Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the
“Company”) today provided a Q2 2023 update on the drilling and
exploration programs in the Los Gatos district (“LGD”) in Mexico,
including details of additional intercepts of high grade
mineralization in the South-East Deeps (“SE Deeps”) zone of its
70%-owned Cerro Los Gatos (“CLG”) mine that could provide new
mineral resources and reserves to extend the mine life.
“Our continued drilling success shows why we are
so excited about the future for this district,” said Dale Andres,
CEO of Gatos Silver. “Our next mineral resource and reserve update
is nearing completion and will be a first step in extending the
mine life and showing the potential scale of SE Deeps. With six
surface drill rigs primarily focused on defining the SE Deeps, we
are continuing to intercept strong widths and grades of silver,
zinc, lead, gold and copper as we infill that zone. In addition,
the foundational work we are doing this year with our greenfields
program is deepening our understanding of the district and enabling
us to sharpen our focus on priority areas where we might find the
next CLG.”
Q2 2023 Highlights Continue to
Demonstrate Excellent Mine Life Extension Potential
at CLG
-
The Company’s 2023 mineral resource and reserve update, including a
new life of mine plan, is progressing well and on track to be
completed in the third quarter
-
Resource expansion drilling in the SE Deeps zone of CLG continued
to intercept high grade mineralization below and north of the
existing mineral resource (see Table 1 for complete intercept
details)
-
Drilling highlights include hole SE-531 that intercepted 4.0 meters
(estimated 3.5 meters true width) at 231 g/t silver, 4.86% zinc,
3.98% lead and 0.38% copper, hole SE-520 that intercepted 3.0
meters (estimated 2.7 meters true width) at 212 g/t silver, 17.33%
zinc, 3.49% lead, 0.45 g/t gold and 0.92% copper and hole SE-515
that intercepted 3.5 meters (estimated 2.8 meters true width) at
160 g/t silver, 11.26% zinc, 6.04% lead and 0.61% copper
-
Greenfields exploration work in the LGD continues to identify
additional new high priority targets
-
Detailed mapping and rock geochemistry at Portigueño, Lince and San
Luis continue to generate new targets for drill prioritization
-
A detailed LiDAR and air photo drone survey was completed over our
Lince and Los Rieles targets and is now being used to guide
interpretation and mapping priorities
-
The magneto-telluric geophysics survey has commenced on an area of
the Rio Conchos basin near CLG and results from the initial phase
are expected during August with the remainder of the survey being
completed in the fourth quarter
CLG Mineral Reserve and Mineral Resource
Update on Track for Completion in Q3 2023
Recent drill results from both surface drilling
and underground drilling are expected to improve the confidence in
the higher-grade inferred resources and confirmed the presence of
additional material above the current reserve cut-off grade. The
results of the resource definition drilling prior to the database
cut-off at the end of the first quarter of 2023 will be reflected
in the mineral reserve and mineral resource update which is on
track to be completed in the third quarter.
CLG South-East Deeps Resource Expansion
Drilling Shows Potential for a Multi-year Mine Life
Extension
The drill intercepts to date show continuity of
the SE Deeps mineralization extending approximately 1km laterally
and 400m vertically, which overlaps with the existing South-East
mineral resource and remains open along strike.
We expect to report a maiden inferred resource
for the SE Deeps zone in Q3 2023 and are targeting to further
upgrade the classification to mineral reserve status in the second
half of 2024.
Drilling during 2022 and early 2023 was
completed at approximately 100m to 200m spacing for the purpose of
establishing the larger scale strike and dip of the SE Deeps zone.
The current drilling program through the end of Q1 2024 will be
focused on infilling the higher-grade areas of the zone to 50m
spacing. This tighter drill spacing is showing that variability
within the zone exists, with higher grade in some areas and lower
grade in other areas. On average, base metals including copper,
represent a higher proportion of the in-situ value than in the
Central and NW zones. Drill results continue to demonstrate
excellent potential for a multi-year mine life extension.
Figure 1: Long section of CLG1
showing select SE resource expansion drilling intercepts
(drilled width). See Table 1 for complete intercept details
including true width estimates.
The photo is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/a042fc4a-0c6b-4909-8fe5-6236cb78b6d8
1 The 2022 Mineral Reserve and 2022 Mineral Resource is
disclosed in the Technical Report Summary dated November 10, 2022
(the “Los Gatos Technical Report”).2 See press releases dated
October 3, 2022 January 23, 2023 and April 19, 2023 for further
information relating to previously reported SE Deeps drill
intercepts.
Figure 2: Cross-section through SE Deeps at drillhole
SE-520 showing intercepts (drilled width)
The photo is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/899144c5-7208-41a2-9f5b-91c2e6effeca
1 See press releases dated October 3, 2022,
January 23, 2023 and April 19, 2023 for further information
relating to previously reported South-East Deeps drill
intercepts.
Los Gatos District Exploration Update:
Current Near-mine Focus Plus District Scale Potential
The LGD is comprised of a large land package
covering over 103,000 ha with an established pipeline of prospects
with over 50 targets identified to date. Work is advancing on
detailed mapping and drill testing of the highest priority known
targets, as well as on district mapping and geophysics to identify
additional targets.
During the quarter, drillhole MAM-02 was
completed in the Mamba area. The drillhole intercepted both the
Cascabel and Mamba structures showing alteration and quartz-calcite
veining however no intercepts with economic potential were found.
The scale of the system, style of alteration and proximity to the
current operation are all encouraging and these structures remain
promising exploration targets. Drill testing further along and down
dip from MAM-02 is planned.
Detailed mapping across the property is
advancing well. During the second quarter of 2023 mapping was
progressed at Portigueño, Lince, Santa Ana, San Luis and La
Palma.
The Portigueño area is located approximately
2.5km southeast of CLG. Detailed mapping has shown that this area
of the basin is more complex than previously thought. New surface
mapping and relogging of historic drillholes in the area has
identified a series of NW-SE trending faults with veining and
alteration associated with them.
Drone capture of LiDAR and detailed air photos
was completed for Lince, 22km NW of CLG, and is now being used for
interpretation and to guide reconnaissance mapping of this large
area. Surface mapping has identified a number of different veins
for drill testing that is expected to occur in the fourth quarter
of 2023.
The Santa Ana area is located approximately 1km
north of the NW zone at CLG. Calcite and manganese veining was
identified within the epiclastic basin during the first quarter. A
deep drillhole into this area started recently with the objective
of defining the vein in bedrock, the depth of the epiclastics and
depth to the main Los Gatos fault and underlying andesite.
The Los Gatos Joint Venture (“LGJV”) is in the
process of completing a magneto-telluric geophysical survey from
the basin west of CLG across to the Esther deposit. The first stage
of this survey is being completed prior to the rainy season in the
third quarter and the second stage is expected to be completed in
the fourth quarter this year.
New surface mapping and historic drillhole
relogging is underway in the San Luis area, approximately 5
kilometers northwest of CLG along the Los Gatos fault. A large
width of quartz-calcite veining exists in the area with indications
of multiple pulses of fluid flow, similar to what is observed in
the South-East zone at CLG. Further mapping work is being completed
to better understand the structural framework of the area before
drilling is planned.
Figure 3: Plan view of the area
surrounding CLG with select prospects and high priority
targets
The photo is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/7adba9af-73a7-4fbb-9d4e-ccf80a0c427e
Table 1: Resource Definition Drilling
Results
DHID |
|
From |
To |
DrillWidth |
EstimatedTrueWidth |
Ag |
Zn |
Pb |
Au |
Cu |
|
|
m |
m |
m |
m |
ppm |
% |
% |
ppm |
% |
GA-SE-515 |
|
654.5 |
687.0 |
32.5 |
25.7 |
78 |
4.98 |
2.08 |
0.05 |
0.53 |
including |
656.5 |
660.0 |
3.5 |
2.8 |
160 |
11.26 |
6.04 |
0.07 |
0.61 |
and including |
682.0 |
685.5 |
3.5 |
2.8 |
84 |
12.91 |
3.92 |
0.07 |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-516 |
|
948.8 |
950.8 |
2.0 |
1.7 |
5 |
1.11 |
0.47 |
2.58 |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-DV-518 |
|
889.2 |
891.2 |
2.0 |
1.8 |
40 |
2.37 |
0.51 |
0.02 |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-520 |
|
636.5 |
644.5 |
8.0 |
7.2 |
36 |
2.47 |
1.92 |
0.09 |
0.29 |
and |
648.5 |
659.0 |
10.5 |
9.5 |
87 |
6.33 |
1.88 |
0.18 |
0.44 |
including |
656.0 |
659.0 |
3.0 |
2.7 |
212 |
17.33 |
3.49 |
0.45 |
0.92 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-521 |
|
629.4 |
632.4 |
3.0 |
2.7 |
192 |
8.98 |
8.01 |
0.17 |
0.20 |
and |
657.0 |
661.0 |
4.0 |
3.8 |
181 |
2.03 |
1.68 |
0.11 |
0.28 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-522 |
|
367.0 |
369.0 |
2.0 |
2.0 |
119 |
0.48 |
1.55 |
0.40 |
0.09 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-523 |
|
893.0 |
896.5 |
3.5 |
3.1 |
63 |
2.11 |
1.22 |
2.85 |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-524 |
|
660.2 |
665.1 |
5.0 |
4.1 |
39 |
4.50 |
1.12 |
0.10 |
0.45 |
and |
684.3 |
687.5 |
3.2 |
2.7 |
91 |
11.38 |
4.75 |
0.06 |
0.61 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-525 |
|
640.5 |
655.5 |
15.0 |
12.2 |
129 |
2.35 |
1.07 |
0.04 |
0.54 |
including |
646.5 |
649.5 |
3.0 |
2.4 |
274 |
2.84 |
1.16 |
0.02 |
0.89 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-526-A |
|
769.0 |
776.5 |
7.5 |
6.7 |
76 |
2.99 |
1.93 |
0.13 |
0.49 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-527 |
|
643.8 |
647.3 |
3.5 |
2.7 |
55 |
4.07 |
0.51 |
0.07 |
0.59 |
and |
650.8 |
653.8 |
3.0 |
2.3 |
69 |
0.76 |
0.66 |
0.11 |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-DV-528 |
|
|
|
|
NSV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GA-SE-DV-529 |
|
738.5 |
748.3 |
9.8 |
8.0 |
171 |
1.73 |
1.48 |
0.05 |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-531 |
|
654.5 |
666.0 |
11.5 |
10.0 |
146 |
3.16 |
2.17 |
0.11 |
0.45 |
including |
662.0 |
666.0 |
4.0 |
3.5 |
231 |
4.86 |
3.98 |
0.12 |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-532 |
|
853.0 |
855.0 |
2.0 |
1.5 |
63 |
2.96 |
4.94 |
0.49 |
0.24 |
|
|
|
|
|
|
|
|
|
|
|
GA-SE-533 |
|
|
|
|
NSV |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GA-SE-537 |
|
646.0 |
651.0 |
5.0 |
4.4 |
128 |
0.93 |
1.86 |
0.63 |
0.51 |
including |
648.0 |
649.5 |
1.5 |
1.2 |
318 |
0.26 |
1.22 |
0.02 |
0.98 |
Table 2: Greenfields Exploration
Drilling Results
DHID |
|
From |
To |
DrillWidth |
EstimatedTrueWidth |
Ag |
Zn |
Pb |
Au |
Cu |
|
|
m |
m |
m |
m |
ppm |
% |
% |
ppm |
% |
|
|
|
|
|
|
|
|
|
|
|
MAM-02 |
|
NSV |
Table 3: Drillhole
Locations
Drillhole |
Target |
Easting |
Northing |
Elevation |
Azimuth |
Dip |
Hole Depth |
GA-SE-515 |
Conversion |
369,434 |
3,047,713 |
1,629 |
212 |
-52 |
700 |
GA-SE-516 |
Conversion |
369,422 |
3,047,944 |
1,628 |
207 |
-61 |
1,002 |
GA-SE-DV-518 |
Conversion |
369,823 |
3,047,536 |
1,596 |
215 |
-63 |
908 |
GA-SE-520 |
Conversion |
369,392 |
3,047,730 |
1,638 |
211 |
-50 |
674 |
GA-SE-521 |
Conversion |
369,661 |
3,047,495 |
1,577 |
215 |
-52 |
672 |
GA-SE-522 |
Conversion |
369,217 |
3,047,304 |
1,570 |
187 |
-66 |
388 |
GA-SE-523 |
Conversion |
369,421 |
3,047,943 |
1,629 |
207 |
-54 |
939 |
GA-SE-524 |
Conversion |
369,392 |
3,047,730 |
1,638 |
213 |
-55 |
705 |
GA-SE-525 |
Conversion |
369,599 |
3,047,512 |
1,592 |
216 |
-55 |
673 |
GA-SE-526-A |
Conversion |
369,523 |
3,047,661 |
1,619 |
210 |
-57 |
792 |
GA-SE-527 |
Conversion |
369,632 |
3,047,504 |
1,585 |
216 |
-53 |
675 |
GA-SE-DV-528 |
Conversion |
369,421 |
3,047,943 |
1,629 |
207 |
-54 |
903 |
GA-SE-DV-529 |
Conversion |
369,523 |
3,047,661 |
1,619 |
210 |
-57 |
762 |
GA-SE-531 |
Conversion |
369,600 |
3,047,512 |
1,592 |
215 |
-58 |
682 |
GA-SE-532 |
Conversion |
369,421 |
3,047,942 |
1,629 |
207 |
-50 |
891 |
GA-SE-533 |
Conversion |
369,822 |
3,047,535 |
1,596 |
214 |
-56 |
987 |
GA-SE-537 |
Conversion |
369,391 |
3,047,729 |
1,639 |
213 |
-48 |
675 |
MAM-02 |
Greenfields |
367,556 |
3,045,802 |
1,802 |
045 |
-45 |
1,187 |
About Gatos Silver
Gatos Silver is a silver dominant exploration,
development and production company that discovered a new silver and
zinc-rich mineral district in southern Chihuahua State, Mexico. As
a 70% owner of the Los Gatos Joint Venture, the Company is
primarily focused on operating the Cerro Los Gatos mine and on
growth and development of the Los Gatos district. The LGJV consists
of approximately 103,000 hectares of mineral rights, representing a
highly prospective and under-explored district with numerous
silver-zinc-lead epithermal mineralized zones identified as
priority targets.
Quality Assurance/Quality
Control
The half core samples from the LGJV’s surface
exploration drillholes are shipped directly in sealed bags to the
ALS Limited (“ALS”) preparation facilities in Chihuahua City,
Mexico. After sample preparation in Chihuahua, sample pulps are
shipped to ALS in North Vancouver, Canada for analysis. The
remaining half core is retained on site. Samples sent for analysis
are sawn half-core NQ or HQ in diameter and normally 2m in length
but varied based on geological contacts. Samples are prepared using
a method whereby the entire sample is crushed and a subset is
pulverized. Samples are analyzed for base metals and silver using
inductively coupled plasma methods. Gold and overlimit silver are
assayed using fire assay techniques. Sample batches include
intermittent blanks, duplicates and certified standards. The
results of the assaying of the QA/QC material included in each
batch are tracked to ensure the integrity of the assay data. ALS is
a third-party independent laboratory.
Qualified Person
Scientific and technical disclosure in this
press release was approved by Anthony (Tony) Scott, P.Geo., Senior
Vice President of Corporate Development and Technical Services of
Gatos Silver who is a “Qualified Person” as defined in S-K 1300 and
NI 43-101.
Qualification Regarding Exploration and
Drilling Results
Any statements herein regarding ranges of
potential tonnage and grade or quality of any exploration target
are conceptual in nature; there has been insufficient exploration
of the relevant properties to estimate a mineral resource; it is
uncertain whether further exploration will result in the estimation
of a mineral resource; and any exploration target therefore does
not represent, and should not be construed to be, an estimate of a
mineral resource or mineral reserve (mineral resource and mineral
reserve estimates are stated exclusively in the Los Gatos Technical
Report).
Forward-Looking Statements
This press release contains statements that
constitute “forward looking information” and “forward-looking
statements” within the meaning of U.S. and Canadian securities
laws. All statements other than statements of historical facts
contained in this press release, including statements regarding
exploration or development programs at the CLG mine or in the Los
Gatos District, including mine life extension potential, resource
conversion and expansion and timing thereof, prospects for
potential development, new high priority targets or zones, economic
potential of drilling results, preparation and timing of additional
technical report summaries reflecting additional reserves or
resources or life of mine plans, timing of exploration activity
including drilling, surveying and mapping, and interpretations of
mapping, or of geological, geophysical or geochemical indicators
are forward-looking statements. Forward-looking statements are
based on management’s beliefs and assumptions and on information
currently available to management. Such statements are subject to
risks and uncertainties, and actual results may differ materially
from those expressed or implied in the forward-looking statements,
and such other risks and uncertainties described in our filings
with the U.S. Securities and Exchange Commission and Canadian
securities commissions. Gatos Silver expressly disclaims any
obligation or undertaking to update the forward-looking statements
contained in this press release to reflect any change in its
expectations or any change in events, conditions, or circumstances
on which such statements are based unless required to do so by
applicable law. No assurance can be given that such future results
will be achieved. Forward-looking statements speak only as of the
date of this press release.
Investors and Media Contact
André van NiekerkChief Financial
Officerinvestors@gatossilver.com(604) 424-0984
Grafico Azioni Gatos Silver (NYSE:GATO)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Gatos Silver (NYSE:GATO)
Storico
Da Lug 2023 a Lug 2024