In an announcement released on May 8, 2023, GR Silver Mining outlined its vision for the Plomosas Silver Project in Sinaloa, Mexico, for the remainder of the year and provided updates on its exploration plans and corporate initiatives.
The company highlighted that a sound geological model, which has proven effective based on modern exploration, has provided a foundation for growth for GR Silver Mining. Moreover, GR Silver has mobilized one of its drill rigs to test a highly prospective target located southeast of the SE Area discovery, with the goal of expanding the resource further. In addition, a recently filed National Instrument 43-101 Technical Report recommended that the company continue drilling extensions of known mineralization at the San Marcial, Plomosas Mine and San Juan-La Colorada areas, with a 12,500m drill program, mostly comprised of shallow drilling for resource expansion, pending board approval.
The San Marcial Area will receive 5,000m of step-out drilling along strike to the southeast, outside of the mineral resource in the SE Area discovery zone. The aim is to upgrade resources from Inferred to Indicated through 5,000m of infill drilling. Additionally, 2,500m of short underground drilling will take place at the Plomosas Mine Area, aiming at increasing silver grades at the lower levels of the historic mine.
GR Silver Mining has also identified the potential of the area south of San Marcial, despite the lack of exploration. The company intends to advance the surface exploration program with geological mapping, lithogeochemical sampling in the target contact zone and around intrusive bodies known to be associated with positive geophysical anomalies.
GR Silver Mining currently owns 100% of the Plomosas Project with title and operating permits for core concessions granted under the previous mining law regime. The company has stated that it sees no immediate impact from changes in Mexican mining legislation. Additionally, the company has started cash management initiatives to reduce overhead and prioritize funds dedicated to exploration and drilling in Mexico. The company’s goal is to conduct several small, cost-effective technical studies to determine economic parameters ahead of a potential Preliminary Economic Assessment (PEA).
The company has already reduced its staff headcount in Mexico by 38% and the number of vehicles used to support field activities by 50% since the beginning of last year. In addition, its head office and overhead costs are being reduced by executives taking reduced cash salaries and directors waiving cash fees.
The corporation’s exploration plans and corporate initiatives are set to generate continued flow, while the drill program in the San Marcial Area has the potential to contribute to incremental resource growth. , GR Silver Mining's initiatives to reduce overhead and prioritize funds for exploration and drilling in Mexico indicate a strong focus on delivering value to its shareholders.