Gatos Silver Reports New Intercepts of High-Grade Mineralization at Cerro Los Gatos

In this article:
Gatos Silver, Inc.Gatos Silver, Inc.
Gatos Silver, Inc.

Figure 1

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.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.
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 PotentialLos 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

Figure 3

Plan view of the area surrounding CLG with select near-mine prospects and high priority drill targetsPlan 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 targetsPlan 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

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.
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


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
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
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


T
able 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

https://www.globenewswire.com/NewsRoom/AttachmentNg/7bd81ec5-1536-4c0d-8c45-2f053cc8004b

https://www.globenewswire.com/NewsRoom/AttachmentNg/7ea1ceb5-4203-4cd8-b6d6-210d59688e26

https://www.globenewswire.com/NewsRoom/AttachmentNg/9677fafa-559a-469d-b35d-ec0c89c204e5

https://www.globenewswire.com/NewsRoom/AttachmentNg/41030950-e250-4929-8549-e133be553896


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