targets have soil and litho-geochemical sampling data, IP aero geophysical and ground geophysical data indicating anomalies and favorable zones for future drilling.
  • 20-year surface rights agreement in good standing, 20-year water and 5-year land use permits, and exploration & drilling permits for immediate infill and exploration drilling, which collectively de-risk the project for current and future developments.
  • Key surface, underground facilities and infrastructure built (past-producing 600tpd operation). This includes an underground mine with 8 km of underground development, a fully operational 60 km 33 KV power line, fully equipped offices and shops, a 120-person camp, and warehouses and ancillary facilities available for immediate use by GR Silver.

The past-producing Plomosas mine operated from 1986 to 2000, processing a total of 2.5mt in a crushing-milling flotation circuit. During the 14 years of operation, Pb and Zn concentrates were the main product (reported high grade silver and gold credits). The historical reports indicate annual grades for each commodity ranging from: silver (338 g/t to 79 g/t), gold (1.74g/t to 0.76 g/t), zinc (2.66% to 1.85%) and lead (3.37% to 1.19%). The historical room and pillar underground operation mined only 260 meters of a polymetallic mineralized zone, and extensive drilling data shows continuity down dip and along strike. The drilling data also indicates high-grade silver and gold mineralization, particularly those located on unmined hanging wall and footwall zones around the polymetallic (Zn-Pb) zones. The company is currently investigating the multi-commodity nature of the mineralization and high-grade silver and gold zones by studying the extensive drilling data and delineating new mineralized zones outside of the historically mined area.

The silver and gold mineralization display the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal vein/breccia mineralized system. There are common occurrences of silver-gold-galena-sphalerite-rich metal assemblages associated with more than one phase of mineralization, with overprinting of the sulphide-rich mineralization on previous high-grade gold and silver mineralized zones.

GR Silver Mining President and CEO, Marcio Fonseca, commented, This transaction is in line with our growth strategy and vision of becoming a leading mining company controlling the most important silver-gold assets in the Rosario mining district, Mexico. This represents significant value for GR Silver Mining Ltd. shareholders by adding, at a low acquisition cost, a high grade silver gold resource/development stage asset to our portfolio and by adding First Majestic Inc., one of the largest silver producers in Mexico, as the largest strategic shareholder. The Plomosas Project together with the San Marcial Project and the knowledge gained during the last two years expanding the resources (at the nearby San Marcial Project), provide key elements to successfully expand silver and gold resources. GR Silver’s portfolio is located in a favorable geological setting akin to other multi-million-ounce mining districts along the western border of the Sierra Madre Occidental in Mexico. The magnitude of this acquisition provides GR Silver the opportunity to define and expand ounces in the current resources and opens up potential for new high-grade Ag and Au discoveries, positioning the company for future growth in Mexico.”

Terms of the Acquisition

At closing, the GR Silver and its Mexican subsidiary: (i) paid $100,000; (ii) granted to a subsidiary of First Majestic a 2% net smelter return (“NSR“) royalty on the Plomosas Project with half of the NSR (i.e., 1% NSR) being subject to a buy-back option for US$1,000,000; and (iii) issued to First Majestic 17,097,500 common shares of GR Silver, which constitutes 19.9% of the total issued common shares of the Company, being 85,916,174 common shares.  All of the shares issued at closing are subject to a hold period expiring July 27, 2020, in accordance with applicable securities laws and policies of the TSX Venture Exchange. In addition, the shares are subject to a voluntary hold period such that 1/8th of the total number of shares will be released from the voluntary hold period every three months after the date of closing.

Qualified Person

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.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. (GRSL.V) is a Mexico-focused company engaged in time and cost-effective resource expansion and controlling key assets on the eastern edge of the Rosario mining district.

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 silver and gold mineralization display the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal vein/breccia mineralized system. Previous exploration 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 remains under-explored. Plomosas and San Marcial collectively represent a geological setting resembling the multi-million-ounce San Dimas mining district which has historically produced +620Moz silver, +11Moz gold over the span of +100 years.

SAN MARCIAL PROJECT

San Marcial is a near-surface, high-grade silver, lead, and zinc open pit amenable project. GR Silver Mining Ltd is currently expanding its NI 43-101 resource estimate at the San Marcial project, which contains 36Moz Ag Eq (indicated) + 11Moz Ag Eq (Inferred), by defining new high-grade gold and silver targets along the project’s 6 km mineralized trend. GR Silver Mining is currently carrying out underground development and additional drilling at San Marcial Project.

GR Silver Mining’s other projects are situated in areas attractive for future 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.

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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.

For further information: +1 (604) 202 3155, Email: info@grsilvermining.com

Related Links

https://grsilvermining.com/

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GR Silver Mining Signs Definitive Agreement with First Majestic for the Acquisition of the Plomosas Silver Project

GR Silver Mining Ltd. (TSXV: GRSLFRANKFURT: GPE, OTCQB: GLYXF) (“GR Silver” or the “Company”) – further to its news release of January 7, 2020, the Company is pleased to announce that it has signed a definitive binding Share Purchase Agreement pursuant to which the Company, through its Mexican subsidiary, will acquire all of the shares of Minera La Rastra S.A. de C.V. (“Minera La Rastra“) from First Majestic Silver Corp. (NYSE: AG,TSX: FR, FRANKFURT: FMV) (“First Majestic“). Upon completion of this transaction, it will hold 100% of the Plomosas Silver Project (“Plomosas Project“), a portfolio with significant exploration potential for the development of the mineral resources from existing inventories and for new discoveries in 2020.

The Plomosas Project is strategically located within 5 kilometers of GR Silver’s San Marcial Project in the Rosario Mining District, Sinaloa, Mexico (Figure 1). The past-producing Plomosas Project includes: a shallow historical silver (Ag) – gold (Au) – lead (Pb) – zinc (Zn) underground mine (Plomosas mine); four (4) targets at drilling/resource stage and 16 exploration targets; +30 km of under-explored mineralized veins/structures; and an extensive drill and exploration database including in excess of 500 recent and historical drill holes.

The Plomosas Project comprises 8,515 hectares of mining concessions, which are in good standing and valid up to the year 2058. The project includes key facilities and infrastructure to enhance development such as: the Plomosas underground mine with 8 km of underground development; a 60 km fully operational 33 KV power line; fully operational offices and shops; a 120-person camp; and warehouses and ancillary facilities available for immediate use by GR Silver. The Plomosas Project has a 20-year surface rights agreement in good standing, 20-year water and 5-year land use permits, and exploration permits for immediate infill and exploration drilling, which collectively de-risk the project for current and future developments. Previous operators invested approximately USD$18.0 million in the Plomosas Project related to exploration from 2007 to 2019. These value-adding activities included a recent upgrade of the electrical systems, camp and accommodations, and preliminary engineering studies related to a potential 800 tonne per day (tpd) crusher-mill-flotation plant on existing foundations.

The completion of this acquisition will position GR Silver to control most of the silver-gold-lead-zinc mineralized zones in the eastern section of the Rosario Mining District. It provides the Company with exciting opportunities to expand resources and add new district scale discoveries in 2020.

GR Silver Mining President and CEO, Marcio Fonseca, commented“The signing of the definitive share purchase agreement, and the ultimate acquisition of the Plomosas Project, together with the associated infrastructure and exploration database, will allow the Company to advance hunt for additional high-grade silver and gold resources in 2020. The incorporation of this Project’s extensive database, together with knowledge gained during the last two years exploring, drilling, and expanding the resource at the nearby San Marcial Project, provides superb vectors  to achieve new discoveries of high-grade deposits on the Plomosas Project. By controlling 100% of a large concession portfolio in the eastern portion of the Rosario Mining District, I believe GR Silver will own the most attractive mineralized prospects in a favorable geological setting similar to other multi-million-ounce mining districts along the western border of the Sierra Madre Occidental in Mexico. This increases the likelihood of new discoveries of high-grade Ag and Au deposits at both the San Marcial and Plomosas Projects and consolidates the ownership of advanced stage projects in the region into a single company – GR Silver Mining.”

Terms of the Acquisition

GR Silver and First Majestic, together with their respective Mexican subsidiaries, have now signed a definitive binding Share Purchase Agreement (“Agreement“) pursuant to which GR Silver, through its Mexican subsidiary, will acquire 100% of the issued and outstanding shares of Minera La Rastra S.A. de C.V. Minera La Rastra owns 100% of the Plomosas Project which is described above.

Pursuant to the terms of the Agreement, the purchase price for Minera La Rastra will be comprised of: (i) a $100,000 cash payment; (ii) the grant of a 2% net smelter return (“NSR“) royalty on the Plomosas Project with half of the NSR (i.e., 1% NSR) being subject to a buy-back option for US$1,000,000; and (iii) the issuance of that number of common shares of GR Silver as is equal to 19.9% of the total issued common shares of GR Silver (calculated after giving effect to the issuance of such shares) (the”Purchase Shares“). The Purchase Shares will ultimately be issued to First Majestic on the closing date. The Company currently has 68,669,391 common shares issued and outstanding. Assuming no further shares are issued prior to the closing date, the Company will issue 17,067,639 Purchase Shares to First Majestic, resulting in a total of 85,737,030 shares being then issued and outstanding.

The Agreement provides that the Purchase Shares will be subject to a voluntary hold period such that 1/8th of the total number of Purchase Shares will be released from such voluntary hold period every three months after the date of closing. It is also a binding term of the Agreement that, for a period of two years after closing, neither First Majestic nor its affiliates will, without the prior written consent of the Company, acquire such number of common shares of GR Silver that would result in them owning 20% or more of the issued shares of GR Silver at any time during such period.

Closing of the acquisition of Minera La Rastra is expected to occur within the next 30 days, and is subject to customary conditions, including approval by the TSX Venture Exchange.

The Plomosas Silver Project

The Plomosas Project is in the western Mexican state of Sinaloa, near the historic mining town of La Rastra, within the Rosario Mining District. Quartz-sulphide Ag-Au-Pb-Zn mineralization was discovered in the vicinities of the La Rastra village in the middle of the 16th century. Limited mining activities were conducted intermittently from 1950 until 1989 when a 600 tpd underground mining operation began following the development of a flotation process concentrating lead, zinc, silver and gold ores.

Recent & Historical Work Completed

Grupo Mexico’s subsidiary (“IMMSA”) explored the Plomosas Project from the early 1970s to 2001, with a focus on Pb-Zn-Ag-Au polymetallic shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas mine. IMMSA completed soil and litho geochemical sampling, large IP aero geophysical and ground geophysical surveys drilled 76,182 meters on surface and underground (427 drill holes). In 1986, it initiated underground operations (room and pillar) at the Plomosas mine, building a 600 tpd crushing-milling plant and large infrastructure for operation from 1986 to 2001 and had completed a total of 7400 m of underground development by the time it ceased operations in 2001, producing lead and zinc concentrates with high grade Ag-Au credits. IMMSA completed +400 surface and underground drill holes at the Plomosas mine, San JuanLa Colorada/Yecora and El Saltito targets.

Aurcana Corporation acquired the Plomosas Project in 2007, carrying out limited exploration until November 2010, when the Plomosas Project was acquired by Silvermex Resources Inc. (“Silvermex”) who conducted limited exploration until 2012. Aurcana drilled 7049 meters for a total of 30 drill holes. Neither of these two companies completed a resource estimation on the Plomosas Project.

First Majestic acquired the Plomosas Project in 2012, carrying out exploration through Minera La Rastra from 2012 to 2019 and drilled 133 surface and underground drill holes, 37,097 meters, from 2017 to 2018. The following Figure 2 illustrates the location of drilling programs and existing underground workings.

Geological Setting

The Plomosas Project lies in a geological (erosional) window exposing andesite-andesitic tuff, rhyodacites and dacites with associated volcanic breccias and lapilli tuff of the Lower Volcanic Series common on the western edge of the Sierra Madre Occidental (“SMO”).

This is one of the most prolific geological settings for the discovery of high-grade silver-gold epithermal mineralized systems in Mexico, as evidenced not only by world class deposits discovered in similar mining districts along the western edge of the SMO.

The silver and gold mineralization display the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal vein/breccia mineralized system. There are common occurrences of silver-gold-galena-sphalerite-rich metal assemblages associated with more than one phase of mineralization, with overprinting of the sulphide-rich mineralization on previous high-grade gold and silver mineralized zones. Most of the historically mined zones at the Plomosas mine from surface to 250 m below surface, consist of quartz-galena-sphalerite veins and silver-gold-rich stockworks along exploited NW-SE oriented structural zones. The various high-grade silver-gold stockworks and veins on the hanging walls and footwalls of the previously mined zones are oriented not only along NW-SE zones, but also on unexplored E-W, zones which are linked with shallow mined areas. This provides immediate potential for new discoveries in the project. Initial reconnaissance at the San Juan and La Colorada targets suggests a predominance of silver and gold-rich breccias and veins representing unmined zones on these two resource-delineation-stage targets.

Qualified Person

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.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. (GRSL.V) is a Mexico-focused company engaged in time and cost-effective mineral exploration  and controlling key assets on the eastern edge of the Rosario mining district.

PLOMOSAS SILVER PROJECT

GR Silver Mining upon closing will own 100% of the Plomosas silver project located near the historic mining village of La Rastra, within the Rosario Mining District. 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 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 remains under-explored. Plomosas and San Marcial collectively represent a geological setting resembling the multi-million-ounce San Dimas mining district which has historically produced +620Moz silver, +11Moz gold over the span of +100 years.

SAN MARCIAL PROJECT

San Marcial is a near-surface, high-grade silver, lead, and zinc open pit amenable project. GR Silver Mining  is currently  expanding its NI 43-101 resource estimate at the San Marcial project, which contains 36Moz Ag Eq (indicated) + 11Moz Ag Eq (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 perform exploration work at San Marcial in over 10 years.

OTHER  PROJECTS

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.

For further information: +1 (604) 202 3155, Email: info@grsilvermining.com

Related Links

http://www.goldplayexploration.com/

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Eloro Resources Grants Stock Options

 Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro”) announces the grant of options to directors, officers, employees and consultants to purchase an aggregate of 1,755,000 common shares of Eloro, exercisable at $0.40 per share at any time on or before February 18, 2025. The grant is subject to TSX Venture Exchange acceptance and is made in accordance with and subject to the terms of Eloro’s stock option plan. In accordance with securities regulatory requirements, any shares issued pursuant to the exercise of such options will be subject to a resale restriction for a period of four months from the date of the grant.

About Eloro Resources Ltd.

Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Peru and Quebec. Eloro owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. The property has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

For further information please contact Jorge Estepa, Vice-President of Eloro Resources Ltd. at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Corporation’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Corporation. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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GR Silver Mining: Consolidating Mexico’s Rosario Mining District

We’ve written before that GR Silver Mining Ltd. (“GR Silver Mining”) (formerly Goldplay Exploration Ltd.) (TSX-V: GRSL) CEO, Marcio Fonseca, is both a geologist and a former investment banker. It is a formidable combination and was front and centre in the company’s January 7, 2020 press release announcing a letter of intent in which GR Silver Mining would acquire a First Majestic Silver subsidiary which owns the past-producing Plomosas Silver Project. This project is located 5km from GR Mining’s San Marcial Silver-Gold Project in the historic Rosario Mining District in Sinaloa, Mexico.

In that release, Fonseca stated, “We are delighted to continue toward our corporate mission of becoming the first company ever to consolidate key assets in the Rosario Mining District. GR Silver Mining is poised to secure an attractive resource stage expansion portfolio with excellent infrastructure for future project development. The extensive exploration and drilling database combined with historical operational data provides a wealth of technical information (geology, geochemistry, geophysics, drilling, Landsat/structural studies, historical metallurgical and operational data) on the Plomosas Silver Project. The value of the extensive database and potential upside of this asset cannot be understated, as it provides an opportunity for GR Silver Mining to achieve new discoveries and delineate new resources in the Plomosas Project, especially given the potential of expanding the mineralized trend in the district from 6 km to 31 km”.

Fonseca goes on to explain where GR Silver Mining can add value, “Our recent success expanding the resource at the San Marcial Silver-Gold Project has brought fundamental knowledge of the geological controls of the silver and gold mineralization in the Rosario Mining District. This knowledge will allow GR Silver Mining to implement a cost-effective exploration program at the Plomosas Project in 2020”.  GR Silver Mining will also continue its drilling and exploration program at San Marcial in 2020. Currently, the company is accelerating underground development to support the resource expansion drill program.

Since it has been exploring in the Rosario Mining District, GR Silver Mining has developed knowledge and a set of skills to support a cost and time-effective approach to drilling and maximizing the potential for discoveries and resource expansion. It has identified and drilled a number of targets at its San Marcial Project, increased its 43-101 compliant resource estimate by 60% and made further discoveries along a 6-kilometre trend. Most of all, the company has proven itself a successful, efficient and low-cost explorer. Facts which were not lost on First Majestic.

Keith Neumeyer’s First Majestic Silver (T.FR) has become a preeminent silver miner in Mexico with six producing mines. It acquired the Plomosas Project when it bought out Silvermex Resources in 2012. From First Majestic’s perspective, the Plomosas Project, while very attractive, was not an exploration priority.

The deal took some time to complete with the first Non-Disclosure Agreement signed in March 2019.

“Everyone is asking why First Majestic is selling,” said Fonseca in a phone interview. “In fact, First Majestic approached us. They knew we had been working on the same geology at San Marcial, and we have been successful delineating discoveries and new resources at low cost.”

“There is a camp and infrastructure and high voltage power at the Plomosas Project.,” said Fonseca. “There was lots of drilling, including 133 more recent drill holes representing close to 8.5 million US dollars but no resource. All this can allow GR Silver mining to achieve definition of new silver gold resources at the Plomosas Project.”

“With this deal, we get all the data, the camp, the infrastructure,” said Fonseca.

“Plomosas was not a core asset for First Majestic,” said Fonseca. “We can add value to the property faster than First Majestic can. We want to get to a resource estimate quickly.”

In exchange for its Plomosas Project First Majestic will receive shares in GR Silver Mining Ltd. which will take its ownership stake to 19.9%. “These shares are escrowed and First Majestic has agreed to vote with GR Silver mining management for two years,” said Fonseca. “However, nothing in the deal blocks another company from coming in as we deliver more results and continue to prove the upside potential in the district.”

Fonseca won’t say it, but the effect of the First Majestic deal is a huge vote of confidence in GR Silver Mining from a knowledgeable, major in the Mexican silver world. Fonseca’s strategy of adding value by acquiring high grade, low cost, silver assets seems to have paid off.

If that was the only GR Silver deal it would be hugely significant, however, on December 17 – in the middle of the Christmas lull – the company announced a Letter of Intent agreement with Mako Mining to acquire nine concessions totalling 104,094.5 ha as well as the La Trinidad mine facilities located adjacent to GR Silver Mining’s existing portfolio in the historic Rosario gold-silver mining district, Sinaloa, Mexico.

The effect of the First Majestic and the Mako agreements is to make GR Silver a leading mining company in the Rosario gold-silver mining district. Which brings us to the name change.

As of January 9, 2020, Goldplay Exploration changed its name to GR Silver Mining to emphasize its focus on more advanced stage silver mining projects in the Rosario Mining District, Mexico. Its trading symbol will change from GPLY to GRSL.

I asked Fonseca why “GR”? “Gran Rosario”, said Fonseca.

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Eloro Resources Ltd. Retains Micon International to Complete NI 43-101 Technical Report on the Iska Iska Polymetallic Property, Potosi Department, Southern Bolivia

Eloro Resources Ltd. (TSX-V: ELO; FSE: P2Q) (“Eloro”, or the “Company”) is pleased to announce that it has retained Micon International Limited (“Micon”) to complete a National Instrument (“NI”) 43-101 Technical Report on the Iska Iska polymetallic epithermal project (the “Property”), in the Potosí Department, southern Bolivia, which is under option by Minera Tupiza S.R.L., Eloro’s wholly-owned Bolivian subsidiary. Eloro recently announced the signing of the Definitive Option Agreement on the Property (see Eloro’s press release dated January 8, 2020).

“We are very pleased to have the well known firm Micon proceed with the preparation of the NI 43-101 Technical Report on Iska Iska,” stated Tom Larsen, Eloro’s President and CEO. “Mr. Charley Murahwi, P.Geo., Pr. Sci. Nat., FAusIMM, Senior Economic Geologist of Micon, will be travelling to the Property this week to carry out a site visit. Mr. Murahwi has over 35 years of experience in the mining industry, covering mineral exploration, mine development and mining operations. With Micon in Toronto, he is involved in mineral resource estimation and auditing, and in the assessment/evaluation of mineral properties. Since joining Micon in 2008, Charley has undertaken assignments for clients in Canada, USA, Spain, Portugal, Panama, Mexico, West Africa and Australia. Dr. Osvaldo Arce, P.Geo., Eloro’s Chief Geologist and Manager in Bolivia will coordinate the site visit.”

About Iska Iska
Iska Iska pollymetallic project is a road accessible, royalty-free property, wholly-controlled by the Title Holder, Empresa Minera Villegas S.R.L. and is located 48 km north of Tupiza city, in the Sud Chichas Province of the Department of Potosi. The property can be classified as a polymetallic (Ag, Zn, Pb, Au, Cu, Bi, Sn, In) epithermal-porphyry complex. This is an important mineral deposit type in Bolivia.

Geological mapping on the property by Eloro has revealed the spatial and temporal zonation of alteration and vein minerals in an area of about 5 square kilometres. The polymetallic mineralization occurs mainly as veins, subsidiary vein swarms, veinlets, stockworks, and disseminations, forming a subvertical vein system in both the stock and the volcanic and sedimentary rocks. Preliminary evaluation work including 42 channel samples in underground and on surface workings at Iska Iska returned significant results as summarized below. All of the channel samples included altered wall rock with widths ranging between 1.20 to 5.55 m, averaging 2.90 m (see Eloro’s press release dated October 8, 2019 for further details).

  • Silver. Anomalous silver values range between 35.5-694 g/t Ag (46% of channel samples).
  • Gold. Anomalous gold values range between 0.31-28.6 g/t Au (42% of channel samples).
  • Zinc. Anomalous zinc values range between 1.05-16.95% Zn (37% of channel samples).
  • Lead. Anomalous lead values range between 0.41- 16.95% Pb (49% of channel samples).
  • Copper. Anomalous copper values range between 0.1->1% (22% of channel samples).
  • Bismuth. Anomalous bismuth values range between 967-7,380 g/t Bi (22% of channel samples).
  • Indium. Anomalous indium values range between 10.35 – >500 g/t In (34% of channel samples).

Qualified Person
Dr. Osvaldo Arce, P. Geo., an expert on Bolivian geology and a Qualified Person in the context of NationaI Instrument 43-101 has reviewed and approved the technical content of this news release.

About Micon
Micon is an independent employee-owned firm of senior geological, mining, metallurgical and environmental consultants headquartered in Toronto, Canada with offices in Vancouver and the United Kingdom. The professionals of Micon have extensive international experience in the mining industry with both mining companies and leading consultancy firms. Micon provides teams of geologists, mining engineers, metallurgists, environmental and social consultants who combine skills in economic geology, mine and process plant design, mineral economics, environmental and social management, minerals and metal production, and project management, the firm is well qualified to carry out consulting assignments throughout the world. Consulting services include valuation and evaluation of mineral properties, estimation of mineral resources and mineral reserves, preparation of Technical Reports under Canadian National Instrument 43-101 and Competent Person/JORC reports, feasibility studies, mineral market analysis, comparative benchmarking, technical due diligence, litigation support and services as Independent Engineer/Independent Technical Advisor.

About Eloro Resources Ltd.
Eloro is an exploration and mine development company with a portfolio of gold and base-metal properties in Peru and Quebec. Eloro owns an 82% interest in the La Victoria Gold/Silver Project, located in the North-Central Mineral Belt of Peru some 50 km south of Barrick’s Lagunas Norte Gold Mine and Pan American Silver’s La Arena Gold Mine. La Victoria consists of eight mining concessions and eight mining claims encompassing approximately 89 square kilometres. The property has good infrastructure with access to road, water and electricity and is located at an altitude that ranges from 3,150 m to 4,400 m above sea level.

For further information please contact either Thomas G. Larsen, President and CEO or Jorge Estepa, Vice-President at (416) 868-9168.

Information in this news release may contain forward-looking information. Statements containing forward looking information express, as at the date of this news release, the Company’s plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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GR Silver Mining CEO Marcio Fonseca with David Morgan

Very interesting interview with Marcio Fonseca on GR Silver Mining’s consolidation of the Rosario mining district in Sinaloa, Mexico.

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Eloro: Gold in Peru, Polymetallic Prospect in Bolivia

Eloro (V.ELO) CEO Tom Larsen would have every right to be frustrated with South America. The company’s extremely promising La Victoria Gold/Silver Project in north central Peru has had to deal with 100 year rains and then community politics 3000 meters up in the Andes. Even with widespread community support, until a new President was elected in the community and a community vote to approve the surface rights was held, Eloro could not proceed with exploration. After being sidetracked for more than a year a new President was finally elected in early December.

“We hope to start work in late February,” said Larsen. “The thing was that we had to get the town to approve surface rights and that approval was controlled by the old President. Even with 90% of the community behind the project, and even with our award winning social responsibility programs, we still had to wait for a new President to be elected and a community vote. The new President was elected and we’re looking forward to the community vote happening and then we hope to commence the maiden drill program at San Markito.”

The frustrating thing about the community politics is that without activity on the property to report, the market had nothing to pay attention to. “No activity and the stock drifts,” said Larsen.

“We have a lot of technical depth,” said Larsen. “While we waited out the Peruvian situation, we were looking for a hedge. One place we looked was Bolivia. We saw New Pacific Metals with its Silver Sands project and Pan American and we asked ourselves, “Why are they in Bolivia?”

Larsen was alluding to the less than stellar reputation Bolivia has acquired over the years as a mining jurisdiction and as a politically volatile country. “Actual ownership of property is hard,” said Larsen. “The big companies mostly lease their land. But there is the San Cristobal open-pit silver, lead and zinc mine controlled by the Sumitomo Group, the San Vicente silver mine 95% controlled by Pan American Silver and the San Bartolome silver mine controlled by Argentum Investments, AB. So, you can certainly mine in Bolivia. Bolivia has become much more mining friendly.”

Eloro had one huge advantage in Bolivia, they were working with Dr. Osvaldo Arce, a Bolivian geologist who was familiar with and had worked on many of the country’s most prospective properties. He was looking for the opportunity to work with Eloro and made a list of potential projects. At the top of that list was the Iska Iska polymetallic epithermal project, in the Potosí Department, in southern Bolivia.

Dr. Arce had worked on Iska Iska in 2016 and knew the family who controlled the property. Eloro and Dr. Arce began working on the due diligence for the property in August 2019 and the company entered into a Letter of Intent to gain an option on the property which it announced October 8, 2019.

In that press release Eloro reported the results of its channel sampling work on the Iska Iska property. In that release Larsen states, “The results of our initial due diligence, supervised by Dr. Osvaldo Arce, P. Geo., are very positive and suggest the potential for a large polymetallic mineralized system in a similar geological setting to other major deposits in the belt.”

Along with surface channel samples, Eloro took samples from underground workings. The samples disclosed silver, gold, zinc, lead, copper and rare earths. “These were 3 meter channel samples,” said Larsen. “As well as very good silver and gold grades we saw 16% zinc and 16% lead. There was high quality mineralization in 40-50% of the samples taken.”

Based on the sampling and the geological mapping undertaken at Iska Iska, Eloro decided to go forward with the project and on January 9, 2020 announced the signing of the Definitive Option Agreement on the Iska Iska polymetallic epithermal project.

“The agreement gives us four years to do our due diligence but we should know what we have in two years,” said Larsen. “It is not going to be hard to outline the system.”

“We’re there for the size,” said Larsen. “There is mining on the property right now and we are allowing artisanal activity.”

“The samples we’ve taken to date cover less than 15% of the system,” said Larsen. “We’re looking to find 100 million plus tons.”

The terms of the option reflect the size issue: if Eloro can find the size it is looking for it can effectively control the property for a one time payment of $10 million. However, there is no royalty and Eloro pays no cash up front. The only up-front payment is 250,000 Eloro shares.

All of which is in line with Larsen’s commitment to keep the share structure of Eloro tight – there are only 38 million shares out – and add value with the drill.

“Between La Victoria in Peru and Iska Iska in Bolivia we’ll have a steady stream of news through 2020,” said Larsen. For junior explorers, news from two significant projects is exactly what the market is looking for.

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Goldplay Exploration Ltd. Announces Name Change to “GR Silver Mining Ltd.” and New Symbol “GRSL”

Goldplay Exploration Ltd. (TSXV: GPLYFRANKFURT: GPE, OTCQB: GLYXF) (“Goldplay” or the “Company”), is pleased to announce that it will be changing its name to “GR SILVER MINING LTD.” effective Monday, January 13, 2020, to emphasize its focus on more advanced stage silver mining projects in the Rosario Mining District, Mexico.

The common shares of the Company will commence trading under the new name on the TSX Venture Exchange with the new trading symbol “GRSL” at the opening of trading on January 13, 2020.

There is no change in the share capital of the Company, and shareholders are not required to exchange their existing share certificates for new certificates. The Company’s new CUSIP number is 36258E102 and its new ISIN number is CA36258E1025.

CEO Marcio Fonseca stated, “We believe the name change more accurately reflects the Company’s evolution and focus. In Q4 2019, we were an advanced exploration company expanding our NI 43-101 resource estimate with a large vision to consolidate/acquire key assets in the Rosario Mining District. Over the last month we have signed two LOIs and are conducting thorough due diligence on two past-producing silver-gold mines and sizeable adjacent exploration packages, comprising a wealth of data and infrastructure. We have seized the recent acquisition opportunities as part of our strategy to become the first company to consolidate the Rosario Mining District. The LOIs are non-binding with respect to most terms nor have definitive agreements yet been negotiated or signed for either transaction. Our mission is to continue creating shareholder value through discovery with low-cost, high-quality acquisitions. Our dedication to increasing the resource estimate at San Marcial remains strong as we move forward with the due diligence process”.

The name change will be accompanied by a new logo, which will be visible in the coming weeks on the website and other corporate material.

About Goldplay Exploration Ltd.

Goldplay has successfully consolidated a district-sized portfolio, owning >250 sq. km of mineral concessions in the historic Rosario gold-silver Mining District in the state of Sinaloa, Mexico. Its flagship project, San Marcial, consists of a 1,250-ha land package located south of the La Rastra and Plomosas historic mines. San Marcial is a near-surface, high-grade silver, lead, and zinc open pit amenable project for which a NI 43-101 resource estimate was completed by Goldplay in early 2019. Additionally, high-grade gold was drilled in July 2019 at San Marcial, opening up the potential for further gold success. Goldplay’s 100% owned El Habal precious metals project is located 20 km west of the San Marcial Project. It comprises 3,700 hectares and is located 75 km southeast of the modern coastal port of Mazatlán, and 10 km on a paved road from the historic mining town of Rosario, Sinaloa, Mexico.

Goldplay’s current focus includes expanding its NI 43-101 resource estimate at the San Marcial project, which contains 36Moz Ag Eq (indicated) + 11Moz Ag Eq (Inferred), by defining new high-grade gold and silver targets along the project’s 6 km mineralized trend. Goldplay is the first company to perform exploration work at San Marcial in over 10 years. It is a low-risk development stage project, fully exploration permitted and supported by the local communities to carry out all proposed exploration activities. Only 500 m of the 6 km trend has been drilled to date, highlighting the significant potential for further discoveries. The Company has identified 8 high-priority targets along the 6 km trend and is currently drilling two high-priority targets at Faisanes and Nava. Some of these exploration targets consist of old shallow pits, caved shafts and historic shallow underground workings in areas with extensive hydrothermal alteration, hosted by major regional structures in a felsic volcanic environment. Mapping and sampling by Goldplay have revealed evidence of dacite-rhyolite dome structures in a highly prospective geological environment for additional high-grade gold and silver discoveries.

The El Habal Project is a drill-stage project. Its oxidized gold mineralized zone outcrops along a series of rolling hills with evidence of historic shallow underground mining along a 6 km-long prospective corridor. The El Habal Project is located near the historic gold-silver Rosario Mine which operated for over 250 years.

Goldplay’s team has over 30 years of experience with senior roles in exploration, financing, and development in the mining industry, including over ten years of extensive exploration experience in the Rosario Mining District, leading to previous successful discoveries.

The NI 43-101 reports for each of the San Marcial and El Habal Projects are available on SEDAR.

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.  READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

Mr. Marcio Fonseca
P. Geo, President & CEO
Goldplay Exploration 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.

SOURCE Goldplay Exploration Ltd

For further information: +1 (604) 202 3155, Email: info@goldplayexploration.com

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Goldplay Signs LOI to Acquire the Plomosas Silver Project from First Majestic Silver Corp.

Vancouver, BC – Goldplay Exploration Ltd. (TSXV: GPLY, FRANKFURT: GPE, OTCQB: GLYXF) (“Goldplay” or the “Company”), is pleased to announce that it has entered into a non-binding Letter of Intent (“LOI”) with First Majestic Silver Corp. (NYSE: AG, TSX: FR, FRANKFURT: FMV) (“First Majestic”), pursuant to which it proposes, through a wholly owned Mexican subsidiary, to acquire 100% of the issued and outstanding shares of First Majestic’s wholly owned Mexican subsidiary, Minera La Rastra S.A. de C.V. (“Minera La Rastra”). Minera La Rastra owns the past producing Plomosas Silver Project, including 8,514 ha of concessions with significant exploration potential in Sinaloa, Mexico (“Plomosas Project”), (Figure 1).

 

Figure 1 – Location Map Plomosas Silver Project – Rosario Mining District

Goldplay, V.GPLY

 

The definitive terms of the transaction are subject to negotiation and are expected to include: (i) a $100,000 cash payment to First Majestic; (ii) the grant of a 2% net smelter return (NSR) royalty to First Majestic on the Plomosas Project with half of the NSR (i.e., 1% NSR) being subject to a buy-back option for US$1,000,000; and (iii) the issuance to First Majestic of that number of common shares of Goldplay as is equal to 19.9% of the total issued common shares of Goldplay (calculated after giving effect to the issuance of such shares)(the “Purchase Shares”). It is anticipated that the Purchase Shares will be subject to a voluntary hold period such that 1/8th of the total number of Purchase Shares will be released from such voluntary hold period every 3 months after the date of closing. It is also expected that First Majestic will enter into a voting trust agreement with Goldplay pursuant to which it will agree to vote the Purchase Shares in favour of management’s recommendations on routine matters at any annual general or special meeting of shareholders for a period of two years after the closing. It is also a binding term of the LOI that, for a period of two years from the date of signing of the LOI, First Majestic will not, without the prior written consent of Goldplay, acquire such number of common shares of Goldplay that would result in it owning 20% or more of the issued shares of Goldplay at any time during such period.

 

Under the LOI, the parties have agreed to a binding exclusivity and non-solicitation period which will terminate on the earlier of 60 days from the date of signing of the LOI, the date of execution of a definitive agreement or the termination of the LOI. The parties are now moving forward with their respective due diligence reviews of each other during the 60 day period. The entering into of a definitive agreement will be subject to certain conditions such as each party being satisfied with its due diligence of the other, board approvals, any required governmental, regulatory and third party approvals and no material adverse event or change in respect of Minera La Rastra or Goldplay.

 

Goldplay’s CEO, Marcio Fonseca stated, “We are delighted to continue toward our corporate mission of becoming the first company ever to consolidate key assets in the Rosario Mining District. Goldplay is poised to secure an attractive resource stage expansion portfolio with excellent infrastructure for future project development. The extensive exploration data base combined with historical operational data, provide a wealth of technical information (geology, geochemistry, geophysics, drilling, Landsat/structural studies, historical metallurgical and operational data) on the Plomosas Project. The value of the extensive exploration database and potential upside of this asset cannot be understated, as it provides an opportunity for Goldplay to achieve new discoveries and delineate new resources in the Plomosas Project. Goldplay is focused on acquiring, at low cost, assets with good infrastructure and potential resources requiring a minimum of time and money to expand and advance to development. Our recent success expanding the resource at the San Marcial Silver-Gold Project has brought fundamental knowledge of the silver and gold mineralization in the Rosario Mining District. This knowledge will allow Goldplay to implement a cost-effective exploration program at the Plomosas Project in 2020 with the objective of future discoveries and resource delineation.”

 

The 8,514-ha land position of the Plomosas Project is strategically located within 5 km of Goldplay’s San Marcial Silver-Gold Project. It is located approximately 94 kilometres southeast of Mazatlan in southeast Sinaloa State, Mexico and is adjacent to the town of Rosario (Figure 1). The Plomosas Project includes infrastructure such as: a 60 km – 33 KV power line (connected to Mexican Regional Power grid), offices, shops, 120-man camp, infirmary, warehouses, foundations for processing plant, and other key infrastructure which can be fundamental for future project development (click here to view photos). The Plomosas Project also is entitled to a surface rights agreement, water use and surface exploration permits.

 

The Plomosas Project includes five shallow past producing underground mines – the Plomosas-La Cruz mine, San Juan mine, La Colorada mine, El Huarache mine, El Saltito mine – and 11 exploration targets (Figure 2). Grupo Mexico operated a 600 tpd crusher/mill/flotation processing circuit from 1986 until 2001. The processing plant feed was mainly sourced from the Plomosas-La Cruz historical underground mine, producing zinc and lead concentrates with silver-gold credits. Historic production reports by Grupo Mexico indicate that a total of 2.5 million tonnes of ore were extracted which averaged 190.5 grams per tonne (g/t) silver, 0.92 g/t gold, 2.02% zinc and 2.38% lead.

 

     Figure 2 –Plomosas Silver Project – Historical Ag Mines & Exploration Targets

Goldplay, V.GPLY

 

The Plomosas Project is historically known as a highly prospective area for silver, gold, lead and zinc mineralization. Key areas within the property boundaries of the Plomosas Project display many geological similarities with the San Marcial Silver-Gold Project. The geological settings at both projects demonstrate occurrences of low sulphidation epithermal quartz-galena-sphalerite veins/hydrothermal breccias and stockworks hosting high grade silver and gold mineralization. The (already discovered) mineralized trends indicate a geological setting related to at least seven major regional structures hosting not only mineralization at the San Marcial Silver-Gold Project but also at the Plomosas Project (Figure 3).

Figure 3 –Plomosas Silver Project – La Trinidad Concessions – San Marcial Ag-au Project

Goldplay, VGPLY

 

This announcement marks the second strategic LOI signed by the Company in the past three weeks. The news release dated December 17, 2019 announced the signing of an LOI with Mako Mining Corp. (“Mako”) which granted the Company the exclusive right to acquire 100% of the issued shares of Mako’s wholly owned subsidiary, Marlin Gold Mining Ltd. (“Marlin”), until December 20, 2020. Marlin owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V., a Mexican company that owns the La Trinidad gold mine facilities, currently being decommissioned.

Goldplay will provide shareholders with updates on the status of these transactions when material information becomes available.

Goldplay has applied to the TSX Venture Exchange to change its name to reflect its focus on silver in the Rosario Mining District. The Company believes its proposed new name will reflect its evolution, the consolidation of advanced-stage assets in the Rosario Mining District, Sinaloa.  More details on the name change will be provided as soon as confirmation of its acceptability is received from the TSX Venture Exchange.

 

 

Qualified Person

The scientific and technical data contained in this news release was reviewed and/or prepared under the supervision of Marcio Fonseca, P.Geo., a non-independent qualified person to Goldplay Exploration Ltd. who is responsible to ensure that the geological information contained in this news release is accurate and who acts as “qualified person” under the National Instrument 43-101 Standards of Disclosure of Mineral Projects.

About Goldplay Exploration Ltd.

 

Goldplay has successfully consolidated a district-sized portfolio, owning >250 sq. km of mineral concessions in the historic Rosario gold-silver Mining District in the state of Sinaloa, Mexico. Its flagship project, San Marcial, consists of a 1,250-ha land package located south of the La Rastra and Plomosas historic mines. San Marcial is a near-surface, high-grade silver, lead, and zinc open pit amenable project for which a NI 43-101 resource estimate was completed by Goldplay in early 2019. Additionally, high-grade gold was drilled in July 2019 at San Marcial, opening up the potential for further gold success. Goldplay’s 100% owned El Habal precious metals project is located 20 km west of the San Marcial Project. It comprises 3,700 hectares and is located 75 km southeast of the modern coastal port of Mazatlán, and 10 km on a paved road from the historic mining town of Rosario, Sinaloa, Mexico.

 

Goldplay’s current focus includes expanding its NI 43-101 resource estimate at the San Marcial project, which contains 36Moz Ag Eq (indicated) + 11Moz Ag Eq (Inferred), by defining new high-grade gold and silver targets along the project’s 6 km mineralized trend. Goldplay is the first company to perform exploration work at San Marcial in over 10 years. It is a low-risk development stage project, fully exploration permitted and supported by the local communities to carry out all proposed exploration activities. Only 500 m of the 6 km trend has been drilled to date, highlighting the significant potential for further discoveries. The Company has identified 8 high-priority targets along the 6 km trend and is currently drilling two high-priority targets at Faisanes and Nava. Some of these exploration targets consist of old shallow pits, caved shafts and historic shallow underground workings in areas with extensive hydrothermal alteration, hosted by major regional structures in a felsic volcanic environment. Mapping and sampling by Goldplay have revealed evidence of dacite-rhyolite dome structures in a highly prospective geological environment for additional high-grade gold and silver discoveries.

 

The El Habal Project is a drill-stage project. Its oxidized gold mineralized zone outcrops along a series of rolling hills with evidence of historic shallow underground mining along a 6 km-long prospective corridor. The El Habal Project is located near the historic gold-silver Rosario Mine which operated for over 250 years.

 

Goldplay’s team has over 30 years of experience with senior roles in exploration, financing, and development in the mining industry, including over ten years of extensive exploration experience in the Rosario Mining District, leading to previous successful discoveries.

 

The NI 43-101 reports for each of the San Marcial and El Habal Projects are available on SEDAR.

 

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.  READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.

                                                                  

Mr. Marcio Fonseca

  1. Geo, President & CEO

Goldplay Exploration Ltd.

 

For Further Information:

Contact: +1 (604) 202 3155

Email: info@goldplayexploration.com

 

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.

 

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