GR Silver Mining (TSXV:GRSL) - High-Grade Results Steer Drilling Ahead of 2027 Resource Update

Eric Zaunscherb (0:00)

My name is Eric Zaunscherb. I'm the president and CEO of GR Silver Mining Ltd. And we are listed GRSL on the Vancouver on the Venture Exchange, and GRSLF on the OTCQX.

SPEAKER_2 (0:18)

Welcome. Pleasure, as always.

Right, we're here at Beaver Creek, busy out there, very busy, the mood is very blank, kind of like last year was. How are you finding it?

Eric Zaunscherb (0:31)

Fantastic. We have lots of meetings, several interviews, so many receptions and dinners to go to. It's certainly an ebullient atmosphere.

SPEAKER_2 (0:41)

It is a bit hot. It's also tiring.

Eric Zaunscherb (0:44)

It is, it's exhausting. That's what we're here for.

SPEAKER_2 (0:47)

Right, okay. We're here to meet investors and tell the story. We're also going to look at the story today.

Just trying to get an update on the MexicoSync ability to do business in Mexico. More importantly, as you catch up with your two projects, I'm not sure where you're at, but first of all, the doing business, how are things down there? Because you've had to step in, right? And obviously, get up to speed, high funding it.

Eric Zaunscherb (1:16)

I think the first couple of months after Marcio passed away were certainly a challenge, being plunged back into the technical aspects and being responsible for the Mexican side of the business that Marcio had been dealing with.

Fortunately, Marcio had created a strong vision and an exceptional team of people, both in terms of administration and exploration, great people to work with. And so going down to Mexico, visiting with them and making sure they understood that the company was moving forward regardless. And so consequently, it's been very satisfying to see them put the shoulder to the wheel and make things move forward.

SPEAKER_2 (1:52)

Okay, we're going to get into the plan today.

Eric Zaunscherb (1:55)

Yes.

SPEAKER_2 (1:55)

And I'm going to sort of slightly turn it on its head. I want to start with the Plomosas.

Eric Zaunscherb (2:02)

Yes.

SPEAKER_2 (2:02)

Because it performs a slightly different function for you, which feeds into, I guess, the flagship was Marcial, right?

Eric Zaunscherb (2:10)

Yeah.

SPEAKER_2 (2:11)

So what's happening down there? What are you hoping to achieve?

Eric Zaunscherb (2:15)

Plomosas, as you know, is a former mine operating from 1986 to 2000 by Grupo Médico.

The beauty is that in May, we learned that Semarnat, the regulatory authority for the environment in Mexico, does not require of us to do a new MIA, a new environmental assessment, but rather that what is there is sufficient for their purposes for us to proceed with. In our case, we're interested in doing a bulk sampling test mining program.

SPEAKER_2 (2:43)

Yes.

Eric Zaunscherb (2:43)

So we would like to take some of the material from that mine and process it or sell it. So, we're currently studying how we might be able to move forward with that program.

Everything is dependent upon the security situation in the region. We can talk about that further.

SPEAKER_2 (3:01)

So, what are the options in terms of selling it?

Eric Zaunscherb (3:04)

In terms of selling it, there are several mills in the area that we've looked at extensively. And so, there's the potential to do toll milling. So either selling directly to the mill or at mine gate.

From my perspective, that's a very attractive option. The idea is that rather than spending 10 million dollars to buy a small pilot plant, that we have a much lower capex and a much shorter timeline to the point where that material gets sold onward. And then very importantly to us, is lower execution risk if we sell that material at mine gate. So that's an attractive option.

SPEAKER_2 (3:39)

And how much are you allowed to mine and sell or toll at any one time? On a daily, a monthly, however you want to call it.

Eric Zaunscherb (3:47)

Yeah, that particular operation was permitted to 600 tons per day. Right. Now, given the amount of power that's available into the area, given the current status, we're looking at something closer to 60 to 100 tons per day. Right.

SPEAKER_2 (4:02)

So whatever that is, the three to six trucks on like a paved highway, which is a paved highway, it's easy to-

Eric Zaunscherb (4:09)

It is not paved.

SPEAKER_2 (4:10)

Right. Okay. Okay. So at that sort of level, this is not about the money.

Eric Zaunscherb (4:14)

Correct.

SPEAKER_2 (4:15)

Right.

Eric Zaunscherb (4:15)

There's a much more important value to advancing Plomosas in that way. And that value is social license.

When you look at it, this is a desperately poor area, sustained, sustainable mining of farming, and that's about it.