Investors looking south for silver are eyeing GR Silver Mining

Sinaloa – we’re all familiar with that name as this west coast Mexican state has the two favorite snowbird sun destinations of Puerto Vallarta and Mazatlán. But did you know it is also a mining center? It was actually the mineral potential that drew the Spanish to this area over 250 years ago. Annual revenue from this area is now said to exceed US$120M, as over 70 Mexican and international mining companies operate mines or are conducting mineral exploration in the region which has tremendous resources in silver, gold, copper, iron, lead and zinc, to name just a few

One of these companies is GR Silver Mining Ltd. (TSXV: GRSL | OTCQB: GRSLF) which is located in the heart of the Rosario Mining District, a short drive from the resort area of Mazatlán.

Source: GR Silver

The company’s two main assets are the Plomosas and San Marcial projects, which management considers to be the most important projects in the district. Together, the Plomosas project and the San Marcial project provide GR Silver ownership of over 9,764 hectares in the area. The company possesses all exploration licenses and permits required for exploration on both projects and, in the case of Plomosas, it also has necessary permits for exploitation.

Without getting too technical, the mineral potential of these project areas is significant. The Plomosas mine area has impressive recent exploration results in addition to data already in-hand. Thickness ranging from 15.7 meters to 51.4 meters of mineralization for gold, silver, lead, zinc and copper, it is clear why this is an area of focus for the company.

The Plomosas project includes a past-producing silver–gold–lead–zinc underground mine in an area that has numerous old workings. The project was acquired in March 2020, and the company owns 100% of the asset. Importantly, the project area has access to an extensive un-released recent and historical drilling database completed by previous operators which will greatly assist the company in potential resource development.

San Marcial is a near-surface, high-grade silver, lead, and zinc open-pit amenable project, acquired in 2018. GR Silver is currently expanding its NI 43-101 resource estimate at the San Marcial project, which contains 36 million ounce silver-equivalent (Indicated) and 11 million ounce silver-equivalent (Inferred) resources, by defining new high-grade gold and silver targets along the project’s 6 km mineralized trend. GR Silver is currently carrying out underground development and additional drilling at San Marcial project.

The combined infrastructure and data between the two projects offer the opportunity for integration of exploration and future resource definition in a series of drilled targets. The two projects have similar mineralization, potentially allowing a single processing facility, have exploration upside and an extensive database of drillhole data plus numerous exploration targets identified. The company is planning an integrated Preliminary Economic Assessment (PEA) for the two project areas combined and anticipates an updated NI 43-101 for San Marcial as well as a new evaluation for two key areas (the old Plomosas mine and a second project area nearby at San Juan) to be completed sometime in 2021.

While the Plomosas and San Marcial projects represent a near-term focus for the company, there are a number of other exploration project areas in the Rosario Mining District that round out a portfolio of assets consisting of a total of over 29,000 hectares, controlling most of the silver-gold-lead-zinc mineralized zones identified in the eastern Rosario Mining District. This also includes three tracts of land adjacent to Rosario City where the multi-million ounce Rosario gold-silver mine was reported to have been closed in 1941 after more than 250 years of operation.

Why should you care? The company’s near-term assets are well underway towards near-term development. The technical team has over 10 years of experience in the Rosario District with a record of successful discoveries and the 250+ square kilometer exploration portfolio covers some of the most prospective areas in the Rosario Mining District.

The management team, Board of Directors and Technical Advisors have extensive Mexican experience and a strong record of global mining related merger and acquisition transactions. Lastly, the company has a solid shareholder base including insiders, resource fund managers and industry partners.

The company is well-funded for future exploration, having successfully closed a bought-deal equity financing in August 2020 for a total of $9.1M. While not enough to achieve full production status, the company is well-funded for an important exploration program in the Rosarios Mining District. With a current market capitalization of approximately CAD$85M and assets proceeding to almost certain development, this is definitely a stock that has market attention and is important to watch.

Goldplay’s maiden mineral resource reveals a 57% increase in contained silver equivalent at high grade

The Egyptians were the first to produce a known currency exchange ratio, that mandated the correct ratio of gold to silver; one piece of gold was equal to two and a half pieces of silver. In Roman times, the price ratio was set at 12 to 1, then in 1792, the gold/silver price ratio was fixed by law in the United States at 15:1. The ratio of silver to gold in the earth’s crust is 17.5:1. All of this goes to show that gold and silver are both valuable precious metals and there will always be a market to sell them.

Goldplay Exploration Ltd. (TSXV: GPLY | OTCQB: GLYXF) is a Canadian company focused on the discovery of gold-silver deposits in the historically prolific Rosario Mining District in Sinaloa, Mexico. Although we are only just into the early stages of 2019, Goldplay has already had a busy beginning to the year at its San Marcial project in Sinaloa Mexico.

The San Marcial Project – Mexico

The San Marcial Project is an attractive near-surface, high-grade silver, zinc, lead resource project covering 1,250 hectares. Previous drilling has only explored 600 meters of the 3.5 kilometre mineralized trend therefore giving the company significant exploration upside.

Maiden mineral resource at the San Marcial

On February 7, 2019, Goldplay announced its maiden mineral resource estimate for the San Marcial Project. The Mineral Resource consists of 36 million ounces of silver equivalent at an average grade of 147 grams per tonne in the Indicated category and an additional 11 million ounces AgEq in the Inferred category, at an average grade of 99 gpt. The San Marcial Mineral Resource is a substantial increase from the historical resource completed in 2008.

San Marcial Maiden Mineral Resource Feb 2019

President and CEO Marcio Fonseca commented: “The completion of our maiden Mineral Resource on the San Marcial Project is a major milestone for Goldplay. We have achieved a significant increase in the contained ounces of both Ag and AgEq. The Mineral Resource provides a strong foundation to realize the full potential of the San Marcial Project.”

San Marcial Maiden Mineral Resource a 57% increase to 36m ounces of contained silver equivalent

Five new exploration targets at San Marcial

Previous to the maiden resource announcement, the Company reported that the exploratory program carried out in the December quarter of 2018 at the San Marcial Project has expanded the Ag-Zn-Pb-Au mineralized trend beyond the historic NI 43-101 resource area, with five new exploration targets identified. The Company will continue to advance the program to refine the knowledge of these targets, aiming at a preliminary drilling program in 2019.

CEO Marcio Fonseca said: “The San Marcial Project is one of Goldplay’s top prospects and we continue to be very encouraged by the upside potential for expansion of the deposit.”

Frankfurt Stock Exchange Listed

Effective January 15, 2019, the Company shares are now listed on the Frankfurt Stock Exchange under the symbol GPE. The Frankfurt Stock Exchange is the third largest in terms of volume behind New York and the NASDAQ, and it will provide Goldplay access and exposure to a broader investment audience in Europe.

With 250 years of historical silver and gold production in the region, and several multi-million ounce historic silver mines nearby, the San Marcial concession has very good exploration potential for new discoveries. Goldplay already has a high grade near surface project that is progressing very well. In recent times they are also significantly growing their resource and soon to begin drilling at their five new potential targets.

Headquartered in Vancouver Canada, Goldplay Exploration has a market cap of CAD$ 9.43 million, which is a significant increase from their December 2018 market cap of CAD$ 6.97 million when we last reviewed them.

Can Goldplay bring some joy to the festive season?

Gold has been the historical measure of wealth with the first evidence of human interaction occurring in ancient Egypt around 3,000 B.C. Prized by pharaohs and temple priests, gold played an important role in ancient Egyptian mythology. It was so important in fact, that the capstones on the Pyramids of Giza were made from solid gold. The Egyptians were the first to produce a known currency exchange ratio, which mandated the correct ratio of gold to silver: one piece of gold equaled two and a half parts of silver.

Silver is also considered a key precious metal, just not quite as rare as gold. Silver has the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. Other than in currency (coins, bullion) silver is used in solar panels, water filtration, jewellery, ornaments,  silverware, in electrical contacts and conductors, in specialized mirrors, window coatings, in catalysis of chemical reactions, as a colorant in stained glass, and in photographic and X-ray film.

Successful gold and silver mining companies tend to perform well when equity markets do poorly, as investors seek safe haven investments and there is always a buyer for gold and silver. Given December 2018 is looking as bad as December 2008 (GFC year), investors should be checking if they have some gold and silver exposure to help protect against equity downturns.

Goldplay Exploration Ltd. (TSXV: GPLY | OTCQB: GLYXF) is a Canadian and U.S. listed company focused on the discovery of gold-silver deposits in the historically prolific Rosario Mining District in Sinaloa, Mexico. The Company has worked hard to consolidate and acquire a low-cost 100% owned 250 square km exploration portfolio. Goldplay is unlocking a proven historical gold mining district and have had some great recent highlights in what they consider two perfect projects, San Marcial Silver and El Habal Gold. To date Goldplay has a historical resource of 30 million ounces of silver equivalent (AgEq), and is looking to upgrade that soon towards a target of 45-60 million ounces AgEq, which would be a 50-100% increase if achieved. It is also important to note the historical resource is contained within 500m section of a 3.5km long mineralized zone, so there is plenty of further exploration potential.

The San Marcial Silver-Lead-Zinc-Gold Project

The San Marcial Silver-Lead-Zinc-Gold Project is at near surface and has a historical resource estimate of 30 million ounces AgEq. Results from a historical underground tunnel that was re-opened showed a sample high grade result for silver at 13.0 m @ 1,048 gpt AgEq (550 gpt Ag), including 3.0 m @1,934 gpt AgEq (1,127 gpt Ag). The Company also recently discovered the footprint was double that of historical findings thus showing potential for expansion and further exploration upside. A new NI resource estimate is expected in January 2019.

Goldplay’s San Marcial Project in Mexico

The El Habal Gold-Silver project

The El Habal Gold-Silver project comprises over 3,700 hectares and is located within a multi-million ounce historical district. A first phase four hole drilling program announced in August identified near surface continuity of gold mineralization.

With an exploration team having a record of successful discoveries, and with over 10 years of experience in the Rosario District, Goldplay Exploration will continue to focus on the discovery of gold-silver deposits in the prolific Rosario Mining District, Sinaloa, Mexico.

The end of the year is upon us but before we turn our thoughts towards 2019 and what awaits us, there is still the festive season and celebrations to get through. With today’s current gold trends seeming to be centered around re-opened historic mines, Goldplay Exploration could be a great speculative investment. The expected January 2019 resource upgrade can potentially be a great catalyst for the stock in early 2019, and a belated Christmas gift for investors.

Goldplay’s Fonseca on the gold and silver opportunity in both Mexico and the market in 2019

“Many people do not know, but it is a very famous mining district in Mexico. It goes back 250 years to the Spanish colonization times to the point that one of the richest gold and silver mines, the Rosario, was set up in that district. We know by fact and historically that mine produced close to 4 million ounces of gold and 100 million ounces of silver. That is the reason why Fresnillo, which is one of the largest silver producers in the world, controls a lot of concessions in the district.” States Marcio Fonseca, President & CEO of Goldplay Exploration Ltd. (TSXV: GPLY | OTCQB: GLYXF), in an interview with InvestorIntel Corp. CEO Tracy Weslosky.

Tracy Weslosky: I am a serious gold bug and appreciate how amazing the Mexican gold and silver resources are. Let us start there. What is happening with investors right now with their interest in Mexican gold and silver? 

Marcio Fonseca: In my opinion what is happening is that investors got a bit worried about the Mexican market because of the new government. There was some news recently which created a bit of volatility in the market, which I believe now are completely clear in their minds that Mexico is a mining country. There will not be big changes in the mining code for the short-term and medium-term. Consider gold and silver where the price is now. Probably silver one of the lowest prices I have seen so far. The opportunity that you see today at the lower price you can see a turnaround in 2019. I see a great opportunity for any investor to get exposure to gold and silver players in Mexico as a low-cost mining country.

Tracy Weslosky: Speaking of gold play and news, let us jump right into it. You just announced that one of your directors, Laura Diaz, had stepped down as a director to become the next General Director of Mines in Mexico. I thought that was pretty significant news for the type of players you are attracting on your board. Can you tell us how this might affect you and what this means? 

Marcio Fonseca: It means a lot to me. I have known Laura Diaz for more than 15 years. She was my lawyer when I was an investment banker and she helped me in many transactions in Mexico, mining transactions. She is well known in the Canadian markets; many transactions as well. It means a lot in a way that you have a person working for the government that understands the mining business in North America, that can help us to get more comfortable with the system and to modernize the system. Of course I need to congratulate her. It is a great achievement in her career being named by the President of Mexico to be the new Director of Mines.

Tracy Weslosky: One of our analysts wrote that it is a good time to be looking at gold and silver and then proceeded to write about you and in particular featured the Rosario Mining District in Mexico. Can you comment on this mining district and Goldplay’s portfolio in this district?

Marcio Fonseca: Of course. Many people do not know, but it is a very famous mining district in Mexico. It goes back 250 years to the Spanish colonization times to the point that one of the richest gold and silver mines, the Rosario, was set up in that district. We know by fact and historically that mine produced close to 4 million ounces of gold and 100 million ounces of silver. That is the reason why Fresnillo, which is one of the largest silver producers in the world, controls a lot of concessions in the district…to access the complete interview, click here

Disclaimer: Goldplay Exploration Ltd. is an advertorial member of InvestorIntel Corp.

Goldplay focused on unlocking a proven historical gold mining district in Mexico

Goldplay Exploration Ltd. (TSXV: GPLY | OTCQB: GLYXF) is a Canadian company focused on the discovery of gold-silver deposits in the prolific Rosario mining district in Sinaloa, Mexico. Goldplay’s exploration team has over 10 years experience in the historical Rosario district. Successful discoveries in the district by other companies include the extension of Marlin Gold Mining’s La Trinidad mine, one of Mexico’s highest grade, open pit gold mines. Goldplay’s  250+ sq. km 100% owned exploration portfolio has no earn-in requirements, and covers one of the most prospective areas in the Rosario district.

Historical miners at Rosario

The Rosario mining district has been and currently is host to many world-class precious metal mines and projects, notably the historical multi-million ounce Rosario gold-silver mine, whose operation life spanned over 250 years.

El Habal precious metals project

Goldplay’s El Habal precious metals project is a low sulphidation epithermal exploration-stage project that borders the Rosario Mine concessions. Comprising 3,700 hectares it is located 75 km east of the modern coastal port of Mazatlán, and is only 10km from the historical mining town of Rosario using a paved road. Power ready, El Habal hosts excellent infrastructure for future mine development. The El Habal mining concessions cover a 6 km long by 1 km wide trend containing a series of historical shallow and small-scale underground artisanal mining sites that all resemble the geology of the Rosario Mine.

In late 2017, Goldplay completed a successful surface channel sampling and trenching program. The study revealed wide oxidized mineralised zones over a 2 km strike length, not only on historical mine sites, but also on the host rocks, including 4 new prospects: “La Reina”, “El Arenal”, “Santos” and “Octavio”. Recent mapping along a 6km long by 1km wide geological trend, together with in progress ground geophysical program has generated targets for upcoming additional drilling programs. The integration of historical (non 43-101 compliant) drill data, combined with the recent exploration results is supporting an upcoming drilling program, aiming to define resources not only for potential open pit amenable project but also underground potential.

San Marcial and El Habal projects

The San Marcial near surface high-grade silver-zinc-lead project

The San Marcial project consists of 1,250 hectares, and is located 30 km from the companies El Habal project. San Marcial exhibits significant exploration upside supported by historical regional exploration programs completed by previous operators with the identification of 14 exploration targets inside the concessions. Some of these exploration targets consist of old shallow pits, and historical underground workings. San Marcial should be regarded as an advanced project with bulk tonnage and open pit potential, which may has a significant economic significance should the mineralisation prove to be more extensive than is presently indicated by the current resource estimate. Historical drill results include (SM-4), 53.95 meters @ 223 g/t Ag, 0.29% Zn, 0.45% Pb (including 15.0, meters @ 637 g/t Ag, 0.4% Zn, 0.37% Pb).

Goldplay has a market cap of C$ 7.2m

Goldplay (Live) is also the name of a tribute band for the British rock group called Coldplay, who in the year 2000 had a world-wide hit called “Yellow”. If only I had seen the signs earlier. Coldplay have earned several Gold records for sales on their music.

Goldplay Exploration doesn’t play music but have good exploration potential in the prolific Rosario gold mining district in Sinaloa, Mexico. I’m not even sure if any of them can sing.