GR Silver Mining (TSXV:GRSL, OTC: GRSLF, FRA: GPE), is a mining exploration company focused on its 100% owned district-scale silver/gold development located on the Eastern edge of the Rosario Mining District. The company is fully focused on development, with 75% of expenditures directly put into the ground. On January 16, GR announced several high grade silver results at the Southeast San Marcial Area, including the SMS22-09 returning 26,150 g/t Ag at only 0.3 m. 

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Company Overview

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GR Silver Mining believes the Plomosas and San Marcial to be the most important ones in the mining district. 

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Plomosas project 

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The Plomosas project is located within the Rosario Mining District, and only 5 Km away from the San marcial property. The project gathers 432 Km2 of core concessions combined with another 302 Km2 of non-core, providing an optionality for strategic alliances and new business opportunities. Within 8,515 hectares of mining concessions with numerous drilled areas is the past-producing Grupo Mexico S. A de C.V. silver-gold-lead-zinc underground mine. The fusion of infrastructure and data offers positive potential for defining resources and upcoming exploration. Together with the San Marcial Property, the Plomosas Property gives GR Silver control over 9,764 ha, or the majority of the Ag-Au-Pb-Zn mineralized zones in the eastern Rosario Mining District. The Plomosas Property is subject to the following royalties and purchase rights: 2% NSR to Corporación First Majestic, a division of First Majestic Silver Corp. [buyback of 1% NSR for US$1,000,000] and 1.75% - 3.5% in net production and sales royalties, based on the price of zinc, to Industrial Minera México (a division of Grupo Mexico). Previous high grade gold results returned: 

-PLIP22-28: 7.3 m at 1,242 g/t AgEq (55 g/t Ag, 8.66 g/t Au, 2.7% Pb, 6.6% Zn and 0.5% Cu) 

-PLI17-26: 12.4 m at 2.64 g/t Au, including 0.4 m at 57.9 g/t Au

-PLI22-42: 21.1 m at 489 g/t AgEq (28 g/t Ag, 3.60 g/t Au, 0.6% Pb, 2.3% Zn and 0.2% Cu)

-PLI22-47: 7.1 m at 970 g/t AgEq (281 g/t Ag, 2.15 g/t Au, 8.9% Pb and 6.0% Zn)

-PLI22-46: 6.4 m at 940 g/t AgEq (44 g/t Ag, 1.90 g/t Au, 11.2% Pb, 10.0% Zn and 0.1% Cu)

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San Marcial Area

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The company has now finished drilling every hole intended to be included in the 3D geological model, and the updated resource estimation is anticipated to be made public in Q1|2023. To the 52 holes used in the 2019 NI 43-101 San Marcial mineral resource estimation, a total of 75 GR Silver Mining drill holes (10,500 m) will be added. Outstanding information was provided by the company regarding local drilling outcomes:

-SMS22-09: Resource Area – down dip/plunge extension in the previous resource area 5.6 m at 1,223 g/t Ag, 1.4% Pb and 1.2% Zn including 0.3 m at 26,150 g/t Ag, 30.0% Pb and 18.6% Zn

-SMS22-22: SE Area - down dip extension from hole SMS22-16 82.7 m at 121 g/t Ag including 0.4 m at 3,386 g/t Ag and 1.1 m at 1,391 g/t Ag 

-SMS22-23: SE Area – 80 m step-out drilling from hole SMS22-22 112.6 m at 61 g/t Ag including 0.9 m at 1,055 g/t Ag and 0.6 m at 14.3 g/t Au

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“The discovery of high-grade Ag and Au mineralization outside, and to the SE, of the known structural corridor at the SE Area is highly encouraging. After delivery of the updated mineral resource, we will outline our strategic plan for 2023 and one can expect that the extension of exploration along this emerging and highly prospective SE trend will feature prominently."

Eric Zaunscherb, CEO

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Share Structure/Financials

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The company has $3.6M in cash and puts most of its money in the ground. GR Silver spent $3.8M in exploration expenditures and $431k in salaries, representing 75% spent for exploration purposes. The latest financing closed on August 30. The company issued 36.2M shares at $0.15 to raise $5.4M. The purpose was for working capital and general corporate purposes. 

About the share structure, 231M shares are issued and outstanding, 46.7M warrants (avg. price: $0.38) and 9.7M options (avg. price: $0.42) are available. 

Management & insiders own 6.4% of the share structure, while First Majestic and strategic institutions & funds respectively hold 9.3% and 28.5%. The company is covered by Michael Curran from Beacon, and Gabriel Gonzalez from Echelon Wealth Partners. Since July 5, 2022, the stock price remains relatively steady around $0.13 despite all the positive high grade results. The stock price is currently close to its 52-week low of $0.10 and fare from its 52-week high of $0.37. 

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Bottom Line

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GR Silver Mining is fully-focused on exploring its projects, with 75% of expenditures directly put to the ground. The company has a solid balance sheet combined with strong fund support. Recent news about high grade silver in the San Marcial area show how undervalued the company is and what significant returns the company could provide.

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