GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GLYXF) has reported encouraging first drill results from the Plomosas mine area at the project of the same name in Sinaloa state, Mexico, which show the potential to define further resources.
From 1986 to 2001, Grupo Mexico operated a shallow 600 tonnes per day (tpd) underground mine within the same area, which churned out lead and zinc concentrate. The operation was reportedly interrupted due to low commodity prices in 2001.
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In its statement on Thursday, GR Silver said reported assays included an intersection of 1.7 metres (m) at 26.9 grams per ton (g/t) gold 44 g/t silver and 3m at 11.9 g/t gold and 22 g/t silver. It said also unearthed was 13.6 metres at 15.5% zinc, 15.7% lead, 1.9 g/t gold and 65 g/t silver.
The group said the hole represents the discovery of a wide polymetallic zinc-lead-silver, gold breccia on the same north-west (NW) trending fault zone that was previously mined 200m above in the Plomosas mine. This shows the potential for additional mineralized zones down-dip and along strike hosted by the main regional Plomosas fault, it added.
"The results not only confirm the continuity of the polymetallic wide breccia system down-dip from the historical underground mine, but also present discoveries of parallel Au-Ag mineralized veins and breccias," GR Silver CEO Marcio Fonseca told investors in the statement.
"These features are being incorporated into a 3D geological model for the first time. The results indicate potential for bulk tonnage polymetallic mineralization (Zn-Pb with attractive Ag-Au grades) in un-mined zones near existing underground development, as well as new opportunities for future expansion," he added.
"We continue to review and validate the extensive database of drill holes, integrating all information in a 3D model aiming at a future resource estimation."
GR Silver Mining is focused on key assets in Mexico which lie on the eastern edge of the well-known Rosario mining district.
Contact the author at giles@proactiveinvestors.com