STOCK TITAN

Gatos Silver Reports Continued South-East Deeps Extension Drilling Results at Cerro Los Gatos and Provides Update on Regional Exploration Program

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Gatos Silver (NYSE/TSX: GATO) reported continued drilling results from the South-East Deeps zone at its 70%-owned Cerro Los Gatos mine in Mexico. Highlights include:

- 3.5m at 214 g/t Ag, 19.00% Zn, 12.23% Pb
- 3.0m at 81 g/t Ag, 9.94% Zn, 3.88% Pb
- 6.5m at 43 g/t Ag, 4.52% Zn, 1.78% Pb

The company also provided updates on its regional exploration program:

- Drilling at Portigueño target intercepted anomalous precious and base metals
- Initial drilling at San Luis target returned wide quartz vein and silicified breccia intersections
- Drilling began at Cerro Los Gatos Central Deeps target
- Mapping continued in Lince, San Agustin, and La Paula areas

Gatos Silver expects to complete its next reserve and resource estimates update in Q3 2024.

Gatos Silver (NYSE/TSX: GATO) ha riportato risultati di perforazione continuativi dalla zona South-East Deeps nella sua miniera Cerro Los Gatos in Messico, di cui detiene il 70% delle quote. Tra i punti salienti:

- 3.5m a 214 g/t Ag, 19.00% Zn, 12.23% Pb
- 3.0m a 81 g/t Ag, 9.94% Zn, 3.88% Pb
- 6.5m a 43 g/t Ag, 4.52% Zn, 1.78% Pb

L'azienda ha anche fornito aggiornamenti sul suo programma di esplorazione regionale:

- La perforazione nel target Portigueño ha intercettato metalli preziosi e base anomali
- Le perforazioni iniziali nel target San Luis hanno rivelato ampie intersezioni di vene di quarzo e breccia silicificata
- Sono iniziate le perforazioni nel target Cerro Los Gatos Central Deeps
- La mappatura è proseguita nelle aree di Lince, San Agustin e La Paula

Gatos Silver prevede di completare il suo prossimo aggiornamento delle stime di riserve e risorse nel terzo trimestre del 2024.

Gatos Silver (NYSE/TSX: GATO) reportó resultados continuos de perforación desde la zona South-East Deeps en su mina Cerro Los Gatos en México, de la cual posee el 70%. Los aspectos destacados incluyen:

- 3.5m a 214 g/t Ag, 19.00% Zn, 12.23% Pb
- 3.0m a 81 g/t Ag, 9.94% Zn, 3.88% Pb
- 6.5m a 43 g/t Ag, 4.52% Zn, 1.78% Pb

La compañía también proporcionó actualizaciones sobre su programa de exploración regional:

- La perforación en el objetivo Portigueño interceptó metales preciosos y básicos anómalos
- La perforación inicial en el objetivo San Luis devolvió amplias intersecciones de veta de cuarzo y brecha silicificada
- Se inició la perforación en el objetivo Cerro Los Gatos Central Deeps
- Se continuó la cartografía en las áreas de Lince, San Agustin y La Paula

Gatos Silver espera completar su próximo actualización de estimaciones de reservas y recursos en el tercer trimestre de 2024.

가토 실버(Gatos Silver) (NYSE/TSX: GATO)는 멕시코에 위치한 70% 소유의 세로 로스 가토스 광산의 남동부 깊은 지대에서 시추 결과를 계속 보고했습니다. 주요 사항은 다음과 같습니다:

- 3.5m에서 214 g/t Ag, 19.00% Zn, 12.23% Pb
- 3.0m에서 81 g/t Ag, 9.94% Zn, 3.88% Pb
- 6.5m에서 43 g/t Ag, 4.52% Zn, 1.78% Pb

회사는 또한 지역 탐사 프로그램에 대한 업데이트를 제공했습니다:

- 포르티게뇨 목표에서 시추가 비정상적인 귀금속 및 기초 금속을 탐지했습니다
- 산 루이스 목표에서의 초기 시추는 넓은 규산염 맥과 규산화 브레치아 절단면을 반환했습니다
- 세로 로스 가토스 센트럴 딥스 목표에서 시추가 시작되었습니다
- 린세, 산 아구스틴, 라 파울라 지역에서의 지도가 계속되었습니다

가토 실버는 2024년 3분기까지 다음 매장량 및 자원 추정 업데이트를 완료할 것으로 예상하고 있습니다.

Gatos Silver (NYSE/TSX: GATO) a annoncé des résultats de forage continus provenant de la zone South-East Deeps de sa mine Cerro Los Gatos au Mexique, dont elle détient 70% des parts. Les faits saillants incluent :

- 3.5m à 214 g/t Ag, 19.00% Zn, 12.23% Pb
- 3.0m à 81 g/t Ag, 9.94% Zn, 3.88% Pb
- 6.5m à 43 g/t Ag, 4.52% Zn, 1.78% Pb

La société a également fourni des mises à jour sur son programme d'exploration régionale :

- Le forage sur la cible Portigueño a intercepté des métaux précieux et de base anormaux
- Les premiers forages sur la cible San Luis ont révélé des intersections d'un large filon de quartz et de brèche siliceuse
- Le forage a commencé sur la cible Cerro Los Gatos Central Deeps
- Le dénombrement se poursuit dans les zones de Lince, San Agustin et La Paula

Gatos Silver s'attend à compléter sa prochaine mise à jour des estimations de réserves et de ressources au troisième trimestre 2024.

Gatos Silver (NYSE/TSX: GATO) berichtete über fortlaufende Bohrergebnisse aus der Zone South-East Deeps in seiner zu 70% gehaltenen Cerro Los Gatos Mine in Mexiko. Die Highlights umfassen:

- 3.5m bei 214 g/t Ag, 19.00% Zn, 12.23% Pb
- 3.0m bei 81 g/t Ag, 9.94% Zn, 3.88% Pb
- 6.5m bei 43 g/t Ag, 4.52% Zn, 1.78% Pb

Das Unternehmen gab auch Updates zu seinem regionalen Explorationsprogramm:

- Die Bohrungen am Portigueño-Ziel haben anomale Edel- und Grundmetalle getroffen
- Die ersten Bohrungen am San Luis-Ziel ergaben breite Quarzader- und silicifizierte Brekzie-Schnitte
- Bohrungen am Ziel Cerro Los Gatos Central Deeps haben begonnen
- Die Kartierung in den Gebieten Lince, San Agustin und La Paula wurde fortgesetzt

Gatos Silver erwartet, seine nächste Aktualisierung der Reserven- und Ressourcen-Schätzungen im dritten Quartal 2024 abzuschließen.

Positive
  • Continued mineralization intercepts in South-East Deeps zone, extending known mineralized area
  • Promising initial drilling results at San Luis target, with wide quartz vein and silicified breccia intersections
  • Expansion of regional exploration program with drilling at multiple targets
  • On track for reserve and resource estimates update in Q3 2024
Negative
  • Silver grades in South-East Deeps zone are significantly lower than current mineral reserve
  • Base metals represent a higher proportion of in-situ value compared to silver in new drilling results

The latest drilling results at Cerro Los Gatos (CLG) and the broader Los Gatos District (LGD) are promising and demonstrate significant potential for extending existing mineralization. The intercepts from the South-East Deeps (SE Deeps) zone show high concentrations of silver, zinc and lead, which are important for the company's future resource and reserve updates. Notably, the intercept from drillhole SE-600 with 214 g/t Ag, 19.00% Zn and 12.23% Pb over an estimated true width (ETW) of 2.9 meters stands out.

From a geological perspective, the company's shift towards more comprehensive exploration within the LGD, including new targets like Portigueño and San Luis, is strategically sound. These findings could translate into a longer mine life and potentially higher production rates. Additionally, the early signs of elevated base metal content in areas like San Luis indicate a richer geological environment than initially thought.

For investors, these results could be a double-edged sword. On one hand, the positive drilling results suggest a potentially significant upside in Gatos Silver's future production capabilities and resource base, which is likely to enhance the company's valuation. This is particularly important as the market often prices in the future potential of mining firms based on their exploration success.

On the other hand, the capital-intensive nature of continued exploration and drilling activities, especially in new zones, could strain the company's financial resources in the short term. Investors will need to balance the costs associated with these extensive drilling programs against the longer-term benefits of increased mineral reserves and resources.

Additionally, the concentration of high-grade mineralization in certain drill holes may lead to increased stock volatility as investors react to the incremental updates.

The metals market, particularly for silver, zinc and lead, is currently experiencing fluctuating demand, influenced by factors such as economic cycles and industrial demand. Gatos Silver's extensive drilling results are timely, potentially positioning the company to capitalize on favorable market conditions in the near future.

High-grade mineralization in the SE Deeps zone aligns well with industrial demand, particularly with the ongoing global push for electrification and renewable energy technologies, which heavily rely on these metals. This could make Gatos Silver a more attractive option for investors looking to hedge against market volatility through exposure to essential industrial metals.

Moreover, the company's proactive exploration in the broader LGD demonstrates a commitment to long-term growth, which can be a compelling narrative for both existing and potential investors.

VANCOUVER, British Columbia, July 23, 2024 (GLOBE NEWSWIRE) -- Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) today provided an update on the drilling and exploration programs in the Los Gatos district (“LGD”) in Mexico. The update includes new intercepts of mineralization in the South-East Deeps (“SE Deeps”) zone of its 70%-owned Cerro Los Gatos (“CLG”) mine, along with an update on the drill results of the recently initiated regional exploration program.

“We are pleased with the latest results which show further potential in the South-East Deeps zone beyond what we will be including in our next reserve and resource estimates update, which we continue to expect to complete in the third quarter of 2024,” said Dale Andres, CEO of Gatos Silver. “The second quarter also highlighted the shift in prioritization to explore the broader Los Gatos district, as drilling continued in Portigueño and commenced on both the Central Deeps and San Luis targets, with early exciting results.”

Chad Yuhasz, VP Exploration and Technical Services added: “Preliminary drill results clearly support our elevated interest within the LGD, with the first two holes in our San Luis target returning wide quartz vein and silicified breccia intersections, including intervals of anomalous precious metals in our first hole and elevated base metal results in our second hole, which we consider to be a very positive start to our district drilling programs.”

Q2 2024 Highlights

  • Resource definition drilling in the SE Deeps zone of CLG intercepted additional mineralization along strike and down-plunge, continuing to extend the known mineralized zone. The most significant intercepts are included below (see Table 1 for complete intercept details).
    • 3.5m (2.9m estimated true width, or "ETW") at 214 g/t Ag, 19.00% Zn, 12.23% Pb, 0.18 g/t Au and 0.25% Cu (SE-600)
    • 3.0m (2.7m ETW) at 81 g/t Ag, 9.94% Zn, 3.88% Pb, 0.81 g/t Au and 0.15% Cu (SE-594)
    • 2.0m (1.6m ETW) at 181 g/t Ag, 2.04% Zn, 0.92% Pb, 0.02 g/t Au and 0.42% Cu (SE-598)
    • 2.0m (1.6m ETW) at 108 g/t Ag, 5.56% Zn, 3.17% Pb, 0.79 g/t Au and 0.44% Cu (SE-598)
    • 6.5m (6.0m ETW) at 43 g/t Ag, 4.52% Zn, 1.78% Pb, 0.14 g/t Au and 0.28% Cu (SE-602)
  • Greenfields exploration work in the LGD ramped up during the quarter, with drilling continuing at the Portigueño target, drilling initiated on both the San Luis and the CLG Central Deeps targets, and field mapping continuing in the Lince, San Agustin, and La Paula districts to support additional drill target definition for later this year and into 2025.
    • Portigueño Drilling
      • We completed four more holes at the Portigueño target (~2km from CLG) in addition to the two holes reported in Q1. The drilling continues to intercept veining and alteration with anomalous grades of silver, gold, zinc and lead but low copper, with an interesting intersection in PO-06 with elevated molybdenum values. The drilling continues to test multiple mapped structures within the district, as we explore for a potential host structure within the expected depth profile of the systems. The metal composition of the anomalous drill results continues to be consistent with a location high in the profile indicating potential for further mineralization deeper in the zone (see Table 2 for complete intercept details).
        • 0.7m (0.6m ETW) at 3.11 g/t Au and no significant silver or base metals (PO-05)
        • 1.6m (1.2m ETW) at 49 g/t Ag, 1.69% Zn, 0.32% Pb, 0.09 g/t Au, 0.02% Cu and 0.23% Mo (PO-06)
        • 1.9m (1.5m ETW) at 15 g/t Ag, 1.59% Zn, 0.82% Pb, 2.59 g/t Au and 0.02% Cu (PO-07)
    • San Luis Drilling
      • In May we mobilized a drill rig to the San Luis target (~4.5km from CLG) to test the depth potential of the mapped surface expression of what is interpreted to be an intersection of the main Cerro Los Gatos structure with a secondary structure known as the Iguana Fault. The first two holes tested mineralization potential at approximately 150m below surface along a strike length of 200 metres. The first hole (SL-24-01) intersected a wide quartz vein filled fault structure returning intervals of anomalous precious metals, while the second hole (SL-24-02) returned a wide strongly silicified breccia filled fault structure with intervals of elevated base metal mineralization (see Table 2 for complete intercept details).
        • 8.9m (7.2m ETW) at 66 g/t Ag and 0.17 g/t Au and no significant base metals (SL-24-01) including:
          • 2.5m (2.0m ETW) at 111 g/t Ag and 0.14 g/t Au and no significant base metals
          • 1.6m (1.3m ETW) at 88 g/t Ag and 0.17 g/t Au and no significant base metals
        • 4.2m (3.3m ETW) at 51 g/t Ag, 5.65% Zn, 0.94% Pb, 0.07 g/t Au and 0.14% Cu (SL-24-02) including:
          • 1.6m (1.2m ETW) at 62 g/t Ag, 13.25% Zn, 1.98% Pb, 0.07 g/t Au and 0.18% Cu
    • Cerro Los Gatos Central Zone Deep Extension Drilling
      • In June we mobilized a drill rig to begin a deep (~1,200m) geological framework hole, testing for the potential extensions or repeating fault-offset systems on deeper in-ramp graben-based structures, similar to the SE Deeps system. The hole is located in an untested area down plunge of the CLG Central and NW zones, towards the basin. Results of this hole will be used to update geological models and to plan additional drilling. Drilling had not reached the projected area of interest prior to the end of the quarter.
    • Early-Stage District Mapping and Target Readiness
      • Detailed mapping and rock geochemistry sampling work continued in the Lince, San Agustin and La Paula areas to support drill target generation.

CLG South-East Deeps Resource Definition Drilling

The SE Deeps mineralization extends approximately 1km laterally and 400m vertically, which adjoins the existing SE mineral reserve, and remains open along strike. During the 12-month period starting in April 2023 to the end of March 2024, we completed 66,300m of diamond drilling focused on infilling the higher-grade areas of the SE Deeps zone to 50m spacing. This drilling data is being used in the mineral reserve and mineral resource update planned for the third quarter of 2024, with the database cutoff at the end of the first quarter.

As expected, the tighter drill spacing has shown that variability within the zone exists, with higher grade in some areas although on average, silver grades are significantly lower than our current mineral reserve with base metals including copper representing a higher proportion of the in-situ value.

Drilling in the second quarter of 2024 shifted focus back towards resource extension drilling, testing for the limits of mineralization potential along strike, down-plunge and shallower within the overall SE Deeps zone. Drilling results during the quarter continued to successfully demonstrate the extension of this mineralization beyond what will form the base of the 2024 mineral reserve and resource work, continuing to highlight additional potential of the system.

Figure 1: Long section of CLG1 showing SE resource definition drilling intercepts received since our press release dated April 25, 2024. See Table 1 for complete intercept details including true width estimates.2

Long section of CLG1 showing SE resource definition drilling intercepts received since our press release dated April 25, 2024.

Long section of CLG1 showing SE resource definition drilling intercepts received since our press release dated April 25, 2024.

1 The 2023 Mineral Reserve and 2023 Mineral Resource is disclosed in the Technical Report Summary dated October 20, 2023 (the “Los Gatos Technical Report”) which is filed with the SEC and available on the Company’s website (https://gatossilver.com). A corresponding technical report has also been filed on SEDAR+.

2 See press releases dated July 18, 2023, October 23, 2023, January 25, 2024, and April 25, 2024 for further information relating to the other previously reported SE Deeps drill intercepts received since the 2023 resource database cutoff date of March 31, 2023.

Figure 2: Cross-section through SE Deeps at drillhole SE-600 showing intercepts

Cross-section through SE Deeps at drillhole SE-600 showing 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 hectares with an established pipeline of prospects and more than 50 targets identified to date. We undertook a target ranking exercise in the second quarter, grouping the targets into zones, to ensure work is prioritized on the top-ranked target areas for drilling. Field mapping, drone image surveys and geochemical sampling programs continue to add new targets to the pipeline.

Portigueño Target

During the second quarter of 2024 drilling continued within the Portigueño area, with two drill rigs operating from April to mid-May, and reduced to one drill rig when the San Luis drill program was initiated. We finalized four drillholes during the quarter: PO-04, PO-05, PO-06 and PO-07.

The Portigueño area is located approximately 2km southeast of CLG (see Figure 6). Drillholes PO-04 and PO-05 were completed along strike to the south-east of the two drillholes (PO-02 and PO-03) completed in the first quarter (directly along strike of CLG). Drillholes PO-06 and PO-07 were completed targeting the structural intersection corridor of the Antigatos-2, Dragon, Tule and Roja fault structures.

All four drillholes intersected good widths of brecciation, alteration and veining, with PO-05 intersecting a narrow interval of elevated gold mineralization, and PO-06 intersecting anomalous silver and zinc mineralization, and interestingly high molybdenum values (see Table 2 for complete intercept details).

Drilling in the third quarter will continue to explore south-east along the interpreted Roja fault zone and test the potential strike length extensions of the main CLG structure intersected in holes PO-04 and PO-05.

Figure 3: Cross-section through Portigueño at drillhole PO-07 showing intercepts

Cross-section through Portigueño at drillhole PO-07 showing intercepts

San Luis Target

Located approximately 4.5km northwest of CLG along the Los Gatos fault (see Figure 6), San Luis continues to be an important and exciting target area for our greenfields exploration team. A large width of quartz-calcite veining exists in the area with indications of multiple pulses of fluid flow, like what is observed in the South-East zone at CLG.

Drilling was initiated with one drill rig, starting in mid-May, with two holes being completed within the quarter (SL-24-01 and SL-24-02). Both holes returned promising results.

The first hole SL-24-01 intersected the Iguana fault, manifesting as a 42m (35m ETW) wide fault intersection with massive white quartz vein infill, returning anomalous precious metal results (silver and gold) throughout the interval, and localized elevated intervals including 2.0m ETW at 111 g/t Ag and 0.14 g/t Au around 150m below surface level.

The second hole SL-24-02 was drilled to test the strike extension of hole SL-24-01 approximately 200m to the south-east, and also returned a wide fault intersection of 52.5m (44.6m ETW) with intervals of strongly silicified breccia returning anomalous precious metals and elevated base metal values, including 1.2m ETW at 62 g/t Ag, 13.25% Zn, 1.98% Pb, 0.07 g/t Au and 0.18% Cu (see Table 2 for complete intercept details).

Both drillholes returned geologically interesting intersections, with the geology and geochemical signatures of each intersection showing considerable variability. Drilling will continue into the third quarter to advance the exciting start to the San Luis exploration program.

Figure 4: Cross-section through San Luis at drillhole SL-24-01 showing intercepts

Cross-section through San Luis at drillhole SL-24-01 showing intercepts

Figure 5: Cross-section through San Luis at drillhole SL-24-02 showing intercepts

Cross-section through San Luis at drillhole SL-24-02 showing intercepts

Cerro Los Gatos Central Zone Deep Extension Target

A deep geological framework hole, testing for the potential extensions or repeating fault-offset systems on deeper in-ramp graben-based structures similar to the SE Deeps system, was started towards the end of the second quarter. It is an area of untested and unknown geology with no previous drilling within approximately 500m in all directions.

The information gathered from this hole is expected to considerably upgrade the CLG geological model and direct further drilling in the target. The target model is to locate the potential for another SE Deeps style zone at depth and offset from the Central and NW zones.

Early-Stage District Mapping and Target Readiness

The early-stage Lince and Los Veranos targets were advanced during the quarter, with drone surveys, detailed field mapping and surface geochemical sampling programs. Data integration and interpretation work of the Lince district will continue in the third quarter, as we advance towards defining our drill ready targets. The completion of a drone survey data in the Los Veranos district will allow for the greenfields team to begin detailed field mapping in the area (see Figure 7 below for locations of Lince and Los Veranos districts).

Figure 6: Plan view of near-mine prospects, select high-priority drill targets and drillholes in SE Deeps, Portigueño and San Luis Targets (PO-04, 05, 06 and 07 in Portigueño and (SL-24-01 and 02 in San Luis)

Plan view of near-mine prospects, select high-priority drill targets and drillholes in SE Deeps, Portigueño and San Luis Targets

Figure 7: Plan view of the Los Gatos district with select prospects and high priority drill targets

Plan view of the Los Gatos district with select prospects and high priority drill targets

Table 1: Resource Definition Drilling Results1

DHID FromToDrill WidthETWAgZnPb Au Cu
  mmmmg/t%%g/t%
GA-SE-594 823.4843.019.617.6362.711.090.260.045
GA-SE-594including831.0834.03.02.7819.943.880.810.149
GA-SE-594and879.0880.51.51.46112.152.130.100.302
GA-SE-595 808.5812.03.52.6501.372.090.020.037
GA-SE-DV-597 843.7845.21.51.2464.653.490.180.249
GA-SE-DV-598 763.8773.09.27.7612.160.550.060.485
GA-SE-DV-598including769.0771.02.01.61812.040.920.020.415
GA-SE-DV-598and777.0780.03.02.6715.782.360.490.459
GA-SE-DV-598and794.0796.02.01.61085.563.170.790.441
GA-SE-599 859.9865.55.74.3285.740.880.120.128
GA-SE-599and909.4910.91.51.22012.701.730.210.066
GA-SE-600 859.8863.33.52.921419.0012.230.180.247
GA-SE-600and951.3958.06.75.6232.580.620.120.093
GA-SE-600including951.3954.73.42.9373.380.940.060.133
GA-SE-601 731.5735.54.03.4590.500.450.050.357
GA-SE-602  834.0840.56.56.0434.521.780.140.280
GA-SE-602 Including834.0837.03.02.7474.642.270.210.350
GA-SE-602 Including838.8840.51.81.6557.502.580.120.130
           

1 Received since our press release dated April 25, 2024. Results from drillhole GA-SE-596 was reported previously (see the Company’s press release dated April 25, 2024).

Table 2: Greenfield Exploration Drilling Results1

DHID FromToDrill WidthETWAgZnPbAuCuMo
  mmmmg/t%%g/t%%
DDH-PO-04 837.0837.60.60.5141.501.200.050.169 
DDH-PO-05 410.9413.72.82.2120.170.150.970.004 
DDH-PO-05including413.0413.70.70.660.150.063.110.002 
DDH-PO-06 700.6702.11.61.2491.690.320.090.0150.23
DDH-PO-07 736.2741.04.93.9141.010.721.330.023 
DDH-PO-07including736.2738.01.91.5151.590.822.590.017 
DDH-PO-07and757.2758.51.31.032.380.050.020.008 
SL-24-01 200.3209.39.07.2660.400.280.170.037 
SL-24-01including200.3202.82.52.01110.390.220.140.043 
SL-24-01including207.7209.31.61.3880.980.860.170.050 
SL-24-01and243.8244.60.80.6205.270.890.030.029 
SL-24-02 343.0347.24.23.3515.650.940.070.137 
SL-24-02including344.5346.01.61.26213.251.980.070.178 

1 Intercepts shown are anomalous and geologically significant but are below current NSR x thickness cutoff for CLG.

Table 3: Drillhole Locations

DrillholeTargetEastingNorthingElevationAzimuthDipHole Depth
GA-SE-594Resource Extension370,1313,047,3371,593225-52906
GA-SE-595Resource Extension370,0593,047,1961,572226-59850
GA-SE-DV-597Resource Extension369,9503,047,4121,609217-62921
GA-SE-DV-598Resource Extension369,4593,047,7761,616208-59810
GA-SE-599Resource Extension370,0513,047,3311,575222-60942
GA-SE-600Resource Extension370,2003,047,2961,593222-58975
GA-SE-601Resource Extension370,0593,047,1971,572224-55759
GA-SE-602Resource Extension370,2283,047,1771,584227-52859
DDH-PO-04Greenfields Exploration370,5353,046,8231,573236-63960
DDH-PO-05Greenfields Exploration370,4993,046,3311,554230-75663
DDH-PO-06Greenfields Exploration370,5473,045,8331,549250-63819
DDH-PO-07Greenfields Exploration370,6533,045,6231,557260-59803
SL-24-01Greenfields Exploration365,6803,050,3051,64131-45288
SL-24-02Greenfields Exploration365,6813,050,3041,64174-45474


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 Chad Yuhasz, P.Geo., Vice President of Exploration 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, potential of the SE Deeps and Central Deep zones or the Portigueño and San Luis targets, timing of the updated Reserve and Resource estimate, mine life extension potential, resource conversion and expansion and timing thereof, prospects for potential development, future drilling, new high priority targets or zones, economic potential of drilling results, 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 Niekerk
Chief Financial Officer
investors@gatossilver.com
(604) 424-0984

Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/c6742846-4ea5-49e5-bf03-a94bd2274d4d
https://www.globenewswire.com/NewsRoom/AttachmentNg/b018742b-26d1-47f1-99ec-8999cca92c70
https://www.globenewswire.com/NewsRoom/AttachmentNg/2ec61be8-5fa5-4ef2-af4c-750fbde920e6
https://www.globenewswire.com/NewsRoom/AttachmentNg/9391c8d0-9183-4d4f-9526-b57a3bde36f9
https://www.globenewswire.com/NewsRoom/AttachmentNg/0380abaf-f83c-4a20-a3e7-078b61ed040d
https://www.globenewswire.com/NewsRoom/AttachmentNg/f882bdcb-f558-4a80-a5d3-489e83a65608
https://www.globenewswire.com/NewsRoom/AttachmentNg/a734968f-80a9-4383-b335-f5f72a4b076e
https://www.globenewswire.com/NewsRoom/AttachmentNg/6b1dc176-09c1-44e1-b1f8-a4c4e8fba991


FAQ

What were the key drilling results from the South-East Deeps zone at Cerro Los Gatos in Q2 2024?

Key results included 3.5m at 214 g/t Ag, 19.00% Zn, 12.23% Pb; 3.0m at 81 g/t Ag, 9.94% Zn, 3.88% Pb; and 6.5m at 43 g/t Ag, 4.52% Zn, 1.78% Pb.

When does Gatos Silver (GATO) expect to complete its next reserve and resource estimates update?

Gatos Silver expects to complete its next reserve and resource estimates update in the third quarter of 2024.

What were the initial drilling results from the San Luis target for Gatos Silver (GATO)?

Initial drilling at San Luis returned wide quartz vein and silicified breccia intersections, including 8.9m at 66 g/t Ag and 0.17 g/t Au in one hole, and 4.2m at 51 g/t Ag, 5.65% Zn, 0.94% Pb in another.

How large is the Los Gatos district land package owned by Gatos Silver (GATO)?

The Los Gatos district comprises a large land package covering over 103,000 hectares with more than 50 targets identified to date.

Gatos Silver, Inc.

NYSE:GATO

GATO Rankings

GATO Latest News

GATO Stock Data

1.06B
69.35M
1.16%
92.61%
1.83%
Other Precious Metals & Mining
Gold and Silver Ores
Link
United States of America
VANCOUVER