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Black Mountain Gold USA Corp. Receives Assay Results from Channel Sampling on Its Mohave Gold Project

Black Mountain Gold USA Corp. (TSXV: BMG) (“BMG” or the “Company”) is pleased to announce it has received encouraging assay results from its recent mechanical rock chip-channel sampling program at its Mohave Gold Project in Mohave County, Arizona. Channel sampling was completed at several gold prospects in the northern half of the Project and confirmed the widespread nature of gold mineralization outlined in the M3 Metals sampling program in 2020 (see M3 Metals press release dated May 5, 2020) returning values up to 53.80 g/t Au and 94.2 g/t Ag over 2.8m.

Graham Harris, CEO and Director, commented, “BMG is very pleased with the results from the channel sampling program at our Mohave Gold Project confirming the nature of the widespread gold values encountered previously. Particularly encouraging are the high grade gold values such as 53.8 g/t Au over 2.8m suggesting potential for higher grade feeder zones to the epithermal system. Equally encouraging are some of the wider intersections such as channel C36 at the Scout Prospect where sampling over 24.75m yielded 0.71 g/t Au which suggests potential for an open pit mining scenario. We look forward to our next channel sampling program which will target the southern prospects at the Project as we continue with the permitting process in preparation for drilling.”

Channel sampling was focused on the northern half of the Project with the prospects Klondyke, Apex, Jim & Jerry and Scout tested to confirm the widespread gold values outlined by rock chip sampling completed by M3 Metals in 2020. Results of composited channel samples are presented in Table 1 and indicate that gold grades vary from 0.31 g/t Au to 53.8 g/t Au and composited widths vary from 1m to 24.75m. Sampling focused on areas of low sulfidation epithermal gold mineralization hosted by quartz-calcite veins, stockwork zones and breccias associated with low angle structures. Zones of gold mineralization varied from quartz-calcite veins and breccia returning 53.8 g/t Au and 92.4 g/t Ag over 2.8m to large zones of stockwork veining dominated by quartz-calcite in altered andesite which yielded up to 24.75m of 0.71 g/t Au and 4.2 g/t Ag.

Results from the channel sampling program confirm the widespread nature of the gold mineralization in the northern half of the Project identified in the 2020 program completed by M3 Metals. Numerous zones of relatively high grade gold mineralization over short widths (see Table 1, Figure 1) suggest potential for high grade feeder structures to the epithermal system and warrant further exploration. In addition wider zones of lower gold grades such as at the Jim & Jerry prospect where channel sampling over a quartz-calcite stockwork zone approx. 24.75m wide returned 0.71 g/t Au and 4.2 g/t Ag indicating potential for a near surface open-pittable target. All data generated by the sampling program will be incorporated into the Mohave Project geological model to aid in drill hole targeting. A follow-up channel sampling program on several other prospects in the north as well as various prospects in the southern portion of the Project is planned for Q3, 2021.

Table 1 Composite assay results

CHANNEL #PROSPECTTYPESAMPLED LENGTH (m)AU GRADE (G/T)AG GRADE (G/T)
C1KlondykeOutcrop2.301.481.30
C2KlondykeOutcrop2.801.441.70
C3KlondykeOutcrop3.500.771.20
C4KlondykeOutcrop2.800.391.80
C5KlondykeOutcrop2.000.893.10
C6KlondykeOutcrop2.8053.8094.20
C7KlondykeOutcrop2.802.755.50
C8KlondykeOutcrop1.900.172.10
C9KlondykeOutcrop1.800.231.10
C10KlondykeOutcrop7.150.792.40
C37KlondykeOutcrop2.502.054.50
C11ApexOutcrop8.401.143.40
C12ApexOutcrop1.801.103.60
C13ApexOutcrop3.700.394.50
C14ApexOutcrop3.500.162.10
C15ApexOutcrop3.003.077.40
C16ApexStope2.251.200.90
C17ApexOutcrop2.400.300.10
C18Jim & JerryOutcrop1.902.597.10
C19Jim & JerryOutcrop3.505.0413.50
C20Jim & JerryOutcrop2.601.665.70
C21Jim & JerryOutcrop1.100.202.40
C22Jim & JerryOutcrop4.109.0011.80
C23Jim & JerryOutcrop6.403.8512.20
C24Jim & JerryOutcrop2.056.0217.40
C25Jim & JerryOutcrop2.806.9619.90
C26Jim & JerryOutcrop3.706.6125.60
C27Jim & JerryOutcrop3.302.174.40
C28ScoutOutcrop3.302.704.50
C29ScoutOutcrop4.901.261.70
C30ScoutOutcrop5.101.253.20
C31ScoutOutcrop4.003.360.90
C32ScoutOutcrop3.504.395.70
C33ScoutOutcrop7.006.398.40
C34ScoutOutcrop4.302.254.50
C35ScoutOutcrop2.352.013.70
C36ScoutOutcrop24.750.714.20

 

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Figure 1 Location of 2021 composite channel sampling at Mohave Project

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Samples were generally oriented perpendicular to the strike of the zones of quartz-calcite veins, stockwork veining and brecciation wherever terrain permitted and samples lengths below are not true widths. Composite lengths in Table 1 may not be strictly continuous due to terrain restrictions nor do they necessarily delineate the entire width of the mineralized zones. A portable mechanical rock saw with dual diamond blades was utilized for sampling via cutting two continuous parallel lines 2.5cm apart and approx. 3cm deep and then chiseling out the rock sample. Sampling was completed to produce more reliable data via channel sampling than the rock chip sampling and to expand the sampling done in 2020. In general the channel sampling data provides a more reliable sample due to increased depth penetration into the rock and more consistent systematic sampling than standard rock chip sampling with a rock hammer.

Quality Assurance / Quality Control (QAQC)

All sampling was done using a portable mechanical rock saw with dual diamond blades via cutting two continuous parallel lines 2.5cm apart and approx. 3cm deep and then chiseling out the rock sample. In general sampling was done perpendicular to the main strike length of the zones quartz calcite veins and stockwork veining where terrain permitted. Quality control of the sampling program includes insertion of reference standards and blanks. One hundred samples were submitted to American Assay Laboratories in Sparks, Nevada and the results from the blanks and standards do not suggest any issues in the sample prep and analytical procedures.

Robert Johansing, Economic Geologist, M.Sc., Q.P., has been responsible for all phases of sample collection, labelling, bagging and transport from the project to his base in Santa Barbara, California and then via FedEx to American Assay labs of Sparks, Nevada. Samples were then dried, crushed and split, and pulp samples were prepared for analysis. Gold was determined by fire assay with an ICP finish, over limit samples were determined by fire assay and gravimetric finish. Silver plus 34 other elements were determined by Aqua Regia ICP-AES, over limit samples were determined by fire assay and gravimetric finish. Standard sample chain of custody procedures were employed during field work until delivery to the courier and analytical facility.

Robert Johansing, Economic Geologist, M.Sc., is a Qualified Person as defined by National Instrument 43-101 for the above-mentioned project. The QP is a Qualified Professional in good standing of Mining and Metallurgical Society of America (MMSA). Mr. Johansing has reviewed and approved the technical information disclosed above and is independent of the Company.

To find out more about Black Mountain Gold USA Corp. please contact Investor Relations at (604) 662-8184 or email info@blackmountaingoldusa.com.

BLACK MOUNTAIN GOLD USA CORP.

“Graham Harris”

CEO, Director

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 release.

This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals including approvals of title and mining rights or licenses, the reliability of third party information, continued access to mineral properties or infrastructure, changes in laws, rules and regulations in Arizona which may impact upon the Company or its properties or the commercial exploitation of those properties, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for gold/silver, changes in exploration costs and government royalties, export policies or taxes in Arizona and other factors or information. The Company’s current plans, expectations and intentions with respect to development of its business and of the Mohave Gold Project may be impacted by economic uncertainties arising out of COVID-19 pandemic or by the impact of current financial and other market conditions on its ability to secure further financing or funding of the Mohave Gold Project. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.

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Gran Colombia Announces Multiple High-Grade Drill Results From the 2021 In-Mine and Brownfield Drilling Campaigns at Its Segovia Operations; Success Continues at the Brownfield Vera Project Including 31.78 g/t Au and 8,150.0 g/t Ag Over 0.30 Meters

Gran Colombia Gold Corp. (TSX: GCM, OTCQX: TPRFF) (“Gran Colombia” or the “Company”) announced today multiple high-grade intercepts from the latest 62 diamond drill holes, totaling 13,056 meters, from the 2021 in-mine and near-mine drilling programs and a further 11 diamond drill holes, totaling 3,190 meters, from the 2021 brownfield drilling programs at its Segovia Operations. The Company also announced the assay results from four additional kick-off diamond drill holes (2,319 meters) from the ongoing directional drilling program at the El Silencio Deep Zone.

Significant high-grade intercepts from the latest drill results include:

In-mine

  • Providencia: 211.68 g/t Au and 253.6 g/t Ag over 0.33 meters on the Providencia Vein (PV-ES-008);
  • Sandra K: 147.91 g/t Au and 194.8 g/t Ag over 0.74 meters on the Sandra K Techo Hanging Wall Vein (SK-IU-175);
  • Sandra K: 85.56 g/t Au and 262.1 g/t Ag over 1.32 meters on the Sandra K Techo Vein (SK-IU-169);
  • Chumeca: 187.11 g/t Au and 242.2 g/t Ag over 0.43 meters on the Chumeca Hanging Wall Vein (CH-IU-030);
  • El Silencio: 37.16 g/t Au and 52.5 g/t Ag over 0.55 meters on the 450 Vein (ES-MH08-02);
  • El Silencio: 23.25 g/t Au and 117.5 g/t Ag over 1.80 meters on the Manto Vein (ES-MH08-02);

Brownfield

  • Vera: 15.39 g/t Au and 3,496.1 g/t Ag over 0.70 meters on the Lluvias Vein (VER-ES-010); and,
  • Marmajito: 123.65 g/t Au and 172.60 Ag over 0.93 meters on the Marmajito Vein (MAR-EU-003).

Serafino Iacono, Executive Chairman of Gran Colombia, commented, “Our 2021 in-mine and brownfield drilling programs are continuing to provide us with outstanding results, which confirm the prowess of our Segovia Operations as a world-class high-grade vein system. The Sandra K and El Silencio results continue to impress both in terms of grades and widths and will undoubtedly lead to an important resource growth coupled with a greater flexibility for mining. In addition, a further high-grade result from Vera and an initial high-grade result from the Marmajito vein are shaping up our ongoing brownfield drilling campaign, focused on the other 24 known veins we are not currently mining, as an exciting opportunity to add resources and consequently mine life.”

The ongoing 2021 in-mine and near-mine infill and step-out drilling campaigns commenced in early January with four diamond drill rigs operating from purpose-built underground drill stations and comprise a total of approximately 40,000 meters, or about 67% of the total drilling program for this year. In and near-mine in-fill and step-out drilling is focused on replacing the 2021 mining production and organic growth through resource and reserve expansion at the Company’s core operating mines. The other 33% of the planned drilling campaign for 2021 is focused on exploration for new resources in the brownfield exploration targets encompassing the 24 veins within the Segovia mining title that are not currently in production. It commenced in late 2020 at the Vera Project with one diamond drill rig operating from purpose-built surface drill stations. Approximately 33% of the total in-mine and near-mine drilling program for 2021 and 16% of the brownfield exploration drilling program was completed by the end of May.

Gran Colombia currently has seven diamond drill rigs in operation at Segovia, with three rigs carrying out resource definition on the Sandra K mine from two purpose-built surface platforms and one underground drill station within the underground developments of the Sandra K mine; one rig operating from Level 3 of the Sandra K mine targeting the down-plunge extension of the south ore-shoot of the El Silencio mine; one rig operating from surface at Providencia exploring the westernmost end of the Providencia vein system; one rig operating from the deepest underground developments of the Providencia mine exploring the down-dip extension of the Marmajito Vein; and one rig operating from surface at Carla to follow-up the high-grade intercepts encountered at depth during the last drilling campaign.

Key Highlights

Providencia

Exploration drilling from underground station PV4940 and surface platform PV4675, installed off the eastern end of the mine workings, delimited by a main dextral strike-slip fault, was completed to test the Providencia Vein close to the fault. Multiple medium to high gold grades were intersected from 13 drill holes (2,929 meters) on an extensional duplex (horsetail splay) where the main Providencia Vein splays into a complex tensional array, with maximum intersection grades of 37.33 g/t Au with 24.2 g/t Ag over 0.55 meters on an interpreted footwall structure of the Providencia Vein (PV-EU-019).

Exploration drilling from surface platform PV6545, aimed at testing the Providencia Vein west of the F Fault, was successfully completed. Multiple high gold grades were intersected in 5 drill holes (2,364 meters) on the main vein system with maximum intersection grades of 211.68 g/t Au with 253.6 g/t Ag over 0.33 meters on the Providencia Vein (PV-ES-008). As a result, Gran Colombia will carry out in-fill drilling in 2021 from a purpose-built underground drill station to better delineate the sparse high-grade intercepts encountered during this initial phase of drilling.

Sandra K

In-mine infill drilling from underground station SK5290, installed off Level 4, has further extend down-plunge, to approximately future Level 9, an ore-shoot outlined by previous drilling, which occurs in a block of the Sandra K vein system delimited by a set of faults striking NE and steeply dipping to the north. This orebody remains open at depth. Multiple high gold grades were intersected from 12 drill holes (1,905 meters) on the main vein system with maximum intersection grades of 147.91 g/t Au with 194.8 g/t Ag over 0.74 meters on the Sandra K Techo Hanging-wall Vein (SK-IU-175). This new orebody offers the potential for another phase of resource growth and the high-grade gold mineralized intercepts encountered so far confirm the higher-grade mineralization at depth.

The ongoing exploration drilling from surface platform SK5050, located in the south fault block of the vein system, is aimed to extend some narrow ore-shoots outlined by previous surface drilling. Drill hole SK-ES-001 returned 8.88 g/t Au with 4.4 g/t Ag over 0.58 meters on the Sandra K Techo Vein.

El Silencio Deep Zone

The ongoing directional drilling program on the El Silencio Deep Zone is targeted to better delineate the southern ore-shoot down-plunge below Level 40, the deepest level of historical mining on the Manto Vein by Frontino Gold Mines (“FGM”). Drilling on the southern ore-shoot continues to be successful in confirming the high-grade nature of the 450 Vein and the down-plunge continuity of the two distinct high-grade domains, previously combined, on the Manto Vein. The 450 Vein, interpreted as a low angle vein or manto, occurs in the hanging-wall of the Nacional Vein, some 40 meters vertically above. Multiple high gold grades were intersected from 4 kick-off holes (2,319 meters) with maximum intersection grades of 37.16 g/t Au with 52.5 g/t Ag over 0.55 meters on the 450 Vein (ES-MH08-02) and 70.56 g/t Au with 289.5 g/t Ag over 0.57 meters on the Manto Vein (ES-MH08-03).

Chumeca

In-mine infill drilling from underground station CH5110, installed off Level 2, aimed to extend a cluster of potential ore-shoots outlined by mining within the upper levels of the past operation, was completed. Multiple medium to high gold grades were intersected from 20 drill holes (2,041 meters) on the main vein system, which identified two distinct structures named as the Chumeca hanging-wall and footwall veins interpreted as a split of the main Chumeca Vein, with maximum intersection grades of 187.11 g/t Au with 242.2 g/t Ag over 0.43 meters on the hangingwall structure (CH-IU-030) and 15.90 g/t Au with 20.5 g/t Ag over 0.56 meters on the footwall structure (CH-IU-032).

Vera

Exploration drilling from surface station VER5340 confirmed the continuity of the high-grade gold and silver mineralization in the upthrown fault block, below the deepest level of the historical mine. A bonanza silver grade coupled with a high gold grade was intersected in drill hole VER-ES-010, one of the latest 7 drill holes (2,140 meters) completed on the main vein system, with maximum intersection grades of 31.78 g/t Au with 8,150.00 g/t Ag over 0.30 meters on the Lluvias Vein.

Marmajito

The ongoing brownfield exploration drilling program commenced in February 2021 with one diamond drill rig operating from the underground drill station PV5630, installed off Level 16 of the Providencia mine. This drilling program is aimed at exploring the down-dip extension of the historical Marmajito Vein that was operated by FGM until 2000. FGM developed the mine on 18 levels, the longest (Level 4) being approximately 800 meters. Historical records of FGM report reserves of 232,000 t grading 18 g/t Au. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves. Gold mineralization at Marmajito is contained predominantly within a N40-50°W trending massive white quartz vein dipping moderately (35-45°) to the north, averaging 0.33 m in width, hosted by granodiorite. The Marmajito Vein occurs in the hanging-wall of the Providencia Vein, some 100-150 meters vertically above The style of mineralization is characterized by narrow veins hosting two main stages of mineralization: “Stage 1” is represented by milky quartz, disseminated pyrite and sphalerite, while “Stage 2” is characterized by grey quartz and banded pyrite intergrown with galena. A total of 4 drill holes totaling 1,050 meters) have been completed so far at Marmajito, with maximum intersection grades of 123.65 g/t Au with 172.6 g/t Ag over 0.93 meters on the Marmajito Vein.

The table below lists the key intercepts from the ongoing 2021 in-mine, near mine and brownfield drilling campaigns since the press release issued on December 21, 2021:

In-Mine and Near-Mine Drill Program
HoleFrom (m)To (m)Width (m)Au (g/t)Ag (g/t)Vein
PROVIDENCIA MINE
U-G Drilling station PV4940
PV-EU-017*102.25103.000.757.958.3PRO-FW
including102.61103.000.3912.0012.6PRO-FW
PV-EU-019*145.95146.500.5537.3324.2SNO
PV-EU-019*149.25151.702.458.304.9PRO-FW
including149.25150.251.0012.852.4PRO-FW
PV-EU-020*99.90100.220.3218.6715.6PRO-FW
PV-EU-023*93.2394.451.226.425.0PRO-FW
including94.0894.450.3710.5315.2PRO-FW
Surface Drilling station PV4675
PV-ES-001329.47330.010.547.1235.3SNO
PV-ES-001336.79337.330.546.2811.34320
PV-ES-002A299.00299.500.506.755.4PRO
PV-ES-002A397.31397.670.368.0621.9SNO
Surface Drilling station PV6545
PV-ES-0057.708.080.389.541.2SNO
PV-ES-005318.75319.100.3524.0129.9SNO
PV-ES-00842.6343.040.4124.886.6SNO
PV-ES-008148.97149.300.337.883.1SNO
PV-ES-008485.13485.460.33211.68253.6PRO
PV-ES-009402.04402.480.447.4110.5SNO
U-G Drilling station PV6190
MAR-EU-002*34.7535.200.456.8414.52860
MAR-EU-002*125.70126.010.3126.65139.5SNO
SANDRA K MINE
Surface Drilling station SK5050
SK-ES-001337.09338.611.523.574.5SKT
including337.09337.670.588.884.4SKT
U-G Drilling station SK5675
SK-IU-163*60.1860.550.3710.56208.4SNO
U-G Drilling station SK5290
SK-IU-169*128.11129.431.3285.55262.1SKT-HW
SK-IU-170*131.51132.891.3817.3260.6SKT
including131.51132.150.6435.27128.1SKT
SK-IU-171*178.88182.533.657.4335.0SKT-FW
including181.05181.570.5246.65214.6SKT-FW
SK-IU-172*93.7594.610.868.9726.1SKT-HW
SK-IU-172*98.30100.121.8220.2177.9SKT
including98.3099.301.0035.68112.0SKT
SK-IU-172*111.90112.270.378.0842.3SKT-FW
SK-IU-173*129.70130.060.3612.93103.7SKT-HW
SK-IU-173*138.42139.461.0423.49626.2SKT
including139.00139.460.4651.641,412.0SKT
SK-IU-175*155.75157.772.0254.4899.7SKT-HW
including155.75156.490.74147.91194.8SKT-HW
U-G Drilling station SK5480
SK-IU-177*114.63115.050.427.5930.0SKT-FW
SK-IU-178*112.24113.190.959.2279.16640
including112.81113.190.3811.70130.06640
SANDRA K MINE – CHUMECA VEIN
U-G Drilling station CH5110
CH-IU-027*65.9866.370.398.40254.5CHU-FW
CH-IU-030*62.5763.000.43187.11242.2CHU-HW
CH-IU-031*50.2150.600.396.7411.7CHU-HW
CH-IU-032*92.6594.892.247.5813.7CHU-FW
including94.3394.890.5615.9020.5CHU-FW
El SILENCIO DEEP – DIRECTIONAL DRILLING
U-G Drilling station ES5690
ES-MH07-07**884.90885.400.5015.609.1450
ES-MH07-07**953.50954.260.7616.6029.6NAL-HW
ES-MH08-01**849.31849.890.5819.548.5450
ES-MH08-01**1036.551037.350.8015.930.2VEM
ES-MH08-02**864.37864.920.5537.1652.5450
ES-MH08-02**1032.001033.801.8023.25117.5VEM
Including1032.761033.280.5240.72184.7VEM
ES-MH08-03**881.68884.032.355.529.6450
Including881.68882.220.5418.5324.8450
ES-MH08-03**1025.851027.862.013.185.1NAL
Including1026.661027.200.547.0311.5NAL
ES-MH08-03**1048.141051.863.7220.9171.6VEM
including1050.461051.030.5770.56289.5VEM
Brownfield Drill Program
MARMAJITO VEIN
U-G Drilling station PV5630
MAR-EU-003*268.87269.800.93123.65172.6MAR
VERA VEIN
Surface Drilling station VER5000
VER-ES-010187.90188.600.7015.393,496.1LLV
including187.90188.200.3031.788,150.0LLV*

 

* Denotes underground drill holes. The underground infill holes were drilled at 30 to -90 degrees from the horizontal. Sample interval grades over 6.0 g/t Au are reported. Grades are for quartz vein intersections and are length-weighted composites. The width is the sample length and is not necessarily the true width of the vein. All gold and silver grades are uncut and are not diluted to a minimum mining width.

** Denotes directional drilling mother and kick-off holes. The directional drilling kick-off holes were drilled at -51 to -57 degrees from the horizontal. Sample interval grades over 6.0 g/t Au are reported.

Vein name abbreviations: PRO-FW: Providencia Footwall Vein. 4320: 4320 Vein. 2860: 2860 Vein. SKT: Sandra K Techo Vein. SKT-HW: Sandra K Techo Hanging-wall. SKT-FW: Sandra K Techo Footwall. 6640: 6640 Vein. CHU-FW: Chumeca Footwall. 450: 450 Vein. NAL: Nacional Vein.NAL-HW: Nacional Hanging Wall. VEM: Manto Vein. MAR: Marmajito Vein. LLV: Lluvia Vein. SNO: unnamed veins.

Results from in-mine drilling are reported for 46 holes (6,337 m) including: 11 holes (1,957 m) at Providencia (PV-EU-017 to PV-EU-024, MAR-EU-002, 004 and PV-HYDRO-003), 15 holes (2,339 m) at Sandra K (SK-IU-163 to SK-IU-178), except for hole SK-IU-174 whose results are still pending, and 20 holes (2,041 m) at Chumeca (CH-IU-015 to CH-IU-033 and CH-IU-028A), of which one was lost. There are no results above cut-off grade for 6 holes at Providencia, 6 holes at Sandra K and 16 holes at Chumeca and so these holes are not listed in the table.

Results from near-mine surface exploration drilling are reported for 16 holes (6,719 m) including: 11 holes (4,724 m) at Providencia (PV-ES-001 to PV-ES-010) of which one was lost, and 5 holes (1,995 m) at Sandra K (SK-ES-001 to SK-ES-005). There are no results above cut-off grade for 6 holes at Providencia and 4 holes at Sandra K and these holes are not listed in the table.

Results from brownfield exploration drilling are reported for 11 holes (3,190 m) including: 7 holes (2,140 m) at Vera (VER-ES-009 to VER-ES-015) and 4 holes (1,050 m) at Marmajito (MAR-EU-001, 003, 005 and 006). There are no results above cut-off grade for 6 holes at Vera and 3 holes at Marmajito and these are not listed in the table.

Results from directional drilling from one purpose-built station at El Silencio are reported from 4 kick-off holes (ES-MH07-07 and ES-MH08-01 to ES-MH08-03), totaling 2,319 m, all drilled on the southern ore-shoot. In addition, 527 meters were drilled in one mother hole (ES-MH-008).

Please refer also to the attached illustrative maps showing the Providencia, Sandra K, Chumeca, El Silencio, Vera and Marmajito drilling programs and the Segovia Exploration Update presentation on the Company’s website at www.grancolombiagold.com.

Qualified Person

Dr. Stewart D. Redwood, PhD, FIMMM, FGS, Senior Consulting Geologist to the Company, is a qualified person as defined by National Instrument 43-101 – Standards of Disclosure or Mineral Projects and prepared or reviewed the preparation of the scientific and technical information in this press release. Verification included a review of the quality assurance and quality control samples, and review of the applicable assay databases and assay certificates.

Quality Assurance and Quality Control

The Segovia samples were prepared and assayed by SGS Laboratories Ltd (ISO 9001:2008) at their laboratory in Medellin. Gold was assayed by 30 g fire assay with atomic absorption spectrophotometer (“AAS”) finish. Samples above the upper detection limit of 10.0 g/t gold were re-assayed by 30 g fire assay with gravimetric finish. Silver was assayed by aqua regia digestion and AAS finish. Silver samples above 500 g/t were re-assayed by nitric and hydrochloric acid digestion with AAS finish for ore grades and the highest in grade double-checked by SGS Laboratories Ltd. in Lima, Peru. Blank, standard and duplicate samples were routinely inserted and monitored for quality assurance and quality control.

About Gran Colombia Gold Corp.

Gran Colombia is a mid-tier gold producer with a proven track record of mine building and operating in Latin America. In Colombia, the Company is currently the largest underground gold and silver producer with several mines in operation at its high-grade Segovia Operations. In Guyana, the Company is advancing the Toroparu Project, one of the largest undeveloped gold projects in the Americas. Gran Colombia also owns approximately 44% of Aris Gold Corporation (TSX: ARIS) (Colombia – Marmato), an approximately 27% equity interest in Denarius Silver Corp. (TSX-V: DSLV) (Spain – Lomero-Poyatos; Colombia – Guia Antigua and Zancudo) and an approximately 26% equity interest in Western Atlas Resources Inc. (TSX-V: WA) (Nunavut – Meadowbank).

Additional information on Gran Colombia can be found on its website at www.grancolombiagold.com and by reviewing its profile on SEDAR at www.sedar.com.

Cautionary Statement on Forward-Looking Information

This news release contains “forward-looking information”, which may include, but is not limited to, statements with respect to anticipated business plans or strategies, including exploration programs and mineral resources and reserves. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption “Risk Factors” in the Company’s Annual Information Form dated as of March 31, 2021 which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management’s estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

For Further Information, Contact:
Mike Davies
Chief Financial Officer
(416) 360-4653
investorrelations@grancolombiagold.com

Attachment 1 – Providencia Mine Drilling Grade Intercepts is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/26069901-76ef-45c9-ae44-40fdc131fae7

Attachment 2 – Cross section of the Providencia Mine vein system is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a9651627-85cc-4937-9b4e-d1aefa7577c4

Attachment 3 – Sandra K Mine In-fill Drilling Grade Intercepts is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dbebb9e1-6eb2-4572-9dd2-27cfbe1bf95d

Attachment 4 – Cross section of the Sandra K vein system is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9d3a0914-516f-4d4f-a556-030dfb728d4a

Attachment 5 – Chumeca Project Drilling Grade Intercepts is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0ffa9a79-6dee-411f-a799-b54dc27e0ddf

Attachment 6 – El Silencio Deep vein system In-fill Drilling Grade Intercepts is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b2905335-a4c5-4bad-9b23-db6db9dc7541

Attachment 7 – Cross section of the El Silencio Deep vein system is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/8cf752dd-892e-4180-aa6d-d7b66403ae9d

Attachment 8 – Vera Project Drilling Grade Intercepts is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b85aff43-ecc6-4936-b5bd-e2ef1b708ec9

Attachment 9 – Cross section of the Vera vein system is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2a5fec60-ebce-4c81-adf3-40763eaa3ceb

Attachment 10 – Marmajito Project Drilling Grade Intercepts is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c296a691-b88c-4ff6-b4fd-2382024539b9

Attachment 11 – Cross section of the Marmajito vein system is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ddb5dda0-6e0

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GR Silver Mining Reports Drill Results Including a High-grade Au-rich Polymetallic Vein from the Plomosas Mine Area

GR Silver Mining Ltd. (TSXV: GRSL) (OTCQB: GRSLF) (FRANKFURT: GPE) (“GR Silver Mining” or the “Company”) – is pleased to report drill results in the northern portion of the Plomosas Mine Area. These results represent intersections of polymetallic (Ag-Au-Pb-Zn) hydrothermal breccia near the surface in unmined areas in the historic Plomosas Mine Area (Figure 1) at the Plomosas Silver Project (“Plomosas Project”) in Sinaloa, Mexico.

Drill highlights include:

  • SD-13: 1.8 m @ 15.8 g/t Au, 1.1 % Pb, 3.9 % Zn and 17 g/t Ag – 1,779 g/t AgEq1
  • PLS21-13A: 6.2 m @ 171 g/t Ag, 1.1 % Pb, 0.7 % Zn, 0.2 % Cu and 0.4 g/t Au – 282 g/t AgEq
  • PLS21-15A: 8.1 m @ 227 g/t Ag, 1.7 % Pb, 1.4 % Zn, 0.1 % Cu and 0.3 g/t Au – 354 g/t AgEq

GR Silver Mining President and CEO, Marcio Fonseca, commented “The reported drilling results continue to demonstrate the presence of high-grade precious metal mineralization in unmined zones of the historic Plomosas Mine Area. These results also confirm the presence of wide, polymetallic (Ag-Au-Pb-Zn) hydrothermal breccias in under-explored extensions that will be integrated into the upcoming maiden resource estimation. The Company has also discovered continuous wide Ag-Au rich polymetallic mineralization near surface, in the form of high-grade epithermal veins, as well as wide, shallow mineralized zones that demonstrate potential for future open pit development in a historic Pb and Zn underground mining project”.

_________________________

1

AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1,600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu.

The following figure illustrates the location of all surface drill holes released to date on the Plomosas Mine Area. The Company has released a total of 366 surface and underground drill holes in the Plomosas Project, which also includes the San Juan Area. All results released for this area are being incorporated into a 3D Model, part of the upcoming maiden resource estimation.

Figure 1: Plomosas Mine Area: Large Epithermal System with New Discoveries (Drone image)

GR Silver Mining has completed over 16,000 m of surface and underground core drilling at the Plomosas Project since its acquisition in 2020. This represents a major advance for a development stage project  which had been dormant for many years. Additionally, the Company’s exploration team has completed structural and geological mapping surveys in both areas, revealing what the Company believes to be a district-scale Ag-Au rich epithermal system. The Company is planning the continuation of exploration and surface drilling along strike of the mineralized systems in both areas, aiming to discover extensions to the planned resource estimates in the coming months.

The longitudinal section below represents the N-S trend of the Plomosas Mine Area, displaying the location of all surface and underground drill holes released to date and the upside potential for additional Ag-Au mineralization to be discovered along strike and down dip.

Figure 2: Longitudinal Section – Plomosas Mine Area (Looking East)

Table 1: Drill Hole Assay Results for this June 7, 2021 News Release

Hole No.

From (m)

To (m)

Drilled width (m)

True width (m)

Ag g/t

Au g/t

Pb %

Zn %

Cu %

AgEq g/t

PLS21-13A

3.5

20.7

17.2

16.2

75

0.25

0.7

0.8

0.1

152

includes

4.8

11.0

6.2

5.8

171

0.41

1.1

0.7

0.2

282

PLS21-14

194.0

202.0

8.0

6.9

10

0.11

0.4

0.5

n/a

PLI21-15A

22.5

30.5

8.0

7.6

227

0.27

1.7

1.4

0.1

354

PLS21-19A

16.5

25.4

8.9

8.0

30

0.28

0.7

0.5

0.1

105

44.0

58.0

14.0

12.7

13

0.16

0.5

0.6

n/a

66

SD-13

227.7

240.8

13.1

10.7

12

2.48

1.1

1.5

n/a

343

includes

234.8

236.6

1.8

1.5

17

15.81

1.1

3.9

n/a

1,779

SD-18

243.0

243.8

0.8

0.7

93

1.74

1.8

5.4

0.1

488

SD-23

265.9

269.7

3.8

3.6

100

0.14

0.2

1.1

0.5

188

SD-30

204.4

225.7

21.3

21.0

25

0.67

1.6

2.4

0.1

218

AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1,600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu. All numbers are rounded. Results are uncut and undiluted. “n/a” = no relevant assays.

Table 2: Drill Hole Locations

Hole No.

East (m)

North (m)

RL (m)

Azimuth (˚)

Dip (˚)

Depth (m)

Type

PLS21-13A

451524

2551901

977

90

-75

115.5

Surface

PLS21-14

451241

2551803

1012

72

-75

372.0

Surface

PLI21-15A

451519

2551966

978

90

-85

101.3

Surface

PL121-19A

451498

2551844

971

90

-80

99.0

Surface

SD-13

451395

2551706

1,014

270

-74

118.25

Surface

SD-18

451381

2551776

1,025

0

-90

80.0

Surface

SD-23

451381

2551776

999

270

-68

127.05

Surface

SD-30

451381

2551776

999

270

-55

203.5

Surface

All numbers are rounded. BOLD drill holes are drilled by GRSL and remaining holes represent historic drill holes drilled by Grupo Mexico.; East (m) and North (m) are UTM coordinates in WGS84, zone 13.

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. He has approved the disclosure herein.

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

The Company has implemented QA/QC procedures which include insertion of blank, duplicate 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 at 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.

The recent drill holes, completed by First Majestic from 2016 to 2018, 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 by an independent laboratory 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. Lead and Zn were analyzed using Inductively Coupled Plasma Optical Emission Spectrometry. GR Silver Mining has not received information related to the Grupo Mexico QA/QC and assay protocols and at this stage is considering the information historic for news release purposes.

Corporate Update

The Company also received TSX-V approval to the share for debt transaction previously announced on May 13, 2021 and consequently has issued 45,999 common shares to settle debt of $32,659.  All shares issued in conjunction with this debt settlement are subject to a hold period expiring October 1, 2021 in accordance with applicable securities laws and the policies of the TSX-V.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. is a Mexico-focused Company engaged in cost-effective silver-gold resource expansion on its 100%-owned assets which lie on the eastern edge of the Rosario Mining District, in the southeast of Sinaloa State, Mexico.

Plomosas Silver Project

GR Silver Mining’s 8,515 ha Plomosas Silver Project is located near the historic mining village of La Rastra and within 5 km of the Company’s San Marcial Silver Project, in the Rosario Mining District. The Project is a past-producing asset where only one mine, the Plomosas lead-zinc(-silver-gold) underground mine, operated a 600 tpd crush-mill-flotation circuit from 1986 to 2001, producing approximately 8 M ounces of silver, 73 M pounds of lead and 28 M pounds of zinc.

The March 2020 acquisition of the Plomosas Silver Project included 563 historical and recent drill holes from both surface and underground locations. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.

The Company is completing a drilling program with surface holes focused on expanding known mineralization along strike in two areas, the Plomosas Mine Area and the San Juan Area. Underground drilling included in the program is targeting the extension of recent Au-rich discoveries at the lowest level (775 m RL, or ~250 m below surface) of the Plomosas Mine Area and six low sulphidation epithermal veins at the San Juan Area. Both areas are currently the subject of NI 43-101 resource estimations.

The 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$30 M of previous capital investments. The previous owners invested approximately US$18 M in exploration, including extensive geophysics and geochemistry programs.

The silver-gold mineralization on this Project displays the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal mineralized vein/breccia system. Previous exploration was focused on polymetallic (Pb-Zn+/-Ag-Au) shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas Mine. The E-W portion of the mineralization and extensions of the main N-S Plomosas Fault remain under-explored.

In addition to the resource potential at Plomosas, a review of the existing drill hole database, geophysical surveys and geochemical data covering most of the concession, has defined 16 new exploration targets of which 11 have high priority for future exploration programs.

San Marcial Project

San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. The Company filed a National Instrument 43-101 (“NI 43-101”) report entitled “San Marcial Project Resource Estimation and Technical Report, Sinaloa, Mexico” having an effective date of March 18, 2019 and an amended date of June 10, 2020 (the “Report”), which contains a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) resource estimate. The Report was prepared by Todd McCracken and Marcelo Filipov of WSP Canada Inc. and is available on SEDAR. The company recently completed over 320 m of underground development in the San Marcial Resource Area, from which underground drilling is planned to expand the high-grade portions of the resource down-dip. The Company recently discovered additional mineralization in the footwall, outside of the existing resource, and will also be drilling this area. GR Silver Mining is the first company to conduct exploration at San Marcial in over 10 years.

Recent exploration has identified silver and gold mineralization in areas previously defined as non-mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource area.

La Trinidad Project

The La Trinidad Project was acquired in March 2021. While La Trinidad has been the focus of artisanal mining activity over many decades, commercial operations began late in the 20th century. Anaconda Minerals Corp. was first to drill the project in the mid-late 1980s. After initially taking up an option on the Project in 1993, Eldorado Gold Corp. then commenced an open pit gold mine at La Trinidad in 1995, known as the Taunus Pit, with ore being processed via a heap leach operation. The mine operated until 1998, producing approximately 52,000 oz of gold2.

Exploration undertaken by Oro Gold from 2006 identified additional resources below the Taunus Pit and operations recommenced late in 2014. Gold output from the heap leach pads continued until late 2019 for a total cumulative production by Oro Gold of 112,000 oz gold3,4. In addition to La Trinidad, the portfolio acquired by GR Silver Mining includes an extensive regional database of geological, geochemical and geophysical information resulting from historical exploration expenditure by Oro Gold of more than CDN$18.6 M since 2006.

Cimarron Project

Cimarron is another advanced stage project that was acquired along with the La Trinidad Project in March 2021 and is located 40 km to the NW of La Trinidad. A number of targets have been identified at Cimarron including Calerita, El Prado, Huanacaxtle, Betty and Veteranos, however Calerita is the only target to have been drilled to date. The near surface historical Inferred Resource at the Calerita prospect contains 3.7 Mt at 0.65 g/t Au for approximately 77,000 oz of gold5, which is considered to be open along strike and down dip.

While the 2011 resource is considered by GR Silver Mining to be a historical resource, the Company considers the resource estimate as being relevant and reliable, considering a lack of significant additional exploration work since its release. A key parameter in the historical resource is the usage of a US$1,200/oz gold price compared to a much higher current spot gold price. A Qualified Person (QP) would be required to review the historical resource report and make recommendations in order to verify and upgrade it to a current resource. A QP has not done sufficient work to classify the historical estimate as current mineral resources. The Company is treating the 2011 resource estimate as a historical estimate. The company plans to re-assess the work completed by previous owners and define the feasibility of additional drilling, aiming at identifying additional near-surface mineralization.

The Plomosas, San Marcial and La Trinidad Projects collectively represent a geological setting resembling the multi-million-ounce San Dimas Mining District which has historically produced more than 600 Moz Ag and 11 Moz Au over a period of more than 100 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, La Trinidad and San Marcial in the Rosario Mining District. Following the acquisition of Marlin Gold Mining Ltd. (“Marlin”) in March 2021, GR Silver Mining controls a concession portfolio of over 1,000 km2, two previously producing mines fully permitted for future developments and a total combined 75 km of structures with field evidence of 24 Ag-Au veins in historic old workings.

__________________________

2 

Refer to Marlin Gold Mining Ltd. 2nd Amended NI 43-101 Technical Report dated February 1, 2013

3

Refer to Marlin Gold Mining Ltd. MD&A dated April 30, 2015, April 29, 2016, May 1, 2017, April 30, 2018, August 29, 2018

4 

Refer to Mako Mining Corp. MD&A dated August 28, 2019, April 29, 2020

5 

Refer to Oro Mining Ltd. NI 43-101 Technical Report dated March 18, 2011

GR Silver Mining Ltd.
Mr. Marcio Fonseca, P. Geo.
President & CEO

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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: Brenda Dayton, VP Corporate Communications, Telephone: +1.604.558.6248, Email: bdayton@grsilvermining.com

Related Links

http://www.grsilvermining.com/

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GR Silver Mining Reports Near Surface Drill Results from the Plomosas Mine Area

 GR Silver Mining Ltd. (TSXV: GRSL) (FRANKFURT: GPE) (OTCQB: GRSLF) (“GR Silver Mining” or the “Company”) – is pleased to report near surface drill results in the central portion of the Plomosas Mine Area. These results will be incorporated in the database and 3D resource model, with potential for delineation of shallow resources in unmined zones close to existing underground developments in the historic Plomosas Mine Area (Figure 1) at the Plomosas Silver Project (“Plomosas Project”) in Sinaloa, Mexico.

GR Silver Mining President and CEO, Marcio Fonseca commented, “We are very pleased to continue to report successful drilling results following our surface and underground drilling program at the Plomosas Mine Area, and to incorporate these results into the upcoming maiden resource estimation. To date, the company has released results from 304 drill holes to be included in two maiden resource estimates at (1) the Plomosas Mine Area and (2) the San Juan Area. There are still drill holes pending review and receipt of assays which the company expects to finalize release by the end of Q2/21. This represents a major milestone in the advance of modern exploration and resource estimation work at the Plomosas Silver Project“.

Highlights of the drill results and their preliminary interpretation include:

  • Ag mineralization has been intercepted at shallow depth in areas never drilled before. The results indicate wide mineralized intersections with geometry that is potentially attractive for future open pit development in conjunction with the existing underground mineralization at the Plomosas Mine Area (PLS21-16: 12.1 m @ 273 g/t AgEq).
  • A predominance of underground drilling results in the central part of the Plomosas Mine Area, with composited intervals ranging from 2 to 7 m in width, defining good continuity of the polymetallic (Ag-Au-Pb-Zn) hydrothermal breccia, hosted by the shallow angle Plomosas Fault.
  • Presence of wide gold-only mineralized zones (PLI21-08: 6 m @ 0.25 g/t Au) on the footwall of the Plomosas Fault, indicating the presence of a separate gold mineralized host in the Plomosas Mine Area.

The Company has completed its current diamond drilling program on the Plomosas Mine Area, and these assay results are part of pending assays to be included in the maiden NI 43-101 resource estimation.

The longitudinal section below represents the N-S trend of the Plomosas Mine Area, displaying the location of surface and underground drill holes released to date and the upside potential along strike and down dip.

Table 1 summarizes the most significant assay results for the drill holes in this News Release.

Table 1: Drill Hole Assay Results – News Release May 26, 2021

Hole No.

From
(m)

To
(m)

Drilled
width
(m)

True
width
(m)

 Ag
g/t

 Au
g/t

Pb %

Zn %

Cu %

 AgEq
g/t

PLS21-16

118.8

130.9

12.1

11.9

84

0.31

2.3

2.7

0.1

273

includes

122.8

127.1

4.3

4.2

165

0.35

3.0

1.7

0.1

355

PLI21-09

192.8

196.8

4.0

1.4

1

0.01

0.1

0.3

n/a

PLI21-08

0.0

17.0

17.0

16.7

7

0.22

0.1

0.3

n/a

Includes

0.0

11.0

11.0

10.8

3

0.20

0.1

0.4

n/a

and

11.0

17.0

6.0

5.9

5

0.25

n/a

n/a

n/a

PLS21-01

No Mineralized Intervals

PLS20-06

No Mineralized Intervals

PLS20-04

No Mineralized Intervals

PLI17-22

48.1

48.6

0.5

0.4

3

2.04

0.2

2.4

0.1

PLI17-21

41.4

43.1

1.7

1.4

7

0.13

0.2

1.1

0.2

PLI17-19

46.5

47.0

0.5

0.5

40

0.25

n/a

4.5

0.6

55.8

60.1

4.3

4.2

10

0.09

0.1

0.6

0.1

PLS-14

93.6

94.0

0.4

0.4

17

0.49

5.9

18.2

n/a

770

PLS-4

No Mineralized Intervals

74

8.0

10.4

2.4

1.4

105

n/a

0.3

0.3

n/a

125

13.0

16.7

3.7

2.1

350

n/a

1.0

0.4

n/a

396

22.0

23.9

1.9

1.1

104

n/a

0.3

n/a

n/a

115

30.3

36.3

6.0

3.4

85

n/a

0.3

0.2

n/a

100

39.0

42.3

3.3

1.9

348

n/a

0.3

0.3

n/a

365

97

30.0

38.3

8.3

5.3

128

n/a

0.5

0.3

n/a

154

137

34.0

36.5

2.5

1.6

101

n/a

0.3

0.2

0.1

125

48.0

50.0

2.0

1.3

127

n/a

0.1

n/a

n/a

133

58.0

60.7

2.7

1.7

89

n/a

0.3

1.1

n/a

133

182

3.5

6.0

2.5

1.3

26

0.19

3.3

3.3

n/a

250

184

14.8

16.0

1.2

1.0

128

1.00

9.0

9.7

0.2

817

186

3.8

7.5

3.7

2.6

45

0.60

3.0

0.9

n/a

233

9.0

9.5

0.5

0.3

10

0.19

2.0

4.7

n/a

230

189

19.0

26.3

7.3

4.7

187

0.18

2.2

1.2

0.1

320

297

36.0

37.0

1.0

1.0

60

0.14

0.2

0.5

0.1

99

298

59.0

61.0

2.0

1.0

122

0.17

0.3

0.3

0.1

160

72.0

76.0

4.0

2.0

227

0.22

0.2

0.4

n/a

271

299

20.0

22.0

2.0

2.0

29

0.05

1.2

0.3

0.3

100

300

16.8

17.8

1.0

1.0

106

0.20

0.6

0.7

0.1

173

301

3.0

5.0

2.0

1.0

28

n/a

6.9

0.1

0.1

271

302

36.0

39.0

3.0

1.9

283

0.82

0.3

1.0

0.1

409

AU08-PLS-04

341.4

347.1

5.7

5.6

31

0.38

1.2

0.4

0.2

132

LCD-1

276.7

276.9

0.2

0.2

59

1.09

0.1

 n/a

2.3

322

288.1

288.4

0.3

0.3

190

0.39

1.8

1.9

n/a

303

SD-16

102.8

104.9

2.1

2.0

30

n/a

n/a

0.1

n/a

34

SD-29

75.3

79.2

3.9

2.8

20

0.06

0.1

0.1

n/a

33

SD-34

82.5

83.5

1.0

0.9

242

0.70

0.3

1.9

n/a

379

SD-35

199.2

200.4

1.2

1.1

8

n/a

0.9

3.6

n/a

139

SD-6

243.6

245.4

1.8

1.4

30

0.05

0.1

0.1

n/a

42

251.0

265.1

14.1

10.8

5

0.05

0.6

1.0

n/a

59

AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1,600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu. All numbers are rounded. Results are uncut and undiluted. “n/a” = no relevant assays.

The following table (Table 2) summarizes the collar locations for drill holes reported in this News Release.

Table 2: Drill Hole Locations – News Release May 26, 2021

Hole No.

East (m)

North (m)

RL (m)

Azimuth
(˚)

Dip (˚)

Depth (m)

Type

PLS21-16

451404

2551745

1,011

64

-46

219.0

Surface

PLI21-09

451038

2551669

741

112

5

228.0

UG

PLI21-08

451095

2551715

731

165

-55

41.5

UG

PLS21-01

451597

2551541

949

90

-60

218.5

Surface

PLS20-06

451444

2551717

991

90

-70

154.5

Surface

PLS20-04

451559

2551450

936

0

-90

150.5

Surface

PLI17-22

450924

2551777

731

0

-90

276.85

UG

PLI17-21

450927

2551772

731

100

-62

250.15

UG

PLI17-19

450925

2551771

731

110

-56

200.65

UG

PLS-14

451746

2551826

823

65

-60

315.85

Surface

PLS-4

451478

2551453

951

0

-90

142.2

Surface

74

451404

2551736

894

270

20

62.0

UG

97

451462

2551736

901

270

32

59.0

UG

137

451053

2551766

727

0

-90

110.05

UG

182

451373

2551766

853

90

0

82.0

UG

184

451373

2551766

853

90

-30

106.0

UG

186

451373

2551766

853

90

-75

67.5

UG

189

451388

2551754

882

90

-30

36.0

UG

297

451092

2551751

735

90

-63

159.0

UG

298

451092

2551751

735

90

10

79.0

UG

299

451092

2551751

735

90

-22

47.25

UG

300

451104

2551760

732

37

-67

61.7

UG

301

451104

2551760

732

37

-30

59.75

UG

302

451092

2551751

736

90

12

154.8

UG

AU08-PLS-04

450895

2551786

949

63

-69

361.8

Surface

LCD-1

450862

2551780

946

62

-72

350.05

Surface

SD-16

451395

2551706

1,014

270

-74

118.25

Surface

SD-29

451381

2551776

1,025

0

-90

80.0

Surface

SD-34

451381

2551776

999

270

-68

127.05

Surface

SD-35

451381

2551776

999

270

-55

203.5

Surface

SD-6

451076

2551780

966

90

-75

265.05

Surface

All numbers are rounded. Italic drill holes are drilled by GRSL; East (m) and North (m) are UTM coordinates in WGS84, zone 13.

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. He has approved the disclosure herein.

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

The Company has implemented QA/QC procedures which include insertion of blank, duplicate 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 at 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.

The recent drill holes, completed by First Majestic from 2016 to 2018, 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 by an independent laboratory 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. Lead and Zn were analyzed using Inductively Coupled Plasma Optical Emission Spectrometry. GR Silver Mining has not received information related to the Grupo Mexico QA/QC and assay protocols and at this stage is considering the information historic for news release purposes.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. is a Mexico-focused Company engaged in cost-effective silver-gold resource expansion on its 100%-owned assets which lie on the eastern edge of the Rosario Mining District, in the southeast of Sinaloa State, Mexico.

Plomosas Silver Project

GR Silver Mining’s 8,515 ha Plomosas Silver Project is located near the historic mining village of La Rastra and within 5 km of the Company’s San Marcial Silver Project, in the Rosario Mining District. The Project is a past-producing asset where only one mine, the Plomosas lead-zinc(-silver-gold) underground mine, operated a 600 tpd crush-mill-flotation circuit from 1986 to 2001, producing approximately 8 M ounces of silver, 73 M pounds of lead and 28 M pounds of zinc.

The March 2020 acquisition of the Plomosas Silver Project included 563 historical and recent drill holes from both surface and underground locations. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.

The Company is completing a drilling program with surface holes focused on expanding known mineralization along strike in two areas, the Plomosas Mine Area and the San Juan Area. Underground drilling included in the program is targeting the extension of recent Au-rich discoveries at the lowest level (775 m RL, or ~250 m below surface) of the Plomosas Mine Area and six low sulphidation epithermal veins at the San Juan Area. Both areas are currently the subject of NI 43-101 resource estimations.

The 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$30 M of previous capital investments. The previous owners invested approximately US$18 M in exploration, including extensive geophysics and geochemistry programs.

The silver-gold mineralization on this Project displays the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal mineralized vein/breccia system. Previous exploration was focused on polymetallic (Pb-Zn+/-Ag-Au) shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas Mine. The E-W portion of the mineralization and extensions of the main N-S Plomosas Fault remain under-explored.

In addition to the resource potential at Plomosas, a review of the existing drill hole database, geophysical surveys and geochemical data covering most of the concession, has defined 16 new exploration targets of which 11 have high priority for future exploration programs.

San Marcial Project

San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. The Company filed a National Instrument 43-101 (“NI 43-101”) report entitled “San Marcial Project Resource Estimation and Technical Report, Sinaloa, Mexico” having an effective date of March 18, 2019 and an amended date of June 10, 2020 (the “Report”), which contains a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) resource estimate. The Report was prepared by Todd McCracken and Marcelo Filipov of WSP Canada Inc. and is available on SEDAR. The company recently completed over 320 m of underground development in the San Marcial Resource Area, from which underground drilling is planned to expand the high-grade portions of the resource down-dip. The Company recently discovered additional mineralization in the footwall, outside of the existing resource, and will also be drilling this area. GR Silver Mining is the first company to conduct exploration at San Marcial in over 10 years.

Recent exploration has identified silver and gold mineralization in areas previously defined as non-mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource area.

La Trinidad Project

The La Trinidad Project was acquired in March 2021. While La Trinidad has been the focus of artisanal mining activity over many decades, commercial operations began late in the 20th century. Anaconda Minerals Corp. was first to drill the project in the mid-late 1980s. After initially taking up an option on the Project in 1993, Eldorado Gold Corp. then commenced an open pit gold mine at La Trinidad in 1995, known as the Taunus Pit, with ore being processed via a heap leach operation. The mine operated until 1998, producing approximately 52,000 oz of gold2.

Exploration undertaken by Oro Gold from 2006 identified additional resources below the Taunus Pit and operations recommenced late in 2014. Gold output from the heap leach pads continued until late 2019 for a total cumulative production by Oro Gold of 112,000 oz gold3,4. In addition to La Trinidad, the portfolio acquired by GR Silver Mining includes an extensive regional database of geological, geochemical and geophysical information resulting from historical exploration expenditure by Oro Gold of more than CDN$18.6 M since 2006.

Cimarron Project

Cimarron is another advanced stage project that was acquired along with the La Trinidad Project in March 2021 and is located 40 km to the NW of La Trinidad. A number of targets have been identified at Cimarron including Calerita, El Prado, Huanacaxtle, Betty and Veteranos, however Calerita is the only target to have been drilled to date. The near surface historical Inferred Resource at the Calerita prospect contains 3.7 Mt at 0.65 g/t Au for approximately 77,000 oz of gold5, which is considered to be open along strike and down dip.

While the 2011 resource is considered by GR Silver Mining to be a historical resource, the Company considers the resource estimate as being relevant and reliable, considering a lack of significant additional exploration work since its release. A key parameter in the historical resource is the usage of a US$1,200/oz gold price compared to a much higher current spot gold price. A Qualified Person (QP) would be required to review the historical resource report and make recommendations in order to verify and upgrade it to a current resource. A QP has not done sufficient work to classify the historical estimate as current mineral resources. The Company is treating the 2011 resource estimate as a historical estimate. The company plans to re-assess the work completed by previous owners and define the feasibility of additional drilling, aiming at identifying additional near-surface mineralization.

The Plomosas, San Marcial and La Trinidad Projects collectively represent a geological setting resembling the multi-million-ounce San Dimas Mining District which has historically produced more than 600 Moz Ag and 11 Moz Au over a period of more than 100 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, La Trinidad and San Marcial in the Rosario Mining District. Following the acquisition of Marlin Gold Mining Ltd. (“Marlin”) in March 2021, GR Silver Mining controls a concession portfolio of over 1,000 km2, two previously producing mines fully permitted for future developments and a total combined 75 km of structures with field evidence of 24 Ag-Au veins in historic old workings.

GR Silver Mining Ltd.
Mr. Marcio Fonseca, P. Geo.
President & CEO

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_________________________

AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1,600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu.

2 Refer to Marlin Gold Mining Ltd. 2nd Amended NI 43-101 Technical Report dated February 1, 2013

Refer to Marlin Gold Mining Ltd. MD&A dated April 30, 2015, April 29, 2016, May 1, 2017, April 30, 2018, August 29, 2018

4 Refer to Mako Mining Corp. MD&A dated August 28, 2019, April 29, 2020

5 Refer to Oro Mining Ltd. NI 43-101 Technical Report dated March 18, 2011

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: Telephone: +1.604.558.6248, Email: info@grsilvermining.com

http://www.grsilvermining.com/

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Eloro’s Iska Iska: Ready for News in Bolivia

Just over a year ago when I first spoke to Tom Larsen about Eloro’s (ELO.V) Iska Iska project in Bolivia he told me, “We’re looking to find 100 million plus tons.”

That was in January 2020. Eloro had optioned the project from its private owner and set to work exploring, mapping and sampling. Drills began to turn in September of 2020.

Iska Iska is a caldera, that is the remnants of a collapsed volcano. The rim stretches out 1.8 kilometers and is host to a number of breccia pipes. These pipes seem to be around 400 meters in diameter and, so far, four have been identified. These are the drill targets.

Iska Iska has underground workings from a previous mine and this allows Eloro, under the supervision of its Bolivian geologist Dr. Osvaldo Arce, to drill from underground drill bays. Drilling from underground eliminates the need to drill through the overburden and gives Eloro useful information from the first meter.

So, the drills have been turning. Over 4200 meters have been drilled in the Central Breccia Pipe alone but, to Larsen’s frustration, actual assayed results have been slowed to a trickle by COVID-19. Labs all over the world have been struggling to assay core. On May 4, 2021 Eloro was able to release the results from its first hole in the Central Breccia Pipe.

Company adviser Dr. Quinton Hennigh, P.Geo. commented: “Every single drill hole completed at Iska Iska to date has encountered mineralization, a very positive sign that we are dealing with a very large system. While it is remarkable to see the first hole at CBP return multiple intervals of mineralization, some high grade, it is also intriguing that hole DSB-10 has encountered over 500 m of continuous sulphide mineralization several hundred meters below. What was encountered in hole DCN-01 may simply be smoke above something even larger. We are quite anxious to see the return of results from this hole.”

In the release the highlight numbers appear: “Hole DCN-01 intersected multiple mineralized intercepts including 196.09 g Ag eq/t (150.25 g Ag/t, 0.10% Sn and 0.05 g Au/t) over 56.2m and containing 342.98 g Ag eq/t (274.0 g Ag/t, 0.16% Sn and 0.16 g Au/t) over 27.53m, from 252.84m to 309.04m in Hole DCN-01.”

I spoke to Tom Larsen shortly after the news was released.

“We’re zeroing in on an initial 43-101,” said Larsen. “We’re trying to understand the structure. It’s a big structure.  We’re completing the initial magnetic survey. And we will be doing down hole IP when the equipment arrives.”

“The downhole IP will give us a look out of about 100 meters and detects sulphides and massive sulphides,” said Larsen.

The initial 43-101 will calculate an inferred resource for what Larsen refers to as a “pocket area”. “We’ll drill about 25,000 meters for the first pass inferred resource estimate,” said Larsen. Which will mean that much of Iska Iska will not be included in this first pass but will be drilled for inclusion in subsequent 43-101s.

Larsen was quick to point out that, “not only are we definition drilling the breccia pipes, but we are encountering sulphide mineralization in the varying lithologies including dacitic volcanics such as domes, granodiorite structures and the old sediment and sandstone rock.”

Larsen has always known the Iska Iska was big. The ongoing work on the property is actually “defining what “big” means”. Stay tuned, there should be regular news as the mag studies, IP and core assays are reported.

 

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Tocvan Provides Phase II Drill Program Update

Tocvan Ventures Corp. (CSE:TOC) (“Tocvan” or the “Corporation”) is pleased to provide an update for its flagship Pilar Gold-Silver Project in Sonora, Mexico. The Phase II drill program (the “Program”) is nearing the half-way point with a total of 4,000 meters planned. To date, eleven (11) drill holes have been completed for a total of 1,811 meters (Figure 1). Samples for the first five holes have been submitted to ALS Labs in Hermosillo, the remaining samples will be submitted later this week. Early drilling focused on the extension of the Main Zone, testing deeper down-dip extensions of mineralization in addition to stepping out along strike. Drill targeting has now shifted towards testing new areas along the 4-Trench Extension and Triple Vein Zone areas.

­­

“We are extremely pleased with the progress of our Phase II Program,” commented CEO, Derek Wood. “We believe there is great potential to extend the Main Zone both at depth and along strike. Our Technical Team has been busy compiling data to maximize our drill targets. We are very excited to be back drilling at Pilar, as we continue to advance the Project.”

 

Figure 1. Planview Map of Phase II Drill Program Update.


Click Image To View Full Size

 

Figure 2. Cross Section of Drill Hole JES-20-32 from Phase I drilling, looking northwest.

 


Click Image To View Full Size

 

Photo 1. RC Drill Rig Setting up at Pilar.

 


Click Image To View Full Size

 

About the Pilar Property

The Pilar Gold-Silver property is interpreted as a structurally controlled low-sulphidation epithermal project hosted in andesite rocks. Three zones of mineralization have been identified in the north-west part of the property from historic surface work and drilling and are referred to as the Main Zone, North Hill and 4-Trench. Structural features and zones of mineralization within the structures follow an overall NW-SE trend of mineralization. Over 19,200 m of drilling have been completed to date. Significant results are highlighted below:

  • – 2020 Phase I RC Drilling Highlights include (all lengths are drilled thicknesses):
    • – 94.6m @ 1.6 g/t Au, including 1.5 m @ 9.2m @ 10.8 g/t Au and 38 g/t Ag;

      – 41.2m @ 1.1 g/t Au, including 3.1m @ 6.0g/t Au and 12 g/t Ag ;

      – 24.4m @ 2.5 g/t Au and 73 g/t Ag, including 1.5m @ 33.4 g/t Au and 1,090 g/t Ag

    – 17,700m of Historic Core & RC drilling. Highlights include:

    • – 61.0m @ 0.8 g/t Au

      – 16.5m @ 53.5g/t Au and 53 g/t Ag

      – 13.0m @ 9.6 g/t Au

      – 9.0m @ 10.2 g/t Au and 46 g/t Ag

Soil and Rock sampling results from undrilled areas indicate mineralization extends towards the southeast from the Main Zone and 4-Trench Zone. Recent Surface exploration has defined three new target areas: Triple Vein Zone, SE Vein Zone and 4 Trench Extension.

Brodie A. Sutherland, P.Geo., VP Exploration for Tocvan Ventures Corp. and a qualified person (“QP”) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

 

Quality Assurance / Quality Control

RC chips were shipped for sample preparation to ALS Limited in Hermosillo, Sonora, Mexico and for analysis at the ALS laboratory in North Vancouver. The ALS Hermosillo and North Vancouver facilities are ISO 9001 and ISO/IEC 17025 certified. Gold was analyzed using 50-gram nominal weight fire assay with atomic absorption spectroscopy finish. Over limits for gold (>10 g/t), were analyzed using fire assay with a gravimetric finish. Silver and other elements were analyzed using a four-acid digestion with an ICP finish. Over limit analyses for silver (>100 g/t) were re-assayed using an ore-grade four-acid digestion with ICP-AES finish. Control samples comprising certified reference samples and blank samples were systematically inserted into the sample stream and analyzed as part of the Company’s robust quality assurance / quality control protocol.

 

About Tocvan Ventures Corp.

Tocvan is a well-structured exploration development company. Tocvan was created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success. Tocvan currently has approximately 28 million shares outstanding and is earning into two exciting opportunities. The Pilar Gold-Silver project in Sonora, Mexico and the Rogers Creek Copper project in southern British Columbia, management feels both projects represent tremendous opportunity to create shareholder value.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

TOCVAN VENTURES CORP.

Derek A. Wood, President and CEO

Suite 1150 Iveagh House,

707 – 7th Avenue SW

Calgary, Alberta T2P 3H6

Telephone: (403) 668 7855 EXT 101

Email:  dwood@tocvan.ca

 

Cautionary Statement Regarding Forward Looking Statements

 

This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Forward-looking information in this news release includes statements regarding the use of proceeds from the Offering. Such forward-looking information is often, but not always, identified by the use of words and phrases such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

 

These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to the speculative nature of the Company’s business, the Company’s formative stage of development and the Company’s financial position.

 

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

 

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

 

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GR Silver Mining Closes Acquisition of 100% of San Marcial Silver Project

GR Silver Mining Ltd. (TSXV: GRSL) (FRANKFURT: GPE) (OTCQB: GRSLF) (“GR Silver Mining” or the ” Company”) – is pleased to announce that it has made the final option payment of CDN$2.5 M and issued 1,500,000 common shares to SSR Mining Ltd., as required under the San Marcial option agreement dated April 17, 2018 (refer to News Release dated May 7, 2018). SSR Mining’s subsidiary, Silver Standard México, S.A. de C.V., has also been granted a 0.75% net smelter returns royalty (“NSR”). The Company has a buy-back right on the NSR that can be exercised at any time by payment of CDN$1.25 M. As required by applicable securities law and the policies of the TSX Venture Exchange, the shares will be subject to a hold period expiring September 6, 2021.

Since acquiring the option three years ago, GR Silver Mining has invested over CDN$4.6 M in exploration expenditures on the Project, increasing NI 43-101 resources by 57% in the Indicated category to 29 Moz Ag and by 126% in the Inferred category to 10 Moz Ag. The Company has also progressed exploration outside of the Resource Area discovering 14 exploration targets which are currently being explored with the first ever ground geophysical survey and geological work, with potential for drilling later this year. This transaction represents a low-cost acquisition at US$0.13/oz AgEq, for an advanced-stage property with the potential for initial open pit development.

GR Silver Mining President and CEO, Marcio Fonseca, commented, “We are very pleased to have completed the acquisition of 100% of the San Marcial Project. While a number of companies have reviewed this project over the past 20 years, GR Silver Mining is the first to recognize its significant potential, having expended over CDN$4.6 M in producing a NI 43-101 silver resource estimate in 2019, discovering new silver and gold drill targets and now obtaining full ownership. The NI 43-101 report in 2019 indicated that the project is potentially open pit amenable and there are underground opportunities for future development of San Marcial. Numerous areas in the vicinity of the NI 43-101 Resource Area represent opportunities for resource expansion. The successful consolidation of 100% ownership of San Marcial, as well as the neighbouring Plomosas and La Trinidad Projects, provide the Company with two past producer Ag-Au mines, unrestricted access to all exploration targets on three mineralized trends totaling 75 km, where initial field work has already identified 24 old Ag-Au workings.

The Company today has control of a district-scale mineralized Ag-Au system, with potential for continuous discoveries and resource expansion. We are now completing work on two resource estimates at the neighbouring Plomosas Project, expected to be completed in Q2/2021. The new resources support our strategy for continuously increasing the Company’s resource inventory, with the objective of future integration of all projects into combined development.”

In February 2019, less than 12 months after acquiring the option on the San Marcial Project, GR Silver Mining reached a significant milestone by publishing a NI 43-101 silver resource estimate. This estimate confirmed a 57% increase in Indicated Resources to 29 Moz Ag and a 126% increase in Inferred Resources to 10 Moz Ag, in comparison to the 2008 historical resource. Aspects of the GR Silver Mining resource were amended in June 2020 (see News Releases dated February 7, 2019 and June 12, 2020).

In addition to outlining a much larger NI 43-101 silver resource at San Marcial, over the past three years the Company has undertaken successful and extensive concession-wide exploration activities. The discoveries of new high-grade Ag-Au zones outside of the Resource Area has identified the exploration potential for future resource expansion at San Marcial. The following are examples of previously announced exploration work completed by the Company, not incorporated in the NI 43-101 report, and selected results indicating the potential outside of the Resource Area.

  • completed 51 trenches/channels on priority targets, with best results including:
  • completed 17 diamond drill holes, including:
  • completed a 25 m x 25 m litho-geochemical sampling program covering almost 70% of the 1,250 ha property, and creating a geochemical database of over 13,000 samples,
  • commenced the first ever ground geophysical survey across the San Marcial concessions. This survey includes IP and magnetometry and is currently being completed. This survey will aid our technical team during the remainder of 2021 to advance new targets towards initial shallow surface drilling.

More recently, GR Silver Mining was the first company to complete an underground tunnel development into the San Marcial deposit, providing full exposure of the mineralized zones to support an oriented underground drill program and to delineate high-grade extensions to the silver resource at depth. The upcoming underground drill program scheduled to commence in Q2/2021 will provide additional information that will be incorporated in an updated resource estimate for the San Marcial Project towards the end of 2021.

While the San Marcial Resource Area is contained structurally within a 500 m long breccia-host, part of a 6 km mineralized trend, our exploration has successfully identified a new Au-Ag epithermal-style mineralization in various other targets within the concession and on the footwall of the NI 43-101 Resource Area. These multiple opportunities for resource expansion are now being explored by the Company as one regional-scale mineralized system, with use of geophysical, geochemical and detailed geological surveys.

GR Silver Mining’s achievements at San Marcial over the past three years have included successful exploration results as well as providing significant employment opportunities for the local population and developing strong relationships and support from local communities.

The integration of the Plomosas Project and the San Marcial Project, together with the recent acquisition of the La Trinidad Project, represent the first time in the history of the Rosario Mining district that one single company controls 100% of the area, with access to three major structural corridors representing a total of 75 km of strike length. During 2021, GR Silver Mining will continue to explore new Ag-Au mineralized zones, close to surface, within these projects, providing potential for drilling, additional discoveries and resource growth.

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. He has approved the disclosure herein.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. is a Mexico-focused Company engaged in cost-effective silver-gold resource expansion on its 100%-owned assets which lie on the eastern edge of the Rosario Mining District, in the southeast of Sinaloa State, Mexico.

Plomosas Silver Project

GR Silver Mining’s 8,515 ha Plomosas Silver Project is located near the historic mining village of La Rastra and within 5 km of the Company’s San Marcial Silver Project, in the Rosario Mining District. The Project is a past-producing asset where only one mine, the Plomosas lead-zinc(-silver-gold) underground mine, operated a 600 tpd crush-mill-flotation circuit from 1986 to 2001, producing approximately 8 M ounces of silver, 73 M pounds of lead and 28 M pounds of zinc.

The March 2020 acquisition of the Plomosas Silver Project included 563 historical and recent drill holes from both surface and underground locations. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.

The Company is completing a drilling program with surface holes focused on expanding known mineralization along strike in two areas, the Plomosas Mine Area and the San Juan Area. Underground drilling included in the program is targeting the extension of recent Au-rich discoveries at the lowest level (775 m RL, or ~250 m below surface) of the Plomosas Mine Area and six low sulphidation epithermal veins at the San Juan Area. Both areas are currently the subject of NI 43-101 resource estimations.

The 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$30 M of previous capital investments. The previous owners invested approximately US$18 M in exploration, including extensive geophysics and geochemistry programs.

The silver-gold mineralization on this Project displays the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal mineralized vein/breccia system. Previous exploration was focused on polymetallic (Pb-Zn+/-Ag-Au) shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas Mine. The E-W portion of the mineralization and extensions of the main N-S Plomosas Fault remain under-explored.

In addition to the resource potential at Plomosas, a review of the existing drill hole database, geophysical surveys and geochemical data covering most of the concession, has defined 16 new exploration targets from which 11 have high priority for future exploration programs.

San Marcial Project

San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. The Company filed a National Instrument 43-101 (“NI 43-101”) report entitled “San Marcial Project Resource Estimation and Technical Report, Sinaloa, Mexico” having an effective date of March 18, 2019 and an amended date of June 10, 2020 (the “Report”), which contains a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) resource estimate. The Report was prepared by Todd McCracken and Marcelo Filipov of WSP Canada Inc. and is available on SEDAR. The Company recently completed over 320 m of underground development in the San Marcial Resource Area, from which underground drilling is planned to expand the high-grade portions of the resource down-dip. The Company recently discovered additional mineralization in the footwall, outside of the existing resource, and will also be drilling this area. GR Silver Mining is the first Company to conduct exploration at San Marcial in over 10 years.

Recent exploration has identified silver and gold mineralization in areas previously defined as non-mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource area.

La Trinidad Project

The La Trinidad Project was acquired in March 2021. While La Trinidad has been the focus of artisanal mining activity over many decades, commercial operations began late in the 20th century. Anaconda Minerals Corp. was first to drill the project in the mid-late 1980s. After initially taking up an option on the Project in 1993, Eldorado Gold Corp. then commenced an open pit gold mine at La Trinidad in 1995, known as the Taunus Pit, with ore being processed via a heap leach operation. The mine operated until 1998, producing approximately 52,000 ounces of gold1.

Exploration undertaken by Oro Gold from 2006 identified additional resources below the Taunus Pit and operations recommenced late in 2014. Gold output from the heap leach pads continued until late 2019 for a total cumulative production by Oro Gold of 112,000 oz gold2,3. In addition to La Trinidad, the portfolio acquired by GR Silver Mining includes an extensive regional database of geological, geochemical and geophysical information resulting from historical exploration expenditure by Oro Gold of more than CDN$18.6 M since 2006.

Cimarron Project

Cimarron is another advanced stage project that was acquired along with the La Trinidad Project in March 2021 and is located 40 km to the NW of La Trinidad. A number of targets have been identified at Cimarron including Calerita, El Prado, Huanacaxtle, Betty and Veteranos, however Calerita is the only target to have been drilled to date. The near surface historical Inferred Resource at the Calerita prospect contains 3.7 Mt at 0.65 g/t Au for approximately 77,000 oz of gold4, which is considered to be open along strike and down dip.

Whilst the 2011 resource is considered by GR Silver Mining to be a historical resource, the Company considers the resource estimate as being relevant and reliable, considering a lack of significant additional exploration work since its release. A key parameter in the historical resource is the usage of a US$1,200/oz gold price compared to a much higher current spot gold price. A Qualified Person (QP) would be required to review the historical resource report and make recommendations in order to verify and upgrade it to a current resource. A QP has not done sufficient work to classify the historical estimate as current mineral resources. The Company is treating the 2011 resource estimate as a historical estimate. The Company plans to re-assess the work completed by previous owners and define the feasibility of additional drilling, aiming at identifying additional near-surface mineralization.

The Plomosas, San Marcial and La Trinidad Projects collectively represent a geological setting resembling the multi-million-ounce San Dimas Mining District which has historically produced more than 600 Moz Ag and 11 Moz Au over a period of more than 100 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, La Trinidad and San Marcial in the Rosario Mining District. Following the acquisition of Marlin Gold Mining Ltd. (“Marlin”) in March 2021, GR Silver Mining controls a concession portfolio of over 1,000 km2, two previously producing mines fully permitted for future developments and a total combined 75 km of structures with field evidence of 24 Ag-Au veins in historic old workings.

Mr. Marcio Fonseca, P. Geo.
GR Silver Mining Ltd. President & CEO

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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.

______________________

1

Refer to Marlin Gold Mining Ltd. (Marlin) NI 43-101 News Release dated February 1, 2013

2

Refer to Marlin MD&A Releases dated 30 April 2015, 29 April 2016, 1 May 2017, 30 April 2018, 29 August 2018

3

Refer to Mako Mining Corp. MD&A Releases dated 28 August 2019, 29 April 2020

4

Refer to Marlin NI 43-101 News Release dated March 18, 2011

SOURCE GR Silver Mining Ltd.

For further information: +1.604.558.6248, Email: info@grsilvermining.com

http://www.grsilvermining.com/

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Tocvan Reports 92% Recovery of Gold from Preliminary Metallurgical Results

Tocvan Ventures Corp. (CSE:TOC) (CNSX:TOC.CN) (“Tocvan” or the “Corporation”) is pleased to announce the results of ongoing metallurgical work at its flagship Pilar Gold-Silver Project in Sonora, Mexico. Preliminary results have been received from two composite samples taken from the previously released drill hole JES-20-32. Drill hole JES-20-32 is thought to be representative of the central portion of the Main Zone, which during Phase I drilling in December of 2020 intersected 94.6-meters at 1.6 g/t Au including 9.2m at 10.8 g/t Au and 38 g/t Ag from 57.9 to 152.5 meters.  The samples consisted of a low-grade (0.63 g/t Au) and a medium-grade (1.2 g/t Au) composite to determine the susceptibility of dissolution of gold through cyanide bottle testing. The results show after a retention time of 48 hours, maximum dissolution can be reached of 91% for the low-grade composite and 92% for the medium-grade composite.  A summary of the results are provided in Table 1. Samples were submitted to SGS Laboratories in Durango, Mexico for analysis.

 

Table 1. Summary of Cyanide Bottle Test


Click Image To View Full Size

­­

“These results are an important first step as we move towards a bulk sample at Pilar,” commented VP Exploration, Brodie Sutherland. “The results align with analysis completed by past operators which displayed similar gold recoveries of 90 to 92%. With our Phase II drill program well underway we will continue to evaluate the potential of Pilar with continued exploration and metallurgical studies leading towards a bulk sample later this year.”

 

Update on Phase II Drill Program

A minimum of 14 drill holes totalling 2,400 meters is planned for the initial stage of the Phase II drill program. Eight drill holes have been completed to date for a total of 1,394 meters. Samples for the first three holes have been submitted to ALS Labs in Hermosillo, with the remaining holes expected to be shipped and submitted this week. Early drilling has focused on the extension of the Main Zone. Drill targeting is now shifting towards testing new targets in the 4-Trench Extension, North-Hill and Triple Vein Zone areas. A second stage of drilling totalling 1,600 meters is planned to commence mid-May which will continue to test property wide targets and follow-up on results from the initial stage.

 

Corporate Update

Tocvan is also pleased to report it has granted 200,000 share options to a consultant of the company. The options are exercisable at $0.80 per share with a 5-year term to expiry and will vest over a one-year period.

 


Click Image To View Full Size

 

Figure 1. Cross Section of Drill Hole JES-20-32 from Phase I drilling, looking northwest. Preliminary metallurgical composite samples released today were from hole JES-20-32.

 

About the Pilar Property

The Pilar Gold-Silver property is interpreted as a structurally controlled low-sulphidation epithermal project hosted in andesite rocks. Three zones of mineralization have been identified in the north-west part of the property from historic surface work and drilling and are referred to as the Main Zone, North Hill and 4-Trench. Structural features and zones of mineralization within the structures follow an overall NW-SE trend of mineralization. Over 19,200 m of drilling have been completed to date. Significant results are highlighted below:

  • – 2020 Phase I RC Drilling Highlights include (all lengths are drilled thicknesses):
    • – 94.6m @ 1.6 g/t Au, including 1.5 m @ 9.2m @ 10.8 g/t Au and 38 g/t Ag;

      – 41.2m @ 1.1 g/t Au, including 3.1m @ 6.0g/t Au and 12 g/t Ag ;

      – 24.4m @ 2.5 g/t Au and 73 g/t Ag, including 1.5m @ 33.4 g/t Au and 1,090 g/t Ag

    – 17,700m of Historic Core & RC drilling. Highlights include:

    • – 61.0m @ 0.8 g/t Au

      – 16.5m @ 53.5g/t Au and 53 g/t Ag

      – 13.0m @ 9.6 g/t Au

      – 9.0m @ 10.2 g/t Au and 46 g/t Ag

Soil and Rock sampling results from undrilled areas indicate mineralization extends towards the southeast from the Main Zone and 4-Trench Zone. Recent Surface exploration has defined three new target areas: Triple Vein Zone, SE Vein Zone and 4 Trench Extension.

Brodie A. Sutherland, P.Geo., VP Exploration for Tocvan Ventures Corp. and a qualified person (“QP”) as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this release.

 

Sampling Methods

Samples collected for metallurgy are composites of RC chips with a minimum weight of 15kg. Composites were shipped to SGS Durango, Mexico. Gold recovery was analyzed by cyanide bottle roll test.

 

About Tocvan Ventures Corp.

Tocvan is a well-structured exploration development company. Tocvan was created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success. Tocvan currently has approximately 28 million shares outstanding and is earning into two exciting opportunities. The Pilar Gold-Silver project in Sonora, Mexico and the Rogers Creek Copper project in southern British Columbia, management feels both projects represent tremendous opportunity to create shareholder value.

 

FOR FURTHER INFORMATION, PLEASE CONTACT:

TOCVAN VENTURES CORP.

Derek A. Wood, President and CEO

Suite 1150 Iveagh House,

707 – 7th Avenue SW

Calgary, Alberta T2P 3H6

Telephone: (403) 668 7855 EXT 101

Email:  dwood@tocvan.ca

 

Cautionary Statement Regarding Forward Looking Statements

 

This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Forward-looking information in this news release includes statements regarding the use of proceeds from the Offering. Such forward-looking information is often, but not always, identified by the use of words and phrases such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

 

These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to the speculative nature of the Company’s business, the Company’s formative stage of development and the Company’s financial position.

 

Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.

 

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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GR Silver Mining Reports High-Grade and Wide Silver Mineralization From Drilling in the San Juan Area


  • 2.0 m @ 954 g/t Ag, 1.3 g/t Au, 1.2 % Pb and 1.6 % Zn (1,177g/t AgEq1)
    including 1.0 m @ 1,184 g/t Ag, 2.3 g/t Au, 1.3 % Pb and 0.9 % Zn (1,486 g/t AgEq)
  • 1.1 m @ 781 g/t Ag, 0.2 g/t Au, 1.5 % Pb and 0.3 % Zn (863 g/t AgEq)
  • 22.3 m @ 62 g/t Ag, 0.3 g/t Au, 0.6 % Pb and 0.4 % Zn (126 g/t AgEq)

GR Silver Mining Ltd. (TSXV: GRSL) (FRANKFURT: GPE) (OTCQB: GRSLF) (“GR Silver Mining” or the “Company”) – is pleased to report drill results that extend the high-grade silver mineralization 100 m to the north along strike in the San Juan Vein. Additionally, a wide, up to 65 m continuous silver mineralized zone, is delineated on the footwall of the Yecora Vein, defining shallow wide mineralized zones to be included in the upcoming maiden resource estimate at San Juan. Both veins are part of the vein system of the San Juan Area of the Plomosas Silver Project (“Plomosas Project”) in Sinaloa, Mexico.

The results contained within this news release integrate drill holes obtained from the Company’s current drill program with the existing historic drilling data to support the upcoming maiden resource estimates on the Plomosas Project. They represent intersections in two of the six veins already delineated in the San Juan Area (Figure 1).

The high-grade silver mineralization encountered in the San Juan Vein confirms continuity of the mineralization close to surface, 100 m to the north along strike, and also correlates with previously identified high-grade mineralization at depth (Figure 2).

GR Silver Mining President and CEO, Marcio Fonseca commented, “We are very pleased to report additional results from the Company’s 2021 drilling of the San Juan Area, which in combination with historical drill results, significantly extend shallow high-grade silver vein structures. The results also identify wide mineralization adjacent to existing high-grade silver veins, defining a large epithermal system to support the maiden resource delineation underway for the San Juan Area. These results highlight the potential of three of the six veins in the San Juan Area to host a shallow high-grade resource. The remaining veins at San Juan provide an opportunity for possible future resource estimations.”

The broad interval of silver mineralization on the footwall of the Yecora Vein represents the discovery of a much larger footprint than initially interpreted for this epithermal vein system, supporting potential open pit-amenable zones. This type of wide mineralization, hosted in a hydrothermal breccia at Yecora, has geological similarities with high-grade silver-gold mineralization drilled 100 m along strike and previously reported (see News Release dated November 23, 2020). Ground geophysical data indicates the presence of large bodies at depth, possibly related to the wide-spread silver mineralized zones at San Juan.

Surface diamond core drilling is ongoing at the other veins within the San Juan Area (Figure 2), particularly in the La Colorada Vein. GR Silver continues to delineate high-grade, shallow silver-gold mineralization at the La Colorada Vein. The La Colorada Vein represents a NW continuation of the Yecora Vein, in an area with a series of shallow old workings, and where the vein system has the potential to be extended at least another 1 km along strike. The shallow core drilling program underway at the San Juan Area will integrate three vein zones; San JuanYecora and La Colorada, with a combined total strike length of 2 km into an initial maiden resource estimate.

Additional veins located in the San Juan Area, which include San Francisco, Loma Dorada and La Odisea, will be the subject of additional diamond drilling in 2021, following the completion of the maiden resource estimation, intending to continue the Company’s identification of new resources in the Plomosas Project.

____________________________
1 AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1,600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu.

The longitudinal sections below represent the trend of the La Colorada-Yecora Veins and separately projects the parallel San Juan Vein (Figure 2).

Table 1 (below) summarizes the most significant assay results for the drill holes in this News Release covering the Yecora Vein and the San Juan Vein.

Table 1: Drill Hole Assay Results – News Release May 3, 2021 (Yecora Vein and San Juan Vein)

Hole No.

From
(m)

To
(m)

Drilled
width
(m)

True
width
(m)

 Ag
g/t

 Au
g/t

Pb %

Zn %

Cu %

 AgEq
g/t

SJS21-03A

166.2

169.2

3.0

2.9

144

0.09

0.3

0.8

na

186

SJS21-04

117.0

127.5

10.5

9.8

242

0.31

0.4

0.8

na

310

includes

118.2

120.3

2.0

1.9

954

1.29

1.2

1.6

0.1

1,177

118.2

119.2

1.0

0.9

1,184

2.27

1.3

0.9

na

1,486

SJS21-05

108.9

123.5

14.6

`12.5

52

0.05

0.1

0.4

0.01

73

SJS21-05

128.5

130.6

2.1

1.8

61

0.01

0.2

0.4

0.01

82

SJS21-06

70.0

76.0

6.0

5.8

31

0.10

0.1

0.2

0.01

47

SJS21-07

No Significant Assays

SJS21-08

No Significant Assays

SJS21-09

38.0

40.0

2.0

1.9

45

0.40

1.9

6.4

0.01

324

LRD-35

81.8

89.8

8.0

4.00

126

0.08

1.7

0.7

na

214

LRD-37

40.0

62.3

22.3

20.2

62

0.31

0.6

0.4

na

126

includes

53.2

59.5

6.3

5.7

154

0.96

1.2

0.4

na

308

LRD-39

45.0

50.7

5.7

5.6

223

0.45

0.7

0.7

na

312

LRD-50

46.4

112.2

65.8

46.0

10

0.04

0.4

0.8

na

52

LRD-51

79.5

95.5

16.0

13.1

4

0.05

0.4

0.8

na

LRD-52

49.8

59.1

9.3

8.0

20

0.28

0.4

0.6

na

80

67.0

71.5

4.5

3.9

311

0.08

0.8

0.2

na

354

includes

69.2

70.3

1.1

1.0

781

0.21

1.5

0.3

na

863

LRD-61

92.8

145.1

52.4

40.1

5

0.07

0.4

1.0

na

YE-6

35.6

36.4

0.8

0.6

27

0.01

1.7

6.3

0.1

272

63.8

65.0

1.2

0.9

6

0.01

1.7

1.8

na

YES20-02

0.0

15.0

15.0

13.2

2

0.31

0.2

1.9

na

YES20-03

209.2

244.9

35.7

31.5

1

0.06

0.1

0.6

na

227.9

233.1

5.3

4.6

2

0.31

0.2

1.9

na

AgEq is based on long term gold, silver, zinc, lead and copper prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn and 70% Cu. All numbers are rounded. Results are uncut and undiluted. “na” = no relevant assays

The following table (Table 2) summarizes the collar locations for drill holes reported in this News Release.

Table 2: Drill Hole Locations – News Release May 3, 2021 (Yecora Vein and San Juan Vein)

Hole No.

East (m)

North (m)

RL (m)

Dip (˚)

Azimuth
(˚)

Depth
(m)

SJS21-03-A

448288

2550667

965

227

-60

184.5

SJS21-04

448170

2550727

934

196

-45

177

SJS21-05

448202

2550700

943

206

-50

150.35

SJS21-06

448139

2550685

940

245

-50

86.5

SJS21-07

448248

2550545

901

220

-80

75

SJS21-08

448339

2550479

907

220

-60

80

SJS21-09

448294

2550510

895

220

-70

55.5

LRD-35

447754

2550685

821

0

-90

136.55

LRD-37

447754

2550685

821

270

-70

96.4

LRD-39

447754

2550685

821

270

-43

83.95

LRD-50

447754

2550715

825

0

-90

140.25

LRD-51

447775

2550655

816

0

-90

119.2

LRD-52

447754

2550715

825

270

-70

118.9

LRD-61

447844

2550685

840

270

-80

166.9

YE-6

450073

2548236

1117

235

-75

114.95

YES20-02

447673

2550628

799

252

-60

21.0

YES20-03

447931

2550703

842

230

-80

350.0

All numbers are rounded. Red drill holes are drilled by GRSL; East (m) and North (m) are UTM coordinates in WGS84, zone 13.

Based on the results to date, the Company intends the following:

  • To complete the remaining 1,600 m of surface drilling at the San Juan Area by May 2021, covering the San JuanYecora and La Colorada Veins
  • To complete a maiden NI 43-101 mineral resource for the San Juan Area and a maiden NI 43-101 resource for the Plomosas Mine Area by the end of Q2/2021
  • Surface drilling on three additional veins; San Francisco, La Odisea and Loma Dorada, to further delineate extensions to the known mineralization

The Plomosas Mine Area and San Juan Area represent two independent areas at resource estimation stage. The Plomosas Mine Area has a current strike length of 600 m and the San Juan Area is 2 km in length. The Company is completing two separate resource estimates which will be part of the combined maiden NI 43-101 report for the Plomosas Project.

Both areas have a geological footprint similar to the San Marcial Project, 5 km to the south. At the San Marcial Project the company has estimated an initial NI 43-101 resource of 29 Moz Ag (Indicated) and 10 Moz Ag (Inferred)2, on the initial 500 m strike length. The San Marcial NI 43-101 resource is part of a larger 6 km trend under exploration, including a current ground geophysics survey and diamond drilling planned for later in 2021.

The integration of the Plomosas Project and the San Marcial Project, together with the recent acquisition of the Trinidad Project, provides the Company with full control of three major structural corridors on the eastern half of the Rosario Mining District, representing a total of 75 km of strike length. During 2021, GR Silver Mining will continue to explore new mineralized zones, close to surface, within these projects, providing potential for additional resource growth.

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. He has approved the disclosure herein.

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

The Company has implemented QA/QC procedures which include insertion of blank, duplicate 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 at 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.

The recent drill holes, completed by First Majestic from 2016 to 2018, 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 by an independent laboratory 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. Lead and Zn were analyzed using Inductively Coupled Plasma Optical Emission Spectrometry. GR Silver Mining has not received information related to the Grupo Mexico QA/QC and assay protocols and at this stage is considering the information historic for news release purposes.

___________________________
2 Refer to News Release dated June 12, 2020

About GR Silver Mining Ltd.

GR Silver Mining Ltd. 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 lead-zinc(-silver-gold) underground mine, operated a 600 tpd crush milling flotation circuit from 1986 to 2001, producing approximately 8 Moz of silver, 73 M lbs of lead and 28 M lbs of zinc.

The Project has an 8,515 ha property position and is strategically located within 5 km of the Company’s San Marcial Silver Project in the southeast of Sinaloa State, Mexico.

The March 2020 acquisition of the Plomosas Silver Project included 563 historical and recent drill holes from both surface and underground locations. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.

The Company is carrying out a drilling program with surface holes focused on expanding known mineralization along strike in two initial areas, the Plomosas Mine Area and the San Juan Area. Underground drilling included in the program is targeting the extension of recent Au-rich discoveries at the lowest level (775 m RL, or ~250 m below surface) of the Plomosas Mine Area and six low sulphidation epithermal veins at the San Juan Area. Both areas will be the subject of NI 43-101 resource estimations following completion of this drill program.

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$18M in exploration, including extensive geophysics and geochemistry programs.

The silver-gold mineralization on this Project displays the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal mineralized vein/breccia system. Previous exploration was focused on polymetallic (Pb-Zn+/-Ag-Au) shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas Mine. The E-W portion of the mineralization and extensions of the main N-S Plomosas Fault remain under-explored.

In addition to the resource potential at Plomosas, a review of the existing drill hole database, geophysical surveys and geochemical data covering most of the concession, has defined 16 new exploration targets of which 11 have high priority for future exploration programs.

San Marcial Project

San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. The Company filed a National Instrument 43-101 (“NI 43-101”) report entitled “San Marcial Project Resource Estimation and Technical Report, Sinaloa, Mexico” having an effective date of March 18, 2019 and an amended date of June 10, 2020 (the “Report”), which contains a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) resource estimate. The Report was prepared by Todd McCracken and Marcelo Filipov of WSP Canada Inc. and is available on SEDAR. The company recently completed over 320 m of underground development in the San Marcial Resource Area, from which underground drilling is planned to expand the high-grade portions of the resource down-dip. The Company recently discovered additional mineralization in the footwall, outside of the existing resource, and will also be drilling this area. GR Silver Mining is the first company to conduct exploration at San Marcial in over 10 years.

Recent exploration has identified silver and gold mineralization in areas previously defined as non-mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource area.

La Trinidad Project

The La Trinidad Project was acquired in March 2021. While La Trinidad has been the focus of artisanal mining activity over many decades, commercial operations began late in the 20th century. Anaconda Minerals Corp. was first to drill the project in the mid-late 1980s. After initially taking up an option on the Project in 1993, Eldorado Gold Corp. then commenced an open pit gold mine at La Trinidad in 1995, known as the Taunus Pit, with ore being processed via a heap leach operation. The mine operated until 1998, producing approximately 52,000 oz of gold3.

Exploration undertaken by Oro Gold from 2006 identified additional resources below the Taunus Pit and operations recommenced late in 2014. Gold output from the heap leach pads continued until late 2019 for a total cumulative production by Oro Gold of 112,000 oz gold4,5. In addition to La Trinidad, the portfolio acquired by GR Silver Mining includes an extensive regional database of geological, geochemical and geophysical information resulting from historical exploration expenditure by Oro Gold of more than CDN$18.6 M since 2006.

Cimarron Project

Cimarron is another advanced stage project that was acquired along with the La Trinidad Project in March 2021 and is located 40 km to the NW of La Trinidad. A number of targets have been identified at Cimarron including Calerita, El Prado, Huanacaxtle, Betty and Veteranos, however Calerita is the only target to have been drilled to date. The near surface historical Inferred Resource at the Calerita prospect contains 3.7 Mt at 0.65 g/t Au for approximately 77,000 oz of gold6, which is considered to be open along strike and down dip.

While the 2011 resource is considered by GR Silver Mining to be a historical resource, the Company considers the resource estimate as being relevant and reliable, considering a lack of significant additional exploration work since its release. A key parameter in the historical resource is the usage of a US$1,200/oz gold price compared to a much higher current spot gold price. A Qualified Person (QP) would be required to review the historical resource report and make recommendations in order to verify and upgrade it to a current resource. A QP has not done sufficient work to classify the historical estimate as current mineral resources. The Company is treating the 2011 resource estimate as a historical estimate. The company plans to re-assess the work completed by previous owners and define the feasibility of additional drilling, aiming at identifying additional near-surface mineralization.

The Plomosas, San Marcial and La Trinidad Projects collectively represent a geological setting resembling the multi-million-ounce San Dimas Mining District which has historically produced more than 600 Moz Ag and 11 Moz Au over a period of more than 100 years.

_____________________________________
3 Refer to Marlin Gold Mining Ltd. (Marlin) NI 43-101 News Release dated February 1, 2013
4 Refer to Marlin MD&A Releases dated 30 April 2015, 29 April 2016, 1 May 2017, 30 April 2018, 29 August 2018
5 Refer to Mako Mining Corp. MD&A Releases dated 28 August 2019, 29 April 2020
6 Refer to Marlin NI 43-101 News Release dated March 18, 2011

Other Projects

GR Silver Mining’s other projects are situated in areas attractive for future discoveries and development in the same vicinity of Plomosas, La Trinidad and San Marcial in the Rosario Mining District. Following the acquisition of Marlin, GR Silver Mining controls a concession portfolio of over 1,000 km2, two previously producing mines fully permitted for future developments and a total combined 75 km of structures with field evidence of 24 Ag-Au veins in historic old workings.

Mr. Marcio Fonseca, P. Geo.
GR Silver Mining Ltd.
President & CEO

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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: Telephone: +1.604.558.6248, Email: info@grsilvermining.com

http://www.grsilvermining.com/

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GR Silver Mining Completes Oversubscribed $11,534,500 Bought Deal Financing

GR Silver Mining Ltd. (TSXV: GRSL) (FSE: GPE) (OTCQB: GRSLF) (“GR Silver Mining” or the “Company”) – is pleased to announce that it has completed its previously announced bought deal private placement (the “Offering“) of an aggregate of 19,550,000 units of the Company (the “Units“) at a price of $0.59 per Unit (the “Issue Price“) for gross proceeds of $11,534,500, which was oversubscribed and included the exercise of the underwriters’ option in full.

Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant“).  Each Warrant is exercisable to acquire one common share for a period of 24 months following closing of the Offering at an exercise price of $0.74 per share.  The Warrants may be accelerated by the Company, at its sole option, at any time after the closing date of the Offering provided that the volume-weighted average closing price of the common shares of the Company on the TSX Venture Exchange is greater than or equal to $1.30 for a period of 60 consecutive trading days, by giving notice to the holders thereof and, in such case, the Warrants will expire at 4:00pm (Toronto time) on the earlier of: (i) the 30th day after the date on which such notice is given by the Company in accordance with the terms of the Warrants, and (ii) the actual expiry date of the Warrants.

The Company intends to use the net proceeds for working capital and general corporate purposes.

The Offering was led by Beacon Securities Limited as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters including Echelon Wealth Partners Inc. (collectively, the “Underwriters“).

In connection with the Offering, the Underwriters received a cash commission and non-transferable broker warrants (the “Broker Warrants“).  The Underwriters elected to receive a portion of their cash fees in Units, resulting in the Company paying aggregate cash fees of $617,368.63 and issuing an aggregate of 255,000 Units to the Underwriters.  GR Silver also issued the Underwriters an aggregate of 1,301,388 Broker Warrants. Each Broker Warrant is exercisable into one common share of the Company at the Issue Price for a period of 24 months from the closing date of the Offering.  The Underwriters were also paid a corporate finance fee in connection with the Offering of $22,000 and 37,000 Broker Warrants.

The Offering remains subject to the final acceptance of the TSX Venture Exchange. All securities issued under and in connection with the Offering are subject to a hold period in Canada expiring August 28, 2021.

Exploration Program

The upsized bought deal financing provides GR Silver Mining with significant funds to advance activities on its three key focus areas – Plomosas, San Marcial and Trinidad. In 2021, the Company will continue its aggressive exploration, including drilling programs on these three projects. Existing exploration programs are being expanded, following the discovery of new Ag-Au exploration targets, and new programs are being added, commensurate with the prospectivity of this historic district.

  • Surface drilling is progressing at the Plomosas Project, specifically in the San Juan Area, with all resource drilling expected to be finalized by May 2021.
  • GR Silver is advancing two new resource estimates on the Plomosas Project – one at the Plomosas Mine Area and another at the San Juan Area. These resources are expected to result in a maiden NI 43-101 report being completed before the end of Q2/2021, which will add to the Company’s existing resource inventory.
  • The Company will exercise the option to acquire the San Marcial Project in May, which will result in GR Silver Mining holding 100%-ownership and unlimited access across its portfolio in the Rosario Mining District. GR Silver will be the first company to exercise the full acquisition of the San Marcial Project in the past 15 years, after completing $4.6 million in exploration expenditures over the past three years, and increasing the Indicated silver resource inventory by 59% (see News Release dated February 7, 2019).
  • The San Marcial IP and ground magnetic geophysical survey now in progress (see News Release dated February 22, 2021) will be extended by 30% in size to the NW, over the GAP area and into the San Juan Area of the Plomosas Project. This 87.5 line km geophysical survey is significant to complement the Company’s previous litho-geochemical sampling program in defining shallow new exploration targets for future drilling. A mapping and sampling program over mineralized vein and breccia structures continues to uncover new zones for further work. The Company expects that the geophysical survey and mapping efforts will support delineation of new mineralized zones in the under-explored gap along the prospective trend between the San Marcial Area and the San Juan Area, six kms to the NW, and also in new areas to the SW of the San Marcial Resource Area.
  • With completion of the underground development at the San Marcial Resource Area, the Company is finalizing technical and commercial arrangements to initiate an underground drill program. This program will test the depth extensions of the San Marcial Resource, with the aim of increasing the published mineral resource estimate (see News Release dated June 12, 2020) by the end of 2021.
  • Additional surface drill programs are expected to test strike extensions to the maiden NI 43-101 resources at the Plomosas Project, as well as investigating new targets at both the San Marcial Project and the Plomosas Project.
  • A new exploration campaign with grid-based soil sampling and geological mapping is planned for the large underexplored area between the Plomosas Mine Area and the San Juan Area, covering areas with field evidence of historic workings and high potential for Ag and Au mineralization in veins and breccias.
  • A full evaluation of the large La Trinidad exploration data package – including existing soil, stream sediment and drill hole geochemical databases – is currently underway. This will be combined with publicly available geological, geochemical and geophysical datasets to focus on areas of interest. A systematic exploration approach will assure that a pipeline of quality Au and Ag targets are generated and prioritized for exploration, aiming at new discoveries and potential delineation of near surface resources. Concurrently, field crews will complete ground evaluation and reconnaissance of existing mineral occurrences and areas of limited historical drilling.
  • Development of multiple 3D deposit models at Plomosas, San Juan and San Marcial, in addition to the Company’s regional exploration model and information from La Trinidad, will lead to a fully integrated Preliminary Economic Assessment targeting early 2022 completion.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. 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 a 600 tpd crush milling flotation circuit from 1986 to 2001, producing approximately 8 million ounces of silver, 73 million pounds of lead and 28 million pounds of zinc.

The Project has an 8,515-hectare property position and is strategically located within 5 km of the Company’s San Marcial Silver Project in the southeast of Sinaloa State, Mexico.

The March 2020 acquisition of the Plomosas Silver Project included 563 historical and recent drill holes from both surface and underground locations. These drill holes represent an extensive database allowing the Company to advance towards resource estimation and potential project development in the near future.

The Company is carrying out a drilling program with surface holes focused on expanding known mineralization along strike in two initial areas, the Plomosas Mine Area and the San Juan Area. Underground drilling included in the program will target the extension of recent Au-rich discoveries at the lowest level (775 m RL, or ~250 m below surface) of the Plomosas Mine Area and six low sulphidation epithermal veins at the San Juan Area. Both areas will be the subject of National Instrument 43-101 (“NI 43-101”) resource estimations following completion of this drill program.

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$30 million of previous capital investments. The previous owners invested approximately US$18 million in exploration, including extensive geophysics and geochemistry programs.

The silver-gold mineralization on this Project displays the alteration, textures, mineralogy and deposit geometry characteristics of a low sulphidation epithermal silver-gold-base metal mineralized vein/breccia system. Previous exploration was focused on polymetallic (Pb-Zn-Ag-Au) shallow mineralization, hosted in NW-SE structures in the vicinity of the Plomosas mine. The E-W portion of the mineralization and extensions of the main N-S Plomosas Fault remain under-explored.

In addition to the resource potential at Plomosas, a review of the existing drill hole database, geophysical surveys and geochemical data covering most of the concession, has defined 16 new exploration targets from which 11 have high priority for future exploration programs.

San Marcial Project

San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. The Company filed a NI 43-101 report entitled “San Marcial Project Resource Estimation and Technical Report, Sinaloa, Mexico” having an effective date of March 18, 2019 and an amended date of June 10, 2020 (the “Report”), which contains a 36 Moz AgEq (Indicated) and 11 Moz AgEq (Inferred) resource estimate. The Report was prepared by Todd McCracken and Marcelo Filipov of WSP Canada Inc. and is available on SEDAR. The company recently completed over 320 m of underground development in the San Marcial Resource Area, from which underground drilling is planned to expand the high-grade portions of the resource down-dip. The Company recently discovered additional mineralization in the footwall, outside of the existing resource, and will also be drilling this area. GR Silver Mining is the first company to conduct exploration at San Marcial in over 10 years.

Recent exploration has identified silver and gold mineralization in areas previously defined as non-mineralized, discovering evidence of pervasively altered rocks with intense silicification, veining and associated wide, silver and gold mineralized zones on the footwall of the NI 43-101 resource area. Plomosas and San Marcial collectively represent a geological setting resembling the multimillion-ounce San Dimas Mining District which has historically produced more than 600 Moz Ag and 11 Moz Au over a period of more than 100 years.

La Trinidad Project

The La Trinidad Project was acquired in March 2021. While La Trinidad has been the focus of artisanal mining activity over many decades, commercial operations began late in the 20th century. Anaconda Minerals Corp. was first to drill the project in the mid-late 1980s. After initially taking up an option on the Project in 1993, Eldorado Gold Corp. then commenced an open pit gold mine at La Trinidad in 1995, known as the Taunus Pit, with ore being processed via a heap leach operation. The mine operated until 1998, producing approximately 52,000 ounces of gold1.

Exploration undertaken by Oro Gold from 2006 identified additional resources below the Taunus Pit and operations recommenced late in 2014. Gold output from the heap leach pads continued until late 2019 for a total cumulative production by Oro Gold of 112,000 oz gold2,3. In addition to La Trinidad, the portfolio acquired by GR Silver Mining includes an extensive regional database of geological, geochemical and geophysical information resulting from historical exploration expenditure by Oro Gold of more than CDN$18.6 million since 2006.

___________________________

Refer to Marlin Gold Mining Ltd. (Marlin) NI 43-101 News Release dated February 1, 2013

2 Refer to Marlin MD&A Releases dated 30 April 2015, 29 April 2016, 1 May 2017, 30 April 2018, 29 August 2018

Refer to Mako Mining Corp. MD&A Releases dated 28 August 2019, 29 April 2020

Cimarron Project

Cimarron is another advanced stage project that was acquired along with the La Trinidad Project in March 2021 and is located 40 km to the NW of La Trinidad. A number of targets have been identified at Cimarron including Calerita, El Prado, Huanacaxtle, Betty and Veteranos, however Calerita is the only target to have been drilled to date. The near surface historical Inferred Resource at the Calerita prospect contains 3.7 Mt at 0.65 g/t Au for approximately 77,000 oz of gold4, which is considered to be open along strike and down dip.

Whilst the 2011 resource is considered by GR Silver Mining to be a historical resource, the Company considers the resource estimate as being relevant and reliable, considering a lack of significant additional exploration work since its release. A key parameter in the historical resource is the usage of a US$1,200/oz gold price compared to a much higher current spot gold price. A Qualified Person (QP) would be required to review the historical resource report and make recommendations in order to verify and upgrade it to a current resource. A QP has not done sufficient work to classify the historical estimate as current mineral resources. The Company is not treating the historical estimate as a current mineral resource. The company plans to re-assess the work completed by previous owners and define the feasibility of additional drilling, aiming at identifying additional near-surface mineralization.

Other Projects

GR Silver Mining’s other projects are situated in areas attractive for future discoveries and development in the same vicinity of Plomosas, La Trinidad and San Marcial in the Rosario Mining District. Following the acquisition of Marlin, GR Silver Mining controls a concession portfolio of over 1,000 km2, two previously producing mines fully permitted for future developments and a total combined 75 km of structures with field evidence of 24 Ag-Au veins in historic old workings.

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.

______________________________

Refer to Marlin NI 43-101 News Release dated March 18, 2011

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. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the use of proceeds of the Offering, the availability of regulatory approvals for the Offering, and future exploration programs at any of the Company’s mineral properties. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. 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) 558-6248, Email: info@grsilvermining.com

http://www.grsilvermining.com/

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