GR Silver Mining (TSX-V:GRSL) Ltd said it held $3.6 million in cash as of September 30, 2022, as it reported results for its third quarter.
The Canadian-based, Mexico-focused junior mineral exploration company also said the delivery of the mineral resource estimate update for the combined Plomosas project, integrating the Plomosas mine and San Marcial areas, is on track for delivery in the first quarter of 2023.
"In the year to date, GR Silver has successfully advanced the Plomosas project with purposeful drilling and resultant new mineralization discoveries incremental to the existing mineral resource estimates,” company chairman and chief executive officer Eric Zaunscherb said in the results statement.
READ:GR Silver Mining eyeing Mexico resource update early next year as it unveils more positive drill results from SE Area discovery
"We have been able to advance the project as a result of the skills of our excellent team in Mexico, the support of our capital markets partners that helped the company to attract new capital, and the welcome support of our new and existing shareholders. We are excited about the integrated mineral estimate to come, as well as the results of ongoing exploration in the new year," he added.
During the nine months ended September 30, 2022, the company said it drilled 126 underground and surface holes totalling 5,757.0 metres (m) at the Plomosas mine, and 49 surface holes totalling 5,677.6m at San Marcial.
On August 8, GR Silver Mining announced the discovery of wide, high-grade silver mineralization approximately 250m southeast of the southernmost boundary of the San Marcial resource area, in an area known as the Southeast area. Subsequent drilling demonstrates the geometry, lateral extent and continuity of the new zone along strike to the southeast of this hole, in which silver-rich mineralization is hosted in breccia and intense hematite-quartz stockwork veining.
The company said it continues to identify additional targets on this part of the San Marcial property and anticipates that drilling will continue with two rigs over the coming months in the Southeast area of San Marcial.
After the delivery of the Plomosas mine and San Juan areas mineral resource estimate in August 2021, the company embarked on a program of surgical infill drilling in the Plomosas mine area, to replace some of the historical holes used in the estimate that were selectively sampled, as well as to test new near-surface and underground high-grade silver-gold mineralized zones. This successful program continues with three rigs.
The company has also released the results from 105 new holes (5,523m), which demonstrate new discoveries in several unmined zones in the primary polymetallic hydrothermal breccia, as well as newly discovered footwall and hanging wall precious metal mineralization associated with cross-cutting faults.
On August 30, the company closed a best-efforts brokered private placement offering, issuing 36,263,000 units of the company at a price of 15 cents each for aggregate gross proceeds of $5,439,450, including 2,929,000 units sold pursuant to the partial exercise of the option granted to the agents.
GR Silver Mining is engaged in cost-effective silver-gold resource expansion on its 100%-owned assets, located on the eastern edge of the Rosario mining district, southeast of Sinaloa state, Mexico. It controls 100% of two past-producing precious metal underground and open-pit mines, within the expanded Plomosas project, including the integrated San Marcial area and La Trinidad acquisition.
In conjunction with a portfolio of early-to-advanced-stage exploration targets, the company holds 734 square kilometres of concessions containing several structural corridors totalling over 75 kilometres in strike length.
Contact the author at jon.hopkins@proactiveinvestors.com