Toronto-based Silver Storm (TSX-V:SVRS) reports drilling at the Rosarios Mine in Mexico has returned several intersections of over 1,000 grams per tonne silver equivalent.
Phase-two diamond drilling comprised 2,327m across 14 holes in the Rosarios and San Carlos Zones.
Three holes have now confirmed the continuity of the San Carlos Zone, first discovered by First Majestic Silver (TSX:AG) in 2015.
Drilling 45m to the west of a previously mined stop returned a peak intercept of 0.35m @ 1,791 grams per tonne (g/t) silver equivalent within a broader interval of 1.03m @ 711g/t.
This drilling also intersected 1.6m @ 1,306g/t silver equivalent within a broader intercept of 2.54m @ 887g/t; 0.5m @ 1,170 g/t and 1.35m @ 1,071g/t within 3.91m @ 598g/t.
Meanwhile, drilling located 35m below the last stope mined in the area hit 1.4m @ 731g/t silver equivalent and 0.5m @ 510g/t within 5.6m @ 305g/t.
Another hole drilled in this area returned 1.06m @ 350g/t, 0.4m @ 475g/t and 0.42m @ 617g/t; along with 0.4m @ 396g/t, 0.4m @ 592g/t and 0.5m @ 1,085g/t.
CEO Greg McKenzie says it is important to recognise this area of the Rosarios Mine was “predicted to be blank”.
“We are pleased with the high-grade results within Central Rosarios, now with six intercepts exceeding 1,000g/t silver equivalent,” he says.
“The results reported today extend the high-grade mineralisation up to 128m below the indicated and inferred resources identified by SRK and we anticipate the drilling will have a positive impact on future mineral resources, both in terms of tonnage and grade.”
Drill results extending the area below the indicated and inferred resources include 1.13m @ 421g/t and 1.72m @ 316g/t within a broader interval of 5.46m @ 276g/t; 1.02m @ 285g/t and 0.69m @ 431g/t.
Historical holes previously drilled by First Majestic Silver intersected 0.6m @ 523g/t and 1.3m @ 670g/t; and 1.45m @ 1,167g/t within 6.25m @ 434g/t.
Silver Storm, which has a market capitalisation of around C$50 million ($55 million), closed Thursday (15 August) up nearly 5% on the news.
The company says the Rosarios Zone has historically been an important part of the La Parrilla Mine Complex, characterised by a sulphide-bearing quartz-carbonate vein hosted within a fault zone extending for about 2km.
La Parrilla is located about 76km southeast of Durango’s capital and comprises 41 contiguous mining concessions, covering 69,478 hectares.
The property was in production continuously between 2005 and September 2019, when it was placed on care and maintenance.
During this period, the complex collectively produced 34.3 million silver-equivalent ounces.
La Parrilla hosts five underground mines surrounding the mill, including Rosarios, La Rosa, San Jose, Quebradillas and San Marcos, and the Quebradillas open pit.
Silver Storm acquired the La Parilla Project from First Majestic Silver in August 2023.
The silver price is currently sitting at just over US$28 ($42.31) per ounce, 13.5% below its May peak of US$32.42 per ounce – a level not seen since October 2012.
While the precious metal has come off its recent highs, Saxo Bank technical analyst Kim Cramer Larsson says silver appears to have bottomed and is potentially headed for a rebound back up to US$29 per ounce.
Write to Angela East at Mining.com.au