Reported Late Monday, Gatos Silver Extends South-East Deeps Zone At Cerro Los Gatos

Author: Benzinga Newsdesk | January 24, 2023 01:45am

Gatos Silver, Inc. (TSX:GATO) ("Gatos Silver" or the "Company") today provided a quarterly update on the drilling and exploration programs in the Los Gatos district ("LGD"), including the extension of the South-East Deeps zone at its 70%-owned Cerro Los Gatos ("CLG") mine. The Company also announced a corporate update regarding the timeline for filing outstanding financial statements.
 

Highlights

• Exploration drilling success continues to demonstrate significant mine life extension potential through resource conversion and expansion at CLG.
• Drilling at CLG has expanded the known extents of the South-East Deeps zone laterally and at depth
  • Mineralization in the South-East Deeps has now been intersected 415 meters below the bottom of the 2022 mineral reserve reflected in the Los Gatos Technical Report1. The known strike length over which significant intercepts have been returned is now more than 950 meters. This amounts to an extension of approximately 410 meters laterally and 85 meters vertically since October and the zone remains open laterally and at depth.
  • Drilling highlights from the fourth quarter of 2022 include hole SE-487 that intercepted 7.2 meters (estimated 5.8 meters true width) at 191 g/t silver, 2.93% zinc, 2.38% lead and 0.68 g/t gold and hole SE-498 that intercepted 3.0 meters (estimated 2.0 meters true width) at 771 g/t silver with lower grade base metals. See Table 1 for complete intercept details.
• Resource conversion and extension drilling at CLG in the North-West, Central and South-East zones has returned strong results with particularly high base metal values
  • Drilling in all zones intercepted significant mineralization. The Central zone returned particularly positive results within and below the 2022 mineral resource area.
  • Drilling highlights from the fourth quarter of 2022 include hole CZ-485A that intercepted 5.0 meters (estimated 4.5 meters true width) at 88 g/t silver, 9.99% zinc, 4.35% lead and 0.52 g/t gold and hole SE-499 that returned 3.0 meters (estimated 2.5 meters true width) at 158 g/t silver, 3.66% zinc, 8.97% lead, 0.43 g/t gold and 0.86% copper. See Table 2 for complete intercept details.
• Greenfields exploration work in the LGD has started to identify new high priority zones
  • Detailed mapping between CLG and Cascabel has identified a previously unrecognized structure, Mamba, close to the existing mine development.
  • Greenfields exploration activities continued across parts of the large, highly prospective property with a focus on detailed mapping, geophysical interpretation and select drilling.

Dale Andres, CEO of Gatos Silver said:

"We continue to be very encouraged by the results of our ongoing resource drilling and exploration programs within the Cerro Los Gatos mine and in the Los Gatos district as we work towards realizing our district-scale upside. At CLG, the discovery of the South-East Deeps zone in 2022 was significant, and further drilling continues to demonstrate the scale and potential of this mineralized zone. We believe that this zone has the potential to provide years of mine life extension.

Additionally, we have made solid progress on resource conversion drilling of high-grade inferred material located adjacent to existing mine infrastructure. The results of our ongoing resource expansion and resource conversion drilling will be reflected in an updated mineral reserve and mineral resource that is expected to be announced in the third quarter of 2023. Beyond the CLG deposit, we see significant potential for new discoveries on our extensive land position and we are actively working on the identification, prioritization and follow-up on the highest quality opportunities."

Posted In: GATO TSX:GATO