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GR Silver Mining Ltd
Symbol	GRSL
Shares Issued	122,433,391
Close 2020-07-24	C$ 0.85
Market Cap	C$ 104,068,382
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GR Silver tests historical core from Plomosas

2020-07-24 07:42 ET - News Release

Mr. Marcio Fonseca reports

GR SILVER MINING REPORTS HIGH-GRADE SILVER DRILL RESULTS FROM THE SAN JUAN AREA, PLOMOSAS SILVER PROJECT

GR Silver Mining Ltd. has provided high-grade drill results from the San Juan-La Colorada area at its 100-per-cent-owned Plomosas silver project in Sinaloa, Mexico.

1,181 grams per tonne silver equivalent (AgEq) (1) over 3.1 metres (846 g/t silver, 0.8 g/t gold, 2.7 per cent lead and 6.0 per cent zinc) includes 3,224 g/t AgEq over 1.1 m (2,300 g/t Ag, 2.1 g/t Au, 7.6 per cent Pb and 16.3 per cent Zn);
1,120 g/t AgEq over 2.7 m (931 g/t Ag, 0.1 g/t Au, 1.9 per cent Pb and 4.0 per cent Zn) includes 1,566 g/t AgEq over 1.4 m (1,478 g/t Ag, 1.3 per cent Pb and 1.6 per cent Zn);
755 g/t AgEq over 3.5 m (737 g/t Ag, 0.1 g/t Au, 0.1 per cent Pb and 0.3 per cent Zn);
720 g/t AgEq over 4.8 m (563 g/t Ag, 0.3 g/t Au, 1.6 per cent Pb and 2.7 per cent Zn).

These drill results highlight continuity of high-grade silver mineralized zones in a 100 m stepout from a previously released section of drill hole results at the San Juan area. These latest results define a mineralized strike length for the low sulphidation epithermal system of up to 1,000 m (see news release dated July 7, 2020). This news release features results from 17 diamond core holes drilled by previous companies and not previously released. The cross-section containing these results establishes a high-grade continuous zone of Ag-rich polymetallic breccia, along a shallow-dipping fault for approximately 400 m down dip. In addition, the drill results continue to confirm silver-gold mineralized zones hosted by multiple high angle faults.

The results of the 17 drill holes indicate the possible extension of the San Juan-La Colorada area toward the San Francisco area to the south, supporting the presence of a much larger low sulphidation epithermal Ag-Au-rich system.

The mineralized veins and hydthermal breccias appear to be proximal to each other in subparallel structures, a feature typical of low sulphidation epithermal systems. The concentration of multiple veins, in combination with increased continuity along strike and down dip, represents an attractive target for future resource delineation.

(1) AgEq is based on long-term gold, silver, zinc and lead prices of $1,600 (U.S.) per ounce gold, $16.50 (U.S.) per ounce silver, 85 U.S. cents per pound zinc and 95 U.S. cents per pound lead. The metallurgical recoveries are assumed as 90 per cent Ag, 95 per cent Au, 78 per cent Pb and 70 per cent Zn.

GR Silver Mining president and chief executive officer Marcio Fonseca commented: "The company has prioritized the validation of the drill holes at the San Juan-La Colorada area, focusing on expansion of mineralization along strike and down dip. These latest results confirm high-grade mineralization extending to the S towards the San Francisco area, suggesting potential to outline a large low sulphidation epithermal system with at least a 1,000 m strike length."

The company is advancing the rehabilitation of the historical San Juan underground workings, while continuing with geological and structural mapping/sampling. An improved understanding of the mineralized systems, which consist of a set of multiple structures hosting high-grade Ag-Au mineralization, has resulted in the definition of new drill targets. Detailed mapping by GR Silver Mining has identified down plunge extensions of previously released high-grade silver intercepts in polymetallic hydrothermal breccia (see news release dated April 2, 2020). In the lower levels of the historically developed San Juan workings, massive argentite, galena and sphalerite zones have been mapped similar to the previously released high-grade silver zones which included results such as 0.4 m at 4,698 g/t Ag and 0.2 m at 6,128 g/t Ag.

The "Summary surface drill hole results -- news release July 27, 2020 (San Juan-La Colorada area)" table summarizes the most significant drill assay results for this set of 17 drill holes released for the San Juan-La Colorada area.

 SUMMARY

Hole No.      From (m)

LRD-28           38.9 LRD-29          218.8 LRD-41           37.3 LRD-59           71.2 includes         71.2 LRD-62           58.9 LRD-65           50.5 LR2D-01          94.8 SJS-06          245.0 includes        248.6 251.5 SJS-09          301.1 includes        301.1 includes        301.1 SJS-10          287.1 includes        295.9 SJS-14          339.3 SJS18-04        283.6 291.5 314.4 SJS18-13          4.3 23.9 SJS-19          257.8 includes        257.8 278.8 SJS-21          221.2 SJS-25          301.6 includes        301.6 SJS-27          297.1

* AgEq is based per ounce are assumed

na: no relevant assays.

All numbers

SURFACE DRILL HOLE RESULTS -- NEWS RELEASE JULY 27, 2020 (SAN JUAN-LA COLORADA AREA) Drilled Est. true To (m) width (m) width (m) Ag (g/t) Ag (g/t) Pb (%) Zn (%) AgEq (g/t) 43.7 4.8 3.8 563 0.3 1.6 2.7 720 225.0 6.2 5.0 144 0.0 0.3 0.8 177 39.4 2.1 1.7 42 0.2 0.8 2.4 152 74.3 3.1 2.5 846 0.8 2.7 6.0 1,181 72.3 1.1 0.9 2,300 2.1 7.6 16.3 3,224 60.1 1.2 1.0 91 0.4 3.8 5.8 425 51.7 1.2 1.0 178 1.3 3.9 12.5 784 96.1 1.3 1.0 342 0.0 1.4 1.7 438 249.1 4.1 3.3 335 0.1 0.1 0.2 347 249.1 0.5 0.4 2,154 0.1 0.2 0.3 2,178 252.9 1.4 1.1 110 0.1 0.1 0.1 125 308.1 7.0 5.6 363 0.1 0.8 1.9 457 303.8 2.7 2.1 931 0.1 1.9 4.0 1,120 302.5 1.4 1.1 1,478 na 1.3 1.6 1,566 300.5 13.4 10.7 226 0.0 0.3 0.3 247 299.4 3.5 2.8 737 0.1 0.1 0.2 755 347.4 8.1 6.5 16 0.3 0.9 2.8 150 287.5 3.9 3.1 262 0.1 0.7 2.6 366 292.3 0.8 0.7 193 0.0 0.2 0.4 213 314.8 0.4 0.3 96 0.1 2.8 3.9 312 6.5 2.2 1.7 65 0.9 0.1 0.0 160 24.3 0.4 0.3 158 1.1 0.2 0.4 291 261.2 3.4 2.8 141 0.0 0.3 0.7 171 259.4 1.6 1.3 271 0.0 0.5 1.1 318 279.9 1.1 0.9 254 0.0 0.2 0.5 274 223.3 2.1 1.7 105 0.6 0.3 0.4 184 305.2 3.6 2.9 50 0.1 1.8 4.6 248 303.4 1.8 1.5 92 0.1 3.2 8.5 449 298.8 1.7 1.3 90 0.0 0.5 1.0 135 on long-term gold, silver, zinc and lead prices of $1,600 (U.S.) per ounce gold, $16.50 (U.S.) silver, 85 U.S. cents per pound zinc and 95 U.S. cents per pound lead. The metallurgical recoveries as 90 per cent Ag, 95 per cent Au, 78 per cent Pb and 70 per cent Zn. are rounded. Results are uncut and undiluted.

The 17 drill holes in this news release were generated by a core drilling campaign completed by First Majestic Silver Corp. in 2018 (SJS18-04 and -13), and historical drill holes completed by Grupo Mexico. Neither of the drill sets were previously released. They are part of an extensive surface and underground diamond core drilling database, which GR Silver Mining continues to consolidate and validate.

The "San Juan-La Colorada area -- drill hole intervals not sampled (intervals greater than 20 m)" table lists the drill hole intervals previously not sampled (NS) for this group of released holes. The company continues investigating previous unsampled intervals for evidence of mineralization in the core that warrants additional sampling and assaying. The company recently announced a core drilling program at the Plomosas silver project (see news release dated July 15, 2020).

SAN JUAN-LA COLORADA AREA -- DRILL HOLE INTERVALS NOT 
        SAMPLED (INTERVALS GREATER THAN 20 M)
  
Hole No.             From-to (m)             Sampling

SJS17-13               0-173.95                    NS
SJS17-13           191.35-218.5                    NS
SJS17-13           233.55-331.7                    NS
SJS17-15                0-197.9                    NS
SJS17-15           208.25-253.4                    NS
SJS18-04               0-270.75                    NS
SJS18-04          317.95-375.55                    NS
SJS18-12              48.2-82.5                    NS
SJS18-12            113.4-145.0                    NS
SJS18-13             33.0-64.75                    NS
SJS18-13            129.0-186.3                    NS
SJS18-13            191.3-247.5                    NS
SJS18-13            249.6-282.0                    NS
   
All numbers are rounded. 

NS -- core not assayed by First Majestic.

The company believes that the San Juan-La Colorada area is similar to the Plomosas mine area, consisting of Ag mineralization hosted in polymetallic hydrothermal breccias and steep angle Ag-Au-rich low sulphidation epithermal veins, commonly displaying argentite, galena and sphalerite that can be observed in the drill core.

Qualified person

The scientific and technical data contained in this news release related to the Plomosas project were reviewed and/or prepared under the supervision of Marcio Fonseca, PGeo. He has approved the disclosure herein.

Quality assurance program and quality control procedures (QA/QC)

The recent drill holes completed by First Majestic from 2016 to 2018, followed QA/QC protocols reviewed and validated by GR Silver Mining, including insertion of blank and standard samples in all sample lots sent to First Majestic's Laboratorio Central facilities in La Parilla, Durango, for sample preparation and assaying. Additional validation and check assays were performed by an independent laboratory at SGS de Mexico SA de CV facilities in Durango, Mexico. The analytical methods applied for these recent holes for Ag and Au assays comprised fire assay with atomic absorption finish for samples above Au 10 parts per million and Ag 300 ppm and gravimetric finish. Pb and Zn were analyzed using inductively coupled plasma optical emission spectrometry. GR Silver Mining has not received information related to the Grupo Mexico QA/QC and assay protocols and at this stage is considering the information historic for news release purposes.

About GR Silver Mining Ltd.

GR Silver Mining is a Mexico-focused company engaged in cost-effective silver-gold resource expansion on its key assets which lie on the eastern edge of the Rosario mining district, Sinaloa, Mexico.

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