Capitan Silver Confirms Large-Scale System at Cruz de Plata

Capitan Silver received final interpretive reports from its first property-wide Airborne Magnetotelluric (MT) geophysical survey at the Cruz de Plata project in Durango. The company considers that these findings reinforce the project's large-scale potential and provide a technical basis for several new drill targets across the property.

The survey, conducted by Expert Geophysics, utilized magnetic and electromagnetic data to map the subsurface of the 100% owned property. The results correlate with existing geological models and confirm that the mineralized system extends to depths exceeding 1.5km. Magnetic data has shown a strong correlation with our current geological understanding of the property and previously identified mineralization. “These results yield the potential for several exciting new drill targets throughout the property, where geophysical responses indicate that there could be repetition of similar mineralized structures,” noted Alberto Orozco, CEO, Capitan Silver.

The geophysical data identified several key structural features, including the on-strike extension of the Jesus Maria Silver Trend. This trend appears to mirror itself around a central granodiorite intrusive body to the west and north. Magnetic data showed a distinct relationship between lithologies, with the granodiorite presenting as a magnetic high, while known mineralized zones largely coincide with magnetic lows. This correlation was observed specifically within the Jesus Maria Silver Trend and the Peñoles Fault area, suggesting favorable conditions for high-grade mineralization in these zones.

In addition to confirming known zones, the survey identified multiple new targets for exploration. These include the Jesus Maria Northwest, El Tubo, and Casco Norte targets. At Casco Norte, the magnetic data revealed an untested northeast-trending anomaly spanning approximately 1.3km. This anomaly aligns with previous surface chip sampling that returned high-grade silver, gold, and copper values from historical workings. The resistivity models also indicated areas of strong conductivity at depth, which the company interprets as potential hydrothermal alteration, brecciation, or sulfide-bearing zones.

The vertical continuity of these structures supports the classification of Cruz de Plata as an intermediate sulfidation epithermal system. Cross-sections derived from the inverted data show that favorable horizons for mineralization remain open down-dip. The company is currently awaiting assay results for 64 pending drill holes, consisting of 35 reverse circulation and 29 core holes, to further validate these geophysical findings. Capitan Silver plans to integrate these new interpretive products into its 2026 drilling program to test strike extensions and deeper feeder structures.

Capitan Silver’s Land Consolidation With Fresnillo

The recent geophysical findings follow Capitan Silver’s successful consolidation of the Cruz de Plata project through the acquisition of seven strategic mineral concessions from Minera Fresnillo. This transaction, finalized in late 2025 for a total of US$4 million, increased the company’s land position in the district by approximately 85%. The acquisition added 2,171.4ha immediately adjacent to and surrounding the existing project area, as reported by MBN.

This consolidation expanded the surface expression of the project’s silver-gold trend from 2.5km to 3.7km, adding 1.2km of prospective ground to the east. According to the company, unifying the land package allows for more efficient infrastructure development and optimized project design. Orozco characterized the move as a transformative step that unlocks significant development potential and ensures continuity across the district for the company's next phase of exploration and growth.