GR Silver: Riding Mexico's Silver Wave into 2026

• GR Silver Mining secured C$28.8M in funding through a December 2025 private placement, positioning the company to execute an aggressive 15,000-meter drilling campaign at San Marcial without dilution concerns through 2026.
• The company controls 134 million ounces of silver equivalent resources (85 Moz indicated, 49 Moz inferred) across wholly-owned Mexican properties, with 80% of the San Marcial geophysical anomaly remaining untested, representing significant blue-sky exploration potential.
• Recent step-out drilling discovered multiple high-grade silver zones at San Marcial, including 75 meters at 293 g/t AgEq with intervals exceeding 1,000 g/t AgEq, confirming resource expansion potential 100 meters beyond the current resource envelope.
• The fully-permitted Plomosas Mine provides infrastructure optionality, with bulk sampling test mining engineering studies underway targeting commencement of a pilot plant program in early 2026 from 21 accessible underground areas.
• GR Silver demonstrates exceptional drilling efficiency at San Marcial, delineating 4,425 ounces of AgEq per meter drilled compared to 957 for Vizsla Silver and 1,212 for Prime Mining, which was acquired by Torex Gold for C$440M in 2025.

Introduction: Silver's Mexican Opportunity

As silver prices demonstrated strong performance through 2025 driven by economic uncertainty and supply constraints, junior silver developers in Mexico's prolific mining districts attracted heightened investor attention. GR Silver Mining, with its wholly-owned Plomosas Project in Sinaloa state, represents a compelling exposure to this trend through a fully-funded exploration and development program targeting resource growth at the largely untested San Marcial discovery.

The company's C$28.8M treasury following the December 2025 financing provides the financial runway to execute its value creation roadmap without near-term equity dilution, while its track record of efficient ounce discovery and the optionality provided by the permitted Plomosas Mine infrastructure distinguish it from pure-play exploration peers.

Company Overview: Building a District-Scale Silver Platform

GR Silver Mining operates the 100%-owned Plomosas Project in southern Sinaloa, Mexico, encompassing three distinct resource areas: San Marcial, Plomosas Mine, and San Juan-La Colorada. The project hosts a combined NI 43-101 compliant mineral resource estimate of 134 million ounces silver equivalent, comprising 85 million ounces indicated and 49 million ounces inferred, as of the May 2023 technical report.

The company's strategic focus centers on the San Marcial area, where systematic drilling since 2019 has delineated 52 million ounces indicated and 16 million ounces inferred AgEq resources from just 88 drill holes totaling 15,367 meters. This discovery sits on the southwestern edge of a large intrusive-related geophysical anomaly, with 80% of the chargeability contact zone remaining untested by drilling.

Management brings deep technical and financial expertise from previous roles at SilverCrest Mines, Macquarie Bank, Canaccord Genuity, Coeur Mining, and Fortuna Mining. President and CEO Marcio Fonseca previously served as Division Director for Macquarie Bank's Metals and Energy division and managed the $150M acquisition of SilverCrest Mines by First Majestic, while Country Manager Cacho Molina played a pivotal role in the exploration and development of Coeur Mining's Palmarejo mine as Senior Vice President for Mexico.

Key Development: San Marcial Discovery Expansion

The San Marcial resource area represents a silver-dominant hydrothermal breccia system hosted along the edge of a regional porphyry intrusive setting. Recent drilling has confirmed the system extends significantly beyond the current resource envelope, with high-grade mineralization discovered in multiple orientations.

Hole SMS25-09, completed in the fourth quarter of 2025, intersected 75 meters at 293 g/t AgEq, including multiple intervals exceeding 1,000 g/t AgEq, according to the company's January 2026 corporate presentation. This hole successfully tested 3D geophysical anomalies and confirmed continuity of the main high-grade mineralized structures at least 100 meters beyond the resource area. The discovery of wide, chlorite-hematite-rich hydrothermal breccia with boiling textures indicates possible proximity to the high-grade core of an epithermal system that remains open both down-dip and down-plunge.

Two distinct mineralized zones discovered in 2025 are spatially associated and controlled by a northeast-southwest structural trend that intersects major northwest-southeast regional structures. High-grade zones in SMS25-08 and SMS25-10A, separated by 150 meters horizontally and situated below the existing resource area, confirm the geological model's prediction that the resource area represents only the upper portion of a much larger system.

Luis Coto, VP Exploration, GR Silver Mining stated:

"The geological modelling suggests that the Resource Area represents the upper portion of a much larger epithermal system, hosted along the edge of a regional porphyry intrusive setting. With 80% of the intrusive-related geophysical anomalies untested at San Marcial, we see significant blue-sky potential for resource expansion."

VP Exploration Luis Coto brings over 20 years of experience including defining Minsur's world-class Mina Justa copper-gold deposit in Peru, providing proven district-scale exploration expertise to the systematic expansion drilling planned for 2026.

Strategic Significance: Discovering Ounces Efficiently

GR Silver's exploration efficiency at San Marcial significantly outperforms peer companies developing silver discoveries in Sinaloa. According to comparative analysis in the company's corporate presentation, GR Silver has delineated 4,425 ounces of AgEq (indicated plus inferred) per meter drilled at San Marcial, compared to 957 oz/m for Vizsla Silver's Panuco project (361 Moz from 373,807m across 981 holes) and 1,212 oz/m for Prime Mining's Los Reyes project (232 Moz from 191,451m across 654 holes), which Torex Gold Resources acquired for C$440M in 2025.

This efficiency reflects the wide, high-grade nature of the San Marcial hydrothermal breccia system. The deposit exhibits true widths of 40-100 meters at grades ranging from 150-500 g/t AgEq, with higher-grade cores exceeding 1,000 g/t AgEq. These geometries are amenable to bulk underground mining methods that could deliver favorable mining economics compared to narrower vein systems.

The San Marcial resource utilizes metallurgical assumptions with 94% silver recovery, 80% gold recovery, 59% lead recovery, and 80% zinc recovery based on preliminary testwork, according to the May 2023 NI 43-101 technical report. The silver equivalent calculation employs metal prices of $22/oz silver, $1,750/oz gold, $1.10/lb lead, $1.30/lb zinc, and $4.20/lb copper, establishing a conservative baseline for economic studies.

Current Activities: Funded Drilling & Mine Assessment

GR Silver closed a private placement in December 2025, bringing the company's estimated cash position to C$28.8M post-closing. Combined with existing treasury, this provides full funding for its 2026 drilling programs and engineering studies without requiring additional equity financing, according to the company's January 2026 presentation.

The company has secured a five-year drill permit for the San Marcial area and plans to complete 15,000 meters of step-out drilling in the first half of 2026. This program will test the southeastern and northwestern extensions of the main breccia body, as well as parallel breccia zones identified through 2025 drilling. Underground drilling from the San Marcial tunnel will provide closer drill spacing to upgrade inferred resources to indicated classification and test down-dip extensions.

At the Plomosas Mine, engineering studies are progressing to assess implementation of a bulk sampling test mining program in early 2026. The mine, which produced from 1986-2000, has 21 accessible underground areas containing bulk-mineable historic stopes. The company successfully completed a bulk sampling program at the nearby San Juan mine in 2024, processing 20,430 tonnes of the 20,620 tonnes sampled through a third-party mill and producing 420 tonnes of lead-silver-gold concentrate averaging 8,357 g/t silver, 8.19 g/t gold, and 10.43% lead.

Market Context: Silver Performance & Outlook

According to precious metals market analysis, silver demonstrated strong performance through 2025 driven by supply constraints, economic uncertainty, and inflation concerns. Multiple factors contributed to the rally: geopolitical tensions, industrial demand for electronics and renewable energy applications, and potential supply shortages exacerbated by export restrictions from major producing nations.

Analysis from The Motley Fool published January 8, 2026, noted that silver's industrial applications provide structural demand support beyond its safe-haven appeal during economic uncertainty. The metal's use in solar panels, electric vehicles, and electronic devices creates baseline consumption that complements investment demand during periods of market volatility.

For development-stage silver companies like GR Silver, the elevated price environment enhances project economics and resource valuations while attracting strategic interest from producing companies seeking to replace depleting reserves. The 2025 acquisition of Prime Mining by Torex Gold demonstrates continued consolidation activity in the Mexican silver sector, with established producers willing to pay premiums for quality development assets.

Valuation Context & Trading Metrics

GR Silver trades at C$210.5M market capitalization as of January 5, 2026, with 488 million shares outstanding post-financing. With 134 million ounces AgEq resources, this implies C$1.57 per contained ounce. The company also has 119 million warrants outstanding at an average exercise price of C$0.25, which could provide additional treasury if exercised.

From June through November 2025, GR Silver ranked among the top 10 volume traders on the TSX Venture Exchange with average daily liquidity of 6.5 million shares, providing reasonable liquidity for institutional accumulation. The stock gained 129.73% year-to-date as of January 5, 2026, significantly outperforming broader equity indices.

The valuation differential versus peers reflects several factors: GR Silver's resources remain in the indicated and inferred categories without a preliminary economic assessment, while some competitors have advanced to more detailed economic studies. However, the company's superior drilling efficiency suggests continued exploration could add ounces cost-effectively and support valuation rerating as it advances toward a resource update and preliminary economic assessment targeted for the second half of 2026.

Technical Profile & Metallurgy

The San Marcial deposit exhibits classic intermediate-sulfidation epithermal characteristics with silver-rich hydrothermal breccias formed along the contact of a Tertiary intrusive complex. Mineralization consists of silver minerals, native gold, galena, sphalerite, and chalcopyrite in a quartz-calcite gangue with chlorite-hematite alteration. Wide mineralized intervals from 40-100 meters true width at grades of 150-500 g/t AgEq suggest geometries amenable to bulk underground mining methods such as longhole stoping.

Metallurgical testwork indicates conventional flotation processing with separate lead-silver and zinc concentrates. The San Marcial area shows recoveries of 94% silver, 80% gold, 59% lead, and 80% zinc based on preliminary work, while the Plomosas Mine area demonstrates 74% silver, 86% gold, 69% lead, and 75% zinc recoveries. The San Juan bulk sampling program in 2024 validated metallurgical assumptions and provided operational parameters including mining rates, dilution factors, and concentrate specifications acceptable to offtakers.

Catalysts & Development Timeline

GR Silver's value creation roadmap includes several key milestones. In the first half of 2026, the company will complete 15,000 meters of step-out drilling at San Marcial targeting resource expansion, with ongoing news flow as assay results are received. The bulk sampling test mining engineering study for Plomosas Mine is also expected to be completed, potentially leading to commencement of a pilot program providing operational cash flow.

The second half of 2026 targets delivery of a resource update incorporating the step-out drilling results, potentially showing material ounce growth from the current 134 Moz AgEq baseline. Simultaneously, the company plans to complete a preliminary economic assessment for San Marcial, providing the first economic framework including capital cost estimates, operating cost projections, and net present value calculations.

Investment Thesis for GR Silver Mining

• With 80% of the San Marcial geophysical anomaly untested and recent drilling confirming mineralization 100+ meters beyond the resource envelope, systematic exploration could materially increase the 68 Moz AgEq San Marcial resource.
• The C$28.8M treasury provides complete funding for the 15,000-meter drilling program and engineering studies, eliminating near-term financing risk.
• At 4,425 oz AgEq per meter drilled versus 957-1,212 oz/m for regional peers, GR Silver demonstrates 3.5-4.6x better exploration efficiency.
• The fully-permitted Plomosas Mine with existing underground access provides pathways to near-term production while resource expansion continues at San Marcial.
• Polymetallic mineralization with gold, lead, zinc, and copper credits enhances project economics beyond silver-only deposits at current metal prices.
• Trading at C$1.57 per contained AgEq ounce versus higher peer valuations positions the company as a potential consolidation target.

GR Silver Mining offers investors leveraged exposure to silver through a fully-funded exploration program targeting material resource growth at the largely untested San Marcial discovery in Mexico's productive Sinaloa mining district. The company's C$28.8M treasury provides financial runway through 2026 without near-term dilution, while the track record of discovering 4,425 oz AgEq per meter drilled demonstrates exploration efficiency significantly exceeding regional peers.

Recent drilling discoveries confirming high-grade mineralization 100+ meters beyond the current resource envelope validate the geological model and support the thesis that the existing 68 Moz AgEq San Marcial resource represents only the upper portion of a larger epithermal system. With 80% of the associated geophysical anomaly remaining untested, systematic drilling through 2026 has clear potential to materially increase resources.

The permitted Plomosas Mine infrastructure provides strategic optionality, with bulk sampling test mining assessment potentially leading to near-term production and cash flow while resource expansion continues at San Marcial. This two-pronged approach de-risks the development pathway compared to pure exploration plays while maintaining significant blue-sky discovery potential. For investors seeking exposure to Mexican silver development with fully-funded exploration upside, GR Silver represents an opportunity to participate in one of the sector's most efficient ounce discovery stories.

TL;DR

‍ GR Silver Mining controls 134 Moz AgEq resources (85 Moz indicated, 49 Moz inferred) in Mexico with C$28.8M funding for 15,000m of drilling at the largely untested San Marcial discovery, where recent holes confirmed high-grade silver mineralization 100+ meters beyond the current resource envelope at 4,425 oz AgEq discovered per meter drilled versus 957-1,212 oz/m for peers. Trading at C$1.57/oz AgEq, the company targets a resource update and PEA in H2 2026.

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