Gatos Silver Extends Mineralization at Cerro Los Gatos and Commences Drilling at the Esther Zone

Rhea-AI Summary

Gatos Silver (GATO) announced positive results from its drilling program at Cerro Los Gatos (CLG), identifying significant mineralization in both Southeast (SE) and Northwest (NW) zones. The initiative has so far completed 23 holes in the SE zone and 8 in the NW zone, upgrading 3.7 million tonnes of inferred resources to measured and indicated. Notable drill results include hole GA385 with 13.5m @236.0g Ag/T and increased thicknesses in mineralization. The company also plans to start drilling at the Esther zone, expected to yield an updated resource report in Q1 2022.

Positive

• Upgraded 3.7 million tonnes of inferred resources to measured and indicated.
• Significant mineralization found in both SE and NW zones.
• Increased thickness of mineralization noted in multiple drill holes.

Negative

• None.

Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) is pleased to report drilling results on its definitional drilling at Cerro Los Gatos (“CLG”) and the commencement of drilling at the CLG’s Esther zone.

Figure 1: Plan View of the SE zone Drill Hole Map, Block 4 of the Cerro Los Gatos System (Graphic: Business Wire)

The 2021 CLG definition drilling campaign continues to identify additional mineralization both on the Southeast (“SE”) and Northwest (“NW”) extensions of the deposit beyond the present reserve blocks. Since the definition drilling program began in late 2020, 23 holes have been completed in the SE zone and eight holes have been completed in the NW zone.

Stephen Orr, Chief Executive Officer, stated, “The initial drilling in CLG’s SE and NW zones is successfully upgrading the 3.7 million tonnes of Inferred resource to the Measured and Indicated category. Furthermore, the identification of additional offsets to a recently discovered new SE zone vein has extended the CLG mineralization beyond the current resource model and demonstrated that the southeast extension of the deposit is still open along strike. Reactivation of drilling at Esther represents another significant milestone for the Los Gatos District. Esther, which has an existing NI 43-101 resource, was discovered in 2011 and its initial exploration program was comprised of broadly spaced holes that indicated a mineralized zone with strong similarities to the CLG deposit. The current program will be focused on detailed definition of silver, zinc, lead and gold occurrence throughout this epithermal system. We expect to issue an updated NI 43-101 resource report in the first quarter of 2022.”

Highlights from the latest 13 drill holes, assays and principal findings are summarized below:

SE Zone

• Hole GA385 intercepted 13.5m @236.0g Ag/T, 6.9% Zn, 6.3% Pb, and 0.29g Au/T, indicating a continuity of mineralization and increasing zinc and lead grades in the southeastern most offset to the main deposit. The hole also shows an increase in thickness from hole GA364 which was previously reported.
• Two offsets of the new footwall vein, which was first identified in hole GA370, have been intersected with higher copper in holes GA378 and GA386.

NW Zone

• Additional high-grade mineralization has been identified in holes GA382 where 3.1m @608.7g Ag/t, 2.1% Pb and 5.4% Zn was intercepted and GA384 where 4.3m @618.5 g Ag/t, 0.9% Pb and 2.9% Zn was intercepted.

Hole	Zone	From	To	Apparent Thk m	True Thk m	AgEq g/t (1)	Au g/t	Ag g/t	Pb %	Zn %	Cu %
GA376	SE	321.3	324.3	3.0	2.1	30.6	0.04	3.8	0.2	0.6	0.0
GA377	SE	202.3	203.3	1.0	0.8	84.8	0.06	20.9	0.5	1.5	0.0
GA378	SE	325.5	327.0	1.5	1	109.4	0.09	16.9	0.3	2.5	0.0
GA378	SE	350.5	352.0	1.5	1	206.6	0.03	64.1	0.6	1.4	0.7
GA379	NW	214.5	216.5	2.0	1.3	190.4	0.19	42.4	3.0	1.5	0.1
GA380	SE	360.0	369.0	9.0	5.5	175.8	0.15	27.6	1.6	3.1	0.0
GA380	SE	435.0	440.0	5.0	3.5	324.0	0.50	141.9	1.1	2.2	0.4
GA381	SE	294.5	304.5	10.0	7.6	543.0	0.10	131.3	3.4	9.5	0.2
GA382	NW	285.3	290.3	5.0	3.1	844.7	0.05	608.7	2.1	5.4	0.1
GA383	SE	347.0	350.0	3.0

FAQ

What are the latest drilling results for Gatos Silver (GATO)?

Gatos Silver's latest drilling results reveal significant mineralization in both the Southeast and Northwest zones, including high-grade intercepts like hole GA385 with 13.5m @236.0g Ag/T.

What is the expected timeline for Gatos Silver's updated resource report?

An updated NI 43-101 resource report from Gatos Silver is expected to be released in the first quarter of 2022.

How many drill holes have been completed at Cerro Los Gatos (GATO)?

As of now, 23 drill holes have been completed in the Southeast zone and 8 in the Northwest zone at Cerro Los Gatos.

What areas are Gatos Silver drilling at Cerro Los Gatos?

Gatos Silver is currently drilling in the Southeast and Northwest extensions of the Cerro Los Gatos deposit and has plans to commence drilling at the Esther zone.