GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GRSLF) (FRA:GPE) has reported more encouraging drill finds from its Plomosas project in Mexico, which confirmed "a much larger epithermal system than originally contemplated".
The latest assays show near surface, high-grade, narrow silver-gold rich mineralization at the southern limit of the Plomosas mine.
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The so-called Plomosas mine area, where drilling is now complete, is the subject of a new resource estimate and these results will be incorporated in the database, allowing the 3D-model to be expanded beyond previously modelled zones.
"We are very pleased to report the success of oriented core drilling following our detailed geological modelling, resulting in an improved understanding of controls on mineralization at the Plomosas Mine Area," said CEO Marcio Fonseca.
"Our geological modelling has resulted in discoveries of extensions adjacent to the area undergoing resource estimation.
"The company's 3D geological interpretation has significantly improved our understanding of the geological setting at the Plomosas Mine Area, revealing a much larger epithermal system than originally contemplated."
Among the highlighted assays were 3 metres (m) at a grade of 9.7 grams per ton (g/t) gold from a depth of 190m in one hole.
Another hole showed an intercept of 1m at 1,000 g/t silver from 31.5m depth. Another hit 0.5m at 13.1 g/t gold, 0.5 % lead and 1% zinc from 92.5m depth.
The company noted that a systematic surface and underground mapping program had identified broad alteration systems and a direct correlation to some precious metals-rich zones along major NW and NE trending faults throughout the Plomosas Mine Area.
All of these zones indicate strong structural control, with evidence of multiple phases of mineralization in many locations inside the historic underground mine, it added.
Also in the statement, GR Silvers said it had negotiated a debt settlement with a non-arm's-length creditor. Namely, US$27,000(C$32,659) in consideration for which it will issue 45,999 common shares at a deemed price of C$0.71 per share.
GR Silver Mining believes that Plomosas represents a district-scale project.
The asset, which spans an 8,515 hectares land position, 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 around 8 million ounces of silver, 73 million pounds of lead and 28 million pounds of zinc.
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