GR Silver's 57% Peer Discount Hinges on Sinaloa Access, Not Drill Grade

• GR Silver Mining trades at US$1.40 per ounce of silver in the ground against a US$3.28 peer mean, a 57% discount as of September 4, 2026.
• Management attributes most of that gap to security risk in Sinaloa.
• The exploration team now works from Durango, and about a million dollars is going into the final 40 km of the access road.
• Drilling stands at 6,292 m in 21 holes of a 20,000 m program, with steps underway to speed the pace in the fourth quarter.
• A bulk sample under study at the permitted former Plomosas mine and C$26 million in cash give the company a funded path to its first half 2027 resource update.

GR Silver Mining (TSXV: GRSL | OTCQX: GRSLF | FRA: GPE) has spent 2026 reporting wide, high-grade silver intercepts at San Marcial, yet its valuation per ounce is less than half the peer average. The company holds 55 million ounces of silver in the indicated category and 22 million ounces inferred under its 2023 NI 43-101 estimate. At C$188.3 million in market capitalization, the market is pricing that resource at a steep discount, and the reasons point to logistics and security in Sinaloa. The fourth-quarter drilling pace and the Plomosas bulk sample studies are now the nearest tests of whether the company can close that gap.

Why the Discount Is Priced on Operations

The gap shows against both peer valuations and discovery costs. GR Silver trades at US$1.40 per ounce on a measured, indicated, and inferred basis, against a peer mean of US$3.28. Its historical cost of discovery is C$0.17 (US$0.12) per ounce of silver, and its drilling has returned more than 4,000 ounces of silver equivalent per meter drilled, compared with about 1,000 ounces for the peer group shown in the company's own comparison.

President and Chief Executive Officer (CEO) Eric Zaunscherb, a mining analyst for more than 30 years, links the discount to the operating setting:

"So that's a 57% discount that we're trading at. And I attribute most of that discount to the upheaval that we've seen, the security risk that we see in the Sinaloa area."

The project lies near the eastern border of Sinaloa with Durango State. The company reports 1 week in which it had to slow down work. Since then, it has kept a 3-rig program operating, with 2 rigs on the main breccia and 1 on a parallel breccia discovered in 2025.

Drilling Pace Is the Near-Term Test

The step-out program has moved more slowly than planned. As of September 8, 2026, 6,292 m had been drilled in 21 holes, with assays pending from 7, and by late September, the total was approaching 7,000 m.

Reporting drill results on September 8, 2026, Zaunscherb tied the slower pace to 3 conditions and a fix due in the fourth quarter:

"The pace of the drill program has been affected by the additional distance to access the Project from our new base in Durango, intermittent security issues in Sinaloa and surrounding areas, and exacerbated by the ongoing wet season. We have launched several initiatives to re-accelerate the pace, which should bear fruit in the fourth quarter."

The Durango move began in November under founder and former CEO Marcio Fonseca. The road from Durango takes about 9 hours through the mountains, and the company is spending about a million dollars to upgrade the final 40 km for faster travel in the rainy season. A slower pace has also allowed the geological team to respond to results as they arrive. The next holes will test around SMS26-04, which returned 45.1 m true width at 1,623 g/t silver, including 8.25 m at 8,579 g/t silver.

Plomosas Gives GR Silver a Permitted Place to Prove It Can Operate

San Marcial is an exploration concession, and taking it through technical studies and permitting could take several years. The former Plomosas mine, about 5 km to the north, holds all its key permits. In May 2026, SEMARNAT, Mexico's environmental agency, ruled that no new environmental impact authorization is required for the mine. Plomosas has 7.4 km of underground development, a rehabilitated camp with capacity for more than 120 people, and stopes still standing in good condition more than 20 years after mining ended in 2000.

The company is studying a bulk sample test mining (BSTM) program at Plomosas. Sampling at 21 underground locations has returned grades well above the resource average, and about 45,000 tons of material is already broken in the existing stopes. GR Silver is weighing 3 options: acquiring an existing mill in Mexico, commissioning a new pilot plant at the former mill site, or toll milling at a local plant. 

Zaunscherb has a current preference:

"Personally, right now, I'm preferring the toll milling option because it's a shorter timeline and it's a much lower upfront capital, but we'll see as the studies come in."

The company makes no production claim for Plomosas, since there is no technical study, feasibility study, or reserve. Its goal for the BSTM is to show it can operate well at a permitted site, which management is targeting as a way to shorten the permitting timeline for San Marcial.

Funding & Catalysts Through the First Half of 2027

GR Silver held C$26 million in cash at June 30, 2026, after raising C$33 million in the second half of 2025. It has 516 million shares outstanding and 114 million warrants at an average exercise price of C$0.26, which management estimates could bring in about $25 million over the next 2 years if exercised. Management has no current plan to raise more money. Average daily volume over the past 90 days is 1.2 million shares, and the company is targeting institutional ownership of about 40%, up from the 23% now held by institutional and high net worth investors.

Results from the rest of the step-out program will feed a mineral resource estimate (MRE) update targeted for the first half of 2027, followed by a preliminary economic assessment of San Marcial and Plomosas together. At Plomosas, engineering and metallurgical studies for the BSTM and pilot plant options are underway. The MRE update is the next point at which the resource can be measured against the 57% discount.

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