Capitan Silver posts increase in Inferred Mineral Resources at Capitan Hill oxide gold deposit, Mexico
Capitan Silver Corp. [TSXV: CAPT] reported that it has completed an updated Mineral Resource Estimate (MRE) for the Capitan Hill oxide gold deposit at its Cruz de Plata silver-gold project, Durango, Mexico.
Highlights: New pit-constrained MRE defined for Capitan Hill is reported at a 0.18 g/t gold cut-off grade, using a US$2,500/oz gold price.
Inferred Mineral Resources of 39,795,000 tonnes at 0.41 g/t Au for 525,000 troy oz of gold represents a 115% increase in contained gold ounces compared to the historical block model and the previous MRE.
The 2025 updated MRE produced an in-pit resource that represents 78% of all the block modelled gold ounces above the lower cut-off at Capitan Hill to date. Only in-pit ounces are reported as part of the MRE.
The historical 2020 Capitan Hill MRE reported resources within 150 metres depth from surface using a cut-off of 0.25 g/t Au, which contained 20,722,000 tonnes at 0.46 g/t Au for 305,000 oz gold.
To allow comparison of pit-constrained contained metal, a conceptual pit based on the 2020 historical MRE parameters and a US$1,500/oz gold price was created to constrain the historical 2020 Capitan Hill MRE. Within this conceptual pit shell, the historical 2020 Capitan Hill MRE contains 15,358,000 tonnes at 0.50 g/t Au for 244,000 oz of gold, using a 0.25 g/t Au cut-off.
The Capitan Hill Gold Deposit is in addition to the company’s Jesus Maria Silver Trend and represents approximately 1% of the total Cruz de Plata project area.
Approximately 2/3 of the expanded 15,000-metre drill program for 2025 has been completed with only 1/3 of the assay results released. Assay results pending for 31 drillholes, with drilling ongoing into Q1 2026
A property-wide geophysical survey has been initiated with results expected in Q1 2026.
Alberto Orozco, CEO of Capitan Silver, commented: “While silver remains our primary focus and the strongest driver of value at Cruz de Plata, the updated in-pit constrained gold resource at Capitan Hill adds real strength to the project. The growth we achieved with limited drilling highlights the quality of the system and the optionality it brings to our silver-focused district.
“It’s also worth noting that our team has had tremendous success in the past with deposits like Capitan Hill, where we have advanced and built two similar projects — both on time and on budget, while creating meaningful shareholder value along the way.”
During 2020 and 2021 Capitan completed a total of 12,209 metres of Reverse Circulation (RC) exploration drilling in 49 drillholes at Capitan Hill. The focus of this drill program was to expand the oxide gold mineralization along strike to the northwest and southeast, as well as down-dip to the southwest of the previous MRE. Additionally, infill drilling was completed along some section lines to help constrain the higher-grade mineralization that occurs along the volcanic-sediment unconformity.
The 2025 Capitan Hill MRE comprises an Inferred Mineral Resource of 525,000 oz of gold at an average grade of 0.41 g/t Au and 4,244,000 oz of silver at an average grade of 3.3 g/t Ag, within a total of 39,795,000 tonnes.
On October 1, 2025, Capitan provided an update on new silver and gold targets across its recently consolidated property package. This included the El Tubo Target area, which is located approximately 1.75km to the east-northeast of Capitan Hill.
The El Tubo target occurs along a similar, preserved portion of the volcanic-sedimentary unconformity that hosts Capitan Hill. Along this unconformity, plugs of rhyolitic porphyry dykes have intruded and created areas of brecciation and veining, that look very similar to the mineralization at Capitan Hill. Grab and chip sampling along these zones have returned anomalous gold grades ranging from 15ppb to 1.25 g/t. This zone of mineralization has been traced for approximately 1.1km along strike and has been traced in outcrop over a width between 2-10m where exposed. This area is considered to be at the drill ready stage, with shallow RC drilling planned in 2026.
Exploration at Cruz de Plata continues to steadily progress into December 2025. Drilling is expected to continue until December 20, with an additional six to seven RC drillholes targeted for completion before the holiday break. Drilling (completed and planned) since November has focused on the down-dip expansion of the Jesus Maria Silver Trend to the south of previously released holes 25-ERRC-21, 25 and 12; down-dip and down-plunge expansion of the new high-grade zone discovered in drillholes 25-ERRC-12 and 26; a southwest-oriented drillhole to test the new Peñoles Fault target between drillholes 25-ERRC-17 and 12, drilling along strike (to the west) of the newly-discovered high-grade zone at drillhole 25-ERRC-17; follow-up drilling down-dip and along strike of the high-grade result returned from drillhole 25-ERRC-20 and new targets defined by high-grade surface samples, to the north and west of the San Rafael zone.
Capitan Silver is defining a new high-grade silver system at its Cruz de Plata project, located in the heart of Mexico’s primary silver belt.
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