GR Silver (TSXV:GRSL) - Spotting Opportunity in Mexico's Silver Renaissance

Interview with Eric Zaunscherb, Chairman & CEO of GR Silver

Our previous interview: https://www.cruxinvestor.com/posts/gr-silver-mining-tsx-v-grsl-time-to-restructure-and-rebuild-3878

Recording date: 29th of November, 2024

GR Silver Mining (TSXV:GRSL) is poised to capitalize on the resurgence of Mexico's mining industry under the new administration of President Claudia Sheinbaum. With its flagship Plomosas silver project in Sinaloa, strengthened balance sheet, and strategic vision for consolidation, GR Silver offers investors a compelling opportunity to gain leveraged exposure to rising silver prices.

The Plomosas project encompasses the past-producing Plomosas mine and the highly prospective San Marcial area. The Plomosas mine, which boasts 7.4 km of underground development, is fully permitted and represents a near-term monetization opportunity through a potential partnership. However, the real excitement lies in San Marcial, where GR Silver has delineated a 134 Moz silver equivalent resource across indicated and inferred categories.

San Marcial hosts a unique geological model with wide, high-grade silver mineralization in hydrothermal breccias and feeder structures. Drilling highlights, like the 102m intercept grading 308 g/t Ag, showcase the potential for further resource growth. GR Silver's geological team, led by President and COO Marcio Fonseca, is confident in the potential for low-cost, bulk underground mining at the project.

Over the past year, GR Silver has executed an impressive financial turnaround, eliminating a $28M working capital deficit by divesting a non-core asset. The company now has positive working capital, no debt, and a modest cash balance to resume exploration. Management is confident in its ability to raise additional funds as needed, given the compelling investment thesis.

Beyond exploration, GR Silver is actively seeking opportunities to participate in the ongoing consolidation of the Mexican silver industry. The company's ideal acquisition target would have existing production, a development-stage project, and exploration upside. With a disciplined approach to M&A and a focus on value creation, GR Silver is well-positioned to build a leading silver company in the region.

The macro backdrop for silver is also highly supportive, with demand from the solar industry expected to grow from 16% to 19% of total supply in 2024. As Mexico's new government takes a more pragmatic approach to mining, the combination of rising silver prices and increased investor interest should drive a re-rating of GR Silver's valuation. Currently trading at just $0.65/oz in the ground, in line with Mexican peers, the company offers an attractive entry point for investors seeking exposure to the silver space.

Learn more: https://www.cruxinvestor.com/companies/gr-silver-mining

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