San Marcial

Location
Sinaloa, Mexico

Operator
GR Silver Mining Ltd.

Commodity
Silver-Zinc-Lead

Royalty
0.75% NSR

The San Marcial royalty property is located in Sinaloa, Mexico and hosts a low sulfidation epithermal deposit. Operator GR Silver Mining Ltd. (TSX-V: GRSL, “GR Silver”) has a sliding scale royalty payment and buy-back option on the San Marcial property, such that the payments increase as the mineral resource estimate grows. This royalty starts at a 0.75% NSR and a buy-back payment of US $1.25M and can grow and is capped at 1.5% and the buyback payment is calculated as 1 US dollar per gold equivalent ounce.

While San Marcial is best considered a silver deposit, the mineralization is multi-commodity, with zinc and lead closely associated with the silver. High-grade ore styles include wide hydrothermal breccias and stockwork veins. A narrow zone of high-grade gold has also been discovered in a sulfide-rich lapilli tuff unit.

GR Silver has identified new targets on the property and continues to expand the resource at San Marcial with underground drilling. EMX acquired the royalty asset from SSR Mining Inc. in 2021 (see EMX Press Release dated July 29, 2021).  

GR silver announced an updated resource report dated March 15, 2023 titled “2023 Technical Report and Mineral Resource Update for the Plomosas Project.” QP Dr. Gilles Arseneau of ACS an “independent qualified person” as defined in NI 43-101 and Member 23474 of the APEGBC. Details on the San Marcial Area from this report are in the table below.

Notes on “2023 Technical Report and Mineral Resource Update for the Plomosas Project.”

1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated
4. Mineral Resource with continued exploration.
5. The Mineral Resources in this Technical Report were estimated using the CIM Definition Standards for Mineral Resources & Mineral Reserves (CIM, 2014) and CIM Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (CIM, 2019).
6. Numbers may not add up due to rounding.
7. Silver equivalent is calculated by dividing the US$ value by the silver price x silver recovery. Dollar equivalent is estimated using the information in Table 14-30 to Table 14-32.
8. Open pit cut-off is US$ 30.00; underground cut-off is US$60.00.
9. Mineral Resources for the La Colorada deposit were clipped against the GR Silver property boundary to exclude material outside of the GR Silver property.
10. Gold was not used in the estimation of the silver equivalent for the San Marcial estimate because of limited metallurgical testwork for gold; however, the preliminary work does indicate that gold recoveries could be in the range of 70% to 80%.

EMX has not done sufficient work to classify the sampling and intercepts as compliant with NI 43-101 regulation, and these results should not be relied upon until they are confirmed. However, EMX believes these results to be reliable and relevant.
 

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