Thinking Outside the Box Brings Larger Discoveries: GR Silver

Q: What value has GR Silver unlocked in developing the Rosario mining district? What approach did the company take? 
A: When we first encountered it, the district had a 200-year history of silver and gold production. It is common for districts in Mexico to be controlled by multiple companies. We were able to consolidate the key assets under a single company, creating an opportunity to develop a mining company and discover large deposits. This consolidation has revitalized the district, increasing production significantly.

We focus on applying modern geological knowledge and tools and training local people. Using modern technology and training geologists we found new deposits. When we started, the company had less than 10Moz of silver; now, it has close to 130Moz of silver equivalent. It is crucial to bring technology, training, and expertise to the area. We hire and train Mexicans and apply modern technology to discover new, large deposits. Mining is about thinking outside the box. 

Q: What are GR Silver’s plans for the district? 
A: The exploration is ongoing but the company is focusing on doubling or tripling our resources. To achieve this, we have reviewed the work done in 2023 to identify what we can do differently in 2024. It is also important to consider everything related to the capital markets, especially given the current environment for mining in Mexico, which is not very attractive. Potential new legislation has created fear in the capital markets, particularly in the Canadian and US markets.

We are looking into attracting strategic investors to ensure our work continues without interruption. We have raised close to US$500,000 recently. While this may not seem like a large amount, our presence at the Prospectors and Developers Association of Canada (PDAC) has had a significant impact. We now trade about 3 million shares, significantly increasing our stock value. We want to capture the attention of strategic investors and partners to continue our work. The Rosario mining district is not just another district in Mexico; we believe that the geology has a unique signature that will help us find sizable silver deposits.

Q: How did GR Silver successfully change investors' perception of investing in its assets?
A: It is critical to not only promote the project but the country itself. Mexico is a mining country, much like many others in Latin America, such as Brazil, Chile, Peru, Ecuador, and Colombia. Mining is core to the Mexican economy. While it may not be well perceived in terms of its contribution to GDP, it is not just about how much revenue mining companies generate, but about its large social impact on communities. Mexico also has a highly qualified workforce. There is a wealth of talent in the mining industry, with many universities producing geologists, mining engineers, and other professionals eager to contribute. This talent pool is a great advantage – in other countries, it may be necessary to bring in a lot of expats. The investment community needs to understand that while there may be changes in legislation, Mexico will not stop being a mining country, nor will it cease to be one of the largest silver producers in the world. 

While Latin American countries are often volatile during elections, it is unlikely that there will be a significant change in the market, economy, or legislation in Mexico as the country is part of the USMCA, and many legal aspects are well covered. It is unlikely that there will be a large expropriation of mineral rights in Mexico.

Mexico is prolific for precious metals and critical minerals and there will be more developments, discoveries, and successful companies in Mexico, which will balance the environment of uncertainty due to potential new regulations. The key is to adapt to how legislation evolves and create discussion groups with legislators, mining investors, executives, employees, and communities to emphasize the importance of mining. We do not foresee any problems in getting the permits for our Plomosas project, which is underground. 

Q: What does GR Silver need to move forward with its projects? 
A: GR Silver needs to attract strategic investors who are interested in learning about the company's story. These investors would provide funding, leveraging their confidence in the capital markets and their ability to assess GR Silver's potential. This funding would enable GR Silver to continue drilling and increase its silver reserves. We are looking for investors who would support engineering studies and advance permitting for new underground mines over the next 12 to 24 months. 

The potential increases in silver prices indicate a favorable environment for attracting investors; however, external factors such as the US and Mexican economies, elections, and regulatory changes can impact investor confidence and the company's ability to secure funding. Despite these uncertainties, having a clear plan for the next 24 months is crucial for GR Silver's success.  Our primary focus is on business that makes sense for our shareholders, communities, and all stakeholders involved. The historic Plomosas mine can easily go back into production because we already have the permits in place. 

We are strategizing on how to combine our assets to make them work together effectively. The recent silver discoveries places San Marcial in a strategic position, as it is primarily a silver deposit and not a lead-zinc-silver deposit, like other projects. This makes it attractive for other silver producers, as new silver discoveries are rare. 
 

GR Silver is a Canada-based junior mineral exploration company that focuses on Mexico. It is engaging in cost-effective silver-gold resource expansion on its fully-owned assets located on the eastern edge of the mining district in Rosario, Sinaloa, which include Plomosas and San Marcial.