Impact: Slightly Positive
On November 11th, GR Silver (GRSL) released assay results from five step-out holes in the San Marcial area of its Plomosas project in Mexico. The highlights include 311 g/t Ag over 35.45m in hole SMS26-19 at the SE Extension target, and 1,164 g/t Ag, 0.6% Cu, and 0.37% W over 2.15m in hole SMS26-17 at the Parallel Breccia target (Figure 1). We view the results as slightly positive, with both targets returning high-grade mineralized intervals. Drilling since the Mar/23 MRE has now extended the mineralized system down-plunge by as much as 300m beyond the inferred resource limit. The system appears to include wide, plunging high-grade breccia shoots where the fault has opened to 30m to 40m in width, a geometry we believe gives drilling a clear vector to follow down-dip. GRSL trades at an EV/oz AgEq of US$0.42 vs. peers at US$1.11, a discount we believe should narrow with the updated MRE and PEA.