GR Silver Mining Secures $13.8M to Advance Dual-Asset Mexico Strategy

• GR Silver Mining secured CAD $13.8 million in funding demonstrating strong investor confidence in their dual-asset strategy combining near-term revenue potential with exploration upside.
• The company operates the Plomosas historic underground mine (with existing permits and infrastructure) and the San Marcial discovery area, located just 5 kilometers apart in Mexico, creating operational synergies.
• Plans to implement bulk sampling and pilot plant operations at Plomosas (250 tons/day initially) within 6-9 months, targeting early revenue generation while advancing larger-scale development.
• Current resource of 134 million ounces of silver equivalent, with 68 million ounces at San Marcial defined by only testing 20% of a large geophysical anomaly, indicating substantial expansion potential.
• The CEO reports improved conditions for underground mining operations under Mexico's new government, with faster permit timelines and more favorable regulatory environment for companies with existing permits.

GR Silver Mining presents a interesting investment opportunity in Mexico's silver sector, combining near-term revenue generation potential with significant exploration upside. The company's recent CAD $13.8 million financing success reflects growing investor appetite for silver companies that can demonstrate clear pathways to production while maintaining substantial resource expansion potential.

Strategic Positioning in Mexico's Silver Market

CEO Marcio Fonseca brings over 20 years of Mexican mining experience to the company, providing crucial insight into the evolving regulatory landscape. 

"I go to Mexico pretty much every month and I've been doing business in Mexico for more than 20 years. We have seen many cycles but recently with the new government I've seen a more favorable and more positive environment for the development of mining projects." 

The regulatory environment has become particularly favorable for underground operations, which aligns perfectly with GR Silver's asset portfolio. Mexico remains the world's largest silver producer, and the company benefits from operating in a jurisdiction with established mining infrastructure and expertise. The timing appears optimal as silver prices have strengthened significantly, creating attractive development economics for quality projects.

The Plomosas-San Marcial Dual Asset Strategy

GR Silver's unique value proposition centers on combining two complementary assets within a 5-kilometer radius. The Plomosas underground mine represents a historic operation that produced for 14-15 years before closure in 2001 when silver prices were $5 per ounce. The San Marcial area houses a significant new discovery with substantial expansion potential.

"The Plomosas project is made of two areas - the San Marcial area where we made a discovery, it's drilling and exploration, but it's more drilling to expand. And the Plomosas area that has the Plomosas underground mine."

This strategic combination allows the company to leverage existing infrastructure while developing new resources.

The synergies between these assets are substantial. Plomosas maintains most of its original permits, a 60-kilometer high-voltage power line, water permits, and 7.4 kilometers of developed underground tunnels. These infrastructure advantages could dramatically reduce future development costs and timeline risks typically associated with greenfield projects.

Near-Term Revenue Generation Strategy

The company's approach to generating near-term revenue centers on implementing bulk sampling and pilot plant operations at Plomosas. This strategy addresses investor demands for earlier cash flow generation while building toward larger-scale production.

"The way we are splitting this use of proceeds is very clear - one of course is the bulk sampling that we are carrying out at the Plomosas mine. The bulk sample is to take samples, do metallurgical test work and get the engineering data to give us an idea what kind of plant, as a pilot plant, we can put in place in the next six and nine months. The other is drilling."

The bulk sampling program focuses on 21 identified areas within the existing underground workings, leveraging the existing blasting permits and infrastructure. Initial results have exceeded expectations, with silver grades significantly higher than the original resource model indicated. The company plans to establish a 250 tons per day pilot plant operation, utilizing the existing permitted capacity of 600 tons per day for future expansion.

Interview with Marcio Fonseca, President & CEO of GR Silver Mining

Resource Profile & Expansion Potential

GR Silver's current resource base of 134 million ounces of silver equivalent consists of 66 million ounces at Plomosas and 68 million ounces at San Marcial. The San Marcial discovery is particularly significant given that it represents only 20% of a large geophysical anomaly identified through 72 kilometers of ground geophysics.

The company's breakthrough discovery at San Marcial included intercepts of "100 meters at 300 grams per ton of silver," representing a massive intersection that validates the deposit's scale potential. This discovery occurred on the edge of the large anomaly, suggesting substantial additional mineralization remains untested.

The geological model centers on an intrusive-related system where a granodiorite intrusion has created extensive mineralization along contact zones. 

"We discovered this big anomaly that's on the edge of the resource... it's a result of a big intrusive, granodiorite rock type - it's a diorite rock that's intruding a volcanic area and creating a lot of mineralization on the edges and we only tested 20% of the edge and 80% untested." 

Drilling & Development Timeline

The company has completed 3,000 meters of strategic drilling pre-financing, with results expected shortly. The financing will fund an additional 10,000-15,000 meters of drilling at San Marcial over the next 12 months, targeting resource expansion and better definition of the mineralization system.

The drilling strategy focuses on multiple intersection points where northwest and northeast trending fault systems create wide, high-grade mineralization zones. This approach differs from typical narrow epithermal systems common in Mexico, instead targeting bulk tonnage zones averaging 25 meters in thickness.

Parallel to the drilling campaign, the company will advance environmental permit applications for San Marciel underground development, which could take 12-15 months for approval. The strategic advantage lies in expanding existing permits rather than applying for entirely new ones, reducing both timeline and regulatory risk.

Financial Strategy & Market Positioning

The recent financing success demonstrates strong market receptivity to GR Silver's dual-asset approach. 

"My experience on the recent financing... the capital markets were far more receptive when a company came to them with a potential revenue generated asset. That was clear. If I had only the exploration asset that I was asking for capital just to go drilling, the appetite would be completely different." 

This financing provides approximately two years of operational funding, enabling the company to advance both the near-term revenue strategy and longer-term resource expansion simultaneously. The company has also attracted attention from potential off-take partners and alternative financing sources, providing multiple pathways for future capital requirements.

Operational Advantages

GR Silver's operational strategy emphasizes economy of scale through wide mineralization zones rather than narrow, high-grade veins typical of many Mexican silver deposits. 

"Our model is to explore the +20 meters wide, 200-300 grams per ton of silver equivalent. So when you do the composition, the metal content is much higher." 

This approach offers several advantages: reduced development costs per ounce of contained metal, larger mining faces that improve efficiency, and more robust economics across commodity price cycles. The Plomosas historic operation demonstrated this potential with stops reaching 40 meters high, 50 meters wide, and 150 meters long.

The company's risk mitigation strategy includes maintaining existing permits, leveraging established infrastructure, and building operational expertise through the pilot plant phase before committing to larger-scale development.

The Investment Thesis for GR Silver Mining

• Dual Revenue Streams: Near-term revenue potential through Plomosas bulk sampling/pilot plant operations combined with significant resource expansion upside at San Marcial creates multiple value catalysts
• Infrastructure Advantage: Existing permits, power lines, water rights, and underground development at Plomosas substantially reduces typical development risks and capital requirements
• Underexplored Discovery: San Marciel's 68 million ounce resource represents only 20% of identified geophysical anomaly, offering substantial exploration leverage in favorable silver price environment
• Bulk Tonnage Economics: Wide mineralization zones (25+ meters) create economy of scale advantages over narrow vein systems, improving mining efficiency and project economics
• Strategic Location: Operations in Sinaloa, Mexico benefit from established mining infrastructure, skilled workforce, and improved regulatory environment for underground operations
• Financial Flexibility: Recent CAD $13.8 million financing provides 2+ years funding runway, with growing interest from off-take partners and alternative financing sources
• Market Timing: Positioned to benefit from strong silver price environment while building production profile ahead of potential market cycles

The silver market is experiencing a fundamental shift as industrial demand from renewable energy, electronics, and emerging technologies converges with traditional investment demand during a period of currency debasement concerns. Mexico's position as the world's largest silver producer, combined with improved regulatory stability for underground mining operations, creates an attractive backdrop for development-stage companies.

GR Silver Mining is strategically positioned to capitalize on this environment through its dual-asset approach that addresses key investor concerns about development timeline, capital efficiency, and operational risk. The company's focus on bulk tonnage, underground operations aligns with Mexico's regulatory preferences while offering superior economics compared to narrow vein systems.

The convergence of strong silver fundamentals, improved Mexican mining policies, and the company's infrastructure advantages creates a compelling investment opportunity. As Fonseca noted: 

"We expect silver to continue to outperform, but there will be some volatility and we believe that's important to define a project that can really survive through different cycles because a mine project is probably seven to ten years of mine life."

This long-term perspective, combined with near-term revenue potential, positions GR Silver to benefit from both current silver strength and future market cycles while building a sustainable mining operation.