Long section of CLG showing SE resource definition drilling intercepts (drilled width) received since our press release dated October 23, 2023. See Table 1 for complete intercept details including true width estimates.
Figure 2: Cross-section through centre of SE Deeps at drillhole SE-558 showing intercepts (drilled width)
Los Gatos District Exploration Update: Current Near-mine Focus Plus District Scale Potential
Figure 3
Plan view of the area surrounding CLG with select near-mine prospects and high priority drill targets
Figure 4:
Plan view of the Los Gatos district with select prospects and high priority drill targets
VANCOUVER, British Columbia, Jan. 25, 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 high-grade mineralization in the South-East Deeps (“SE Deeps”) zone of its 70%-owned Cerro Los Gatos (“CLG”) mine.
“These latest results from the SE Deeps resource conversion drilling program continue to highlight the opportunity to extend the CLG mine life,” said Dale Andres, CEO of Gatos Silver. “We have six of seven surface drill rigs continuing on SE Deeps conversion drilling during the first quarter. We remain very encouraged by the continuity and grade of mineralization extending beyond our current mineral reserve, and we are looking forward to incorporating these results into an updated mineral reserve and mineral resource estimate which we expect to complete in the third quarter of 2024.”
Q4 2023 Highlights
Resource definition drilling in the SE Deeps zone of CLG intercepted additional high-grade mineralization below the existing mineral reserve (see Table 1 for complete intercept details)
3.0m (2.8m estimated true width, or “ETW”) at 528 g/t Ag, 1.26% Pb and 1.41% Cu (SE-557)
2.0m (1.6m ETW) at 291 g/t Ag, 4.27% Zn, 12.20% Pb, 0.40 g/t Au and 0.55% Cu (SE-558)
5.1m (4.0m ETW) at 103 g/t Ag, 16.49% Zn, 7.01% Pb, 0.14 g/t Au and 0.21% Cu (SE-559)
4.0m (3.3m ETW) at 243 g/t Ag, 9.74% Zn, 6.01% Pb, 0.39 g/t Au and 0.28% Cu (SE-560)
3.0m (2.5m ETW) at 179 g/t Ag, 5.84% Zn, 4.49% Pb, 1.10 g/t Au and 0.65% Cu (SE-562)
10.7m (8.9m ETW) at 133 g/t Ag, 8.34% Zn, 3.21% Pb, 0.11 g/t Au and 0.16% Cu (SE-563)
1.6m (1.3m ETW) at 201 g/t Ag, 15.45% Zn, 4.32% Pb, 0.25 g/t Au and 0.73% Cu (SE-572)
Greenfields exploration work in the LGD continues to advance in preparation for increased drilling expected to start in Q2 2024
We completed one hole at Portigueño and one hole at Cascabel with positive indicator minerals and favourable structures present
We completed detailed mapping and rock geochemistry at the Esperanza, San Agustin, Portigueño, Cieneguita and San Luis 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 2022 and Q1 2023 we completed drilling at approximately 100m to 200m spacing for the purpose of establishing the larger scale strike and dip of the SE Deeps zone. Since Q2 2023 we have focused on infilling the higher-grade areas of the zone to 50m spacing. That drilling has progressed well and we remain on track to complete the expected 50m spacing of key areas by the end of Q1 2024. As expected, 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 North-West zones. Drill results continue to demonstrate excellent potential for a multi-year mine life extension.
Figure 1: Long section of CLG1 showing SE resource definition drilling intercepts (drilled width) received since our press release dated October 23, 2023. See Table 1 for complete intercept details including true width estimates.2
Long section of CLG showing SE resource definition drilling intercepts (drilled width) received since our press release dated October 23, 2023. See Table 1 for complete intercept details including true width estimates.
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 and October 23, 2023 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 centre of SE Deeps at drillhole SE-558 showing intercepts (drilled width)
Los Gatos District Exploration Update: Current Near-mine Focus Plus District Scale Potential
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 are advancing with detailed mapping and drill testing of the highest priority known targets. We are also advancing with district mapping and geophysics to identify additional targets.
During the fourth quarter of 2023 we progressed with mapping at five prospective areas: Esperanza, San Agustin, Portigueño, Cieneguita and San Luis.
Two drillholes were completed during the quarter, PO-01 at Portigueño and CA-SE-01 at Cascabel.
The Portigueño area is located approximately 2km southeast of CLG. Detailed mapping during 2023 showed that this area of the basin is more complex than previously thought. Drillhole PO-01, located approximately 1km south-east of the SE Deeps zone, was completed during the quarter. This drillhole identified significant fault structures and veining, however none strongly mineralized. The geological model for the area has been updated with the new structural information and follow up drilling is now underway.
The Cascabel fault forms the north-eastern edge of a geological graben feature approximately 1.5km south-east of the CLG mine. This fault has an exposed strike of more than 4km and previous drilling and mapping has shown this to be a prospective host structure for CLG style mineralization. Drillhole CA-SE-01 was completed during the quarter exploring below a 2022 intercept with anomalous geochemistry. While the drillhole logging did not show strong polymetallic mineralization, it did show strong structure and alteration at both the Presón fault in the middle of the graben and the Cascabel fault at the margin. The area is considered prospective for mineralization and the information from this drillhole is being used to prioritize the future drilling on this large structure.
The San Luis area, approximately 5km northwest of CLG along the Los Gatos fault, continues to be an important target area for our greenfields exploration crew. 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. Mapping and historic core relogging has taken place and the structural modelling is underway in preparation for drilling during 2024.
A second stage of a magneto-telluric geophysical survey was completed over the area surrounding CLG and data review is now underway which will help to inform drilling in 2024.
Figure 3: Plan view of the area surrounding CLG with select near-mine prospects and high priority drill targets
Plan view of the area surrounding CLG with select near-mine prospects and high priority drill targets
Figure 4: 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
From
To
Drill Width
Estimated True Width
Ag
Zn
Pb
Au
Cu
m
m
m
m
g/t
%
%
g/t
%
GA-SE-552
687.7
689.2
1.5
1.2
71
5.98
2.33
0.55
0.30
GA-SE-552
and
693.8
706.3
12.6
10.0
52
5.07
3.11
0.22
0.09
GA-SE-552
including
695.3
698.8
3.5
3.0
126
8.95
4.55
0.21
0.24
GA-SE-553
NSV
GA-SE-DV-554
820.3
827.0
6.7
5.5
47
7.04
2.23
0.09
0.40
GA-SE-DV-554
and
843.0
850.0
7.0
5.6
9
2.75
0.68
0.05
0.11
GA-SE-DV-555
764.5
768.0
3.5
3.2
50
5.45
4.94
2.13
0.10
GA-SE-DV-555
and
772.0
781.0
9.0
8.2
35
1.57
0.38
0.05
0.40
GA-SE-557
734.0
741.0
7.0
5.5
245
2.01
1.94
0.30
0.67
GA-SE-557
including
738.0
741.0
3.0
2.8
528
0.32
1.26
0.06
1.41
GA-SE-558
805.1
809.0
3.9
3.1
88
11.67
3.73
0.15
0.23
GA-SE-558
and
818.3
819.8
1.5
1.2
70
2.66
1.68
0.03
0.30
GA-SE-558
and
822.8
827.8
5.0
4.0
151
2.81
6.13
0.18
0.43
GA-SE-558
including
824.3
826.3
2.0
1.6
291
4.27
12.20
0.40
0.55
GA-SE-559
867.0
872.1
5.1
4.0
103
16.49
7.01
0.14
0.21
GA-SE-559
and
905.7
908.7
3.0
2.4
52
9.75
3.20
0.22
0.13
GA-SE-560
712.5
714.3
1.8
1.3
58
3.21
2.22
0.05
0.09
GA-SE-560
and
719.2
723.2
4.0
3.3
243
9.74
6.01
0.39
0.28
GA-SE-DV-561
796.0
806.0
10.0
8.5
36
7.38
1.96
0.11
0.27
GA-SE-DV-561
and
839.5
848.5
9.0
7.7
43
7.41
2.23
0.17
0.26
GA-SE-562
677.8
680.8
3.0
2.5
31
3.11
0.93
0.16
0.08
GA-SE-562
and
705.0
708.0
3.0
2.5
179
5.84
4.49
1.10
0.65
GA-SE-562
and
715.0
717.0
2.0
1.7
20
5.80
2.25
0.40
0.02
GA-SE-DV-563
776.0
786.7
10.7
8.9
133
8.34
3.21
0.11
0.16
GA-SE-DV-563
and
797.0
798.5
1.5
1.2
54
2.83
4.13
0.07
0.11
GA-SE-564
824.1
829.1
5.0
4.0
65
6.07
3.69
0.06
0.18
GA-SE-564
including
825.6
827.1
1.5
1.3
174
16.30
11.25
0.09
0.38
GA-SE-564
and
866.9
870.4
3.5
2.9
40
4.62
3.35
0.31
0.13
GA-SE-565
671.5
675.0
3.5
3.0
19
5.70
1.34
1.01
0.07
GA-SE-565
and
678.0
691.1
13.1
11.1
35
2.19
0.90
0.11
0.68
GA-SE-566
807.0
811.0
4.0
3.2
39
4.92
1.10
0.09
0.10
GA-SE-566
and
814.5
819.5
5.0
4.0
85
6.92
2.36
0.22
0.26
GA-SE-566
including
814.5
816.0
1.5
1.2
183
10.70
5.48
0.48
0.31
GA-SE-DV-567
760.0
764.0
4.0
3.4
53
4.39
1.97
0.10
0.18
GA-SE-DV-567
and
776.5
780.0
3.5
3.0
126
4.59
13.84
0.08
0.17
GA-SE-570
677.0
681.0
4.0
3.3
36
5.38
1.51
0.11
0.07
GA-SE-570
and
687.0
694.0
7.0
6.0
52
0.97
0.87
0.14
0.43
GA-SE-570
including
688.6
692.2
3.6
3.1
78
1.23
0.95
0.02
0.64
GA-SE-570
and
710.5
714.5
4.0
3.4
134
2.18
0.60
0.13
0.89
GA-SE-DV-571
825.0
828.0
3.0
2.4
22
0.56
0.39
0.37
0.38
GA-SE-DV-572
780.9
786.2
5.3
4.8
96
7.82
2.36
0.24
0.35
GA-SE-DV-572
including
784.6
786.2
1.6
1.3
201
15.45
4.32
0.25
0.73
GA-SE-573
728.5
732.0
3.5
3.0
91
1.89
0.56
0.29
0.67
1 Received since our press release dated October 23, 2023. Results from drillhole GA-SE-556 was reported previously (see the Company’s press release dated October 23, 2023), drillhole GA-SE-DV-568 is pending assay results and drillhole GA-SE-569 was abandoned due to drilling difficulties.
Table 2: Greenfield Exploration Drilling Results
DHID
From
To
Drill Width
Estimated True Width
Ag
Zn
Pb
Au
Cu
m
m
m
m
ppm
%
%
ppm
%
DDH-PO-01
NSV
CA-SE-01
NSV
Table 3: Drillhole Locations
Drillhole
Target
Easting
Northing
Elevation
Azimuth
Dip
Hole Depth
GA-SE-552
Conversion
369,600
3,047,513
1,592
215.0
-60
754
GA-SE-553
Conversion
369,337
3,047,828
1,619
209.0
-54
760
GA-SE-DV-554
Conversion
369,887
3,047,454
1,620
213.5
-57
897
GA-SE-DV-555
Conversion
369,822
3,047,534
1,596
214.4
-52
849
GA-SE-557
Conversion
369,434
3,047,712
1,629
210.0
-60
765
GA-SE-558
Conversion
369,698
3,047,598
1,580
213.0
-58
864
GA-SE-559
Conversion
369,993
3,047,364
1,594
220.1
-62
935
GA-SE-560
Conversion
369,583
3,047,578
1,604
214.0
-58
750
GA-SE-DV-561
Conversion
369,887
3,047,454
1,620
213.5
-57
881
GA-SE-562
Conversion
369,660
3,047,493
1,577
212.0
-62
735
GA-SE-DV-563
Conversion
369,698
3,047,598
1,580
213.0
-58
825
GA-SE-564
Conversion
369,992
3,047,364
1,594
219.9
-58
918
GA-SE-565
Conversion
369,741
3,047,485
1,579
216.0
-50
717
GA-SE-566
Conversion
369,592
3,047,671
1,602
212.3
-57
834
GA-SE-DV-567
Conversion
369,698
3,047,598
1,580
213.0
-58
803
GA-SE-570
Conversion
369,741
3,047,485
1,579
217.0
-53
738
GA-SE-DV-571
Conversion
369,992
3,047,364
1,594
219.9
-58
848
GA-SE-DV-572
Conversion
369,592
3,047,671
1,602
212.3
-57
813
GA-SE-573
Conversion
369,822
3,047,435
1,603
219.0
-45
736
DDH-PO-01
Greenfields
370,534
3,046,824
1,573
236.0
-45
1,145
CA-SE-01
Greenfields
368,669
3,044,506
1,750
35.0
-48
849
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, 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
Figures accompanying this announcement are available at
